HB 0425

CS

CHAMBER ACTION

1	The Civil Justice Committee recommends the following:
2
3	Council/Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to the Florida Trust Code; creating parts
7	I, II, III, IV, V, VI, VII, VIII, IX, X, XI, XII, and XIII
8	of chapter 736, F.S.; providing a short title; providing
9	general provisions and definitions; providing for judicial
10	proceedings; providing for representations; providing for
11	creation, validity, modification, and termination of
12	trusts; providing for creditors' claims; providing for
13	spendthrift, discretionary, and revocable trusts;
14	providing for the office of trustee; providing for powers
15	and duties of the trustee; providing for trust
16	investments; providing for liability of trustee and rights
17	of persons dealing with trustee; providing for rules of
18	construction; providing for charitable trusts; providing
19	miscellaneous provisions; creating s. 518.117, F.S.;
20	authorizing investment of certain fiduciary funds by
21	certain fiduciaries; amending s. 660.25, F.S.; providing a
22	definition of the term "investment instrument"; amending
23	s. 660.417, F.S.; revising provisions relating to
24	investment of fiduciary funds in investment instruments by
25	certain banks or trust companies; creating s. 689.175,
26	F.S.; abolishing the worthier title doctrine; providing
27	construction of certain instrument language; amending s.
28	731.103, F.S.; correcting a cross-reference; providing
29	construction relating to establishment of death by certain
30	evidence under certain circumstances; creating s.
31	731.1035, F.S.; providing for application of rules of
32	evidence in civil actions to certain proceedings; amending
33	s. 731.201, F.S.; revising definitions; conforming terms
34	and correcting cross-references; amending s. 731.303,
35	F.S.; specifying nonapplication of certain orders relating
36	to powers of revocation and powers of appointment;
37	revising provisions relating to representation by a holder
38	of a power of appointment; amending s. 732.513, F.S.;
39	deleting a ground protecting a devise's validity; amending
40	s. 732.603, F.S.; revising provisions relating to
41	antilapse, deceased devisees, and class gifts; amending s.
42	744.331, F.S.; revising provisions relating to orders
43	determining incapacity; amending s. 744.441, F.S.;
44	revising authority of certain guardians to prosecute or
45	defend claims or proceedings for certain purposes;
46	specifying duties of a court; creating s. 744.462, F.S.;
47	providing requirements for judicial determinations
48	relating to alternatives to guardianship; providing duties
49	of a court; amending ss. 497.458, 607.0802, 617.0802,
50	660.46, 660.418, 689.071, 689.075, 709.08, 721.08, 721.53,
51	732.2075, 732.604, 732.611, 733.212, 733.602, 733.805,
52	733.817, 738.104, 738.1041, 738.202, 739.102, and 744.361,
53	F.S., to conform terms and correct cross-references;
54	repealing ss. 737.101, 737.105, 737.106, 737.111, 737.115,
55	and 737.116, constituting part I of ch. 737, F.S.,
56	relating to trust registration; repealing ss. 737.201,
57	737.202, 737.203, 737.2035, 737.204, 737.2041, 737.205,
58	737.206, 737.2065, 737.207, 737.208, and 737.209,
59	constituting part II of ch. 737, F.S., relating to
60	jurisdiction of courts; repealing ss. 737.301, 737.302,
61	737.303, 737.3035, 737.304, 737.305, 737.3053, 737.3054,
62	737.3055, 737.306, 737.3061, 737.307, 737.308, and
63	737.309, constituting part III of ch. 737, F.S., relating
64	to duties and liabilities of trustees; repealing ss.
65	737.401, 737.402, 737.4025, 737.403, 737.4031, 737.4032,
66	737.4033, 737.404, 737.405, and 737.406, constituting part
67	IV of ch. 737, F.S., relating to powers of trustees;
68	repealing ss. 737.501, 737.502, 737.503, 737.504, 737.505,
69	737.506, 737.507, 737.508, 737.509, 737.510, 737.511, and
70	737.512, constituting part V of ch. 737, F.S., relating to
71	charitable trusts; repealing ss. 737.6035, 737.621,
72	737.622, 737.623, 737.624, 737.625, 737.626, and 737.627,
73	consisting of part VI of ch. 737, F.S., relating to rules
74	of construction of trust administration; providing an
75	effective date.
76
77	Be It Enacted by the Legislature of the State of Florida:
78
79	Section 1.  Part I of chapter 736, Florida Statutes,
80	consisting of sections 736.0101, 736.0102, 736.0103, 736.0104,
81	736.0105, 736.0106, 736.0107, 736.0108, 736.0109, 736.0110,
82	736.0111, and 736.0112, is created to read:
83
84	PART I
85	GENERAL PROVISIONS AND DEFINITIONS
86
87	736.0101  Short title.--This chapter may be cited as the
88	"Florida Trust Code" and for purposes of this chapter is
89	referred to as the "code."
90	736.0102  Scope.--This code applies to express trusts,
91	charitable or noncharitable, and trusts created pursuant to a
92	law, judgment, or decree that requires the trust to be
93	administered in the manner of an express trust. This code does
94	not apply to constructive or resulting trusts; conservatorships;
95	custodial arrangements pursuant to the Florida Uniform Transfers
96	to Minors Act; business trusts providing for certificates to be
97	issued to beneficiaries; common trust funds; land trusts under
98	s. 689.05; trusts created by the form of the account or by the
99	deposit agreement at a financial institution; voting trusts;
100	security arrangements; liquidation trusts; trusts for the
101	primary purpose of paying debts, dividends, interest, salaries,
102	wages, profits, pensions, or employee benefits of any kind; and
103	any arrangement under which a person is nominee or escrowee for
104	another.
105	736.0103  Definitions.--Unless the context otherwise
106	requires, in this code:
107	(1)  "Action," with respect to an act of a trustee,
108	includes a failure to act.
109	(2)  "Affiliate" means any person or entity that directly
110	or indirectly through one or more intermediaries owns or
111	controls, is owned or controlled by, or is under common control
112	or ownership with, the fiduciary. An affiliate may include, but
113	is not limited to, an investment adviser, administrator, broker,
114	custodian, transfer agent, placement agent, servicing agent,
115	registrar, custodian, underwriter, sponsor, distributor, or
116	manager.
117	(3)  "Ascertainable standard" means a standard relating to
118	an individual's health, education, support, or maintenance
119	within the meaning of s. 2041(b)(1)(A) or s. 2514(c)(1) of the
120	Internal Revenue Code of 1986, as amended.
121	(4)  "Beneficiary" means a person who:
122	(a)  Has a present or future beneficial interest in a
123	trust, vested or contingent; or
124	(b)  Holds a power of appointment over trust property in a
125	capacity other than that of trustee.
126	(5)  "Charitable trust" means a trust, or portion of a
127	trust, created for a charitable purpose as described in s.
128	736.0405(1).
129	(6)  "Environmental law" means a federal, state, or local
130	law, rule, regulation, or ordinance that relates to protection
131	of the environment or human health.
132	(7)  "General power of appointment" means a power of
133	appointment exercisable in favor of the holder of the power, the
134	power holder's creditors, the power holder's estate, or the
135	creditors of the power holder's estate.
136	(8)  "Guardian of the person" means a person appointed by
137	the court to make decisions regarding the support, care,
138	education, health, and welfare of a minor or an incapacitated
139	adult. The term does not include a guardian ad litem.
140	(9)  "Guardian of the property" means a person appointed by
141	the court to administer the estate of a minor or incapacitated
142	adult.
143	(10)  "Interests of the beneficiaries" means the beneficial
144	interests provided in the terms of the trust.
145	(11)  "Jurisdiction" with respect to a geographic area,
146	includes a state or country.
147	(12)  "Power of withdrawal" means a presently exercisable
148	general power of appointment other than a power:
149	(a)  Exercisable by a trustee and limited by an
150	ascertainable standard; or
151	(b)  Exercisable by another person only upon consent of the
152	trustee or a person holding an adverse interest.
153	(13)  "Property" means anything that may be the subject of
154	ownership, real or personal, legal or equitable, or any interest
155	therein.
156	(14)  "Qualified beneficiary" means a living beneficiary
157	who, on the date the beneficiary's qualification is determined:
158	(a)  Is a distributee or permissible distributee of trust
159	income or principal;
160	(b)  Would be a distributee or permissible distributee of
161	trust income or principal if the interests of the distributees
162	described in paragraph (a) terminated on that date without
163	causing the trust to terminate; or
164	(c)  Would be a distributee or permissible distributee of
165	trust income or principal if the trust terminated in accordance
166	with its terms on that date.
167	(15)  "Revocable," as applied to a trust, means revocable
168	by the settlor without the consent of the trustee or a person
169	holding an adverse interest.
170	(16)  "Settlor" means a person, including a testator, who
171	creates or contributes property to a trust. If more than one
172	person creates or contributes property to a trust, each person
173	is a settlor of the portion of the trust property attributable
174	to that person's contribution except to the extent another
175	person has the power to revoke or withdraw that portion.
176	(17)  "Spendthrift provision" means a term of a trust that
177	restrains both voluntary and involuntary transfer of a
178	beneficiary's interest.
179	(18)  "State" means any state of the United States and
180	includes the District of Columbia, the Commonwealth of Puerto
181	Rico, and any territory or possession subject to the legislative
182	authority of the United States.
183	(19)  "Terms of a trust" means the manifestation of the
184	settlor's intent regarding a trust's provisions as expressed in
185	the trust instrument or as may be established by other evidence
186	that would be admissible in a judicial proceeding.
187	(20)  "Trust instrument" means an instrument executed by a
188	settlor that contains terms of the trust, including any
189	amendments to the trust.
190	(21)  "Trustee" means the original trustee and includes any
191	additional trustee, any successor trustee, and any cotrustee.
192	736.0104  Knowledge.--
193	(1)  Subject to subsection (2), a person has knowledge of a
194	fact if the person:
195	(a)  Has actual knowledge of the fact;
196	(b)  Has received a notice or notification of the fact; or
197	(c)  Has reason to know the fact from all the other facts
198	and circumstances known to the person at the time in question.
199	(2)  An organization that conducts activities through
200	employees has notice or knowledge of a fact involving a trust
201	only from the time the information was received by an employee
202	having responsibility to act on matters involving the trust, or
203	would have been brought to the employee's attention if the
204	organization had exercised reasonable diligence. An organization
205	exercises reasonable diligence if the organization maintains
206	reasonable routines for communicating significant information to
207	the employee having responsibility to act on matters involving
208	the trust and there is reasonable compliance with the routines.
209	Reasonable diligence does not require an employee of the
210	organization to communicate information unless the communication
211	is part of the individual's regular duties or the individual
212	knows a matter involving the trust would be materially affected
213	by the information.
214	736.0105  Default and mandatory rules.--
215	(1)  Except as otherwise provided in the terms of the
216	trust, this code governs the duties and powers of a trustee,
217	relations among trustees, and the rights and interests of a
218	beneficiary.
219	(2)  The terms of a trust prevail over any provision of
220	this code except:
221	(a)  The requirements for creating a trust.
222	(b)  The duty of the trustee to act in good faith and in
223	accordance with the terms and purposes of the trust and the
224	interests of the beneficiaries.
225	(c)  The requirement that a trust and its terms be for the
226	benefit of the trust's beneficiaries, and that the trust have a
227	purpose that is lawful, not contrary to public policy, and
228	possible to achieve.
229	(d)  The periods of limitation for commencing a judicial
230	proceeding.
231	(e)  The power of the court to take such action and
232	exercise such jurisdiction as may be necessary in the interests
233	of justice.
234	(f)  The requirements under s. 736.0108(1) for the
235	designation of a principal place of administration of the trust.
236	(g)  The jurisdiction and venue provisions in ss. 736.0202,
237	736.0203, and 736.0204.
238	(h)  The restrictions on the designation of representative
239	under s. 736.0306.
240	(i)  The formalities required under s. 736.0403(2) for the
241	execution of a trust.
242	(j)  The power of the court to modify or terminate a trust
243	under ss. 736.0410-736.04115, except as provided in s.
244	736.04115(3)(b), and under ss. 736.0413, 736.0415, and 736.0416.
245	(k)  The ability to modify a trust under s. 736.0412,
246	except as provided in s. 736.0412(4)(b).
247	(l)  The effect of a spendthrift provision and the rights
248	of certain creditors and assignees to reach a trust as provided
249	in part V.
250	(m)  The trustee's duty under s. 736.05053 to pay expenses
251	and obligations of the settlor's estate.
252	(n)  The trustee's duty under s. 736.05055 to file a notice
253	of trust at the settlor's death.
254	(o)  The right of a trustee under s. 736.0701 to decline a
255	trusteeship and the right of a trustee under s. 736.0705 to
256	resign a trusteeship.
257	(p)  The power of the court under s. 736.0702 to require,
258	dispense with, modify, or terminate a bond.
259	(q)  The power of the court under s. 736.0708(2) to adjust
260	a trustee's compensation specified in the terms of the trust
261	that is unreasonably low or high.
262	(r)  The duty under s. 736.0813(1)(a) and (b) to notify
263	qualified beneficiaries of an irrevocable trust of the existence
264	of the trust, of the identity of the trustee, and of their
265	rights to trust accountings.
266	(s)  The duty under s. 736.0813(1)(c) and (d) to provide a
267	complete copy of the trust instrument and to account to
268	qualified beneficiaries.
269	(t)  The duty under s. 736.0813(1)(e) to respond to the
270	request of a qualified beneficiary of an irrevocable trust for
271	relevant information about the assets and liabilities of the
272	trust and the particulars relating to trust administration.
273	(u)  The effect of an exculpatory term under s. 736.1011.
274	(v)  The rights under ss. 736.1013-736.1017 of a person
275	other than a trustee or beneficiary.
276	(w)  The effect of a penalty clause for contesting a trust
277	under s. 736.1108.
278	736.0106  Common law of trusts; principles of equity.--The
279	common law of trusts and principles of equity supplement this
280	code, except to the extent modified by this code or another law
281	of this state.
282	736.0107  Governing law.--The meaning and effect of the
283	terms of a trust are determined by:
284	(1)  The law of the jurisdiction designated in the terms of
285	the trust, provided there is a sufficient nexus to the
286	designated jurisdiction at the time of the creation of the trust
287	or during the trust administration, including, but not limited
288	to, the location of real property held by the trust or the
289	residence of location of an office of the settlor, trustee, or
290	any beneficiary; or
291	(2)  In the absence of a controlling designation in the
292	terms of the trust, the law of the jurisdiction where the
293	settlor resides at the time the trust is first created.
294
295	Notwithstanding subsection (1) or subsection (2), a designation
296	in the terms of a trust is not controlling as to any matter for
297	which the designation would be contrary to a strong public
298	policy of this state.
299	736.0108  Principal place of administration.--
300	(1)  Terms of a trust designating the principal place of
301	administration of the trust are valid only if there is a
302	sufficient connection with the designated jurisdiction. Without
303	precluding other means for establishing a sufficient connection,
304	terms of a trust designating the principal place of
305	administration are valid and controlling if:
306	(a)  A trustee's principal place of business is located in
307	or a trustee is a resident of the designated jurisdiction; or
308	(b)  All or part of the administration occurs in the
309	designated jurisdiction.
310	(2)  Unless otherwise validly designated in the trust
311	instrument, the principal place of administration of a trust is
312	the trustee's usual place of business where the records
313	pertaining to the trust are kept or, if the trustee has no place
314	of business, the trustee's residence. In the case of cotrustees,
315	the principal place of administration is:
316	(a)  The usual place of business of the corporate trustee,
317	if there is only one corporate cotrustee;
318	(b)  The usual place of business or residence of the
319	individual trustee who is a professional fiduciary, if there is
320	only one such person and no corporate cotrustee; or otherwise
321	(c)  The usual place of business or residence of any of the
322	cotrustees as agreed on by the cotrustees.
323	(3)  Notwithstanding any other provision of this section,
324	the principal place of administration of a trust, for which a
325	bank, association, or trust company organized under the laws of
326	this state or bank or savings association organized under the
327	laws of the United States with its main office in this state has
328	been appointed trustee, shall not be moved or otherwise affected
329	solely because the trustee engaged in an interstate merger
330	transaction with an out-of-state bank pursuant to s. 658.2953 in
331	which the out-of-state bank is the resulting bank.
332	(4)  A trustee is under a continuing duty to administer the
333	trust at a place appropriate to its purposes and its
334	administration.
335	(5)  Without precluding the right of the court to order,
336	approve, or disapprove a transfer, the trustee, in furtherance
337	of the duty prescribed by subsection (4), may transfer the
338	trust's principal place of administration to another state or to
339	a jurisdiction outside of the United States.
340	(6)  The trustee shall notify the qualified beneficiaries
341	of a proposed transfer of a trust's principal place of
342	administration not less than 60 days before initiating the
343	transfer. The notice of proposed transfer must include:
344	(a)  The name of the jurisdiction to which the principal
345	place of administration is to be transferred.
346	(b)  The address and telephone number at the new location
347	at which the trustee can be contacted.
348	(c)  An explanation of the reasons for the proposed
349	transfer.
350	(d)  The date on which the proposed transfer is anticipated
351	to occur.
352	(e)  The date, not less than 60 days after the notice is
353	provided, by which the qualified beneficiary must notify the
354	trustee of an objection to the proposed transfer.
355	(7)  The authority of a trustee to act under this section
356	without court approval to transfer a trust's principal place of
357	administration is suspended if a qualified beneficiary files a
358	lawsuit objecting to the proposed transfer on or before the date
359	specified in the notice. The suspension is effective until the
360	lawsuit is dismissed or withdrawn.
361	(8)  In connection with a transfer of the trust's principal
362	place of administration, the trustee may transfer any of the
363	trust property to a successor trustee designated in the terms of
364	the trust or appointed pursuant to s. 736.0704.
365	736.0109  Methods and waiver of notice.--
366	(1)  Notice to a person under this code or the sending of a
367	document to a person under this code must be accomplished in a
368	manner reasonably suitable under the circumstances and likely to
369	result in receipt of the notice or document. Permissible methods
370	of notice or for sending a document include first-class mail,
371	personal delivery, delivery to the person's last known place of
372	residence or place of business, or a properly directed facsimile
373	or other electronic message.
374	(2)  Notice otherwise required under this code or a
375	document otherwise required to be sent under this code need not
376	be provided to a person whose identity or location is unknown to
377	and not reasonably ascertainable by the trustee.
378	(3)  Notice under this code or the sending of a document
379	under this code may be waived by the person to be notified or to
380	whom the document is to be sent.
381	(4)  Notice of a judicial proceeding must be given as
382	provided in the Florida Rules of Civil Procedure.
383	736.0110  Others treated as qualified beneficiaries.--
384	(1)  A charitable organization expressly designated to
385	receive distributions under the terms of a charitable trust has
386	the rights of a qualified beneficiary under this code if the
387	charitable organization, on the date the charitable
388	organization's qualification is being determined:
389	(a)  Is a distributee or permissible distributee of trust
390	income or principal;
391	(b)  Would be a distributee or permissible distributee of
392	trust income or principal on termination of the interests of
393	other distributees or permissible distributees then receiving or
394	eligible to receive distributions; or
395	(c)  Would be a distributee or permissible distributee of
396	trust income or principal if the trust terminated on that date.
397	(2)  A person appointed to enforce a trust created for the
398	care of an animal or another noncharitable purpose as provided
399	in s. 736.0408 or s. 736.0409 has the rights of a qualified
400	beneficiary under this code.
401	(3)  The Attorney General may assert the rights of a
402	qualified beneficiary with respect to a charitable trust having
403	its principal place of administration in this state.
404	736.0111  Nonjudicial settlement agreements.--
405	(1)  For purposes of this section, the term "interested
406	persons" means persons whose interest would be affected by a
407	settlement agreement.
408	(2)  Except as otherwise provided in subsection (3),
409	interested persons may enter into a binding nonjudicial
410	settlement agreement with respect to any matter involving a
411	trust.
412	(3)  A nonjudicial settlement agreement among the trustee
413	and trust beneficiaries is valid only to the extent the terms
414	and conditions could be properly approved by the court. A
415	nonjudicial settlement may not be used to produce a result not
416	authorized by other provisions of this code, including, but not
417	limited to, terminating or modifying a trust in an impermissible
418	manner.
419	(4)  Matters that may be resolved by a nonjudicial
420	settlement agreement include:
421	(a)  The interpretation or construction of the terms of the
422	trust.
423	(b)  The approval of a trustee's report or accounting.
424	(c)  The direction to a trustee to refrain from performing
425	a particular act or the grant to a trustee of any necessary or
426	desirable power.
427	(d)  The resignation or appointment of a trustee and the
428	determination of a trustee's compensation.
429	(e)  The transfer of a trust's principal place of
430	administration.
431	(f)  The liability of a trustee for an action relating to
432	the trust.
433	(5)  Any interested person may request the court to approve
434	or disapprove a nonjudicial settlement agreement.
435	736.0112  Qualification of foreign trustee.--Unless
436	otherwise doing business in this state, local qualification by a
437	foreign trustee is not required for the trustee to receive
438	distribution from a local estate. Nothing in this chapter shall
439	affect the provisions of s. 660.41.
440	Section 2.  Part II of chapter 736, Florida Statutes,
441	consisting of sections 736.0201, 736.0202, 736.0203, 736.0204,
442	736.0205, 736.0206, and 736.0207, is created to read:
443
444	PART II
445	JUDICIAL PROCEEDINGS
446
447	736.0201  Role of court in trust proceedings.--
448	(1)  Except as provided in subsection (5) and s. 736.0206,
449	proceedings concerning trusts shall be commenced by filing a
450	complaint and shall be governed by the Florida Rules of Civil
451	Procedure.
452	(2)  The court may intervene in the administration of a
453	trust to the extent the court's jurisdiction is invoked by an
454	interested person or as provided by law.
455	(3)  A trust is not subject to continuing judicial
456	supervision unless ordered by the court.
457	(4)  A judicial proceeding involving a trust may relate to
458	the validity, administration, or distribution of a trust,
459	including proceedings to:
460	(a)  Determine the validity of all or part of a trust;
461	(b)  Appoint or remove a trustee;
462	(c)  Review trustees' fees;
463	(d)  Review and settle interim or final accounts;
464	(e)  Ascertain beneficiaries; determine any question
465	arising in the administration or distribution of any trust,
466	including questions of construction of trust instruments;
467	instruct trustees; and determine the existence or nonexistence
468	of any immunity, power, privilege, duty, or right;
469	(f)  Obtain a declaration of rights; or
470	(g)  Determine any other matters involving trustees and
471	beneficiaries.
472	(5)  A proceeding for the construction of a testamentary
473	trust may be filed in the probate proceeding for the testator's
474	estate. The proceeding shall be governed by the Florida Probate
475	Rules.
476	736.0202  Jurisdiction over trustee and beneficiary.--
477	(1)  By accepting the trusteeship of a trust having its
478	principal place of administration in this state or by moving the
479	principal place of administration to this state, the trustee
480	submits personally to the jurisdiction of the courts of this
481	state regarding any matter involving the trust.
482	(2)  With respect to their interests in the trust, the
483	beneficiaries of a trust having its principal place of
484	administration in this state are subject to the jurisdiction of
485	the courts of this state regarding any matter involving the
486	trust. By accepting a distribution from such a trust, the
487	recipient submits personally to the jurisdiction of the courts
488	of this state regarding any matter involving the distribution.
489	(3)  This section does not preclude other methods of
490	obtaining jurisdiction over a trustee, beneficiary, or other
491	person receiving property from the trust.
492	736.0203  Subject-matter jurisdiction.--The circuit court
493	has original jurisdiction in this state of all proceedings
494	arising under this code.
495	736.0204  Venue.--Venue for actions and proceedings
496	concerning trusts, including those under s. 736.0201, may be
497	laid in:
498	(1)  Any county where the venue is proper under chapter 47;
499	(2)  Any county where the beneficiary suing or being sued
500	resides or has its principal place of business; or
501	(3)  The county where the trust has its principal place of
502	administration.
503	736.0205  Trust proceedings; dismissal of matters relating
504	to foreign trusts.--Over the objection of a party, the court
505	shall not entertain proceedings under s. 736.0201 for a trust
506	registered, or having its principal place of administration, in
507	another state unless all interested parties could not be bound
508	by litigation in the courts of the state where the trust is
509	registered or has its principal place of administration. The
510	court may condition a stay or dismissal of a proceeding under
511	this section on the consent of any party to jurisdiction of the
512	state where the trust is registered or has its principal place
513	of business, or the court may grant a continuance or enter any
514	other appropriate order.
515	736.0206  Proceedings for review of employment of agents
516	and review of compensation of trustee and employees of trust.--
517	(1)  After notice to all interested persons, the court may
518	review the propriety of the employment by a trustee of any
519	person, including any attorney, auditor, investment adviser, or
520	other specialized agent or assistant, and the reasonableness of
521	any compensation paid to that person or to the trustee.
522	(2)  If the settlor's estate is being probated, and the
523	settlor's trust or the trustee of the settlor's trust is a
524	beneficiary under the settlor's will, the trustee, any person
525	employed by the trustee, or any interested person may have the
526	propriety of employment and the reasonableness of the
527	compensation of the trustee or any person employed by the
528	trustee determined in the probate proceeding.
529	(3)  The burden of proof of the propriety of the employment
530	and the reasonableness of the compensation shall be on the
531	trustee and the person employed by the trustee. Any person who
532	is determined to have received excessive compensation from a
533	trust for services rendered may be ordered to make appropriate
534	refunds.
535	(4)  Court proceedings to determine reasonable compensation
536	of a trustee or any person employed by a trustee, if required,
537	are a part of the trust administration process. The costs,
538	including attorney's fees, of the person assuming the burden of
539	proof of propriety of the employment and reasonableness of the
540	compensation shall be determined by the court and paid from the
541	assets of the trust unless the court finds the compensation paid
542	or requested to be substantially unreasonable. The court shall
543	direct from which part of the trust assets the compensation
544	shall be paid.
545	(5)  The court may determine reasonable compensation for a
546	trustee or any person employed by a trustee without receiving
547	expert testimony. Any party may offer expert testimony after
548	notice to interested persons. If expert testimony is offered, a
549	reasonable expert witness fee shall be awarded by the court and
550	paid from the assets of the trust. The court shall direct from
551	which part of the trust assets the fee shall be paid.
552	(6)  Persons given notice as provided in this section shall
553	be bound by all orders entered on the complaint.
554	(7)  In a proceeding pursuant to subsection (2), the
555	petitioner may serve formal notice as provided in the Florida
556	Probate Rules, and such notice shall be sufficient for the court
557	to acquire jurisdiction over the person receiving the notice to
558	the extent of the person's interest in the trust.
559	736.0207  Trust contests.--An action to contest the
560	validity of all or part of a trust may not be commenced until
561	the trust becomes irrevocable, except this section does not
562	prohibit such action by the guardian of the property of an
563	incapacitated settlor.
564	Section 3.  Part III of chapter 736, Florida Statutes,
565	consisting of sections 736.0301, 736.0302, 736.0303, 736.0304,
566	736.0305, and 736.0306, is created to read:
567
568	PART III
569	REPRESENTATION
570
571	736.0301  Representation; basic effect.--
572	(1)  Notice, information, accountings, or reports given to
573	a person who may represent and bind another person under this
574	part may serve as a substitute for and have the same effect as
575	notice, information, accountings, or reports given directly to
576	the other person.
577	(2)  Actions taken by a person who represents the interests
578	of another person under this part are binding on the person
579	whose interests are represented to the same extent as if the
580	actions had been taken by the person whose interests are
581	represented.
582	(3)  Except as otherwise provided in s. 736.0602, a person
583	under this part who represents a settlor lacking capacity may
584	receive notice and give a binding consent on the settlor's
585	behalf.
586	(4)  A trustee is not liable for giving notice,
587	information, accountings, or reports to a beneficiary who is
588	represented by another person under this part and nothing in
589	this part prohibits the trustee from giving notice, information,
590	accountings, or reports to the person represented.
591	736.0302  Representation by holder of power of
592	appointment.--
593	(1)  The holder of a power of appointment may represent and
594	bind persons whose interests, as permissible appointees, takers
595	in default, or otherwise, are subject to the power.
596	(2)  Subsection (1) does not apply to:
597	(a)  Any matter determined by the court to involve fraud or
598	bad faith by the trustee;
599	(b)  A power of a trustee to distribute trust property; or
600	(c)  A power of appointment held by a person while the
601	person is the sole trustee.
602	736.0303  Representation by fiduciaries and parents.--To
603	the extent there is no conflict of interest between the
604	representative and the person represented or among those being
605	represented with respect to a particular question or dispute:
606	(1)  A guardian of the property may represent and bind the
607	estate that the guardian of the property controls.
608	(2)  An agent having authority to act with respect to the
609	particular question or dispute may represent and bind the
610	principal.
611	(3)  A trustee may represent and bind the beneficiaries of
612	the trust.
613	(4)  A personal representative of a decedent's estate may
614	represent and bind persons interested in the estate.
615	(5)  A parent may represent and bind the parent's unborn
616	child, or the parent's minor child if a guardian of the property
617	for the minor child has not been appointed.
618	736.0304  Representation by person having substantially
619	identical interest.--Unless otherwise represented, a minor,
620	incapacitated, or unborn individual, or a person whose identity
621	or location is unknown and not reasonably ascertainable, may be
622	represented by and bound by another person having a
623	substantially identical interest with respect to the particular
624	question or dispute, but only to the extent there is no conflict
625	of interest between the representative and the person
626	represented.
627	736.0305  Appointment of representative.--
628	(1)  If the court determines that an interest is not
629	represented under this part, or that the otherwise available
630	representation might be inadequate, the court may appoint a
631	representative to receive notice, give consent, and otherwise
632	represent, bind, and act on behalf of a minor, incapacitated, or
633	unborn individual, or a person whose identity or location is
634	unknown. If not precluded by a conflict of interest, a
635	representative may be appointed to represent several persons or
636	interests.
637	(2)  A representative may act on behalf of the individual
638	represented with respect to any matter arising under this code,
639	whether or not a judicial proceeding concerning the trust is
640	pending.
641	(3)  In making decisions, a representative may consider
642	general benefits accruing to the living members of the
643	represented individual's family.
644	736.0306  Designated representative.--
645	(1)  If authorized in the trust instrument, one or more
646	persons may be designated to represent and bind a beneficiary
647	and receive any notice, information, accounting, or report.
648	(2)  Except as otherwise provided in this code, a person
649	designated, as provided in subsection (1) may not represent and
650	bind a beneficiary while that person is serving as trustee.
651	(3)  Except as otherwise provided in this code, a person
652	designated, as provided in subsection (1) may not represent and
653	bind another beneficiary if the person designated also is a
654	beneficiary, unless:
655	(a)  That person was named by the settlor; or
656	(b)  That person is the beneficiary's spouse or a
657	grandparent or descendant of a grandparent of the beneficiary or
658	the beneficiary's spouse.
659	(4)  No person designated, as provided in subsection (1) is
660	liable to the beneficiary whose interests are represented, or to
661	anyone claiming through that beneficiary, for any actions or
662	omissions to act made in good faith.
663	Section 4.  Part IV of chapter 736, Florida Statutes,
664	consisting of sections 736.0401, 736.0402, 736.0403, 736.0404,
665	736.0405, 736.0406, 736.0407, 736.0408, 736.0409, 736.0410,
666	736.04113, 736.04115, 736.0412, 736.0413, 736.0414, 736.0415,
667	736.0416, and 736.0417, is created to read:
668
669	PART IV
670	CREATION, VALIDITY, MODIFICATION, AND TERMINATION
671
672	736.0401  Methods of creating trust.--A trust may be
673	created by:
674	(1)  Transfer of property to another person as trustee
675	during the settlor's lifetime or by will or other disposition
676	taking effect on the settlor's death;
677	(2)  Declaration by the owner of property that the owner
678	holds identifiable property as trustee; or
679	(3)  Exercise of a power of appointment in favor of a
680	trustee.
681	736.0402  Requirements for creation.--
682	(1)  A trust is created only if:
683	(a)  The settlor has capacity to create a trust.
684	(b)  The settlor indicates an intent to create the trust.
685	(c)  The trust has a definite beneficiary or is:
686	1.  A charitable trust;
687	2.  A trust for the care of an animal, as provided in s.
688	736.0408; or
689	3.  A trust for a noncharitable purpose, as provided in s.
690	736.0409.
691	(d)  The trustee has duties to perform.
692	(e)  The same person is not the sole trustee and sole
693	beneficiary.
694	(2)  A beneficiary is definite if the beneficiary can be
695	ascertained now or in the future, subject to any applicable rule
696	against perpetuities.
697	(3)  A power of a trustee to select a beneficiary from an
698	indefinite class is valid. If the power is not exercised within
699	a reasonable time, the power fails and the property subject to
700	the power passes to the persons who would have taken the
701	property had the power not been conferred.
702	736.0403  Trusts created in other jurisdictions;
703	formalities required for revocable trusts.--
704	(1)  A trust not created by will is validly created if the
705	creation of the trust complies with the law of the jurisdiction
706	in which the trust instrument was executed or the law of the
707	jurisdiction in which, at the time of creation, the settlor was
708	domiciled.
709	(2)  Notwithstanding subsection (1):
710	(a)  No trust or confidence of or in any messuages, lands,
711	tenements, or hereditaments shall arise or result unless the
712	trust complies with the provisions of s. 689.05.
713	(b)  The testamentary aspects of a revocable trust,
714	executed by a settlor who is a domiciliary of this state at the
715	time of execution, are invalid unless the trust instrument is
716	executed by the settlor with the formalities required for the
717	execution of a will in this state. For purposes of this
718	subsection, the term "testamentary aspects" means those
719	provisions of the trust instrument that dispose of the trust
720	property on or after the death of the settlor other than to the
721	settlor's estate.
722	(3)  This section does not apply to trusts established as
723	part of an employee annuity described in s. 403 of the Internal
724	Revenue Code of 1986, as amended, an individual retirement
725	account as described in s. 408 of the Internal Revenue Code of
726	1986, as amended, a Keogh (HR-10) Plan, or a retirement or other
727	plan that is qualified under s. 401 of the Internal Revenue Code
728	of 1986, as amended.
729	(4)  This section applies to trusts created on or after the
730	effective date of this code. Section 737.111, as in effect prior
731	to the effective date of this code, continues to apply to trusts
732	created before the effective date of this code.
733	736.0404  Trust purposes.--A trust may be created only to
734	the extent the purposes of the trust are lawful, not contrary to
735	public policy, and possible to achieve. A trust and its terms
736	must be for the benefit of its beneficiaries.
737	736.0405  Charitable purposes; enforcement.--
738	(1)  A trust may be created for charitable purposes.
739	Charitable purposes include, but are not limited to, the relief
740	of poverty; the advancement of arts, sciences, education, or
741	religion; and the promotion of health, governmental, or
742	municipal purposes.
743	(2)  If the terms of a charitable trust do not indicate a
744	particular charitable purpose or beneficiary, the court may
745	select one or more charitable purposes or beneficiaries. The
746	selection must be consistent with the settlor's intent to the
747	extent such intent can be ascertained.
748	(3)  The settlor of a charitable trust, among others, has
749	standing to enforce the trust.
750	736.0406  Effect of fraud, duress, mistake, or undue
751	influence.--A trust is void if the creation of the trust is
752	procured by fraud, duress, mistake, or undue influence. Any part
753	of the trust is void if procured by such means, but the
754	remainder of the trust not procured by such means is valid if
755	the remainder is not invalid for other reasons.
756	736.0407  Evidence of oral trust.--Except as required by s.
757	736.0403 or a law other than this code, a trust need not be
758	evidenced by a trust instrument but the creation of an oral
759	trust and its terms may be established only by clear and
760	convincing evidence.
761	736.0408  Trust for care of an animal.--
762	(1)  A trust may be created to provide for the care of an
763	animal alive during the settlor's lifetime. The trust terminates
764	on the death of the animal or, if the trust was created to
765	provide for the care of more than one animal alive during the
766	settlor's lifetime, on the death of the last surviving animal.
767	(2)  A trust authorized by this section may be enforced by
768	a person appointed in the terms of the trust or, if no person is
769	appointed, by a person appointed by the court. A person having
770	an interest in the welfare of the animal may request the court
771	to appoint a person to enforce the trust or to remove a person
772	appointed.
773	(3)  Property of a trust authorized by this section may be
774	applied only to the intended use of the property, except to the
775	extent the court determines that the value of the trust property
776	exceeds the amount required for the intended use. Except as
777	otherwise provided in the terms of the trust, property not
778	required for the intended use must be distributed to the
779	settlor, if then living, otherwise as part of the settlor's
780	estate.
781	736.0409  Noncharitable trust without ascertainable
782	beneficiary.--Except as otherwise provided in s. 736.0408 or by
783	another provision of law, the following rules apply:
784	(1)  A trust may be created for a noncharitable purpose
785	without a definite or definitely ascertainable beneficiary or
786	for a noncharitable but otherwise valid purpose to be selected
787	by the trustee. The trust may not be enforced for more than 21
788	years.
789	(2)  A trust authorized by this section may be enforced by
790	a person appointed in the terms of the trust or, if no person is
791	appointed, by a person appointed by the court.
792	(3)  Property of a trust authorized by this section may be
793	applied only to the intended use of the property, except to the
794	extent the court determines that the value of the trust property
795	exceeds the amount required for the intended use. Except as
796	otherwise provided in the terms of the trust, property not
797	required for the intended use must be distributed to the
798	settlor, if then living, otherwise as part of the settlor's
799	estate.
800	736.0410  Modification or termination of trust; proceedings
801	for disapproval of nonjudicial acts.--
802	(1)  In addition to the methods of termination prescribed
803	by ss. 736.04113-736.0414, a trust terminates to the extent the
804	trust expires or is revoked or is properly distributed pursuant
805	to the terms of the trust.
806	(2)  A proceeding to disapprove a proposed modification or
807	termination under s. 736.0412 or a trust combination or division
808	under s. 736.0417 may be commenced by any beneficiary.
809	(3)  A proceeding to disapprove a proposed termination
810	under s. 736.0414(1) may be commenced by any qualified
811	beneficiary.
812	736.04113  Judicial modification of irrevocable trust when
813	modification is not inconsistent with settlor's purpose.--
814	(1)  Upon the application of a trustee of the trust or any
815	qualified beneficiary, a court at any time may modify the terms
816	of a trust that is not then revocable in the manner provided in
817	subsection (2), if:
818	(a)  The purposes of the trust have been fulfilled or have
819	become illegal, impossible, wasteful, or impracticable to
820	fulfill;
821	(b)  Because of circumstances not anticipated by the
822	settlor, compliance with the terms of the trust would defeat or
823	substantially impair the accomplishment of a material purpose of
824	the trust; or
825	(c)  A material purpose of the trust no longer exists.
826	(2)  In modifying a trust under this section, a court may:
827	(a)  Amend or change the terms of the trust, including
828	terms governing distribution of the trust income or principal or
829	terms governing administration of the trust;
830	(b)  Terminate the trust in whole or in part;
831	(c)  Direct or permit the trustee to do acts that are not
832	authorized or that are prohibited by the terms of the trust; or
833	(d)  Prohibit the trustee from performing acts that are
834	permitted or required by the terms of the trust.
835	(3)  In exercising discretion to modify a trust under this
836	section:
837	(a)  The court shall consider the terms and purposes of the
838	trust, the facts and circumstances surrounding the creation of
839	the trust, and extrinsic evidence relevant to the proposed
840	modification.
841	(b)  The court shall consider spendthrift provisions as a
842	factor in making a decision but the court is not precluded from
843	modifying a trust because the trust contains spendthrift
844	provisions.
845	(4)  The provisions of this section are in addition to, and
846	not in derogation of, rights under the common law to modify,
847	amend, terminate, or revoke trusts.
848	736.04115  Judicial modification of irrevocable trust when
849	modification is in best interest of beneficiaries.--
850	(1)  Without regard to the reasons for modification
851	provided in s. 736.04113, if compliance with the terms of a
852	trust is not in the best interests of the beneficiaries, upon
853	the application of a trustee or any qualified beneficiary, a
854	court may at any time modify a trust that is not then revocable
855	as provided in s. 736.04113(2).
856	(2)  In exercising discretion to modify a trust under this
857	section:
858	(a)  The court shall exercise discretion in a manner that
859	conforms to the extent possible with the intent of the settlor,
860	taking into account the current circumstances and best interests
861	of the beneficiaries.
862	(b)  The court shall consider the terms and purposes of the
863	trust, the facts and circumstances surrounding the creation of
864	the trust, and extrinsic evidence relevant to the proposed
865	modification.
866	(c)  The court shall consider spendthrift provisions as a
867	factor in making a decision but the court is not precluded from
868	modifying a trust because the trust contains spendthrift
869	provisions.
870	(3)  This section shall not apply to:
871	(a)  Any trust created prior to January 1, 2001.
872	(b)  Any trust created after December 31, 2000, if:
873	1.  Under the terms of the trust, all beneficial interests
874	in the trust must vest or terminate within the period prescribed
875	by the rule against perpetuities in s. 689.225(2),
876	notwithstanding s. 689.225(2)(f).
877	2.  The terms of the trust expressly prohibit judicial
878	modification.
879	(4)  For purposes of subsection (3), a revocable trust
880	shall be treated as created when the right of revocation
881	terminates.
882	(5)  The provisions of this section are in addition to, and
883	not in derogation of, rights under the common law to modify,
884	amend, terminate, or revoke trusts.
885	736.0412  Nonjudicial modification of irrevocable trust.--
886	(1)  After the settlor's death, a trust may be modified at
887	any time as provided in s. 736.04113(2) upon the unanimous
888	agreement of the trustee and all qualified beneficiaries.
889	(2)  Modification of a trust as authorized in this section
890	is not prohibited by a spendthrift clause or by a provision in
891	the trust instrument that prohibits amendment or revocation of
892	the trust.
893	(3)  An agreement to modify a trust under this section is
894	binding on a beneficiary whose interest is represented by
895	another person under part III of this code.
896	(4)  This section shall not apply to:
897	(a)  Any trust created prior to January 1, 2001.
898	(b)  Any trust created after December 31, 2000, if, under
899	the terms of the trust, all beneficial interests in the trust
900	must vest or terminate within the period prescribed by the rule
901	against perpetuities in s. 689.225(2), notwithstanding s.
902	689.225(2)(f), unless the terms of the trust expressly authorize
903	nonjudicial modification.
904	(c)  Any trust for which a charitable deduction is allowed
905	or allowable under the Internal Revenue Code until the
906	termination of all charitable interests in the trust.
907	(5)  For purposes of subsection (4), a revocable trust
908	shall be treated as created when the right of revocation
909	terminates.
910	(6)  The provisions of this section are in addition to, and
911	not in derogation of, rights under the common law to modify,
912	amend, terminate, or revoke trusts.
913	736.0413  Cy pres.--
914	(1)  If a particular charitable purpose becomes unlawful,
915	impracticable, impossible to achieve, or wasteful, the court may
916	apply the doctrine of cy pres to modify or terminate the trust
917	by directing that the trust property be applied or distributed,
918	in whole or in part, in a manner consistent with the settlor's
919	charitable purposes.
920	(2)  A proceeding to modify or terminate a trust under this
921	section may be commenced by a settlor, a trustee, or any
922	qualified beneficiary.
923	736.0414  Modification or termination of uneconomic
924	trust.--
925	(1)  After notice to the qualified beneficiaries, the
926	trustee of a trust consisting of trust property having a total
927	value less than $50,000 may terminate the trust if the trustee
928	concludes that the value of the trust property is insufficient
929	to justify the cost of administration.
930	(2)  Upon application of a trustee or any qualified
931	beneficiary, the court may modify or terminate a trust or remove
932	the trustee and appoint a different trustee if the court
933	determines that the value of the trust property is insufficient
934	to justify the cost of administration.
935	(3)  Upon termination of a trust under this section, the
936	trustee shall distribute the trust property in a manner
937	consistent with the purposes of the trust. The trustee may enter
938	into agreements or make such other provisions that the trustee
939	deems necessary or appropriate to protect the interests of the
940	beneficiaries and the trustee and to carry out the intent and
941	purposes of the trust.
942	(4)  The existence of a spendthrift provision in the trust
943	does not make this section inapplicable unless the trust
944	instrument expressly provides that the trustee may not terminate
945	the trust pursuant to this section.
946	(5)  This section does not apply to an easement for
947	conservation or preservation.
948	736.0415  Reformation to correct mistakes.--Upon
949	application of a settlor or any interested person, the court may
950	reform the terms of a trust, even if unambiguous, to conform the
951	terms to the settlor's intent if it is proved by clear and
952	convincing evidence that both the accomplishment of the
953	settlor's intent and the terms of the trust were affected by a
954	mistake of fact or law, whether in expression or inducement. In
955	determining the settlor's original intent, the court may
956	consider evidence relevant to the settlor's intent even though
957	the evidence contradicts an apparent plain meaning of the trust
958	instrument.
959	736.0416  Modification to achieve settlor's tax
960	objectives.--Upon application of any interested person, to
961	achieve the settlor's tax objectives the court may modify the
962	terms of a trust in a manner that is not contrary to the
963	settlor's probable intent. The court may provide that the
964	modification has retroactive effect.
965	736.0417  Combination and division of trusts.--
966	(1)  After notice to the qualified beneficiaries, a trustee
967	may combine two or more trusts into a single trust or divide a
968	trust into two or more separate trusts, if the result does not
969	impair rights of any beneficiary or adversely affect achievement
970	of the purposes of the trusts or trust, respectively.
971	(2)  Subject to the terms of the trust, the trustee may
972	take into consideration differences in federal tax attributes
973	and other pertinent factors in administering the trust property
974	of any separate account or trust, in making applicable tax
975	elections, and in making distributions. A separate trust created
976	by severance must be treated as a separate trust for all
977	purposes from the date on which the severance is effective. The
978	effective date of the severance may be retroactive to a date
979	before the date on which the trustee exercises such power.
980	Section 5.  Part V of chapter 736, Florida Statutes,
981	consisting of sections 736.0501, 736.0502, 736.0503, 736.0504,
982	736.0505, 736.05053, 736.05055, 736.0506, and 736.0507, is
983	created to read:
984
985	PART V
986	CREDITORS' CLAIMS; SPENDTHRIFT AND DISCRETIONARY TRUSTS
987
988	736.0501  Rights of beneficiary's creditor or assignee.--To
989	the extent a beneficiary's interest is not subject to a
990	spendthrift provision, the court may authorize a creditor or
991	assignee of the beneficiary to reach the beneficiary's interest
992	by attachment of present or future distributions to or for the
993	benefit of the beneficiary or by other means. The court may
994	limit the award to such relief as is appropriate under the
995	circumstances.
996	736.0502  Spendthrift provision.--
997	(1)  A spendthrift provision is valid only if the provision
998	restrains both voluntary and involuntary transfer of a
999	beneficiary's interest. This subsection does not apply to any
1000	trust in existence on the effective date of this code.
1001	(2)  A term of a trust providing that the interest of a
1002	beneficiary is held subject to a spendthrift trust, or words of
1003	similar import, is sufficient to restrain both voluntary and
1004	involuntary transfer of the beneficiary's interest.
1005	(3)  A beneficiary may not transfer an interest in a trust
1006	in violation of a valid spendthrift provision and, except as
1007	otherwise provided in this part, a creditor or assignee of the
1008	beneficiary may not reach the interest or a distribution by the
1009	trustee before receipt of the interest or distribution by the
1010	beneficiary.
1011	(4)  A valid spendthrift provision does not prevent the
1012	appointment of interests through the exercise of a power of
1013	appointment.
1014	736.0503  Exceptions to spendthrift provision.--
1015	(1)  As used in this section, the term "child" includes any
1016	person for whom an order or judgment for child support has been
1017	entered in this or any other state.
1018	(2)  To the extent provided in subsection (3), a
1019	spendthrift provision is unenforceable against:
1020	(a)  A beneficiary's child, spouse, or former spouse who
1021	has a judgment or court order against the beneficiary for
1022	support or maintenance.
1023	(b)  A judgment creditor who has provided services for the
1024	protection of a beneficiary's interest in the trust.
1025	(c)  A claim of this state or the United States to the
1026	extent a law of this state or a federal law so provides.
1027	(3)  Except as otherwise provided in this subsection, a
1028	claimant against which a spendthrift provision may not be
1029	enforced may obtain from a court, or pursuant to the Uniform
1030	Interstate Family Support Act, an order attaching present or
1031	future distributions to or for the benefit of the beneficiary.
1032	The court may limit the award to such relief as is appropriate
1033	under the circumstances. Notwithstanding this subsection, the
1034	remedies provided in this subsection apply to a claim by a
1035	beneficiary's child, spouse, former spouse, or a judgment
1036	creditor described in paragraph (2)(a) or paragraph (2)(b) only
1037	as a last resort upon an initial showing that traditional
1038	methods of enforcing the claim are insufficient.
1039	736.0504  Discretionary trusts; effect of standard.--
1040	(1)  Whether or not a trust contains a spendthrift
1041	provision, a creditor of a beneficiary may not compel a
1042	distribution that is subject to the trustee's discretion, even
1043	if:
1044	(a)  The discretion is expressed in the form of a standard
1045	of distribution; or
1046	(b)  The trustee has abused the discretion.
1047	(2)  If the trustee's discretion to make distributions for
1048	the trustee's own benefit is limited by an ascertainable
1049	standard, a creditor may not reach or compel distribution of the
1050	beneficial interest except to the extent the interest would be
1051	subject to the creditor's claim were the beneficiary not acting
1052	as trustee.
1053	(3)  This section does not limit the right of a beneficiary
1054	to maintain a judicial proceeding against a trustee for an abuse
1055	of discretion or failure to comply with a standard for
1056	distribution.
1057	736.0505  Creditors' claims against settlor.--
1058	(1)  Whether or not the terms of a trust contain a
1059	spendthrift provision, the following rules apply:
1060	(a)  The property of a revocable trust is subject to the
1061	claims of the settlor's creditors during the settlor's lifetime
1062	to the extent the property would not otherwise be exempt by law
1063	if owned directly by the settlor.
1064	(b)  With respect to an irrevocable trust, a creditor or
1065	assignee of the settlor may reach the maximum amount that can be
1066	distributed to or for the settlor's benefit. If a trust has more
1067	than one settlor, the amount the creditor or assignee of a
1068	particular settlor may reach may not exceed the settlor's
1069	interest in the portion of the trust attributable to that
1070	settlor's contribution.
1071	(2)  For purposes of this section:
1072	(a)  During the period the power may be exercised, the
1073	holder of a power of withdrawal is treated in the same manner as
1074	the settlor of a revocable trust to the extent of the property
1075	subject to the power.
1076	(b)  Upon the lapse, release, or waiver of the power, the
1077	holder is treated as the settlor of the trust only to the extent
1078	the value of the property affected by the lapse, release, or
1079	waiver exceeds the greater of the amount specified in:
1080	1.  Section 2041(b)(2) or s. 2514(e); or
1081	2.  Section 2503(b),
1082
1083	of the Internal Revenue Code of 1986, as amended.
1084	736.05053  Trustee's duty to pay expenses and obligations
1085	of settlor's estate.--
1086	(1)  A trustee of a trust described in s. 733.707(3) shall
1087	pay to the personal representative of a settlor's estate any
1088	amounts that the personal representative certifies in writing to
1089	the trustee are required to pay the expenses of the
1090	administration and obligations of the settlor's estate. Payments
1091	made by a trustee, unless otherwise provided in the trust
1092	instrument, must be charged as expenses of the trust without a
1093	contribution from anyone. The interests of all beneficiaries of
1094	such a trust are subject to the provisions of this subsection;
1095	however, the payments must be made from assets, property, or the
1096	proceeds of the assets or property, other than assets proscribed
1097	in s. 733.707(3), that are included in the settlor's gross
1098	estate for federal estate tax purposes.
1099	(2)  Unless a settlor provides by will, or designates in a
1100	trust described in s. 733.707(3) funds or property passing under
1101	the trust to be used as designated, the expenses of the
1102	administration and obligations of the settlor's estate must be
1103	paid from the trust in the following order:
1104	(a)  Property of the residue of the trust remaining after
1105	all distributions that are to be satisfied by reference to a
1106	specific property or type of property, fund, or sum.
1107	(b)  Property that is not to be distributed from specified
1108	or identified property or a specified or identified item of
1109	property.
1110	(c)  Property that is to be distributed from specified or
1111	identified property or a specified or identified item of
1112	property.
1113	(3)  Trust distributions that are to be satisfied from
1114	specified or identified property must be classed as
1115	distributions to be satisfied from the general assets of the
1116	trust and not otherwise disposed of in the trust instrument on
1117	the failure or insufficiency of funds or property from which
1118	payment should be made, to the extent of the insufficiency.
1119	Trust distributions given for valuable consideration abate with
1120	other distributions of the same class only to the extent of the
1121	excess over the value of the consideration until all others of
1122	the same class are exhausted. Except as provided in this
1123	section, trust distributions abate equally and ratably and
1124	without preference or priority between real and personal
1125	property. When a specified or identified item of property that
1126	has been designated for distribution in the trust instrument or
1127	that is charged with a distribution is sold or taken by the
1128	trustee, other beneficiaries shall contribute according to their
1129	respective interests to the beneficiary whose property has been
1130	sold or taken. Before distribution, the trustee shall determine
1131	the amounts of the respective contributions and such amounts
1132	must be paid or withheld before distribution is made.
1133	(4)  The trustee shall pay the expenses of trust
1134	administration, including compensation of trustees and attorneys
1135	of the trustees, before and in preference to the expenses of the
1136	administration and obligations of the settlor's estate.
1137	736.05055  Notice of trust.--
1138	(1)  Upon the death of a settlor of a trust described in s.
1139	733.707(3), the trustee must file a notice of trust with the
1140	court of the county of the settlor's domicile and the court
1141	having jurisdiction of the settlor's estate.
1142	(2)  The notice of trust must contain the name of the
1143	settlor, the settlor's date of death, the title of the trust, if
1144	any, the date of the trust, and the name and address of the
1145	trustee.
1146	(3)  If the settlor's probate proceeding has been
1147	commenced, the clerk shall notify the trustee in writing of the
1148	date of the commencement of the probate proceeding and the file
1149	number.
1150	(4)  The clerk shall file and index the notice of trust in
1151	the same manner as a caveat unless there exists a probate
1152	proceeding for the settlor's estate, in which case the notice of
1153	trust must be filed in the probate proceeding and the clerk
1154	shall send a copy to the personal representative.
1155	(5)  The clerk shall send a copy of any caveat filed
1156	regarding the settlor to the trustee, and the notice of trust to
1157	any caveator, unless there is a probate proceeding pending and
1158	the personal representative and the trustee are the same.
1159	(6)  Any proceeding affecting the expenses of the
1160	administration or obligations of the settlor's estate prior to
1161	the trustee filing a notice of trust are binding on the trustee.
1162	(7)  The trustee's failure to file the notice of trust does
1163	not affect the trustee's obligation to pay expenses of
1164	administration and obligations of the settlor's estate as
1165	provided in s. 733.607(2).
1166	736.0506  Overdue distribution.--
1167	(1)  As used in this section, the term "mandatory
1168	distribution" means a distribution of income or principal the
1169	trustee is required to make to a beneficiary under the terms of
1170	the trust, including a distribution on termination of the trust.
1171	The term does not include a distribution subject to the exercise
1172	of the trustee's discretion even if:
1173	(a)  The discretion is expressed in the form of a standard
1174	of distribution; or
1175	(b)  The terms of the trust authorizing a distribution
1176	couple language of discretion with language of direction.
1177	(2)  A creditor or assignee of a beneficiary may reach a
1178	mandatory distribution of income or principal, including a
1179	distribution upon termination of the trust, if the trustee has
1180	not made the distribution to the beneficiary within a reasonable
1181	time after the designated distribution date, whether or not a
1182	trust contains a spendthrift provision.
1183	736.0507  Personal obligations of trustee.--Except to the
1184	extent of the trustee's interest in the trust other than as a
1185	trustee, trust property is not subject to personal obligations
1186	of the trustee, even if the trustee becomes insolvent or
1187	bankrupt.
1188	Section 6.  Part VI of chapter 736, Florida Statutes,
1189	consisting of sections 736.0601, 736.0602, 736.0603, and
1190	736.0604, is created to read:
1191
1192	PART VI
1193	REVOCABLE TRUSTS
1194
1195	736.0601  Capacity of settlor of revocable trust.--The
1196	capacity required to create, amend, revoke, or add property to a
1197	revocable trust, or to direct the actions of the trustee of a
1198	revocable trust, is the same as that required to make a will.
1199	736.0602  Revocation or amendment of revocable trust.--
1200	(1)  Unless the terms of a trust expressly provide that the
1201	trust is irrevocable, the settlor may revoke or amend the trust.
1202	This subsection does not apply to a trust created under an
1203	instrument executed before the effective date of this code.
1204	(2)  If a revocable trust is created or funded by more than
1205	one settlor:
1206	(a)  To the extent the trust consists of community
1207	property, the trust may be revoked by either spouse acting alone
1208	but may be amended only by joint action of both spouses.
1209	(b)  To the extent the trust consists of property other
1210	than community property, each settlor may revoke or amend the
1211	trust with regard to the portion of the trust property
1212	attributable to that settlor's contribution.
1213	(c)  Upon the revocation or amendment of the trust by fewer
1214	than all of the settlors, the trustee shall promptly notify the
1215	other settlors of the revocation or amendment.
1216	(3)  Subject to s. 736.0403(2), the settlor may revoke or
1217	amend a revocable trust:
1218	(a)  By substantial compliance with a method provided in
1219	the terms of the trust; or
1220	(b)  If the terms of the trust do not provide a method, by:
1221	1.  A later will or codicil that expressly refers to the
1222	trust or specifically devises property that would otherwise have
1223	passed according to the terms of the trust; or
1224	2.  Any other method manifesting clear and convincing
1225	evidence of the settlor's intent.
1226	(4)  Upon revocation of a revocable trust, the trustee
1227	shall deliver the trust property as the settlor directs.
1228	(5)  A settlor's powers with respect to revocation,
1229	amendment, or distribution of trust property may be exercised by
1230	an agent under a power of attorney only as authorized by s.
1231	709.08.
1232	(6)  A guardian of the property of the settlor may exercise
1233	a settlor's powers with respect to revocation, amendment, or
1234	distribution of trust property only as provided in s. 744.441.
1235	(7)  A trustee who does not know that a trust has been
1236	revoked or amended is not liable for distributions made and
1237	other actions taken on the assumption that the trust had not
1238	been amended or revoked.
1239	736.0603  Settlor's powers; powers of withdrawal.--
1240	(1)  While a trust is revocable, the duties of the trustee
1241	are owed exclusively to the settlor.
1242	(2)  During the period the power may be exercised, the
1243	holder of a power of withdrawal has the rights of a settlor of a
1244	revocable trust under this section to the extent of the property
1245	subject to the power.
1246	736.0604  Limitation on action contesting validity of
1247	revocable trust.--An action to contest the validity of a trust
1248	that was revocable at the settlor's death is barred, if not
1249	commenced within the earlier of:
1250	(1)  The time as provided in chapter 95; or
1251	(2)  Six months after the trustee sent the person a copy of
1252	the trust instrument and a notice informing the person of the
1253	trust's existence, of the trustee's name and address, and of the
1254	time allowed for commencing a proceeding.
1255	Section 7.  Part VII of chapter 736, Florida Statutes,
1256	consisting of sections 736.0701, 736.0702, 736.0703, 736.0704,
1257	736.0705, 736.0706, 736.0707, 736.0708, and 736.0709, is created
1258	to read:
1259
1260	PART VII
1261	OFFICE OF TRUSTEE
1262
1263	736.0701  Accepting or declining trusteeship.--
1264	(1)  Except as otherwise provided in subsection (3), a
1265	person designated as trustee accepts the trusteeship:
1266	(a)  By substantially complying with a method of acceptance
1267	provided in the terms of the trust; or
1268	(b)  If the terms of the trust do not provide a method or
1269	the method provided in the terms is not expressly made
1270	exclusive, by accepting delivery of the trust property,
1271	exercising powers or performing duties as trustee, or otherwise
1272	indicating acceptance of the trusteeship.
1273	(2)  A person designated as trustee who has not accepted
1274	the trusteeship may decline the trusteeship. A designated
1275	trustee who does not accept the trusteeship within a reasonable
1276	time after knowing of the designation is deemed to have declined
1277	the trusteeship.
1278	(3)  A person designated as trustee may, without accepting
1279	the trusteeship:
1280	(a)  Act to preserve the trust property if, within a
1281	reasonable time after acting, the person sends to a qualified
1282	beneficiary a written statement declining the trusteeship.
1283	(b)  Inspect or investigate trust property to determine
1284	potential liability under environmental or other law or for any
1285	other purpose.
1286	736.0702  Trustee's bond.--
1287	(1)  A trustee shall give bond to secure performance of the
1288	trustee's duties only if the court finds that a bond is needed
1289	to protect the interests of the beneficiaries or is required by
1290	the terms of the trust and the court has not dispensed with the
1291	requirement.
1292	(2)  The court may specify the amount of a bond, the
1293	trustee's liabilities under the bond, and whether sureties are
1294	necessary. The court may modify or terminate a bond at any time.
1295	736.0703  Cotrustees.--
1296	(1)  Cotrustees who are unable to reach a unanimous
1297	decision may act by majority decision.
1298	(2)  If a vacancy occurs in a cotrusteeship, the remaining
1299	cotrustees or a majority of the remaining cotrustees may act for
1300	the trust.
1301	(3)  A cotrustee must participate in the performance of a
1302	trustee's function unless the cotrustee is unavailable to
1303	perform the function because of absence, illness,
1304	disqualification under other provision of law, or other
1305	temporary incapacity or the cotrustee has properly delegated the
1306	performance of the function to another cotrustee.
1307	(4)  If a cotrustee is unavailable to perform duties
1308	because of absence, illness, disqualification under other law,
1309	or other temporary incapacity, and prompt action is necessary to
1310	achieve the purposes of the trust or to avoid injury to the
1311	trust property, the remaining cotrustee or a majority of the
1312	remaining cotrustees may act for the trust.
1313	(5)  A cotrustee may not delegate to another cotrustee the
1314	performance of a function the settlor reasonably expected the
1315	cotrustees to perform jointly. A cotrustee may revoke a
1316	delegation previously made.
1317	(6)  Except as otherwise provided in subsection (7), a
1318	cotrustee who does not join in an action of another cotrustee is
1319	not liable for the action.
1320	(7)  Each cotrustee shall exercise reasonable care to:
1321	(a)  Prevent a cotrustee from committing a breach of trust.
1322	(b)  Compel a cotrustee to redress a breach of trust.
1323	(8)  A dissenting cotrustee who joins in an action at the
1324	direction of the majority of the cotrustees and who notifies any
1325	cotrustee of the dissent at or before the time of the action is
1326	not liable for the action.
1327	736.0704  Vacancy in trusteeship; appointment of
1328	successor.--
1329	(1)  A vacancy in a trusteeship occurs if:
1330	(a)  A person designated as trustee declines the
1331	trusteeship;
1332	(b)  A person designated as trustee cannot be identified or
1333	does not exist;
1334	(c)  A trustee resigns;
1335	(d)  A trustee is disqualified or removed;
1336	(e)  A trustee dies; or
1337	(f)  A trustee is adjudicated to be incapacitated.
1338	(2)  If one or more cotrustees remain in office, a vacancy
1339	in a trusteeship need not be filled. A vacancy in a trusteeship
1340	must be filled if the trust has no remaining trustee.
1341	(3)  A vacancy in a trusteeship of a noncharitable trust
1342	that is required to be filled must be filled in the following
1343	order of priority:
1344	(a)  By a person named or designated pursuant to the terms
1345	of the trust to act as successor trustee.
1346	(b)  By a person appointed by unanimous agreement of the
1347	qualified beneficiaries.
1348	(c)  By a person appointed by the court.
1349	(4)  A vacancy in a trusteeship of a charitable trust that
1350	is required to be filled must be filled in the following order
1351	of priority:
1352	(a)  By a person named or designated pursuant to the terms
1353	of the trust to act as successor trustee.
1354	(b)  By a person selected by unanimous agreement of the
1355	charitable organizations expressly designated to receive
1356	distributions under the terms of the trust.
1357	(c)  By a person appointed by the court.
1358	(5)  The court may appoint an additional trustee or special
1359	fiduciary whenever the court considers the appointment necessary
1360	for the administration of the trust, whether or not a vacancy in
1361	a trusteeship exists or is required to be filled.
1362	736.0705  Resignation of trustee.--
1363	(1)  A trustee may resign:
1364	(a)  Upon at least 30 days' notice to the qualified
1365	beneficiaries, the settlor, if living, and all cotrustees; or
1366	(b)  With the approval of the court.
1367	(2)  In approving a resignation, the court may issue orders
1368	and impose conditions reasonably necessary for the protection of
1369	the trust property.
1370	(3)  Any liability of a resigning trustee or of any
1371	sureties on the trustee's bond for acts or omissions of the
1372	trustee is not discharged or affected by the trustee's
1373	resignation.
1374	736.0706  Removal of trustee.--
1375	(1)  The settlor, a cotrustee, or a beneficiary may request
1376	the court to remove a trustee or a trustee may be removed by the
1377	court on the court's own initiative.
1378	(2)  The court may remove a trustee if:
1379	(a)  The trustee has committed a serious breach of trust;
1380	(b)  The lack of cooperation among cotrustees substantially
1381	impairs the administration of the trust;
1382	(c)  Due to the unfitness, unwillingness, or persistent
1383	failure of the trustee to administer the trust effectively, the
1384	court determines that removal of the trustee best serves the
1385	interests of the beneficiaries; or
1386	(d)  There has been a substantial change of circumstances
1387	or removal is requested by all of the qualified beneficiaries,
1388	the court finds that removal of the trustee best serves the
1389	interests of all of the beneficiaries and is not inconsistent
1390	with a material purpose of the trust, and a suitable cotrustee
1391	or successor trustee is available.
1392	(3)  Pending a final decision on a request to remove a
1393	trustee, or in lieu of or in addition to removing a trustee, the
1394	court may order such appropriate relief under s. 736.1001(2) as
1395	may be necessary to protect the trust property or the interests
1396	of the beneficiaries.
1397	736.0707  Delivery of property by former trustee.--
1398	(1)  Unless a cotrustee remains in office or the court
1399	otherwise orders and until the trust property is delivered to a
1400	successor trustee or other person entitled to the property, a
1401	trustee who has resigned or been removed has the duties of a
1402	trustee and the powers necessary to protect the trust property.
1403	(2)  A trustee who has resigned or been removed shall
1404	within a reasonable time deliver the trust property within the
1405	trustee's possession to the cotrustee, successor trustee, or
1406	other person entitled to the property, subject to the right of
1407	the trustee to retain a reasonable reserve for the payment of
1408	debts, expenses, and taxes. The provisions of this subsection
1409	are in addition to and are not in derogation of the rights of a
1410	removed or resigning trustee under the common law.
1411	736.0708  Compensation of trustee.--
1412	(1)  If the terms of a trust do not specify the trustee's
1413	compensation, a trustee is entitled to compensation that is
1414	reasonable under the circumstances.
1415	(2)  If the terms of a trust specify the trustee's
1416	compensation, the trustee is entitled to be compensated as
1417	specified but the court may allow more or less compensation if:
1418	(a)  The duties of the trustee are substantially different
1419	from those contemplated when the trust was created; or
1420	(b)  The compensation specified by the terms of the trust
1421	would be unreasonably low or high.
1422	(3)  If the trustee has rendered other services in
1423	connection with the administration of the trust, the trustee
1424	shall also be allowed reasonable compensation for the other
1425	services rendered in addition to reasonable compensation as
1426	trustee.
1427	736.0709  Reimbursement of expenses.--
1428	(1)  A trustee is entitled to be reimbursed out of the
1429	trust property, with interest as appropriate, for reasonable
1430	expenses that were properly incurred in the administration of
1431	the trust.
1432	(2)  An advance by the trustee of money for the protection
1433	of the trust gives rise to a lien against trust property to
1434	secure reimbursement with reasonable interest.
1435	Section 8.  Part VIII of chapter 736, Florida Statutes,
1436	consisting of sections 736.0801, 736.0802, 736.0803, 736.0804,
1437	736.0805, 736.0806, 736.0807, 736.0808, 736.0809, 736.0810,
1438	736.08105, 736.0811, 736.0812, 736.08125, 736.0813, 736.08135,
1439	736.0814, 736.08147, 736.0815, 736.0816, 736.08163, 736.08165,
1440	and 736.0817, is created to read:
1441
1442	PART VIII
1443	DUTIES AND POWERS OF TRUSTEE
1444
1445	736.0801  Duty to administer trust.--Upon acceptance of a
1446	trusteeship, the trustee shall administer the trust in good
1447	faith, in accordance with its terms and purposes and the
1448	interests of the beneficiaries, and in accordance with this
1449	code.
1450	736.0802  Duty of loyalty.--
1451	(1)  As between a trustee and the beneficiaries, a trustee
1452	shall administer the trust solely in the interests of the
1453	beneficiaries.
1454	(2)  Subject to the rights of persons dealing with or
1455	assisting the trustee as provided in s. 736.1016, a sale,
1456	encumbrance, or other transaction involving the investment or
1457	management of trust property entered into by the trustee for the
1458	trustee's own personal account or which is otherwise affected by
1459	a conflict between the trustee's fiduciary and personal
1460	interests is voidable by a beneficiary affected by the
1461	transaction unless:
1462	(a)  The transaction was authorized by the terms of the
1463	trust;
1464	(b)  The transaction was approved by the court;
1465	(c)  The beneficiary did not commence a judicial proceeding
1466	within the time allowed by s. 736.1008;
1467	(d)  The beneficiary consented to the trustee's conduct,
1468	ratified the transaction, or released the trustee in compliance
1469	with s. 736.1012;
1470	(e)  The transaction involves a contract entered into or
1471	claim acquired by the trustee when that person had not become or
1472	contemplated becoming trustee; or
1473	(f)  The transaction was consented to in writing by a
1474	settlor of the trust while the trust was revocable.
1475	(3)  A sale, encumbrance, or other transaction involving
1476	the investment or management of trust property is presumed to be
1477	affected by a conflict between personal and fiduciary interests
1478	if the sale, encumbrance, or other transaction is entered into
1479	by the trustee with:
1480	(a)  The trustee's spouse;
1481	(b)  The trustee's descendants, siblings, parents, or their
1482	spouses;
1483	(c)  An officer, director, employee, agent, or attorney of
1484	the trustee; or
1485	(d)  A corporation or other person or enterprise in which
1486	the trustee, or a person that owns a significant interest in the
1487	trustee, has an interest that might affect the trustee's best
1488	judgment.
1489	(4)  A transaction not concerning trust property in which
1490	the trustee engages in the trustee's individual capacity
1491	involves a conflict between personal and fiduciary interests if
1492	the transaction concerns an opportunity properly belonging to
1493	the trust.
1494	(5)(a)  An investment by a trustee authorized by lawful
1495	authority to engage in trust business, as defined in s.
1496	658.12(20), in investment instruments, as defined in s.
1497	660.25(6), that are owned or controlled by the trustee or its
1498	affiliate, or from which the trustee or its affiliate receives
1499	compensation for providing services in a capacity other than as
1500	trustee, is not presumed to be affected by a conflict between
1501	personal and fiduciary interests provided the investment
1502	otherwise complies with chapters 518 and 660 and the trustee
1503	complies with the disclosure requirements of this subsection.
1504	(b)  A trustee who invests trust funds in investment
1505	instruments that are owned or controlled by the trustee or its
1506	affiliate shall disclose the following to all qualified
1507	beneficiaries:
1508	1.  Notice that the trustee has invested trust funds in
1509	investment instruments owned or controlled by the trustee or its
1510	affiliate.
1511	2.  The identity of the investment instruments.
1512	3.  The identity and relationship to the trustee of any
1513	affiliate that owns or controls the investment instruments.
1514	(c)  A trustee who invests trust funds in investment
1515	instruments with respect to which the trustee or its affiliate
1516	receives compensation for providing services in a capacity other
1517	than as trustee shall disclose to all qualified beneficiaries,
1518	all compensation, including, but not limited to, fees or
1519	commissions, paid or to be paid by the account and received or
1520	to be received by an affiliate arising from such affiliated
1521	investment.
1522	(d)  Disclosure required by this subsection shall be made
1523	at least annually unless there has been no change in the method
1524	or increase in the rate at which such compensation is calculated
1525	since the most recent disclosure. The disclosure may be given in
1526	a trust disclosure document as defined in s. 736.1008, in a copy
1527	of the prospectus for the investment instrument, in any other
1528	written disclosure prepared for the investment instrument under
1529	applicable federal or state law, or in a written summary that
1530	includes all compensation received or to be received by the
1531	trustee and any affiliate of the trustee and an explanation of
1532	the manner in which such compensation is calculated, either as a
1533	percentage of the assets invested or by some other method.
1534	(e)  This subsection shall apply as follows:
1535	1.  This subsection does not apply to qualified investment
1536	instruments or to a trust for which a right of revocation
1537	exists.
1538	2.  For investment instruments other than qualified
1539	investment instruments, paragraphs (a), (b), (c), and (d) shall
1540	apply to irrevocable trusts created on or after July 1, 2007,
1541	the assets of which are valued in excess of $5 million on the
1542	date the trust is created.
1543	3.  For investment instruments other than qualified
1544	investment instruments, paragraphs (a), (b), (c), and (d) shall
1545	apply to irrevocable trusts not described in subparagraph 2.
1546	only as follows:
1547	a.  Such paragraphs shall not apply until 60 days after the
1548	statement required in paragraph (f) is provided and no objection
1549	is made or any objection which is made has been terminated.
1550	(I)  An objection is made if, within 60 days after the date
1551	of the statement required in paragraph (f), a super majority of
1552	the eligible beneficiaries deliver to the trustee written
1553	objections to the application of this subsection to such trust.
1554	An objection shall be deemed to be delivered to the trustee on
1555	the date the objection is mailed to the mailing address listed
1556	in the notice provided in paragraph (f).
1557	(II)  An objection is terminated upon the earlier of the
1558	receipt of consent from a super majority of eligible
1559	beneficiaries of the class that made the objection or the
1560	resolution of the objection pursuant to this subparagraph.
1561	(III)  If an objection is delivered to the trustee, the
1562	trustee may petition the court for an order overruling the
1563	objection and authorizing the trustee to make investments under
1564	this subsection. The burden shall be on the trustee to show good
1565	cause for the relief sought.
1566	(IV)  Any qualified beneficiary may petition the court for
1567	an order to prohibit, limit, or restrict a trustee's authority
1568	to make investments under this subsection. The burden shall be
1569	upon the petitioning beneficiary to show good cause for the
1570	relief sought.
1571	(V)  The court may award costs and attorney's fees relating
1572	to any petition under this subparagraph in the same manner as in
1573	chancery actions. When costs and attorney's fees are to be paid
1574	out of the trust, the court, in its discretion, may direct from
1575	which part of the trust such costs and fees shall be paid.
1576	b.  The objection of a super majority of eligible
1577	beneficiaries under this subparagraph may thereafter be removed
1578	by the written consent of a super majority of the class or
1579	classes of those eligible beneficiaries that made the objection.
1580	(f)1.  Any time prior to initially investing in any
1581	investment instrument described in this subsection other than a
1582	qualified investment instrument, the trustee of a trust
1583	described in subparagraph (e)3. shall provide to all qualified
1584	beneficiaries a statement containing the following:
1585	a.  The name, telephone number, street address, and mailing
1586	address of the trustee and of any individuals who may be
1587	contacted for further information.
1588	b.  A statement that, unless a super majority of the
1589	eligible beneficiaries objects to the application of this
1590	subsection to the trust within 60 days after the date the
1591	statement pursuant to this subsection was delivered, this
1592	subsection shall apply to the trust.
1593	c.  A statement that, if this subsection applies to the
1594	trust, the trustee will have the right to make investments in
1595	investment instruments, as defined in s. 658.12(20), that are
1596	owned or controlled by the trustee or its affiliate, or from
1597	which the trustee or its affiliate receives compensation for
1598	providing services in a capacity other than as trustee, and that
1599	the trustee or its affiliate may receive fees in addition to the
1600	trustee's compensation for administering the trust.
1601
1602	A statement by the trustee is not delivered if the statement is
1603	accompanied by another written communication other than a
1604	written communication by the trustee that refers only to the
1605	statement.
1606	2.  For purposes of paragraph (e) and this paragraph:
1607	a.  "Eligible beneficiaries" means:
1608	(I)  If at the time the determination is made there are one
1609	or more beneficiaries as described in s. 736.0103(14)(c), the
1610	beneficiaries described in s. 736.0103(14)(a) and (c); or
1611	(II)  If there is no beneficiary described in s.
1612	736.0103(14)(c), the beneficiaries described in s.
1613	736.0103(14)(a) and (b).
1614	b.  "Super majority of the eligible beneficiaries" means:
1615	(I)  If at the time the determination is made there are one
1616	or more beneficiaries as described in s. 736.0103(14)(c), at
1617	least two-thirds in interest of the beneficiaries described in
1618	s. 736.0103(14)(a) or two-thirds in interest of the
1619	beneficiaries described in s. 736.0103(14)(c), if the interests
1620	of the beneficiaries are reasonably ascertainable; otherwise,
1621	two-thirds in number of either such class; or
1622	(II)  If there is no beneficiary as described in s.
1623	736.0103(14)(c), at least two-thirds in interest of the
1624	beneficiaries described in s. 736.0103(14)(a) or two-thirds in
1625	interest of the beneficiaries described in s. 736.0103(14)(b),
1626	if the interests of the beneficiaries are reasonably
1627	ascertainable; otherwise, two-thirds in number of either such
1628	class.
1629	c.  "Qualified investment instrument" means a mutual fund,
1630	common trust fund, or money market fund described in and
1631	governed by s. 736.0816(3).
1632	d.  An irrevocable trust is created upon execution of the
1633	trust instrument. If a trust that was revocable when created
1634	thereafter becomes irrevocable, the irrevocable trust is created
1635	when the right of revocation terminates.
1636	(6)  In voting shares of stock or in exercising powers of
1637	control over similar interests in other forms of enterprise, the
1638	trustee shall act in the best interests of the beneficiaries. If
1639	the trust is the sole owner of a corporation or other form of
1640	enterprise, the trustee shall elect or appoint directors or
1641	other managers who will manage the corporation or enterprise in
1642	the best interests of the beneficiaries.
1643	(7)  This section does not preclude the following
1644	transactions, if fair to the beneficiaries:
1645	(a)  An agreement between a trustee and a beneficiary
1646	relating to the appointment or compensation of the trustee;
1647	(b)  A payment of reasonable compensation to the trustee;
1648	(c)  A transaction between a trust and another trust, the
1649	decedent's estate, or a guardian of the property of which the
1650	trustee is a fiduciary or in which a beneficiary has an
1651	interest;
1652	(d)  A deposit of trust money in a regulated financial-
1653	service institution operated by the trustee; or
1654	(e)  An advance by the trustee of money for the protection
1655	of the trust.
1656	(8)  This section does not preclude the employment of
1657	persons, including, but not limited to, attorneys, accountants,
1658	investment advisers, or agents, even if they are the trustee, an
1659	affiliate of the trustee, or otherwise associated with the
1660	trustee, to advise or assist the trustee in the exercise of any
1661	of the trustee's powers and to pay reasonable compensation and
1662	costs incurred in connection with such employment from the
1663	assets of the trust; to act without independent investigation on
1664	their recommendations; and, instead of acting personally, to
1665	employ one or more agents to perform any act of administration,
1666	whether or not discretionary.
1667	(9)  The court may appoint a special fiduciary to act with
1668	respect to any proposed transaction that might violate this
1669	section if entered into by the trustee.
1670	(10)  Payment of costs or attorney's fees incurred in any
1671	trust proceeding from the assets of the trust may be made by the
1672	trustee without the approval of any person and without court
1673	authorization, except that court authorization shall be required
1674	if an action has been filed or defense asserted against the
1675	trustee based upon a breach of trust. Court authorization is not
1676	required if the action or defense is later withdrawn or
1677	dismissed by the party that is alleging a breach of trust or
1678	resolved without a determination by the court that the trustee
1679	has committed a breach of trust.
1680	736.0803  Impartiality.--If a trust has two or more
1681	beneficiaries, the trustee shall act impartially in
1682	administering the trust property, giving due regard to the
1683	beneficiaries' respective interests.
1684	736.0804  Prudent administration.--A trustee shall
1685	administer the trust as a prudent person would, by considering
1686	the purposes, terms, distribution requirements, and other
1687	circumstances of the trust. In satisfying this standard, the
1688	trustee shall exercise reasonable care, skill, and caution.
1689	736.0805  Expenses of administration.--In administering a
1690	trust, the trustee shall only incur expenses that are reasonable
1691	in relation to the trust property, the purposes of the trust,
1692	and the skills of the trustee.
1693	736.0806  Trustee's skills.--A trustee who has special
1694	skills or expertise, or is named trustee in reliance on the
1695	trustee's representation that the trustee has special skills or
1696	expertise, shall use those special skills or expertise.
1697	736.0807  Delegation by trustee.--
1698	(1)  A trustee may delegate duties and powers that a
1699	prudent trustee of comparable skills could properly delegate
1700	under the circumstances. The trustee shall exercise reasonable
1701	care, skill, and caution in:
1702	(a)  Selecting an agent.
1703	(b)  Establishing the scope and terms of the delegation,
1704	consistent with the purposes and terms of the trust.
1705	(c)  Reviewing the agent's actions periodically, in order
1706	to monitor the agent's performance and compliance with the terms
1707	of the delegation.
1708	(2)  In performing a delegated function, an agent owes a
1709	duty to the trust to exercise reasonable care to comply with the
1710	terms of the delegation.
1711	(3)  A trustee who complies with subsection (1) is not
1712	liable to the beneficiaries or to the trust for an action of the
1713	agent to whom the function was delegated.
1714	(4)  By accepting a delegation of powers or duties from the
1715	trustee of a trust that is subject to the law of this state, an
1716	agent submits to the jurisdiction of the courts of this state.
1717	736.0808  Powers to direct.--
1718	(1)  Subject to ss. 736.0403(2) and 736.0602(3)(a), the
1719	trustee may follow a direction of the settlor that is contrary
1720	to the terms of the trust while a trust is revocable.
1721	(2)  If the terms of a trust confer on a person other than
1722	the settlor of a revocable trust, the power to direct certain
1723	actions of the trustee, the trustee shall act in accordance with
1724	an exercise of the power unless the attempted exercise is
1725	manifestly contrary to the terms of the trust or the trustee
1726	knows the attempted exercise would constitute a serious breach
1727	of a fiduciary duty that the person holding the power owes to
1728	the beneficiaries of the trust.
1729	(3)  The terms of a trust may confer on a trustee or other
1730	person a power to direct the modification or termination of the
1731	trust.
1732	(4)  A person, other than a beneficiary, who holds a power
1733	to direct is presumptively a fiduciary who, as such, is required
1734	to act in good faith with regard to the purposes of the trust
1735	and the interests of the beneficiaries. The holder of a power to
1736	direct is liable for any loss that results from breach of a
1737	fiduciary duty.
1738	736.0809  Control and protection of trust property.--A
1739	trustee shall take reasonable steps to take control of and
1740	protect the trust property.
1741	736.0810  Recordkeeping and identification of trust
1742	property.--
1743	(1)  A trustee shall keep clear, distinct, and accurate
1744	records of the administration of the trust.
1745	(2)  A trustee shall keep trust property separate from the
1746	trustee's own property.
1747	(3)  Except as otherwise provided in subsection (4), a
1748	trustee shall cause the trust property to be designated so that
1749	the interest of the trust, to the extent feasible, appears in
1750	records maintained by a party other than a trustee or
1751	beneficiary.
1752	(4)  If the trustee maintains records clearly indicating
1753	the respective interests, a trustee may invest as a whole the
1754	property of two or more separate trusts.
1755	736.08105  Duty to ascertain marketable title of trust real
1756	property.--A trustee holding title to real property received
1757	from a settlor or estate shall not be required to obtain title
1758	insurance or proof of marketable title until a marketable title
1759	is required for a sale or conveyance of the real property.
1760	736.0811  Enforcement and defense of claims.--A trustee
1761	shall take reasonable steps to enforce claims of the trust and
1762	to defend claims against the trust.
1763	736.0812  Collecting trust property.--A trustee shall take
1764	reasonable steps to compel a former trustee or other person to
1765	deliver trust property to the trustee and, except as provided in
1766	s. 736.08125, to redress a breach of trust known to the trustee
1767	to have been committed by a former trustee.
1768	736.08125  Protection of successor trustees.--
1769	(1)  A successor trustee is not personally liable for
1770	actions taken by any prior trustee, nor does any successor
1771	trustee have a duty to institute any proceeding against any
1772	prior trustee, or file any claim against any prior trustee's
1773	estate, for any of the prior trustee's actions as trustee under
1774	any of the following circumstances:
1775	(a)  As to a successor trustee who succeeds a trustee who
1776	was also the settlor of a trust that was revocable during the
1777	time that the settlor served as trustee;
1778	(b)  As to any beneficiary who has waived any accounting
1779	required by s. 736.0813, but only as to the periods included in
1780	the waiver;
1781	(c)  As to any beneficiary who has released the successor
1782	trustee from the duty to institute any proceeding or file any
1783	claim;
1784	(d)  As to any person who is not an eligible beneficiary;
1785	or
1786	(e)  As to any eligible beneficiary:
1787	1.  If a supermajority of the eligible beneficiaries have
1788	released the successor trustee;
1789	2.  If the eligible beneficiary has not delivered a written
1790	request to the successor trustee to institute an action or file
1791	a claim against the prior trustee within 6 months after the date
1792	of the successor trustee's acceptance of the trust, if the
1793	successor trustee has notified the eligible beneficiary in
1794	writing of acceptance by the successor trustee in accordance
1795	with 736.0813(1)(a) and that writing advises the beneficiary
1796	that, unless the beneficiary delivers the written request within
1797	6 months after the date of acceptance, the right to proceed
1798	against the successor trustee will be barred pursuant to this
1799	section; or
1800	3.  For any action or claim that the eligible beneficiary
1801	is barred from bringing against the prior trustee.
1802	(2)  For the purposes of this section, the term:
1803	(a)  "Eligible beneficiaries" means:
1804	1.  At the time the determination is made, if there are one
1805	or more beneficiaries as described in s. 736.0103(14)(c), the
1806	beneficiaries described in s. 736.0103(14)(a) and (c); or
1807	2.  If there is no beneficiary as described in s.
1808	736.0103(14)(c), the beneficiaries described in s.
1809	736.0103(14)(a) and (b).
1810	(b)  "Supermajority of eligible beneficiaries" means at
1811	least two-thirds in interest of the eligible beneficiaries if
1812	the interests of the eligible beneficiaries are reasonably
1813	ascertainable, otherwise, at least two-thirds in number of the
1814	eligible beneficiaries.
1815	(3)  Nothing in this section affects any liability of the
1816	prior trustee or the right of the successor trustee or any
1817	beneficiary to pursue an action or claim against the prior
1818	trustee.
1819	736.0813  Duty to inform and account.--The trustee shall
1820	keep the qualified beneficiaries of the trust reasonably
1821	informed of the trust and its administration.
1822	(1)  The trustee's duty to inform and account includes, but
1823	is not limited to, the following:
1824	(a)  Within 60 days after acceptance of the trust, the
1825	trustee shall give notice to the qualified beneficiaries of the
1826	acceptance of the trust and the full name and address of the
1827	trustee.
1828	(b)  Within 60 days after the date the trustee acquires
1829	knowledge of the creation of an irrevocable trust, or the date
1830	the trustee acquires knowledge that a formerly revocable trust
1831	has become irrevocable, whether by the death of the settlor or
1832	otherwise, the trustee shall give notice to the qualified
1833	beneficiaries of the trust's existence, the identity of the
1834	settlor or settlors, the right to request a copy of the trust
1835	instrument, and the right to accountings under this section.
1836	(c)  Upon reasonable request, the trustee shall provide a
1837	qualified beneficiary with a complete copy of the trust
1838	instrument.
1839	(d)  A trustee of an irrevocable trust shall provide a
1840	trust accounting, as set forth in s. 736.08135, to each
1841	qualified beneficiary annually and on termination of the trust
1842	or on change of the trustee.
1843	(e)  Upon reasonable request, the trustee shall provide a
1844	qualified beneficiary with relevant information about the assets
1845	and liabilities of the trust and the particulars relating to
1846	administration.
1847
1848	Paragraphs (a) and (b) do not apply to an irrevocable trust
1849	created before the effective date of this code, or to a
1850	revocable trust that becomes irrevocable before the effective
1851	date of this code. Paragraph (a) does not apply to a trustee who
1852	accepts a trusteeship before the effective date of this code.
1853	(2)  A qualified beneficiary may waive the trustee's duty
1854	to account under paragraph (1)(d). A qualified beneficiary may
1855	withdraw a waiver previously given. Waivers and withdrawals of
1856	prior waivers under this subsection must be in writing.
1857	Withdrawals of prior waivers are effective only with respect to
1858	accountings for future periods.
1859	(3)  The representation provisions of part III apply with
1860	respect to all rights of a qualified beneficiary under this
1861	section.
1862	(4)  As provided in s. 736.0603(1), the trustee's duties
1863	under this section extend only to the settlor while a trust is
1864	revocable.
1865	(5)  This section applies to trust accountings rendered for
1866	accounting periods beginning on or after January 1, 2008.
1867	736.08135  Trust accountings.--
1868	(1)  A trust accounting must be a reasonably understandable
1869	report from the date of the last accounting or, if none, from
1870	the date on which the trustee became accountable, that
1871	adequately discloses the information required in subsection (2).
1872	(2)(a)  The accounting must begin with a statement
1873	identifying the trust, the trustee furnishing the accounting,
1874	and the time period covered by the accounting.
1875	(b)  The accounting must show all cash and property
1876	transactions and all significant transactions affecting
1877	administration during the accounting period, including
1878	compensation paid to the trustee and the trustee's agents. Gains
1879	and losses realized during the accounting period and all
1880	receipts and disbursements must be shown.
1881	(c)  To the extent feasible, the accounting must identify
1882	and value trust assets on hand at the close of the accounting
1883	period. For each asset or class of assets reasonably capable of
1884	valuation, the accounting shall contain two values, the asset
1885	acquisition value or carrying value and the estimated current
1886	value. The accounting must identify each known noncontingent
1887	liability with an estimated current amount of the liability if
1888	known.
1889	(d)  To the extent feasible, the accounting must show
1890	significant transactions that do not affect the amount for which
1891	the trustee is accountable, including name changes in investment
1892	holdings, adjustments to carrying value, a change of custodial
1893	institutions, and stock splits.
1894	(e)  The accounting must reflect the allocation of
1895	receipts, disbursements, accruals, or allowances between income
1896	and principal when the allocation affects the interest of any
1897	beneficiary of the trust.
1898	(f)  The trustee shall include in the final accounting a
1899	plan of distribution for any undistributed assets shown on the
1900	final accounting.
1901	(3)  This section applies to all trust accountings rendered
1902	for any accounting periods beginning on or after January 1,
1903	2003.
1904	736.0814  Discretionary powers; tax savings.--
1905	(1)  Notwithstanding the breadth of discretion granted to a
1906	trustee in the terms of the trust, including the use of such
1907	terms as "absolute," "sole," or "uncontrolled," the trustee
1908	shall exercise a discretionary power in good faith and in
1909	accordance with the terms and purposes of the trust and the
1910	interests of the beneficiaries. A court shall not determine that
1911	a trustee abused its discretion merely because the court would
1912	have exercised the discretion in a different manner or would not
1913	have exercised the discretion.
1914	(2)  Subject to subsection (3) and unless the terms of the
1915	trust expressly indicate that a rule in this subsection does not
1916	apply, a person who is a beneficiary and a trustee may not:
1917	(a)  Make discretionary distributions of either principal
1918	or income to or for the benefit of that trustee, other than
1919	distributions subject to an ascertainable standard;
1920	(b)  Make discretionary allocations of receipts or expenses
1921	as between principal and income, unless the trustee acts in a
1922	fiduciary capacity whereby the trustee has no power to enlarge
1923	or shift any beneficial interest except as an incidental
1924	consequence of the discharge of the trustee's fiduciary duties;
1925	(c)  Make discretionary distributions of either principal
1926	or income to satisfy any of the trustee's legal support
1927	obligations; or
1928	(d)  Exercise any other power, including, but not limited
1929	to, the right to remove or to replace any trustee, so as to
1930	cause the powers enumerated in paragraph (a), paragraph (b), or
1931	paragraph (c) to be exercised on behalf of, or for the benefit
1932	of, a beneficiary who is also a trustee.
1933	(3)  Subsection (2) does not apply to:
1934	(a)  A power held by the settlor of the trust;
1935	(b)  A power held by the settlor's spouse who is the
1936	trustee of a trust for which a marital deduction, as defined in
1937	s. 2056(a) or s. 2523(a) of the Internal Revenue Code of 1986,
1938	as amended, was previously allowed;
1939	(c)  Any trust during any period that the trust may be
1940	revoked or amended by its settlor; or
1941	(d)  A trust if contributions to the trust qualify for the
1942	annual exclusion under s. 2503(c) of the Internal Revenue Code
1943	of 1986, as amended.
1944	(4)  A power whose exercise is limited or prohibited by
1945	subsection (2) may be exercised by the remaining trustees whose
1946	exercise of the power is not so limited or prohibited. If there
1947	is no trustee qualified to exercise the power, on petition by
1948	any qualified beneficiary, the court may appoint an independent
1949	trustee with authority to exercise the power.
1950	(5)  A person who has the right to remove or to replace a
1951	trustee does not possess nor may that person be deemed to
1952	possess, by virtue of having that right, the powers of the
1953	trustee that is subject to removal or to replacement.
1954	736.08147  Duty to distribute trust income.--If a will or
1955	trust instrument granting income to the settlor's or testator's
1956	spouse for life is silent as to the time of distribution of
1957	income and the frequency of distributions, the trustee shall
1958	distribute all net income, as defined in chapter 738, to the
1959	spouse no less frequently than annually. This provision shall
1960	apply to any trust established before, on, or after July 1,
1961	2007, unless the trust instrument expressly directs or permits
1962	net income to be distributed less frequently than annually.
1963	736.0815  General powers of trustee.--
1964	(1)  A trustee, without authorization by the court, may,
1965	except as limited or restricted by this code, exercise:
1966	(a)  Powers conferred by the terms of the trust.
1967	(b)  Except as limited by the terms of the trust:
1968	1.  All powers over the trust property that an unmarried
1969	competent owner has over individually owned property.
1970	2.  Any other powers appropriate to achieve the proper
1971	investment, management, and distribution of the trust property.
1972	3.  Any other powers conferred by this code.
1973	(2)  The exercise of a power is subject to the fiduciary
1974	duties prescribed by this code.
1975	736.0816  Specific powers of trustee.--Except as limited or
1976	restricted by this code, a trustee may:
1977	(1)  Collect trust property and accept or reject additions
1978	to the trust property from a settlor, including an asset in
1979	which the trustee is personally interested, and hold property in
1980	the name of a nominee or in other form without disclosure of the
1981	trust so that title to the property may pass by delivery but the
1982	trustee is liable for any act of the nominee in connection with
1983	the property so held.
1984	(2)  Acquire or sell property, for cash or on credit, at
1985	public or private sale.
1986	(3)  Acquire an undivided interest in a trust asset,
1987	including, but not limited to, a money market mutual fund,
1988	mutual fund, or common trust fund, in which asset the trustee
1989	holds an undivided interest in any trust capacity, including any
1990	money market or other mutual fund from which the trustee or any
1991	affiliate or associate of the trustee is entitled to receive
1992	reasonable compensation for providing necessary services as an
1993	investment adviser, portfolio manager, or servicing agent. A
1994	trustee or affiliate or associate of the trustee may receive
1995	compensation for such services in addition to fees received for
1996	administering the trust provided such compensation is fully
1997	disclosed in writing to all qualified beneficiaries.
1998	(4)  Exchange, partition, or otherwise change the character
1999	of trust property.
2000	(5)  Deposit trust money in an account in a regulated
2001	financial-service institution.
2002	(6)  Borrow money, with or without security, and mortgage
2003	or pledge trust property for a period within or extending beyond
2004	the duration of the trust and advance money for the protection
2005	of the trust.
2006	(7)  With respect to an interest in a proprietorship,
2007	partnership, limited liability company, business trust,
2008	corporation, or other form of business or enterprise, continue
2009	the business or other enterprise and take any action that may be
2010	taken by shareholders, members, or property owners, including,
2011	but not limited to, merging, dissolving, or otherwise changing
2012	the form of business organization or contributing additional
2013	capital.
2014	(8)  With respect to stocks or other securities, exercise
2015	the rights of an absolute owner, including, but not limited to,
2016	the right to:
2017	(a)  Vote, or give proxies to vote, with or without power
2018	of substitution, or enter into or continue a voting trust
2019	agreement.
2020	(b)  Hold a security in the name of a nominee or in other
2021	form without disclosure of the trust so that title may pass by
2022	delivery.
2023	(c)  Pay calls, assessments, and other sums chargeable or
2024	accruing against the securities, and sell or exercise stock
2025	subscription or conversion rights.
2026	(d)  Deposit the securities with a depositary or other
2027	regulated financial-service institution.
2028	(9)  With respect to an interest in real property,
2029	construct, or make ordinary or extraordinary repairs to,
2030	alterations to, or improvements in, buildings or other
2031	structures, demolish improvements, raze existing or erect new
2032	party walls or buildings, subdivide or develop land, dedicate
2033	land to public use or grant public or private easements, and
2034	make or vacate plats and adjust boundaries.
2035	(10)  Enter into a lease for any purpose as lessor or
2036	lessee, including a lease or other arrangement for exploration
2037	and removal of natural resources, with or without the option to
2038	purchase or renew, for a period within or extending beyond the
2039	duration of the trust.
2040	(11)  Grant an option involving a sale, lease, or other
2041	disposition of trust property or acquire an option for the
2042	acquisition of property, including an option exercisable beyond
2043	the duration of the trust, and exercise an option so acquired.
2044	(12)  Insure the property of the trust against damage or
2045	loss and insure the trustee, trustee's agents, and beneficiaries
2046	against liability arising from the administration of the trust.
2047	(13)  Abandon or decline to administer property of no value
2048	or of insufficient value to justify the collection or continued
2049	administration of such property.
2050	(14)  Pay or contest any claim, settle a claim by or
2051	against the trust, and release, in whole or in part, a claim
2052	belonging to the trust.
2053	(15)  Pay taxes, assessments, compensation of the trustee
2054	and of employees and agents of the trust, and other expenses
2055	incurred in the administration of the trust.
2056	(16)  Allocate items of income or expense to trust income
2057	or principal, as provided by law.
2058	(17)  Exercise elections with respect to federal, state,
2059	and local taxes.
2060	(18)  Select a mode of payment under any employee benefit
2061	or retirement plan, annuity, or life insurance payable to the
2062	trustee, exercise rights under such plan, annuity, or insurance,
2063	including exercise of the right to indemnification for expenses
2064	and against liabilities, and take appropriate action to collect
2065	the proceeds.
2066	(19)  Make loans out of trust property, including, but not
2067	limited to, loans to a beneficiary on terms and conditions that
2068	are fair and reasonable under the circumstances, and the trustee
2069	has a lien on future distributions for repayment of those loans.
2070	(20)  Employ persons, including, but not limited to,
2071	attorneys, accountants, investment advisers, or agents, even if
2072	they are the trustee, an affiliate of the trustee, or otherwise
2073	associated with the trustee, to advise or assist the trustee in
2074	the exercise of any of the trustee's powers and pay reasonable
2075	compensation and costs incurred in connection with such
2076	employment from the assets of the trust and act without
2077	independent investigation on the recommendations of such
2078	persons.
2079	(21)  Pay an amount distributable to a beneficiary who is
2080	under a legal disability or who the trustee reasonably believes
2081	is incapacitated, by paying the amount directly to the
2082	beneficiary or applying the amount for the beneficiary's
2083	benefit, or by:
2084	(a)  Paying the amount to the beneficiary's guardian of the
2085	property or, if the beneficiary does not have a guardian of the
2086	property, the beneficiary's guardian of the person;
2087	(b)  Paying the amount to the beneficiary's custodian under
2088	a Uniform Transfers to Minors Act or custodial trustee under a
2089	Uniform Custodial Trust Act, and, for that purpose, creating a
2090	custodianship or custodial trust;
2091	(c)  Paying the amount to an adult relative or other person
2092	having legal or physical care or custody of the beneficiary, to
2093	be expended on the beneficiary's behalf, if the trustee does not
2094	know of a guardian of the property, guardian of the person,
2095	custodian, or custodial trustee; or
2096	(d)  Managing the amount as a separate fund on the
2097	beneficiary's behalf, subject to the beneficiary's continuing
2098	right to withdraw the distribution.
2099	(22)  On distribution of trust property or the division or
2100	termination of a trust, make distributions in divided or
2101	undivided interests, allocate particular assets in proportionate
2102	or disproportionate shares, value the trust property for those
2103	purposes, and adjust for resulting differences in valuation.
2104	(23)  Prosecute or defend, including appeals, an action,
2105	claim, or judicial proceeding in any jurisdiction to protect
2106	trust property or the trustee in the performance of the
2107	trustee's duties.
2108	(24)  Sign and deliver contracts and other instruments that
2109	are useful to achieve or facilitate the exercise of the
2110	trustee's powers.
2111	(25)  On termination of the trust, exercise the powers
2112	appropriate to wind up the administration of the trust and
2113	distribute the trust property to the persons entitled to the
2114	property, subject to the right of the trustee to retain a
2115	reasonable reserve for the payment of debts, expenses, and
2116	taxes.
2117	736.08163  Powers of trustees relating to environmental or
2118	human health laws or to trust property contaminated with
2119	hazardous or toxic substances; liability.--
2120	(1)  From the creation of a trust until final distribution
2121	of the assets from the trust, the trustee has, without court
2122	authorization, the powers specified in subsection (2).
2123	(2)  Unless otherwise provided in the trust instrument, a
2124	trustee has the power, acting reasonably, to:
2125	(a)  Inspect or investigate, or cause to be inspected or
2126	investigated, property held by the trustee, including interests
2127	in sole proprietorships, partnerships, or corporations and any
2128	assets owned by any such business entity for the purpose of
2129	determining compliance with an environmental law affecting that
2130	property or to respond to an actual or threatened violation of
2131	an environmental law affecting that property;
2132	(b)  Take, on behalf of the trust, any action necessary to
2133	prevent, abate, or otherwise remedy an actual or potential
2134	violation of an environmental law affecting property held by the
2135	trustee, before or after initiation of an enforcement action by
2136	a governmental body;
2137	(c)  Refuse to accept property in trust if the trustee
2138	determines that any property to be donated or conveyed to the
2139	trustee is contaminated with a hazardous substance or is being
2140	used or has been used for an activity directly or indirectly
2141	involving a hazardous substance, which circumstance could result
2142	in liability to the trust or trustee or otherwise impair the
2143	value of the assets to be held;
2144	(d)  Settle or compromise at any time any claim against the
2145	trust or trustee that may be asserted by a governmental body or
2146	private party that involves the alleged violation of an
2147	environmental law affecting property of any trust over which the
2148	trustee has responsibility;
2149	(e)  Disclaim any power granted by any document, law, or
2150	rule of law that, in the sole judgment of the trustee, may cause
2151	the trustee to incur personal liability, or the trust to incur
2152	liability, under any environmental law;
2153	(f)  Decline to serve as a trustee, or having undertaken to
2154	serve as a trustee, resign at any time, if the trustee believes
2155	there is or may be a conflict of interest in its fiduciary
2156	capacity and in its individual capacity because of potential
2157	claims or liabilities that may be asserted against the trustee
2158	on behalf of the trust by reason of the type or condition of the
2159	assets held; or
2160	(g)  Charge against the income and principal of the trust
2161	the cost of any inspection, investigation, review, abatement,
2162	response, cleanup, or remedial action that this section
2163	authorizes the trustee to take and, if the trust terminates or
2164	closes or the trust property is transferred to another trustee,
2165	hold assets sufficient to cover the cost of cleaning up any
2166	known environmental problem.
2167	(3)  A trustee is not personally liable to any beneficiary
2168	or any other person for a decrease in value of assets in a trust
2169	by reason of the trustee's compliance or efforts to comply with
2170	an environmental law, specifically including any reporting
2171	requirement under that law.
2172	(4)  A trustee that acquires ownership or control of a
2173	vessel or other property, without having owned, operated, or
2174	materially participated in the management of that vessel or
2175	property before assuming ownership or control as trustee, is not
2176	considered an owner or operator for purposes of liability under
2177	chapter 376, chapter 403, or any other environmental law. A
2178	trustee that willfully, knowingly, or recklessly causes or
2179	exacerbates a release or threatened release of a hazardous
2180	substance is personally liable for the cost of the response, to
2181	the extent that the release or threatened release is
2182	attributable to the trustee's activities. This subsection does
2183	not preclude the filing of claims against the assets that
2184	constitute the trust held by the trustee or the filing of
2185	actions against the trustee in its representative capacity and
2186	in any such action, an award or judgment against the trustee
2187	must be satisfied only from the assets of the trust.
2188	(5)  The acceptance by the trustee of the property or a
2189	failure by the trustee to inspect or investigate the property
2190	does not create any inference as to whether there is liability
2191	under an environmental law with respect to that property.
2192	(6)  For the purposes of this section, the term "hazardous
2193	substance" means a substance defined as hazardous or toxic, or
2194	any contaminant, pollutant, or constituent thereof, or otherwise
2195	regulated, by an environmental law.
2196	(7)  This section does not apply to any trust created under
2197	a document executed before July 1, 1995, unless the trust is
2198	amendable and the settlor amends the trust at any time to
2199	incorporate the provisions of this section.
2200	736.08165  Administration pending outcome of contest or
2201	other proceeding.--
2202	(1)  Pending the outcome of a proceeding filed to determine
2203	the validity of all or part of a trust or the beneficiaries of
2204	all or part of a trust, the trustee shall proceed with the
2205	administration of the trust as if no proceeding had been
2206	commenced, except no action may be taken and no distribution may
2207	be made to a beneficiary in contravention of the rights of those
2208	persons who may be affected by the outcome of the proceeding.
2209	(2)  Upon motion of a party and after notice to interested
2210	persons, a court, on good cause shown, may make an exception to
2211	the prohibition under subsection (1) and authorize the trustee
2212	to act or to distribute trust assets to a beneficiary subject to
2213	any conditions the court, in the court's discretion, may impose,
2214	including the posting of bond by the beneficiary.
2215	736.0817  Distribution on termination.--Upon the occurrence
2216	of an event terminating or partially terminating a trust, the
2217	trustee shall proceed expeditiously to distribute the trust
2218	property to the persons entitled to the property, subject to the
2219	right of the trustee to retain a reasonable reserve for the
2220	payment of debts, expenses, and taxes. The provisions of this
2221	section are in addition to and are not in derogation of the
2222	rights of a trustee under the common law with respect to final
2223	distribution of a trust.
2224	Section 9.  Part IX of chapter 736, Florida Statutes,
2225	consisting of section 736.0901, is created to read:
2226
2227	PART IX
2228	TRUST INVESTMENTS
2229
2230	736.0901  Applicability of chapter 518.--A trustee shall
2231	invest trust property in accordance with chapter 518.
2232	Section 10.  Part X of chapter 736, Florida Statutes,
2233	consisting of sections 736.1001, 736.1002, 736.1003, 736.1004,
2234	736.1005, 736.1006, 736.1007, 736.1008, 736.1009, 736.1010,
2235	736.1011, 736.1012, 736.1013, 736.1014, 736.1015, 736.1016,
2236	736.1017, and 736.1018, is created to read:
2237
2238	PART X
2239	LIABILITY OF TRUSTEE AND RIGHTS OF PERSONS DEALING WITH TRUSTEE
2240
2241	736.1001  Remedies for breach of trust.--
2242	(1)  A violation by a trustee of a duty the trustee owes to
2243	a beneficiary is a breach of trust.
2244	(2)  To remedy a breach of trust that has occurred or may
2245	occur, the court may:
2246	(a)  Compel the trustee to perform the trustee's duties;
2247	(b)  Enjoin the trustee from committing a breach of trust;
2248	(c)  Compel the trustee to redress a breach of trust by
2249	paying money or restoring property or by other means;
2250	(d)  Order a trustee to account;
2251	(e)  Appoint a special fiduciary to take possession of the
2252	trust property and administer the trust;
2253	(f)  Suspend the trustee;
2254	(g)  Remove the trustee as provided in s. 736.706;
2255	(h)  Reduce or deny compensation to the trustee;
2256	(i)  Subject to s. 736.1016, void an act of the trustee,
2257	impose a lien or a constructive trust on trust property, or
2258	trace trust property wrongfully disposed of and recover the
2259	property or its proceeds; or
2260	(j)  Order any other appropriate relief.
2261	(3)  As an illustration of the remedies available to the
2262	court and without limiting the court's discretion as provided in
2263	subsection (2), if a breach of trust results in the favoring of
2264	any beneficiary to the detriment of any other beneficiary or
2265	consists of an abuse of the trustee's discretion:
2266	(a)  To the extent the breach of trust has resulted in no
2267	distribution to a beneficiary or a distribution that is too
2268	small, the court may require the trustee to pay from the trust
2269	to the beneficiary an amount the court determines will restore
2270	the beneficiary, in whole or in part, to his or her appropriate
2271	position.
2272	(b)  To the extent the breach of trust has resulted in a
2273	distribution to a beneficiary that is too large, the court may
2274	restore the beneficiaries, the trust, or both, in whole or in
2275	part, to their appropriate positions by requiring the trustee to
2276	withhold an amount from one or more future distributions to the
2277	beneficiary who received the distribution that was too large or
2278	by requiring that beneficiary to return some or all of the
2279	distribution to the trust.
2280	736.1002  Damages for breach of trust.--
2281	(1)  A trustee who commits a breach of trust is liable for
2282	the greater of:
2283	(a)  The amount required to restore the value of the trust
2284	property and trust distributions to what they would have been if
2285	the breach had not occurred, including lost income, capital
2286	gain, or appreciation that would have resulted from proper
2287	administration; or
2288	(b)  The profit the trustee made by reason of the breach.
2289	(2)  Except as otherwise provided in this subsection, if
2290	more than one person, including a trustee or trustees, is liable
2291	to the beneficiaries for a breach of trust, each liable person
2292	is entitled to pro rata contribution from the other person or
2293	persons. A person is not entitled to contribution if the person
2294	committed the breach of trust in bad faith. A person who
2295	received a benefit from the breach of trust is not entitled to
2296	contribution from another person to the extent of the benefit
2297	received.
2298	(3)  In determining the pro rata shares of liable persons
2299	in the entire liability for a breach of trust:
2300	(a)  Their relative degrees of fault shall be the basis for
2301	allocation of liability.
2302	(b)  If equity requires, the collective liability of some
2303	as a group shall constitute a single share.
2304	(c)  Principles of equity applicable to contribution
2305	generally shall apply.
2306	(4)  The right of contribution shall be enforced as
2307	follows:
2308	(a)  Contribution may be enforced by separate action,
2309	whether or not judgment has been entered in an action against
2310	two or more liable persons for the same breach of trust.
2311	(b)  When a judgment has been entered in an action against
2312	two or more liable persons for the same breach of trust,
2313	contribution may be enforced in that action by judgment in favor
2314	of one judgment defendant against any other judgment defendants
2315	by motion upon notice to all parties to the action.
2316	(c)  If there is a judgment for breach of trust against the
2317	liable person seeking contribution, any separate action by that
2318	person to enforce contribution must be commenced within 1 year
2319	after the judgment has become final by lapse of time for appeal
2320	or after appellate review.
2321	(d)  If there is no judgment for the breach of trust
2322	against the liable person seeking contribution, the person's
2323	right of contribution is barred unless the person has:
2324	1.  Discharged by payment the common liability within the
2325	period of the statute of limitations applicable to the
2326	beneficiary's right of action against the liable person and the
2327	person has commenced an action for contribution within 1 year
2328	after payment, or
2329	2.  Agreed, while action is pending against the liable
2330	person, to discharge the common liability and has within 1 year
2331	after the agreement paid the liability and commenced the
2332	person's action for contribution.
2333	(5)  The beneficiary's recovery of a judgment for breach of
2334	trust against one liable person does not of itself discharge
2335	other liable persons from liability for the breach of trust
2336	unless the judgment is satisfied. The satisfaction of the
2337	judgment does not impair any right of contribution.
2338	(6)  The judgment of the court in determining the liability
2339	of several defendants to the beneficiary for breach of trust is
2340	binding upon such defendants in determining the right of such
2341	defendants to contribution.
2342	(7)  Subsection (2) applies to all causes of action for
2343	breach of trust pending on July 1, 2007, under which causes of
2344	action the right of contribution among persons jointly and
2345	severally liable is involved and to all causes of action filed
2346	after July 1, 2007.
2347	736.1003  Damages in absence of breach.--Absent a breach of
2348	trust, a trustee is not liable to a beneficiary for a loss or
2349	depreciation in the value of trust property or for not having
2350	made a profit.
2351	736.1004  Attorney's fees and costs.--
2352	(1)(a)  In all actions for breach of fiduciary duty or
2353	challenging the exercise of, or failure to exercise, a trustee's
2354	powers; and
2355	(b)  In proceedings arising under ss. 736.0410-736.0417,
2356
2357	the court shall award taxable costs as in chancery actions,
2358	including attorney fees and guardian ad litem fees.
2359	(2)  When awarding taxable costs under this section,
2360	including attorney fees and guardian ad litem fees, the court,
2361	in its discretion, may direct payment from a party's interest,
2362	if any, in the trust or enter a judgment that may be satisfied
2363	from other property of the party, or both.
2364	736.1005  Attorney's fees for services to the trust.--
2365	(1)  Any attorney who has rendered services to a trust may
2366	be awarded reasonable compensation from the trust. The attorney
2367	may apply to the court for an order awarding attorney's fees
2368	and, after notice and service on the trustee and all
2369	beneficiaries entitled to an accounting under s. 736.0813, the
2370	court shall enter an order on the fee application.
2371	(2)  Whenever attorney's fees are to be paid out of the
2372	trust, the court, in its discretion, may direct from what part
2373	of the trust the fees shall be paid.
2374	(3)  Except when a trustee's interest may be adverse in a
2375	particular matter, the attorney shall give reasonable notice in
2376	writing to the trustee of the attorney's retention by an
2377	interested person and the attorney's entitlement to fees
2378	pursuant to this section. A court may reduce any fee award for
2379	services rendered by the attorney prior to the date of actual
2380	notice to the trustee, if the actual notice date is later than a
2381	date of reasonable notice. In exercising this discretion, the
2382	court may exclude compensation for services rendered after the
2383	reasonable notice date but prior to the date of actual notice.
2384	736.1006  Costs in trust proceedings.--
2385	(1)  In all trust proceedings, costs may be awarded as in
2386	chancery actions.
2387	(2)  Whenever costs are to be paid out of the trust, the
2388	court, in its discretion, may direct from what part of the trust
2389	the costs shall be paid.
2390	736.1007  Trustee's attorney's fees.--
2391	(1)  If the trustee of a revocable trust retains an
2392	attorney to render legal services in connection with the initial
2393	administration of the trust, the attorney is entitled to
2394	reasonable compensation for those legal services, payable from
2395	the assets of the trust without court order. The trustee and the
2396	attorney may agree to compensation that is determined in a
2397	manner or amount other than the manner or amount provided in
2398	this section. The agreement is not binding on a person who bears
2399	the impact of the compensation unless that person is a party to
2400	or otherwise consents to be bound by the agreement. The
2401	agreement may provide that the trustee is not individually
2402	liable for the attorney's fees and costs.
2403	(2)  Unless otherwise agreed, compensation based on the
2404	value of the trust assets immediately following the settlor's
2405	death and the income earned by the trust during initial
2406	administration at the rate of 75 percent of the schedule
2407	provided in s. 733.6171(3)(a)-(h) is presumed to be reasonable
2408	total compensation for ordinary services of all attorneys
2409	employed generally to advise a trustee concerning the trustee's
2410	duties in initial trust administration.
2411	(3)  An attorney who is retained to render only limited and
2412	specifically defined legal services shall be compensated as
2413	provided in the retaining agreement. If the amount or method of
2414	determining compensation is not provided in the agreement, the
2415	attorney is entitled to a reasonable fee, taking into account
2416	the factors set forth in subsection (6).
2417	(4)  Ordinary services of the attorney in an initial trust
2418	administration include legal advice and representation
2419	concerning the trustee's duties relating to:
2420	(a)  Review of the trust instrument and each amendment for
2421	legal sufficiency and interpretation.
2422	(b)  Implementation of substitution of the successor
2423	trustee.
2424	(c)  Persons who must or should be served with required
2425	notices and the method and timing of such service.
2426	(d)  The obligation of a successor to require a former
2427	trustee to provide an accounting.
2428	(e)  The trustee's duty to protect, insure, and manage
2429	trust assets and the trustee's liability relating to these
2430	duties.
2431	(f)  The trustee's duty regarding investments imposed by
2432	the prudent investor rule.
2433	(g)  The trustee's obligation to inform and account to
2434	beneficiaries and the method of satisfaction of such
2435	obligations, the liability of the trust and trustee to the
2436	settlor's creditors, and the advisability or necessity for
2437	probate proceedings to bar creditors.
2438	(h)  Contributions due to the personal representative of
2439	the settlor's estate for payment of expenses of administration
2440	and obligations of the settlor's estate.
2441	(i)  Identifying tax returns required to be filed by the
2442	trustee, the trustee's liability for payment of taxes, and the
2443	due date of returns.
2444	(j)  Filing a nontaxable affidavit, if not filed by a
2445	personal representative.
2446	(k)  Order of payment of expenses of administration of the
2447	trust and order and priority of abatement of trust
2448	distributions.
2449	(l)  Distribution of income or principal to beneficiaries
2450	or funding of further trusts provided in the governing
2451	instrument.
2452	(m)  Preparation of any legal documents required to effect
2453	distribution.
2454	(n)  Fiduciary duties, avoidance of self-dealing, conflicts
2455	of interest, duty of impartiality, and obligations to
2456	beneficiaries.
2457	(o)  If there is a conflict of interest between a trustee
2458	who is a beneficiary and other beneficiaries of the trust,
2459	advice to the trustee on limitations of certain authority of the
2460	trustee regarding discretionary distributions or exercise of
2461	certain powers and alternatives for appointment of an
2462	independent trustee and appropriate procedures.
2463	(p)  Procedures for the trustee's discharge from liability
2464	for administration of the trust on termination or resignation.
2465	(5)  In addition to the attorney's fees for ordinary
2466	services, the attorney for the trustee shall be allowed further
2467	reasonable compensation for any extraordinary service. What
2468	constitutes an extraordinary service may vary depending on many
2469	factors, including the size of the trust. Extraordinary services
2470	may include, but are not limited to:
2471	(a)  Involvement in a trust contest, trust construction, a
2472	proceeding for determination of beneficiaries, a contested
2473	claim, elective share proceedings, apportionment of estate
2474	taxes, or other adversary proceedings or litigation by or
2475	against the trust.
2476	(b)  Representation of the trustee in an audit or any
2477	proceeding for adjustment, determination, or collection of any
2478	taxes.
2479	(c)  Tax advice on postmortem tax planning, including, but
2480	not limited to, disclaimer, renunciation of fiduciary
2481	commission, alternate valuation date, allocation of
2482	administrative expenses between tax returns, the QTIP or reverse
2483	QTIP election, allocation of GST exemption, qualification for
2484	Internal Revenue Code ss. 303 and 6166 privileges, deduction of
2485	last illness expenses, distribution planning, asset basis
2486	considerations, throwback rules, handling income or deductions
2487	in respect of a decedent, valuation discounts, special use and
2488	other valuation, handling employee benefit or retirement
2489	proceeds, prompt assessment request, or request for release from
2490	personal liability for payment of tax.
2491	(d)  Review of an estate tax return and preparation or
2492	review of other tax returns required to be filed by the trustee.
2493	(e)  Preparation of decedent's federal estate tax return.
2494	If this return is prepared by the attorney, a fee of one-half of
2495	1 percent up to a value of $10 million and one-fourth of 1
2496	percent on the value in excess of $10 million, of the gross
2497	estate as finally determined for federal estate tax purposes, is
2498	presumed to be reasonable compensation for the attorney for this
2499	service. These fees shall include services for routine audit of
2500	the return, not beyond the examining agent level, if required.
2501	(f)  Purchase, sale, lease, or encumbrance of real property
2502	by the trustee or involvement in zoning, land use,
2503	environmental, or other similar matters.
2504	(g)  Legal advice regarding carrying on of decedent's
2505	business or conducting other commercial activity by the trustee.
2506	(h)  Legal advice regarding claims for damage to the
2507	environment or related procedures.
2508	(i)  Legal advice regarding homestead status of trust real
2509	property or proceedings involving the status.
2510	(j)  Involvement in fiduciary, employee, or attorney
2511	compensation disputes.
2512	(k)  Considerations of special valuation of trust assets,
2513	including discounts for blockage, minority interests, lack of
2514	marketability, and environmental liability.
2515	(6)  Upon petition of any interested person in a proceeding
2516	to review the compensation paid or to be paid to the attorney
2517	for the trustee, the court may increase or decrease the
2518	compensation for ordinary services of the attorney for the
2519	trustee or award compensation for extraordinary services if the
2520	facts and circumstances of the particular administration
2521	warrant. In determining reasonable compensation, the court shall
2522	consider all of the following factors giving such weight to each
2523	as the court may determine to be appropriate:
2524	(a)  The promptness, efficiency, and skill with which the
2525	initial administration was handled by the attorney.
2526	(b)  The responsibilities assumed by, and potential
2527	liabilities of, the attorney.
2528	(c)  The nature and value of the assets that are affected
2529	by the decedent's death.
2530	(d)  The benefits or detriments resulting to the trust or
2531	the trust's beneficiaries from the attorney's services.
2532	(e)  The complexity or simplicity of the administration and
2533	the novelty of issues presented.
2534	(f)  The attorney's participation in tax planning for the
2535	estate, the trust, and the trust's beneficiaries and tax return
2536	preparation or review and approval.
2537	(g)  The nature of the trust assets, the expenses of
2538	administration, and the claims payable by the trust and the
2539	compensation paid to other professionals and fiduciaries.
2540	(h)  Any delay in payment of the compensation after the
2541	services were furnished.
2542	(i)  Any other relevant factors.
2543	(7)  The court may determine reasonable attorney's
2544	compensation without receiving expert testimony. Any party may
2545	offer expert testimony after notice to interested persons. If
2546	expert testimony is offered, an expert witness fee may be
2547	awarded by the court and paid from the assets of the trust. The
2548	court shall direct from what part of the trust the fee is to be
2549	paid.
2550	(8)  If a separate written agreement regarding compensation
2551	exists between the attorney and the settlor, the attorney shall
2552	furnish a copy to the trustee prior to commencement of
2553	employment and, if employed, shall promptly file and serve a
2554	copy on all interested persons. A separate agreement or a
2555	provision in the trust suggesting or directing the trustee to
2556	retain a specific attorney does not obligate the trustee to
2557	employ the attorney or obligate the attorney to accept the
2558	representation but, if the attorney who is a party to the
2559	agreement or who drafted the trust is employed, the compensation
2560	paid shall not exceed the compensation provided in the
2561	agreement.
2562	(9)  Court proceedings to determine compensation, if
2563	required, are a part of the trust administration process and the
2564	costs, including fees for the trustee's attorney, shall be
2565	determined by the court and paid from the assets of the trust
2566	unless the court finds the attorney's fees request to be
2567	substantially unreasonable. The court shall direct from what
2568	part of the trust the fees are to be paid.
2569	(10)  As used in this section, the term "initial trust
2570	administration" means administration of a revocable trust during
2571	the period that begins with the death of the settlor and ends on
2572	the final distribution of trust assets outright or to continuing
2573	trusts created under the trust agreement but, if an estate tax
2574	return is required, not until after issuance of an estate tax
2575	closing letter or other evidence of termination of the estate
2576	tax proceeding. This initial period is not intended to include
2577	continued regular administration of the trust.
2578	736.1008  Limitations on proceedings against trustees.--
2579	(1)  Except as provided in subsection (2), all claims by a
2580	beneficiary against a trustee for breach of trust are barred as
2581	provided in chapter 95 as to:
2582	(a)  All matters adequately disclosed in a trust disclosure
2583	document issued by the trustee, with the limitations period
2584	beginning on the date of receipt of adequate disclosure.
2585	(b)  All matters not adequately disclosed in a trust
2586	disclosure document if the trustee has issued a final trust
2587	accounting and has given written notice to the beneficiary of
2588	the availability of the trust records for examination and that
2589	any claims with respect to matters not adequately disclosed may
2590	be barred unless an action is commenced within the applicable
2591	limitations period provided in chapter 95. The limitations
2592	period begins on the date of receipt of the final trust
2593	accounting and notice.
2594	(2)  Unless sooner barred by adjudication, consent, or
2595	limitations, a beneficiary is barred from bringing an action
2596	against a trustee for breach of trust with respect to a matter
2597	that was adequately disclosed in a trust disclosure document
2598	unless a proceeding to assert the claim is commenced within 6
2599	months after receipt from the trustee of the trust disclosure
2600	document or a limitation notice that applies to that disclosure
2601	document, whichever is received later.
2602	(3)  When a trustee has not issued a final trust accounting
2603	or has not given written notice to the beneficiary of the
2604	availability of the trust records for examination and that
2605	claims with respect to matters not adequately disclosed may be
2606	barred, a claim against the trustee for breach of trust based on
2607	a matter not adequately disclosed in a trust disclosure document
2608	accrues when the beneficiary has actual knowledge of the
2609	trustee's repudiation of the trust or adverse possession of
2610	trust assets, and is barred as provided in chapter 95.
2611	(4)  As used in this section, the term:
2612	(a)  "Trust disclosure document" means a trust accounting
2613	or any other written report of the trustee. A trust disclosure
2614	document adequately discloses a matter if the document provides
2615	sufficient information so that a beneficiary knows of a claim or
2616	reasonably should have inquired into the existence of a claim
2617	with respect to that matter.
2618	(b)  "Trust accounting" means an accounting that adequately
2619	discloses the information required by and that substantially
2620	complies with the standards set forth in s. 736.08135.
2621	(c)  "Limitation notice" means a written statement of the
2622	trustee that an action by a beneficiary against the trustee for
2623	breach of trust based on any matter adequately disclosed in a
2624	trust disclosure document may be barred unless the action is
2625	commenced within 6 months after receipt of the trust disclosure
2626	document or receipt of a limitation notice that applies to that
2627	trust disclosure document, whichever is later. A limitation
2628	notice may but is not required to be in the following form: "An
2629	action for breach of trust based on matters disclosed in a trust
2630	accounting or other written report of the trustee may be subject
2631	to a 6-month statute of limitations from the receipt of the
2632	trust accounting or other written report. If you have questions,
2633	please consult your attorney."
2634	(5)  For purposes of this section, a limitation notice
2635	applies to a trust disclosure document when the limitation
2636	notice is:
2637	(a)  Contained as a part of the trust disclosure document
2638	or as a part of another trust disclosure document received
2639	within 1 year prior to the receipt of the latter trust
2640	disclosure document;
2641	(b)  Accompanied concurrently by the trust disclosure
2642	document or by another trust disclosure document that was
2643	received within 1 year prior to the receipt of the latter trust
2644	disclosure document;
2645	(c)  Delivered separately within 10 days after the delivery
2646	of the trust disclosure document or of another trust disclosure
2647	document that was received within 1 year prior to the receipt of
2648	the latter trust disclosure document. For purposes of this
2649	paragraph, a limitation notice is not delivered separately if
2650	the notice is accompanied by another written communication,
2651	other than a written communication that refers only to the
2652	limitation notice; or
2653	(d)  Received more than 10 days after the delivery of the
2654	trust disclosure document but only if the limitation notice
2655	references that trust disclosure document and:
2656	1.  Offers to provide to the beneficiary on request another
2657	copy of that trust disclosure document if the document was
2658	received by the beneficiary within 1 year prior to receipt of
2659	the limitation notice; or
2660	2.  Is accompanied by another copy of that trust disclosure
2661	document if the trust disclosure document was received by the
2662	beneficiary 1 year or more prior to the receipt of the
2663	limitation notice.
2664	(6)  This section applies to trust accountings for
2665	accounting periods beginning on or after January 1, 2008, and to
2666	written reports, other than trust accountings, received by a
2667	beneficiary on or after January 1, 2008.
2668	736.1009  Reliance on trust instrument.--A trustee who acts
2669	in reasonable reliance on the terms of the trust as expressed in
2670	the trust instrument is not liable to a beneficiary for a breach
2671	of trust to the extent the breach resulted from the reliance.
2672	736.1010  Event affecting administration or
2673	distribution.--If the happening of an event, including marriage,
2674	divorce, performance of educational requirements, or death,
2675	affects the administration or distribution of a trust, a trustee
2676	who has exercised reasonable care to ascertain the happening of
2677	the event is not liable for a loss resulting from the trustee's
2678	lack of knowledge.
2679	736.1011  Exculpation of trustee.--
2680	(1)  A term of a trust relieving a trustee of liability for
2681	breach of trust is unenforceable to the extent that the term:
2682	(a)  Relieves the trustee of liability for breach of trust
2683	committed in bad faith or with reckless indifference to the
2684	purposes of the trust or the interests of the beneficiaries; or
2685	(b)  Was inserted into the trust instrument as the result
2686	of an abuse by the trustee of a fiduciary or confidential
2687	relationship with the settlor.
2688	(2)  An exculpatory term drafted or caused to be drafted by
2689	the trustee is invalid as an abuse of a fiduciary or
2690	confidential relationship unless the trustee proves that the
2691	exculpatory term is fair under the circumstances and that the
2692	term's existence and contents were adequately communicated
2693	directly to the settlor.
2694	736.1012  Beneficiary's consent, release, or
2695	ratification.--A trustee is not liable to a beneficiary for
2696	breach of trust if the beneficiary consented to the conduct
2697	constituting the breach, released the trustee from liability for
2698	the breach, or ratified the transaction constituting the breach,
2699	unless:
2700	(1)  The consent, release, or ratification of the
2701	beneficiary was induced by improper conduct of the trustee; or
2702	(2)  At the time of the consent, release, or ratification,
2703	the beneficiary did not know of the beneficiary's rights or of
2704	the material facts relating to the breach.
2705	736.1013  Limitation on personal liability of trustee.--
2706	(1)  Except as otherwise provided in the contract, a
2707	trustee is not personally liable on a contract properly entered
2708	into in the trustee's fiduciary capacity in the course of
2709	administering the trust if the trustee in the contract disclosed
2710	the fiduciary capacity.
2711	(2)  A trustee is personally liable for torts committed in
2712	the course of administering a trust or for obligations arising
2713	from ownership or control of trust property only if the trustee
2714	is personally at fault.
2715	(3)  A claim based on a contract entered into by a trustee
2716	in the trustee's fiduciary capacity, on an obligation arising
2717	from ownership or control of trust property, or on a tort
2718	committed in the course of administering a trust may be asserted
2719	in a judicial proceeding against the trustee in the trustee's
2720	fiduciary capacity, whether or not the trustee is personally
2721	liable for the claim.
2722	(4)  Issues of liability between the trust estate and the
2723	trustee individually may be determined in a proceeding for
2724	accounting, surcharge, or indemnification or in any other
2725	appropriate proceeding.
2726	736.1014  Limitations on actions against certain trusts.--
2727	(1)  After the death of a settlor, no creditor of the
2728	settlor may bring, maintain, or continue any direct action
2729	against a trust described in s. 733.707(3), the trustee of the
2730	trust, or any beneficiary of the trust that is dependent on the
2731	individual liability of the settlor. Such claims and causes of
2732	action against the settlor shall be presented and enforced
2733	against the settlor's estate as provided in part VII of chapter
2734	733 and the personal representative of the settlor's estate may
2735	obtain payment from the trustee of a trust described in s.
2736	733.707(3) as provided in ss. 733.607(2), 733.707(3), and
2737	736.05053.
2738	(2)  This section does not preclude a direct action against
2739	a trust described in s. 733.707(3), the trustee of the trust, or
2740	a beneficiary of the trust that is not dependent on the
2741	individual liability of the settlor.
2742	(3)  This section does not affect the lien of any duly
2743	recorded mortgage or security interest or the lien of any person
2744	in possession of personal property or the right to foreclose and
2745	enforce the mortgage or lien.
2746	736.1015  Interest as general partner.--
2747	(1)  Unless personal liability is imposed in the contract,
2748	a trustee who holds an interest as a general partner in a
2749	general or limited partnership is not personally liable on a
2750	contract entered into by the partnership after the trust's
2751	acquisition of the interest if the fiduciary capacity was
2752	disclosed in the contract or in a statement previously filed
2753	pursuant to a Uniform Partnership Act or Uniform Limited
2754	Partnership Act.
2755	(2)  A trustee who holds an interest as a general partner
2756	is not personally liable for torts committed by the partnership
2757	or for obligations arising from ownership or control of the
2758	interest unless the trustee is personally at fault.
2759	(3)  If the trustee of a revocable trust holds an interest
2760	as a general partner, the settlor is personally liable for
2761	contracts and other obligations of the partnership as if the
2762	settlor were a general partner.
2763	736.1016  Protection of person dealing with trustee.--
2764	(1)  A person other than a beneficiary who in good faith
2765	assists a trustee or who in good faith and for value deals with
2766	a trustee, without knowledge that the trustee is exceeding or
2767	improperly exercising the trustee's powers, is protected from
2768	liability as if the trustee properly exercised the power.
2769	(2)  A person other than a beneficiary who in good faith
2770	deals with a trustee is not required to inquire into the extent
2771	of the trustee's powers or the propriety of their exercise.
2772	(3)  A person who in good faith delivers assets to a
2773	trustee need not ensure their proper application.
2774	(4)  A person other than a beneficiary who in good faith
2775	assists a former trustee or who in good faith and for value
2776	deals with a former trustee, without knowledge that the
2777	trusteeship has terminated, is protected from liability as if
2778	the former trustee were still a trustee.
2779	(5)  Comparable protective provisions of other laws
2780	relating to commercial transactions or transfer of securities by
2781	fiduciaries prevail over the protection provided by this
2782	section.
2783	736.1017  Certification of trust.--
2784	(1)  Instead of furnishing a copy of the trust instrument
2785	to a person other than a beneficiary, the trustee may furnish to
2786	the person a certification of trust containing the following
2787	information:
2788	(a)  The trust exists and the date the trust instrument was
2789	executed.
2790	(b)  The identity of the settlor.
2791	(c)  The identity and address of the currently acting
2792	trustee.
2793	(d)  The powers of the trustee.
2794	(e)  The revocability or irrevocability of the trust and
2795	the identity of any person holding a power to revoke the trust.
2796	(f)  The authority of cotrustees to sign or otherwise
2797	authenticate and whether all or less than all are required in
2798	order to exercise powers of the trustee.
2799	(g)  The manner of taking title to trust property.
2800	(2)  A certification of trust may be signed or otherwise
2801	authenticated by any trustee.
2802	(3)  A certification of trust must state that the trust has
2803	not been revoked, modified, or amended in any manner that would
2804	cause the representations contained in the certification of
2805	trust to be incorrect.
2806	(4)  A certification of trust need not contain the
2807	dispositive terms of a trust.
2808	(5)  A recipient of a certification of trust may require
2809	the trustee to furnish copies of any excerpts from the original
2810	trust instrument and later amendments that designate the trustee
2811	and confer upon the trustee the power to act in the pending
2812	transaction.
2813	(6)  A person who acts in reliance on a certification of
2814	trust without knowledge that the representations contained in
2815	the certification are incorrect is not liable to any person for
2816	so acting and may assume without inquiry the existence of the
2817	facts contained in the certification. Knowledge of the terms of
2818	the trust may not be inferred solely from the fact that a copy
2819	of all or part of the trust instrument is held by the person
2820	relying on the certification.
2821	(7)  A person who in good faith enters into a transaction
2822	in reliance on a certification of trust may enforce the
2823	transaction against the trust property as if the representations
2824	contained in the certification were correct.
2825	(8)  This section does not limit the right of a person to
2826	obtain a copy of the trust instrument when required to be
2827	furnished by law or in a judicial proceeding concerning the
2828	trust.
2829	736.1018  Improper distribution or payment; liability of
2830	distributee.--Any person who received a distribution or was paid
2831	improperly from a trust shall return the assets or funds
2832	received and the income from those assets or interest on the
2833	funds from the date of distribution or payment unless the
2834	distribution or payment cannot be questioned because of
2835	adjudication, estoppel, or limitations. If the person does not
2836	have the assets or funds, the value of the assets or funds at
2837	the date of disposition, income from the assets or funds, and
2838	gain received by the person from the assets or funds shall be
2839	returned.
2840	Section 11.  Part XI of chapter 736, Florida Statutes,
2841	consisting of sections 736.1101, 736.1102, 736.1103, 736.1104,
2842	736.1105, 736.1106, 736.1107, and 736.1108, is created to read:
2843
2844	PART XI
2845	RULES OF CONSTRUCTION
2846
2847	736.1101  Rules of construction; general
2848	provisions.--Except as provided in s. 736.0105(2):
2849	(1)  The intent of the settlor as expressed in the terms of
2850	the trust controls the legal effect of the dispositions made in
2851	the trust.
2852	(2)  The rules of construction as expressed in this part
2853	shall apply unless a contrary intent is indicated by the terms
2854	of the trust.
2855	736.1102  Construction of generic terms.--Adopted persons
2856	and persons born out of wedlock are included in class gift
2857	terminology and terms of relationship, in accordance with rules
2858	for determining relationships for purposes of intestate
2859	succession.
2860	736.1103  Gifts to multi-generation classes to be per
2861	stirpes.--Class gifts to descendants, issue, and other multi-
2862	multi-generation classes shall be per stirpes.
2863	736.1104  Killer not entitled to receive property or other
2864	benefits by reason of victim's death.--
2865	(1)  A beneficiary of a trust who unlawfully and
2866	intentionally kills or unlawfully and intentionally participates
2867	in procuring the death of the settlor or another person on whose
2868	death such beneficiary's interest depends, is not entitled to
2869	any trust interest, including homestead, dependent on the
2870	victim's death and such interest shall devolve as though the
2871	killer had predeceased the victim.
2872	(2)  A final judgment of conviction of murder in any degree
2873	is conclusive for the purposes of this section. In the absence
2874	of a murder conviction in any degree, the court may determine by
2875	the greater weight of the evidence whether the killing was
2876	unlawful and intentional for purposes of this section.
2877	736.1105  Dissolution of marriage; effect on revocable
2878	trust.--Unless the trust instrument or the judgment for
2879	dissolution of marriage or divorce expressly provides otherwise,
2880	if a revocable trust is executed by a husband or wife as settlor
2881	prior to annulment of the marriage or entry of a judgment for
2882	dissolution of marriage or divorce of the settlor from the
2883	settlor's spouse, any provision of the trust that affects the
2884	settlor's spouse will become void upon annulment of the marriage
2885	or entry of the judgment of dissolution of marriage or divorce
2886	and any such trust shall be administered and construed as if the
2887	settlor's spouse had died on the date of the annulment or on
2888	entry of the judgment for dissolution of marriage or divorce.
2889	736.1106  Antilapse; survivorship with respect to future
2890	interests under terms of inter vivos and testamentary trusts;
2891	substitute takers.--
2892	(1)  As used in this section, the term:
2893	(a)  "Beneficiary" means the beneficiary of a future
2894	interest and includes a class member if the future interest is
2895	in the form of a class gift.
2896	(b)  "Distribution date," with respect to a future
2897	interest, means the time when the future interest is to take
2898	effect in possession or enjoyment. The distribution date need
2899	not occur at the beginning or end of a calendar day, but can
2900	occur at a time during the course of a day.
2901	(c)  "Future interest" includes an alternative future
2902	interest and a future interest in the form of a class gift.
2903	(d)  "Future interest under the terms of a trust" means a
2904	future interest created by an inter vivos or testamentary
2905	transfer to an existing trust or creating a trust or by an
2906	exercise of a power of appointment to an existing trust
2907	directing the continuance of an existing trust, designating a
2908	beneficiary of an existing trust, or creating a trust.
2909	(e)  "Surviving beneficiary" or "surviving descendant"
2910	means a beneficiary or a descendant who did not predecease the
2911	distribution date or is not deemed to have predeceased the
2912	distribution date by operation of law.
2913	(2)  A future interest under the terms of a trust is
2914	contingent upon the beneficiary surviving the distribution date.
2915	Unless a contrary intent appears in the trust instrument, if a
2916	beneficiary of a future interest under the terms of a trust
2917	fails to survive the distribution date, and the deceased
2918	beneficiary leaves surviving descendants, a substitute gift is
2919	created in the beneficiary's surviving descendants. They take
2920	per stirpes the property to which the beneficiary would have
2921	been entitled if the beneficiary had survived the distribution
2922	date.
2923	(3)  In the application of this section:
2924	(a)  Words of survivorship attached to a future interest
2925	are a sufficient indication of an intent contrary to the
2926	application of this section.
2927	(b)  A residuary clause in a will is not a sufficient
2928	indication of an intent contrary to the application of this
2929	section, whether or not the will specifically provides that
2930	lapsed or failed devises are to pass under the residuary clause.
2931	(4)  If, after the application of subsections (2) and (3),
2932	there is no surviving taker, the property passes in the
2933	following order:
2934	(a)  If the future interest was created by the exercise of
2935	a power of appointment, the property passes under the donor's
2936	gift-in-default clause, if any, which clause is treated as
2937	creating a future interest under the terms of a trust.
2938	(b)  If no taker is produced by the application of
2939	paragraph (a) and the trust was created in a nonresiduary devise
2940	or appointment in the transferor's will, the property passes
2941	under the residuary clause in the transferor's will. For
2942	purposes of this section, the residuary clause is treated as
2943	creating a future interest under the terms of a trust.
2944	(c)  If no taker is produced by the application of
2945	paragraph (a) or paragraph (b), the property passes to those
2946	persons, including the state, and in such shares as would
2947	succeed to the transferor's intestate estate under the intestate
2948	succession law of the transferor's domicile if the transferor
2949	died when the disposition is to take effect in possession or
2950	enjoyment.
2951
2952	For purposes of paragraphs (b) and (c), the term "transferor"
2953	with respect to a future interest created by the exercise of a
2954	power of appointment, means the donor if the power was a
2955	nongeneral power and the donee if the power was a general power.
2956	(5)  This section applies to all trusts other than trusts
2957	that were irrevocable before the effective date of this code.
2958	736.1107  Change in securities; accessions;
2959	nonademption.--A gift of specific securities, rather than their
2960	equivalent value, entitles the beneficiary only to:
2961	(1)  As much of the gifted securities of the same issuer
2962	held by the trust estate at the time of the occurrence of the
2963	event entitling the beneficiary to distribution.
2964	(2)  Any additional or other securities of the same issuer
2965	held by the trust estate because of action initiated by the
2966	issuer, excluding any acquired by exercise of purchase options.
2967	(3)  Securities of another issuer held by the trust estate
2968	as a result of a merger, consolidation, reorganization, or other
2969	similar action initiated by the original issuer.
2970	736.1108  Penalty clause for contest.--
2971	(1)  A provision in a trust instrument purporting to
2972	penalize any interested person for contesting the trust
2973	instrument or instituting other proceedings relating to a trust
2974	estate or trust assets is unenforceable.
2975	(2)  This section applies to trusts created on or after
2976	October 1, 1993. For purposes of this subsection, a revocable
2977	trust shall be treated as created when the right of revocation
2978	terminates.
2979	Section 12.  Part XII of chapter 736, Florida Statutes,
2980	consisting of sections 736.1201, 736.1202, 736.1203, 736.1204,
2981	736.1205, 736.1206, 736.1207, 736.1208, 736.1209, and 736.1210,
2982	is created to read:
2983
2984	PART XII
2985	CHARITABLE TRUSTS
2986
2987	736.1201  Definitions.--As used in this part:
2988	(1)  "Charitable organization" means an organization
2989	described in s. 501(c)(3) of the Internal Revenue Code and
2990	exempt from tax under s. 501(a) of the Internal Revenue Code.
2991	(2)  "Internal Revenue Code" means the Internal Revenue
2992	Code of 1986, as amended.
2993	(3)  "Private foundation trust" means a trust, including a
2994	trust described in s. 4947(a)(1) of the Internal Revenue Code,
2995	as defined in s. 509(a) of the Internal Revenue Code.
2996	(4)  "Split interest trust" means a trust for individual
2997	and charitable beneficiaries that is subject to the provisions
2998	of s. 4947(a)(2) of the Internal Revenue Code.
2999	(5)  "State attorney" means the state attorney for the
3000	judicial circuit of the principal place of administration of the
3001	trust pursuant to s. 736.0108.
3002	736.1202  Application of this part.--Except as otherwise
3003	provided in the trust, the provisions of this part apply to all
3004	private foundation trusts and split interest trusts, whether
3005	created or established before or after November 1, 1971, and to
3006	all trust assets acquired by the trustee before or after
3007	November 1, 1971.
3008	736.1203  Trustee of a private foundation trust or a split
3009	interest trust.--Except as provided in s. 736.1205, the trustee
3010	of a private foundation trust or a split interest trust has the
3011	duties and powers conferred on the trustee by this part.
3012	736.1204  Powers and duties of trustee of a private
3013	foundation trust or a split interest trust.--
3014	(1)  In the exercise of a trustee's powers, including the
3015	powers granted by this part, a trustee has a duty to act with
3016	due regard to the trustee's obligation as a fiduciary, including
3017	a duty not to exercise any power in such a way as to:
3018	(a)  Deprive the trust of an otherwise available tax
3019	exemption, deduction, or credit for tax purposes;
3020	(b)  Deprive a donor of a trust asset or tax deduction or
3021	credit; or
3022	(c)  Operate to impose a tax on a donor, trust, or other
3023	person.
3024
3025	For purposes of this subsection, the term "tax" includes, but is
3026	not limited to, any federal, state, or local excise, income,
3027	gift, estate, or inheritance tax.
3028	(2)  Except as provided in s. 736.1205, a trustee of a
3029	private foundation trust shall make distributions at such time
3030	and in such manner as not to subject the trust to tax under s.
3031	4942 of the Internal Revenue Code.
3032	(3)  Except as provided in subsection (4) and in s.
3033	736.1205, a trustee of a private foundation trust, or a split
3034	interest trust to the extent that the split interest trust is
3035	subject to the provisions of s. 4947(a)(2) of the Internal
3036	Revenue Code, in the exercise of the trustee's powers shall not:
3037	(a)  Engage in any act of self-dealing as defined in s.
3038	4941(d) of the Internal Revenue Code;
3039	(b)  Retain any excess business holdings as defined in s.
3040	4943(c) of the Internal Revenue Code;
3041	(c)  Make any investments in a manner that subjects the
3042	foundation to tax under s. 4944 of the Internal Revenue Code; or
3043	(d)  Make any taxable expenditures as defined in s. 4945(d)
3044	of the Internal Revenue Code.
3045	(4)  Paragraphs (3)(b) and (c) shall not apply to a split
3046	interest trust if:
3047	(a)  All the interest from income, and none of the
3048	remainder interest, of the trust is devoted solely to one or
3049	more of the purposes described in s. 170(c)(2)(B) of the
3050	Internal Revenue Code, and all amounts in the trust for which a
3051	deduction was allowed under s. 170, s. 545(b)(2), s. 556(b)(2),
3052	s. 642(c), s. 2055, s. 2106(a)(2), or s. 2522 of the Internal
3053	Revenue Code have an aggregate fair market value of not more
3054	than 60 percent of the aggregate fair market value of all
3055	amounts in the trust; or
3056	(b)  A deduction was allowed under s. 170, s. 545(b)(2), s.
3057	556(b)(2), s. 642(c), s. 2055, s. 2106(a)(2), or s. 2522 of the
3058	Internal Revenue Code for amounts payable under the terms of the
3059	trust to every remainder beneficiary but not to any income
3060	beneficiary.
3061	736.1205  Notice that this part does not apply.--In the
3062	case of a power to make distributions, if the trustee determines
3063	that the governing instrument contains provisions that are more
3064	restrictive than s. 736.1204(2), or if the trust contains other
3065	powers, inconsistent with the provisions of s. 736.1204(3) that
3066	specifically direct acts by the trustee, the trustee shall
3067	notify the state attorney when the trust becomes subject to this
3068	part. Section 736.1204 does not apply to any trust for which
3069	notice has been given pursuant to this section unless the trust
3070	is amended to comply with the terms of this part.
3071	736.1206  Power to amend trust instrument.--
3072	(1)  In the case of a trust that is solely for a named
3073	charitable organization or organizations and for which the
3074	trustee does not possess any discretion concerning the
3075	distribution of income or principal among two or more such
3076	organizations, the trustee may amend the governing instrument to
3077	comply with the provisions of s. 736.1204(2) with the consent of
3078	the named charitable organization or organizations.
3079	(2)  In the case of a charitable trust that is not subject
3080	to the provisions of subsection (1), the trustee may amend the
3081	governing instrument to comply with the provisions of s.
3082	736.1204(2) with the consent of the state attorney.
3083	736.1207  Power of court to permit deviation.--This part
3084	does not affect the power of a court to relieve a trustee from
3085	any restrictions on the powers and duties that are placed on the
3086	trustee by the governing instrument or applicable law for cause
3087	shown and on complaint of the trustee, state attorney, or an
3088	affected beneficiary and notice to the affected parties.
3089	736.1208  Release; property and persons affected; manner of
3090	effecting.--
3091	(1)  The trustee of a trust, all of the unexpired interests
3092	in which are devoted to one or more charitable purposes, may
3093	release a power to select charitable donees unless the creating
3094	instrument provides otherwise.
3095	(2)  The release of a power to select charitable donees may
3096	apply to all or any part of the property subject to the power
3097	and may reduce or limit the charitable organizations, or classes
3098	of charitable organizations, in whose favor the power is
3099	exercisable.
3100	(3)  A release shall be effected by a duly acknowledged
3101	written instrument signed by the trustee and delivered as
3102	provided in subsection (4).
3103	(4)  Delivery of a release shall be accomplished as
3104	follows:
3105	(a)  If the release is accomplished by specifying a
3106	charitable organization or organizations as beneficiary or
3107	beneficiaries of the trust, by delivery of a copy of the release
3108	to each designated charitable organization.
3109	(b)  If the release is accomplished by reducing the class
3110	of permissible charitable organizations, by delivery of a copy
3111	of the release to the state attorney.
3112	(5)  If a release is accomplished by specifying a public
3113	charitable organization or organizations as beneficiary or
3114	beneficiaries of the trust, the trust at all times thereafter
3115	shall be operated exclusively for the benefit of, and be
3116	supervised by, the specified public charitable organization or
3117	organizations.
3118	736.1209  Election to come under this part.--With the
3119	consent of that organization or organizations, a trustee of a
3120	trust for the benefit of a public charitable organization or
3121	organizations may come under s. 736.0838(5) by filing with the
3122	state attorney an election, accompanied by the proof of required
3123	consent. Thereafter the trust shall be subject to s.
3124	736.1208(5).
3125	736.1210  Interpretation.--This part shall be interpreted
3126	to effectuate the intent of the state to preserve, foster, and
3127	encourage gifts to, or for the benefit of, charitable
3128	organizations.
3129	Section 13.  Part XIII of chapter 736, Florida Statutes,
3130	consisting of sections 736.1301, 736.1302, and 736.1303, is
3131	created to read:
3132
3133	PART XIII
3134	MISCELLANEOUS
3135
3136	736.1301  Electronic records and signatures.--Any
3137	provisions of this code governing the legal effect, validity, or
3138	enforceability of electronic records or electronic signatures,
3139	and of contracts formed or performed with the use of such
3140	records or signatures, are deemed to conform to the requirements
3141	of s. 102 of the Electronic Signatures in Global and National
3142	Commerce Act, 15 U.S.C. s. 7002, and supersede, modify, and
3143	limit the requirements of the Electronic Signatures in Global
3144	and National Commerce Act.
3145	736.1302  Severability clause.--If any provision of this
3146	code or its application to any person or circumstances is held
3147	invalid, the invalidity does not affect other provisions or
3148	applications of this code that can be given effect without the
3149	invalid provision or application, and to this end the provisions
3150	of this code are severable.
3151	736.1303  Application to existing relationships.--
3152	(1)  Except as otherwise provided in this code, on July 1,
3153	2007:
3154	(a)  This code applies to all trusts created before, on, or
3155	after such date.
3156	(b)  This code applies to all judicial proceedings
3157	concerning trusts commenced on or after such date.
3158	(c)  This code applies to judicial proceedings concerning
3159	trusts commenced before such date, unless the court finds that
3160	application of a particular provision of this code would
3161	substantially interfere with the effective conduct of the
3162	judicial proceedings or prejudice the rights of the parties, in
3163	which case the particular provision of this code does not apply
3164	and the superseded law applies.
3165	(d)  Any rule of construction or presumption provided in
3166	this code applies to trust instruments executed before the
3167	effective date of this code unless there is a clear indication
3168	of a contrary intent in the terms of the trust.
3169	(e)  An act done before such date is not affected by this
3170	code.
3171	(2)  If a right is acquired, extinguished, or barred on the
3172	expiration of a prescribed period that has commenced to run
3173	under any other law before July 1, 2007, that law continues to
3174	apply to the right even if it has been repealed or superseded.
3175	Section 14.  Paragraph (a) of subsection (5) of section
3176	497.458, Florida Statutes, is amended to read:
3177	497.458  Disposition of proceeds received on contracts.--
3178	(5)  The trustee of the trust established pursuant to this
3179	section shall only have the power to:
3180	(a)  Invest in investments as prescribed in s. 215.47 and
3181	exercise the powers set forth in part VIII of chapter 736 part
3182	IV of chapter 737, provided that the licensing authority may by
3183	order require the trustee to liquidate or dispose of any
3184	investment within 30 days after such order, or within such other
3185	times as the order may direct. The licensing authority may issue
3186	such order if it determines that the investment violates any
3187	provision of this chapter or is not in the best interests of the
3188	preneed contract holders whose contracts are secured by the
3189	trust funds.
3190	Section 15.  Section 518.117, Florida Statutes, is created
3191	to read:
3192	518.117  Permissible investments of fiduciary funds.--A
3193	fiduciary that is authorized by lawful authority to engage in
3194	trust business as defined in s. 658.12(20) may invest fiduciary
3195	funds in accordance with s. 660.417 so long as the investment
3196	otherwise complies with this chapter.
3197	Section 16.  Subsection (2) of section 607.0802, Florida
3198	Statutes, is amended to read:
3199	607.0802  Qualifications of directors.--
3200	(2)  In the event that the eligibility to serve as a member
3201	of the board of directors of a condominium association,
3202	cooperative association, homeowners' association, or mobile home
3203	owners' association is restricted to membership in such
3204	association and membership is appurtenant to ownership of a
3205	unit, parcel, or mobile home, a grantor of a trust described in
3206	s. 733.707(3), or a qualified beneficiary as defined in s.
3207	736.0103(14) 737.303(4)(b) of a trust which owns a unit, parcel,
3208	or mobile home shall be deemed a member of the association and
3209	eligible to serve as a director of the condominium association,
3210	cooperative association, homeowners' association, or mobile home
3211	owners' association, provided that said beneficiary occupies the
3212	unit, parcel, or mobile home.
3213	Section 17.  Subsection (2) of section 617.0802, Florida
3214	Statutes, is amended to read:
3215	617.0802  Qualifications of directors.--
3216	(2)  In the event that the eligibility to serve as a member
3217	of the board of directors of a condominium association,
3218	cooperative association, homeowners' association, or mobile home
3219	owners' association is restricted to membership in such
3220	association and membership is appurtenant to ownership of a
3221	unit, parcel, or mobile home, a grantor of a trust described in
3222	s. 733.707(3), or a qualified beneficiary as defined in s.
3223	736.0103(14) 737.303(4)(b) of a trust which owns a unit, parcel,
3224	or mobile home shall be deemed a member of the association and
3225	eligible to serve as a director of the condominium association,
3226	cooperative association, homeowners' association, or mobile home
3227	owners' association, provided that said beneficiary occupies the
3228	unit, parcel, or mobile home.
3229	Section 18.  Subsection (6) of section 660.25, Florida
3230	Statutes, renumbered as subsection (7) and amended, and a new
3231	subsection (6) is added to that section, to read:
3232	660.25  Definitions.--Subject to other definitions
3233	contained in other sections of this code, and unless the context
3234	otherwise requires, in this chapter:
3235	(6)  "Investment instrument" means any security as defined
3236	in s. 2(a)(1) of the Securities Act of 1933; any security of an
3237	open-end or closed-end management investment company or
3238	investment trust registered under the Investment Company Act of
3239	1940, 15 U.S.C. ss. 80a-1 et seq., as amended; any contract of
3240	sale of a commodity for future delivery within the meaning of s.
3241	2(i) of the Commodity Exchange Act; or any other interest in
3242	securities, including, but not limited to, shares or interests
3243	in a private investment fund, including, but not limited to, a
3244	private investment fund organized as a limited partnership, a
3245	limited liability company, a statutory or common law business
3246	trust, a statutory trust, or a real estate investment trust, a
3247	joint venture, or any other general or limited partnership;
3248	derivatives or other interests of any nature in securities such
3249	as options, options on futures, and variable forward contracts;
3250	mutual funds; common trust funds; money market funds; hedge
3251	funds; private equity or venture capital funds; insurance
3252	contracts; and other entities or vehicles investing in
3253	securities or interests in securities whether registered or
3254	otherwise.
3255	(7)(6)  Terms used but not defined in this chapter, but
3256	which are expressly defined in chapter 518, the financial
3257	institutions codes, chapter 732, chapter 733, chapter 734,
3258	chapter 735, chapter 736 737, chapter 738, chapter 744, or
3259	chapter 747, shall in this chapter, unless the context otherwise
3260	requires, have the meanings ascribed to them in said chapters;
3261	and references in any of said chapters to a "trust company" or
3262	to "trust companies" shall include every trust department as
3263	defined in s. 658.12.
3264	Section 19.  Section 660.417, Florida Statutes, is amended
3265	to read:
3266	660.417  Investment of fiduciary funds in investment
3267	instruments into mutual fund accounts; permissible activity
3268	under certain circumstances; limitations.--
3269	(1)  In addition to other investments authorized by law for
3270	the investment of funds held by a fiduciary, or by the
3271	instrument governing the fiduciary relationship, and
3272	notwithstanding any other provision of law, a bank or trust
3273	company acting as a fiduciary, agent or otherwise may, in the
3274	exercise of its investment discretion or at the direction of
3275	another person authorized to direct investment of funds held by
3276	the bank or trust company as fiduciary, invest and reinvest in
3277	investment instruments the securities of an open-end or closed-
3278	end management investment company or investment trust registered
3279	under the Investment Company Act of 1940, 15 U.S.C. ss. 80a-1 et
3280	seq., as amended, so long as the portfolio of such investment
3281	instruments consist company or investment trust consists
3282	substantially of investments not prohibited by the governing
3283	instrument.
3284	(2)  The fact that such bank or trust company or an
3285	affiliate of the bank or trust company provides services with
3286	respect to the investment instruments company or investment
3287	trust such as that of an investment adviser, administrator,
3288	broker, custodian, transfer agent, placement agent, servicing
3289	agent, registrar, underwriter, sponsor, distributor, or manager
3290	or in any other capacity, otherwise and is receiving reasonable
3291	compensation for those services, shall not preclude such bank or
3292	trust company from investing or reinvesting in investment
3293	instruments the securities of the open-end or closed-end
3294	management investment trust registered under the Investment
3295	Company Act of 1940, 15 U.S.C. ss. 80a-1 et seq., as amended.
3296	However, with respect to any funds so invested, the basis
3297	(expressed as a percentage of asset value or otherwise) upon
3298	which such compensation is calculated shall be disclosed (by
3299	prospectus, account statement or otherwise) to all persons to
3300	whom statements of such account are rendered.
3301	(3)  The fact that such bank or trust company or an
3302	affiliate of the bank or trust company owns or controls
3303	investment instruments shall not preclude the bank or trust
3304	company acting as a fiduciary from investing or reinvesting in
3305	such investment instruments, provided such investment
3306	instruments:
3307	(a)  Are held for sale by the bank or trust company or by
3308	an affiliate of the bank or trust company in the ordinary course
3309	of its business of providing investment services to its
3310	customers and do not include any such interests held by the bank
3311	or trust company or by an affiliate of the bank or trust company
3312	for its own account.
3313	(b)  Are sold primarily to accounts for which the bank or
3314	trust company is not acting as a fiduciary upon terms that are
3315	not more favorable to the buyer than the terms upon which they
3316	are sold to accounts for which the bank or trust company is
3317	acting as a fiduciary.
3318	Section 20.  Paragraphs (a), (d), and (e) of subsection (1)
3319	and subsections (2), (3), (9), and (10) of section 660.46,
3320	Florida Statutes, are amended to read:
3321	660.46  Substitution of fiduciaries.--
3322	(1)  The provisions of this section shall apply to the
3323	transfer of fiduciary accounts by substitution, and for those
3324	purposes these provisions shall constitute alternative
3325	procedures to those provided or required by any other provisions
3326	of law relating to the transfer of fiduciary accounts or the
3327	substitution of persons acting or who are to act in a fiduciary
3328	capacity. In this section, and only for its purposes, the term:
3329	(a)  "Limitation notice" has the meaning ascribed in s.
3330	736.1008(4) 737.307(3).
3331	(d)  "Trust accounting" has the meaning ascribed in s.
3332	736.08135 737.3035.
3333	(e)  "Trust disclosure document" has the meaning ascribed
3334	in s. 736.1008(4)(a) 737.307(2).
3335	(2)  Any original fiduciary and any proposed substitute
3336	fiduciary may, with respect to any fiduciary account or accounts
3337	which they shall mutually select, initiate proceedings by
3338	joining in the filing of a petition in the circuit court,
3339	requesting the substitution of the proposed substitute fiduciary
3340	for the original fiduciary as to such fiduciary account or
3341	accounts. The petition may be filed in the county in which the
3342	main office of the original fiduciary is located and, except to
3343	the extent inconsistent with the provisions of this section,
3344	shall be governed by the Florida Rules of Civil Procedure;
3345	however, if any fiduciary account is then the subject of a
3346	proceeding in a court in this state pursuant to the Florida
3347	Probate Code, the Florida Guardianship Law, chapter 736 737, or
3348	chapter 747, the petition relating to such fiduciary account
3349	shall be filed in that proceeding and shall be governed by the
3350	procedural or other relevant rules applicable to such proceeding
3351	except to the extent inconsistent with the provisions of this
3352	section.
3353	(3)  Unless a waiver or consent shall be filed in the
3354	proceedings as provided in subsection (4), the provisions of s.
3355	731.301(1) and (2) shall apply with respect to notice of the
3356	proceedings to all persons who are then cofiduciaries with the
3357	original fiduciary, other than a person joining as a petitioner
3358	in the proceedings; to all persons named in the governing
3359	instrument as substitutes or successors to the fiduciary
3360	capacity of the original fiduciary; to the persons then living
3361	who are entitled under the governing instrument to appoint a
3362	substitute or successor to act in the fiduciary capacity of the
3363	original fiduciary; to all vested beneficiaries of the fiduciary
3364	account; and to all then-living originators of the governing
3365	instrument. Unless a waiver or consent shall be filed in the
3366	proceedings as provided in subsection (4), the provisions of s.
3367	731.301 shall apply with respect to notice to all contingent
3368	beneficiaries of the fiduciary account. Only the persons or
3369	classes of persons described in the foregoing provisions of this
3370	subsection shall be deemed to be interested persons for the
3371	purposes of this section and the proceedings and notices
3372	provided for in this section; and the provisions of ss.
3373	731.301(3) and 731.303(3) and, (4), and (5), part III of chapter
3374	736, relating to notice requirements, the effect of notice, and
3375	representation of interests, shall apply to the proceedings
3376	provided for in this section.
3377	(9)  Unless previously or otherwise barred by adjudication,
3378	waiver, consent, limitation, or the provisions of subsection
3379	(8), an action for breach of trust or breach of fiduciary duties
3380	or responsibilities against an original fiduciary in whose place
3381	and stead another trust company or trust department has been
3382	substituted pursuant to the provisions of this section is barred
3383	for any beneficiary who has received a trust disclosure document
3384	adequately disclosing the matter unless a proceeding to assert
3385	the claim is commenced within 6 months after receipt of the
3386	trust disclosure document or the limitation notice that applies
3387	to the trust disclosure document, whichever is received later.
3388	In any event, and notwithstanding lack of adequate disclosure,
3389	all claims against such original fiduciary which has complied
3390	with the requirements of s. 736.1008 issued a final trust
3391	disclosure document received by the beneficiary and has informed
3392	the beneficiary of the location and availability of records for
3393	his or her examination are barred as provided in chapter 95.
3394	Section 736.1008(4)(a) and (c) 737.307(2) and (3) applies to
3395	this subsection.
3396	(10)  A beneficiary has received a final trust disclosure
3397	document or a limitation notice if, when the beneficiary is an
3398	adult, it is received by him or her or if, when the beneficiary
3399	is a minor or a disabled person, it is received by his or her
3400	representative as provided in part III of chapter 736 defined in
3401	s. 731.303.
3402	Section 21.  Section 660.418, Florida Statutes, is amended
3403	to read:
3404	660.418  Investment of fiduciary funds in syndicate
3405	securities.--Notwithstanding any other provision of law, any
3406	financial institution with fiduciary powers may, in its
3407	fiduciary capacity, purchase bonds or other securities
3408	underwritten or otherwise distributed by the financial
3409	institution or by a syndicate that includes the financial
3410	institution, or an affiliate of the financial institution,
3411	provided that such purchase is made through a licensed
3412	securities dealer, is otherwise prudent, and is not prohibited
3413	by the instrument governing the fiduciary relationship and that
3414	disclosure is made at least annually to those persons entitled
3415	to a statement of accounts pursuant to s. 736.0813 737.303(4)
3416	indicating that such securities have been or may be purchased.
3417	This section applies to purchases of bonds or other securities
3418	made at the time of the initial offering of such bonds or
3419	securities or at any time after such initial offering.
3420	Section 22.  Subsection (5) of section 689.071, Florida
3421	Statutes, is amended to read:
3422	689.071  Land trusts transferring interests in real estate;
3423	ownership vests in trustee.--
3424	(5)  In addition to any other limitation on personal
3425	liability existing pursuant to statute or otherwise, the
3426	provisions of s. 736.1013 737.306 apply to the trustee of a land
3427	trust created pursuant to this section.
3428	Section 23.  Subsections (1) and (4) of section 689.075,
3429	Florida Statutes, are amended to read:
3430	689.075  Inter vivos trusts; powers retained by settlor.--
3431	(1)  A trust which is otherwise valid and which complies
3432	with s. 736.0403 737.111, including, but not limited to, a trust
3433	the principal of which is composed of real property, intangible
3434	personal property, tangible personal property, the possible
3435	expectancy of receiving as a named beneficiary death benefits as
3436	described in s. 733.808, or any combination thereof, and which
3437	has been created by a written instrument shall not be held
3438	invalid or an attempted testamentary disposition for any one or
3439	more of the following reasons:
3440	(a)  Because the settlor or another person or both possess
3441	the power to revoke, amend, alter, or modify the trust in whole
3442	or in part;
3443	(b)  Because the settlor or another person or both possess
3444	the power to appoint by deed or will the persons and
3445	organizations to whom the income shall be paid or the principal
3446	distributed;
3447	(c)  Because the settlor or another person or both possess
3448	the power to add to, or withdraw from, the trust all or any part
3449	of the principal or income at one time or at different times;
3450	(d)  Because the settlor or another person or both possess
3451	the power to remove the trustee or trustees and appoint a
3452	successor trustee or trustees;
3453	(e)  Because the settlor or another person or both possess
3454	the power to control the trustee or trustees in the
3455	administration of the trust;
3456	(f)  Because the settlor has retained the right to receive
3457	all or part of the income of the trust during her or his life or
3458	for any part thereof; or
3459	(g)  Because the settlor is, at the time of the execution
3460	of the instrument, or thereafter becomes, sole trustee.
3461	(4)  This section shall be applicable to trusts executed
3462	before or after July 1, 1969, by persons who are living on or
3463	after said date. However, the requirement of conformity with the
3464	formalities for the execution of wills as found in paragraph
3465	(1)(g) shall not be imposed upon any trust executed prior to
3466	July 1, 1969.
3467	Section 24.  Section 689.175, Florida Statutes, is created
3468	to read:
3469	689.175  Worthier title doctrine abolished.--The doctrine
3470	of worthier title is abolished as a rule of law and as a rule of
3471	construction. Language in a governing instrument describing the
3472	beneficiaries of a disposition as the transferor's "heirs,"
3473	"heirs at law," "next of kin," "distributees," "relatives," or
3474	"family," or language of similar import, does not create or
3475	presumptively create a reversionary interest in the transferor.
3476	Section 25.  Subsection (8) of section 709.08, Florida
3477	Statutes, is amended to read:
3478	709.08  Durable power of attorney.--
3479	(8)  STANDARD OF CARE.--Except as otherwise provided in
3480	paragraph (4)(e), an attorney in fact is a fiduciary who must
3481	observe the standards of care applicable to trustees as
3482	described in s. 736.0901 737.302. The attorney in fact is not
3483	liable to third parties for any act pursuant to the durable
3484	power of attorney if the act was authorized at the time. If the
3485	exercise of the power is improper, the attorney in fact is
3486	liable to interested persons as described in s. 731.201 for
3487	damage or loss resulting from a breach of fiduciary duty by the
3488	attorney in fact to the same extent as the trustee of an express
3489	trust.
3490	Section 26.  Paragraph (c) of subsection (2) of section
3491	721.08, Florida Statutes, is amended to read:
3492	721.08  Escrow accounts; nondisturbance instruments;
3493	alternate security arrangements; transfer of legal title.--
3494	(2)  One hundred percent of all funds or other property
3495	which is received from or on behalf of purchasers of the
3496	timeshare plan or timeshare interest prior to the occurrence of
3497	events required in this subsection shall be deposited pursuant
3498	to an escrow agreement approved by the division. The funds or
3499	other property may be released from escrow only as follows:
3500	(c)  Compliance with conditions.--
3501	1.  Timeshare licenses.--If the timeshare plan is one in
3502	which timeshare licenses are to be sold and no cancellation or
3503	default has occurred, the escrow agent may release the escrowed
3504	funds or other property to or on the order of the developer upon
3505	presentation of:
3506	a.  An affidavit by the developer that all of the following
3507	conditions have been met:
3508	(I)  Expiration of the cancellation period.
3509	(II)  Completion of construction.
3510	(III)  Closing.
3511	(IV)  Either:
3512	(A)  Execution, delivery, and recordation by each
3513	interestholder of the nondisturbance and notice to creditors
3514	instrument, as described in this section; or
3515	(B)  Transfer by the developer of legal title to the
3516	subject accommodations and facilities, or all use rights
3517	therein, into a trust satisfying the requirements of
3518	subparagraph 4. and the execution, delivery, and recordation by
3519	each other interestholder of the nondisturbance and notice to
3520	creditors instrument, as described in this section.
3521	b.  A certified copy of each recorded nondisturbance and
3522	notice to creditors instrument.
3523	c.  One of the following:
3524	(I)  A copy of a memorandum of agreement, as defined in s.
3525	721.05, together with satisfactory evidence that the original
3526	memorandum of agreement has been irretrievably delivered for
3527	recording to the appropriate official responsible for
3528	maintaining the public records in the county in which the
3529	subject accommodations and facilities are located. The original
3530	memorandum of agreement must be recorded within 180 days after
3531	the date on which the purchaser executed her or his purchase
3532	agreement.
3533	(II)  A notice delivered for recording to the appropriate
3534	official responsible for maintaining the public records in each
3535	county in which the subject accommodations and facilities are
3536	located notifying all persons of the identity of an independent
3537	escrow agent or trustee satisfying the requirements of
3538	subparagraph 4. that shall maintain separate books and records,
3539	in accordance with good accounting practices, for the timeshare
3540	plan in which timeshare licenses are to be sold. The books and
3541	records shall indicate each accommodation and facility that is
3542	subject to such a timeshare plan and each purchaser of a
3543	timeshare license in the timeshare plan.
3544	2.  Timeshare estates.--If the timeshare plan is one in
3545	which timeshare estates are to be sold and no cancellation or
3546	default has occurred, the escrow agent may release the escrowed
3547	funds or other property to or on the order of the developer upon
3548	presentation of:
3549	a.  An affidavit by the developer that all of the following
3550	conditions have been met:
3551	(I)  Expiration of the cancellation period.
3552	(II)  Completion of construction.
3553	(III)  Closing.
3554	b.  If the timeshare estate is sold by agreement for deed,
3555	a certified copy of the recorded nondisturbance and notice to
3556	creditors instrument, as described in this section.
3557	c.  Evidence that each accommodation and facility:
3558	(I)  Is free and clear of the claims of any
3559	interestholders, other than the claims of interestholders that,
3560	through a recorded instrument, are irrevocably made subject to
3561	the timeshare instrument and the use rights of purchasers made
3562	available through the timeshare instrument;
3563	(II)  Is the subject of a recorded nondisturbance and
3564	notice to creditors instrument that complies with subsection (3)
3565	and s. 721.17; or
3566	(III)  Has been transferred into a trust satisfying the
3567	requirements of subparagraph 4.
3568	d.  Evidence that the timeshare estate:
3569	(I)  Is free and clear of the claims of any
3570	interestholders, other than the claims of interestholders that,
3571	through a recorded instrument, are irrevocably made subject to
3572	the timeshare instrument and the use rights of purchasers made
3573	available through the timeshare instrument; or
3574	(II)  Is the subject of a recorded nondisturbance and
3575	notice to creditors instrument that complies with subsection (3)
3576	and s. 721.17.
3577	3.  Personal property timeshare interests.--If the
3578	timeshare plan is one in which personal property timeshare
3579	interests are to be sold and no cancellation or default has
3580	occurred, the escrow agent may release the escrowed funds or
3581	other property to or on the order of the developer upon
3582	presentation of:
3583	a.  An affidavit by the developer that all of the following
3584	conditions have been met:
3585	(I)  Expiration of the cancellation period.
3586	(II)  Completion of construction.
3587	(III)  Closing.
3588	b.  If the personal property timeshare interest is sold by
3589	agreement for transfer, evidence that the agreement for transfer
3590	complies fully with s. 721.06 and this section.
3591	c.  Evidence that one of the following has occurred:
3592	(I)  Transfer by the owner of the underlying personal
3593	property of legal title to the subject accommodations and
3594	facilities or all use rights therein into a trust satisfying the
3595	requirements of subparagraph 4.; or
3596	(II)  Transfer by the owner of the underlying personal
3597	property of legal title to the subject accommodations and
3598	facilities or all use rights therein into an owners' association
3599	satisfying the requirements of subparagraph 5.
3600	d.  Evidence of compliance with the provisions of
3601	subparagraph 6., if required.
3602	e.  If a personal property timeshare plan is created with
3603	respect to accommodations and facilities that are located on or
3604	in an oceangoing vessel, including a "documented vessel" or a
3605	"foreign vessel," as defined and governed by 46 U.S.C., chapter
3606	301:
3607	(I)  In making the transfer required in sub-subparagraph
3608	c., the developer shall use as its transfer instrument a
3609	document that establishes and protects the continuance of the
3610	use rights in the subject accommodations and facilities in a
3611	manner that is enforceable by the trust or owners' association.
3612	(II)  The transfer instrument shall comply fully with the
3613	provisions of this chapter, shall be part of the timeshare
3614	instrument, and shall contain specific provisions that:
3615	(A)  Prohibit the vessel owner, the developer, any manager
3616	or operator of the vessel, the owners' association or the
3617	trustee, the managing entity, or any other person from incurring
3618	any liens against the vessel except for liens that are required
3619	for the operation and upkeep of the vessel, including liens for
3620	fuel expenditures, repairs, crews' wages, and salvage, and
3621	except as provided in sub-sub-subparagraphs 4.b.(III) and
3622	5.b.(III). All expenses, fees, and taxes properly incurred in
3623	connection with the creation, satisfaction, and discharge of any
3624	such permitted lien, or a prorated portion thereof if less than
3625	all of the accommodations on the vessel are subject to the
3626	timeshare plan, shall be common expenses of the timeshare plan.
3627	(B)  Grant a lien against the vessel in favor of the
3628	owners' association or trustee to secure the full and faithful
3629	performance of the vessel owner and developer of all of their
3630	obligations to the purchasers.
3631	(C)  Establish governing law in a jurisdiction that
3632	recognizes and will enforce the timeshare instrument and the
3633	laws of the jurisdiction of registry of the vessel.
3634	(D)  Require that a description of the use rights of
3635	purchasers be posted and displayed on the vessel in a manner
3636	that will give notice of such rights to any party examining the
3637	vessel. This notice must identify the owners' association or
3638	trustee and include a statement disclosing the limitation on
3639	incurring liens against the vessel described in sub-sub-sub-
3640	subparagraph (A).
3641	(E)  Include the nondisturbance and notice to creditors
3642	instrument for the vessel owner and any other interestholders.
3643	(F)  The owners' association created under subparagraph 5.
3644	or trustee created under subparagraph 4. shall have access to
3645	any certificates of classification in accordance with the
3646	timeshare instrument.
3647	(III)  If the vessel is a foreign vessel, the vessel must
3648	be registered in a jurisdiction that permits a filing evidencing
3649	the use rights of purchasers in the subject accommodations and
3650	facilities, offers protection for such use rights against
3651	unfiled and inferior claims, and recognizes the document or
3652	instrument creating such use rights as a lien against the
3653	vessel.
3654	(IV)  In addition to the disclosures required by s.
3655	721.07(5), the public offering statement and purchase contract
3656	must contain a disclosure in conspicuous type in substantially
3657	the following form:
3658
3659	The laws of the State of Florida govern the offering of this
3660	timeshare plan in this state. There are inherent risks in
3661	purchasing a timeshare interest in this timeshare plan because
3662	the accommodations and facilities of the timeshare plan are
3663	located on a vessel that will sail into international waters and
3664	into waters governed by many different jurisdictions. Therefore,
3665	the laws of the State of Florida cannot fully protect your
3666	purchase of an interest in this timeshare plan. Specifically,
3667	management and operational issues may need to be addressed in
3668	the jurisdiction in which the vessel is registered, which is
3669	(insert jurisdiction in which vessel is registered)  . Concerns
3670	of purchasers may be sent to   (insert name of applicable
3671	regulatory agency and address)  .
3672
3673	4.  Trust.--
3674	a.  If the subject accommodations or facilities, or all use
3675	rights therein, are to be transferred into a trust in order to
3676	comply with this paragraph, such transfer shall take place
3677	pursuant to this subparagraph.
3678	b.  Prior to the transfer by each interestholder of the
3679	subject accommodations and facilities, or all use rights
3680	therein, to a trust, any lien or other encumbrance against such
3681	accommodations and facilities, or use rights therein, shall be
3682	made subject to a nondisturbance and notice to creditors
3683	instrument pursuant to subsection (3). No transfer pursuant to
3684	this subparagraph shall become effective until the trustee
3685	accepts such transfer and the responsibilities set forth herein.
3686	A trust established pursuant to this subparagraph shall comply
3687	with the following provisions:
3688	(I)  The trustee shall be an individual or a business
3689	entity authorized and qualified to conduct trust business in
3690	this state. Any corporation authorized to do business in this
3691	state may act as trustee in connection with a timeshare plan
3692	pursuant to this chapter. The trustee must be independent from
3693	any developer or managing entity of the timeshare plan or any
3694	interestholder of any accommodation or facility of such plan.
3695	(II)  The trust shall be irrevocable so long as any
3696	purchaser has a right to occupy any portion of the timeshare
3697	property pursuant to the timeshare plan.
3698	(III)  The trustee shall not convey, hypothecate, mortgage,
3699	assign, lease, or otherwise transfer or encumber in any fashion
3700	any interest in or portion of the timeshare property with
3701	respect to which any purchaser has a right of use or occupancy
3702	unless the timeshare plan is terminated pursuant to the
3703	timeshare instrument, or such conveyance, hypothecation,
3704	mortgage, assignment, lease, transfer, or encumbrance is
3705	approved by a vote of two-thirds of all voting interests of the
3706	timeshare plan and such decision is declared by a court of
3707	competent jurisdiction to be in the best interests of the
3708	purchasers of the timeshare plan. The trustee shall notify the
3709	division in writing within 10 days after receiving notice of the
3710	filing of any petition relating to obtaining such a court order.
3711	The division shall have standing to advise the court of the
3712	division's interpretation of the statute as it relates to the
3713	petition.
3714	(IV)  All purchasers of the timeshare plan or the owners'
3715	association of the timeshare plan shall be the express
3716	beneficiaries of the trust. The trustee shall act as a fiduciary
3717	to the beneficiaries of the trust. The personal liability of the
3718	trustee shall be governed by ss. 736.08125, 736.08163, 736.1013,
3719	and 736.1015 s. 737.306. The agreement establishing the trust
3720	shall set forth the duties of the trustee. The trustee shall be
3721	required to furnish promptly to the division upon request a copy
3722	of the complete list of the names and addresses of the owners in
3723	the timeshare plan and a copy of any other books and records of
3724	the timeshare plan required to be maintained pursuant to s.
3725	721.13 that are in the possession, custody, or control of the
3726	trustee. All expenses reasonably incurred by the trustee in the
3727	performance of its duties, together with any reasonable
3728	compensation of the trustee, shall be common expenses of the
3729	timeshare plan.
3730	(V)  The trustee shall not resign upon less than 90 days'
3731	prior written notice to the managing entity and the division. No
3732	resignation shall become effective until a substitute trustee,
3733	approved by the division, is appointed by the managing entity
3734	and accepts the appointment.
3735	(VI)  The documents establishing the trust arrangement
3736	shall constitute a part of the timeshare instrument.
3737	(VII)  For trusts holding property in a timeshare plan
3738	located outside this state, the trust and trustee holding such
3739	property shall be deemed in compliance with the requirements of
3740	this subparagraph if such trust and trustee are authorized and
3741	qualified to conduct trust business under the laws of such
3742	jurisdiction and the agreement or law governing such trust
3743	arrangement provides substantially similar protections for the
3744	purchaser as are required in this subparagraph for trusts
3745	holding property in a timeshare plan in this state.
3746	(VIII)  The trustee shall have appointed a registered agent
3747	in this state for service of process. In the event such a
3748	registered agent is not appointed, service of process may be
3749	served pursuant to s. 721.265.
3750	5.  Owners' association.--
3751	a.  If the subject accommodations or facilities, or all use
3752	rights therein, are to be transferred into an owners'
3753	association in order to comply with this paragraph, such
3754	transfer shall take place pursuant to this subparagraph.
3755	b.  Prior to the transfer by each interestholder of the
3756	subject accommodations and facilities, or all use rights
3757	therein, to an owners' association, any lien or other
3758	encumbrance against such accommodations and facilities, or use
3759	rights therein, shall be made subject to a nondisturbance and
3760	notice to creditors instrument pursuant to subsection (3). No
3761	transfer pursuant to this subparagraph shall become effective
3762	until the owners' association accepts such transfer and the
3763	responsibilities set forth herein. An owners' association
3764	established pursuant to this subparagraph shall comply with the
3765	following provisions:
3766	(I)  The owners' association shall be a business entity
3767	authorized and qualified to conduct business in this state.
3768	Control of the board of directors of the owners' association
3769	must be independent from any developer or managing entity of the
3770	timeshare plan or any interestholder.
3771	(II)  The bylaws of the owners' association shall provide
3772	that the corporation may not be voluntarily dissolved without
3773	the unanimous vote of all owners of personal property timeshare
3774	interests so long as any purchaser has a right to occupy any
3775	portion of the timeshare property pursuant to the timeshare
3776	plan.
3777	(III)  The owners' association shall not convey,
3778	hypothecate, mortgage, assign, lease, or otherwise transfer or
3779	encumber in any fashion any interest in or portion of the
3780	timeshare property with respect to which any purchaser has a
3781	right of use or occupancy, unless the timeshare plan is
3782	terminated pursuant to the timeshare instrument, or unless such
3783	conveyance, hypothecation, mortgage, assignment, lease,
3784	transfer, or encumbrance is approved by a vote of two-thirds of
3785	all voting interests of the association and such decision is
3786	declared by a court of competent jurisdiction to be in the best
3787	interests of the purchasers of the timeshare plan. The owners'
3788	association shall notify the division in writing within 10 days
3789	after receiving notice of the filing of any petition relating to
3790	obtaining such a court order. The division shall have standing
3791	to advise the court of the division's interpretation of the
3792	statute as it relates to the petition.
3793	(IV)  All purchasers of the timeshare plan shall be members
3794	of the owners' association and shall be entitled to vote on
3795	matters requiring a vote of the owners' association as provided
3796	in this chapter or the timeshare instrument. The owners'
3797	association shall act as a fiduciary to the purchasers of the
3798	timeshare plan. The articles of incorporation establishing the
3799	owners' association shall set forth the duties of the owners'
3800	association. All expenses reasonably incurred by the owners'
3801	association in the performance of its duties, together with any
3802	reasonable compensation of the officers or directors of the
3803	owners' association, shall be common expenses of the timeshare
3804	plan.
3805	(V)  The documents establishing the owners' association
3806	shall constitute a part of the timeshare instrument.
3807	(VI)  For owners' associations holding property in a
3808	timeshare plan located outside this state, the owners'
3809	association holding such property shall be deemed in compliance
3810	with the requirements of this subparagraph if such owners'
3811	association is authorized and qualified to conduct owners'
3812	association business under the laws of such jurisdiction and the
3813	agreement or law governing such arrangement provides
3814	substantially similar protections for the purchaser as are
3815	required in this subparagraph for owners' associations holding
3816	property in a timeshare plan in this state.
3817	(VII)  The owners' association shall have appointed a
3818	registered agent in this state for service of process. In the
3819	event such a registered agent cannot be located, service of
3820	process may be made pursuant to s. 721.265.
3821	6.  Personal property subject to certificate of title.--If
3822	any personal property that is an accommodation or facility of a
3823	timeshare plan is subject to a certificate of title in this
3824	state pursuant to chapter 319 or chapter 328, the following
3825	notation must be made on such certificate of title pursuant to
3826	s. 319.27(1) or s. 328.15(1):
3827
3828	The further transfer or encumbrance of the property subject to
3829	this certificate of title, or any lien or encumbrance thereon,
3830	is subject to the requirements of section 721.17, Florida
3831	Statutes, and the transferee or lienor agrees to be bound by all
3832	of the obligations set forth therein.
3833	7.  If the developer has previously provided a certified
3834	copy of any document required by this paragraph, she or he may
3835	for all subsequent disbursements substitute a true and correct
3836	copy of the certified copy, provided no changes to the document
3837	have been made or are required to be made.
3838	8.  In the event that use rights relating to an
3839	accommodation or facility are transferred into a trust pursuant
3840	to subparagraph 4. or into an owners' association pursuant to
3841	subparagraph 5., all other interestholders, including the owner
3842	of the underlying fee or underlying personal property, must
3843	execute a nondisturbance and notice to creditors instrument
3844	pursuant to subsection (3).
3845	Section 27.  Paragraph (e) of subsection (1) of section
3846	721.53, Florida Statutes, is amended to read:
3847	721.53  Subordination instruments; alternate security
3848	arrangements.--
3849	(1)  With respect to each accommodation or facility of a
3850	multisite timeshare plan, the developer shall provide the
3851	division with satisfactory evidence that one of the following
3852	has occurred with respect to each interestholder prior to
3853	offering the accommodation or facility as a part of the
3854	multisite timeshare plan:
3855	(e)  The interestholder has transferred the subject
3856	accommodation or facility or all use rights therein to a trust
3857	that complies with this paragraph. Prior to such transfer, any
3858	lien or other encumbrance against such accommodation or facility
3859	shall be made subject to a nondisturbance and notice to
3860	creditors instrument pursuant to paragraph (a) or a
3861	subordination and notice to creditors instrument pursuant to
3862	paragraph (b). No transfer pursuant to this paragraph shall
3863	become effective until the trust accepts such transfer and the
3864	responsibilities set forth herein. A trust established pursuant
3865	to this paragraph shall comply with the following provisions:
3866	1.  The trustee shall be an individual or a business entity
3867	authorized and qualified to conduct trust business in this
3868	state. Any corporation authorized to do business in this state
3869	may act as trustee in connection with a timeshare plan pursuant
3870	to this chapter. The trustee must be independent from any
3871	developer or managing entity of the timeshare plan or any
3872	interestholder of any accommodation or facility of such plan.
3873	The same trustee may hold the accommodations and facilities, or
3874	use rights therein, for one or more of the component sites of
3875	the timeshare plan.
3876	2.  The trust shall be irrevocable so long as any purchaser
3877	has a right to occupy any portion of the timeshare property
3878	pursuant to the timeshare plan.
3879	3.  The trustee shall not convey, hypothecate, mortgage,
3880	assign, lease, or otherwise transfer or encumber in any fashion
3881	any interests in or portion of the timeshare property with
3882	respect to which any purchaser has a right of use or occupancy
3883	unless the timeshare plan is terminated pursuant to the
3884	timeshare instrument, or the timeshare property held in trust is
3885	deleted from a multisite timeshare plan pursuant to s.
3886	721.552(3), or such conveyance, hypothecation, mortgage,
3887	assignment, lease, transfer, or encumbrance is approved by vote
3888	of two-thirds of all voting interests of the timeshare plan and
3889	such decision is declared by a court of competent jurisdiction
3890	to be in the best interests of the purchasers of the timeshare
3891	plan.
3892	4.  All purchasers of the timeshare plan or the owners'
3893	association of the timeshare plan shall be express beneficiaries
3894	of the trust. The trustee shall act as a fiduciary to the
3895	beneficiaries of the trust. The personal liability of the
3896	trustee shall be governed by ss. 736.08125, 736.08163, 736.1013,
3897	and 736.1015 s. 737.306. The agreement establishing the trust
3898	shall set forth the duties of the trustee. The trustee shall be
3899	required to furnish promptly to the division upon request a copy
3900	of the complete list of the names and addresses of the owners in
3901	the timeshare plan and a copy of any other books and records of
3902	the timeshare plan required to be maintained pursuant to s.
3903	721.13 that are in the possession of the trustee. All expenses
3904	reasonably incurred by the trustee in the performance of its
3905	duties, together with any reasonable compensation of the
3906	trustee, shall be common expenses of the timeshare plan.
3907	5.  The trustee shall not resign upon less than 90 days'
3908	prior written notice to the managing entity and the division. No
3909	resignation shall become effective until a substitute trustee,
3910	approved by the division, is appointed by the managing entity
3911	and accepts the appointment.
3912	6.  The documents establishing the trust arrangement shall
3913	constitute a part of the timeshare instrument.
3914	7.  For trusts holding property in component sites located
3915	outside this state, the trust holding such property shall be
3916	deemed in compliance with the requirements of this paragraph, if
3917	such trust is authorized and qualified to conduct trust business
3918	under the laws of such jurisdiction and the agreement or law
3919	governing such trust arrangement provides substantially similar
3920	protections for the purchaser as are required in this paragraph
3921	for trusts holding property in a component site located in this
3922	state.
3923	8.  The trustee shall have appointed a registered agent in
3924	this state for service of process. In the event such a
3925	registered agent is not appointed, service of process may be
3926	served pursuant to s. 721.265.
3927	Section 28.  Section 731.103, Florida Statutes, is amended
3928	to read:
3929	731.103  Evidence as to death or status.--In proceedings
3930	under this code and under chapter 736, the rules of evidence in
3931	civil actions are applicable unless specifically changed by the
3932	code. The following additional rules relating to determination
3933	of death and status are applicable:
3934	(1)  An authenticated copy of a death certificate issued by
3935	an official or agency of the place where the death purportedly
3936	occurred is prima facie proof of the fact, place, date, and time
3937	of death and the identity of the decedent.
3938	(2)  A copy of any record or report of a governmental
3939	agency, domestic or foreign, that a person is alive, missing,
3940	detained, or, from the facts related, presumed dead is prima
3941	facie evidence of the status and of the dates, circumstances,
3942	and places disclosed by the record or report.
3943	(3)  A person who is absent from the place of his or her
3944	last known domicile for a continuous period of 5 years and whose
3945	absence is not satisfactorily explained after diligent search
3946	and inquiry is presumed to be dead. The person's death is
3947	presumed to have occurred at the end of the period unless there
3948	is evidence establishing that death occurred earlier. Evidence
3949	showing that the absent person was exposed to a specific peril
3950	of death may be a sufficient basis for the court determining at
3951	any time after such exposure that he or she died less than 5
3952	years after the date on which his or her absence commenced. A
3953	petition for this determination shall be filed in the county in
3954	Florida where the decedent maintained his or her domicile or in
3955	any county of this state if the decedent was not a resident of
3956	Florida at the time his or her absence commenced.
3957	(4)  This section does not preclude the establishment of
3958	death by direct or circumstantial evidence prior to expiration
3959	of the 5-year time period set forth in subsection (3).
3960	Section 29.  Section 731.1035, Florida Statutes, is created
3961	to read:
3962	731.1035  Applicable rules of evidence.--In proceedings
3963	under this code, the rules of evidence in civil actions are
3964	applicable unless specifically changed by the code.
3965	Section 30.  Section 731.201, Florida Statutes, is amended
3966	to read:
3967	731.201  General definitions.--Subject to additional
3968	definitions in subsequent chapters that are applicable to
3969	specific chapters or parts, and unless the context otherwise
3970	requires, in this code, in s. 409.9101, and in chapters 736 737,
3971	738, 739, and 744, the term:
3972	(1)  "Authenticated," when referring to copies of documents
3973	or judicial proceedings required to be filed with the court
3974	under this code, means a certified copy or a copy authenticated
3975	according to the Federal Rules of Civil Procedure.
3976	(2)  "Beneficiary" means heir at law in an intestate estate
3977	and devisee in a testate estate. The term "beneficiary" does not
3978	apply to an heir at law or a devisee after that person's
3979	interest in the estate has been satisfied. In the case of a
3980	devise to an existing trust or trustee, or to a trust or trustee
3981	described by will, the trustee is a beneficiary of the estate.
3982	Except as otherwise provided in this subsection, the beneficiary
3983	of the trust is not a beneficiary of the estate of which that
3984	trust or the trustee of that trust is a beneficiary. However, if
3985	each trustee is also a personal representative of the estate,
3986	each qualified beneficiary the beneficiary or beneficiaries of
3987	the trust as defined in s. 736.0103(14) 737.303(4)(b) shall be
3988	regarded as a beneficiary of the estate.
3989	(3)  "Child" includes a person entitled to take as a child
3990	under this code by intestate succession from the parent whose
3991	relationship is involved, and excludes any person who is only a
3992	stepchild, a foster child, a grandchild, or a more remote
3993	descendant.
3994	(4)  "Claim" means a liability of the decedent, whether
3995	arising in contract, tort, or otherwise, and funeral expense.
3996	The term does not include an expense of administration or
3997	estate, inheritance, succession, or other death taxes.
3998	(5)  "Clerk" means the clerk or deputy clerk of the court.
3999	(6)  "Court" means the circuit court.
4000	(7)  "Curator" means a person appointed by the court to
4001	take charge of the estate of a decedent until letters are
4002	issued.
4003	(8)  "Devise," when used as a noun, means a testamentary
4004	disposition of real or personal property and, when used as a
4005	verb, means to dispose of real or personal property by will or
4006	trust. The term includes "gift," "give," "bequeath," "bequest,"
4007	and "legacy." A devise is subject to charges for debts,
4008	expenses, and taxes as provided in this code, the will, or the
4009	trust.
4010	(9)  "Devisee" means a person designated in a will or trust
4011	to receive a devise. Except as otherwise provided in this
4012	subsection, in the case of a devise to an existing trust or
4013	trustee, or to a trust or trustee of a trust described by will,
4014	the trust or trustee, rather than the beneficiaries of the
4015	trust, is the devisee. However, if each trustee is also a
4016	personal representative of the estate, each qualified
4017	beneficiary the beneficiary or beneficiaries of the trust as
4018	defined in s. 736.0103(14) 737.303(4)(b) shall be regarded as a
4019	devisee.
4020	(10)  "Distributee" means a person who has received estate
4021	property from a personal representative or other fiduciary other
4022	than as a creditor or purchaser. A testamentary trustee is a
4023	distributee only to the extent of distributed assets or
4024	increments to them remaining in the trustee's hands. A
4025	beneficiary of a testamentary trust to whom the trustee has
4026	distributed property received from a personal representative is
4027	a distributee. For purposes of this provision, "testamentary
4028	trustee" includes a trustee to whom assets are transferred by
4029	will, to the extent of the devised assets.
4030	(11)  "Domicile" means a person's usual place of dwelling
4031	and shall be synonymous with residence.
4032	(12)  "Estate" means the property of a decedent that is the
4033	subject of administration.
4034	(13)  "Exempt property" means the property of a decedent's
4035	estate which is described in s. 732.402.
4036	(14)  "File" means to file with the court or clerk.
4037	(15)  "Foreign personal representative" means a personal
4038	representative of another state or a foreign country.
4039	(16)  "Formal notice" means formal notice under the Florida
4040	Probate Rules.
4041	(17)  "Grantor" means one who creates or adds to a trust
4042	and includes "settlor" or "trustor" and a testator who creates
4043	or adds to a trust.
4044	(18)  "Heirs" or "heirs at law" means those persons,
4045	including the surviving spouse, who are entitled under the
4046	statutes of intestate succession to the property of a decedent.
4047	(19)  "Incompetent" means a minor or a person adjudicated
4048	incompetent.
4049	(20)  "Informal notice" or "notice" means informal notice
4050	under the Florida Probate Rules.
4051	(21)  "Interested person" means any person who may
4052	reasonably be expected to be affected by the outcome of the
4053	particular proceeding involved. In any proceeding affecting the
4054	estate or the rights of a beneficiary in the estate, the
4055	personal representative of the estate shall be deemed to be an
4056	interested person. In any proceeding affecting the expenses of
4057	the administration and obligations of a decedent's estate, or
4058	any claims described in s. 733.702(1), the trustee of a trust
4059	described in s. 733.707(3) is an interested person in the
4060	administration of the grantor's estate. The term does not
4061	include a beneficiary who has received complete distribution.
4062	The meaning, as it relates to particular persons, may vary from
4063	time to time and must be determined according to the particular
4064	purpose of, and matter involved in, any proceedings.
4065	(22)  "Letters" means authority granted by the court to the
4066	personal representative to act on behalf of the estate of the
4067	decedent and refers to what has been known as letters
4068	testamentary and letters of administration. All letters shall be
4069	designated "letters of administration."
4070	(23)  "Other state" means any state of the United States
4071	other than Florida and includes the District of Columbia, the
4072	Commonwealth of Puerto Rico, and any territory or possession
4073	subject to the legislative authority of the United States.
4074	(24)  "Parent" excludes any person who is only a
4075	stepparent, foster parent, or grandparent.
4076	(25)  "Personal representative" means the fiduciary
4077	appointed by the court to administer the estate and refers to
4078	what has been known as an administrator, administrator cum
4079	testamento annexo, administrator de bonis non, ancillary
4080	administrator, ancillary executor, or executor.
4081	(26)  "Petition" means a written request to the court for
4082	an order.
4083	(27)  "Power of appointment" means an authority, other than
4084	as an incident of the beneficial ownership of property, to
4085	designate recipients of beneficial interests in property.
4086	(28)(27)  "Probate of will" means all steps necessary to
4087	establish the validity of a will and to admit a will to probate.
4088	(29)(28)  "Property" means both real and personal property
4089	or any interest in it and anything that may be the subject of
4090	ownership.
4091	(30)(29)  "Protected homestead" means the property
4092	described in s. 4(a)(1), Art. X of the State Constitution on
4093	which at the death of the owner the exemption inures to the
4094	owner's surviving spouse or heirs under s. 4(b), Art. X of the
4095	State Constitution. For purposes of the code, real property
4096	owned as tenants by the entirety is not protected homestead.
4097	(31)(30)  "Residence" means a person's place of dwelling.
4098	(32)(31)  "Residuary devise" means a devise of the assets
4099	of the estate which remain after the provision for any devise
4100	which is to be satisfied by reference to a specific property or
4101	type of property, fund, sum, or statutory amount. If the will
4102	contains no devise which is to be satisfied by reference to a
4103	specific property or type of property, fund, sum, or statutory
4104	amount, "residuary devise" or "residue" means a devise of all
4105	assets remaining after satisfying the obligations of the estate.
4106	(33)(32)  "Security" means a security as defined in s.
4107	517.021.
4108	(34)(33)  "Security interest" means a security interest as
4109	defined in s. 671.201.
4110	(35)(34)  "Trust" means an express trust, private or
4111	charitable, with additions to it, wherever and however created.
4112	It also includes a trust created or determined by a judgment or
4113	decree under which the trust is to be administered in the manner
4114	of an express trust. "Trust" excludes other constructive trusts,
4115	and it excludes resulting trusts; conservatorships; custodial
4116	arrangements pursuant to the Florida Uniform Transfers to Minors
4117	Act; business trusts providing for certificates to be issued to
4118	beneficiaries; common trust funds; land trusts under s. 689.05;
4119	trusts created by the form of the account or by the deposit
4120	agreement at a financial institution; voting trusts; security
4121	arrangements; liquidation trusts; trusts for the primary purpose
4122	of paying debts, dividends, interest, salaries, wages, profits,
4123	pensions, or employee benefits of any kind; and any arrangement
4124	under which a person is nominee or escrowee for another.
4125	(36)(35)  "Trustee" includes an original, additional,
4126	surviving, or successor trustee, whether or not appointed or
4127	confirmed by court.
4128	(37)(36)  "Will" means an instrument, including a codicil,
4129	executed by a person in the manner prescribed by this code,
4130	which disposes of the person's property on or after his or her
4131	death and includes an instrument which merely appoints a
4132	personal representative or revokes or revises another will.
4133	Section 31.  Paragraph (a) of subsection (1) and subsection
4134	(5) of section 731.303, Florida Statutes, are amended to read:
4135	731.303  Representation.--In the administration of or in
4136	judicial proceedings involving estates of decedents or trusts,
4137	the following apply:
4138	(1)  Persons are bound by orders binding others in the
4139	following cases:
4140	(a)1.  Orders binding the sole holder or all coholders of a
4141	power of revocation or a general, special, or limited power of
4142	appointment, including one in the form of a power of amendment
4143	or revocation to the extent that the power has not become
4144	unexercisable in fact, bind all persons to the extent that their
4145	interests, as persons who may take by virtue of the exercise or
4146	nonexercise of the power, are subject to the power.
4147	2.  Subparagraph 1. does not apply to:
4148	a.  Any matter determined by the court to involve fraud or
4149	bad faith by the trustee;
4150	b.  A power of a trustee to distribute trust property; or
4151	c.  A power of appointment held by a person while the
4152	person is the sole trustee.
4153	(5)  The holder of a power of appointment over property not
4154	held in trust may represent and bind persons whose interests, as
4155	permissible appointees, takers in default, or otherwise, are
4156	subject to the power. Representation under this subsection does
4157	not apply to:
4158	(a)  Any matter determined by the court to involve fraud or
4159	bad faith by the trustee;
4160	(b)  A power of a trustee to distribute trust property; or
4161	(c)  A power of appointment held by a person while the
4162	person is the sole trustee When a sole holder or coholder of a
4163	general, special, or limited power of appointment, including an
4164	exercisable power of amendment or revocation over property in an
4165	estate or trust, is bound by:
4166	(a)  Agreements, waivers, consents, or approvals; or
4167	(b)  Accounts, trust accountings, or other written reports
4168	that adequately disclose matters set forth therein,
4169
4170	then all persons who may take by virtue of, and whose interests
4171	are subject to, the exercise or nonexercise of the power are
4172	also bound, but only to the extent of their interests which
4173	could otherwise be affected by the exercise or nonexercise of
4174	the power.
4175	Section 32.  Subsection (5) of section 732.2075, Florida
4176	Statutes, is amended to read:
4177	732.2075  Sources from which elective share payable;
4178	abatement.--
4179	(5)  Unless otherwise provided in the trust instrument or,
4180	in the decedent's will if there is no provision in the trust
4181	instrument, any amount to be satisfied from trust property shall
4182	be paid from the assets of the trust in the order provided for
4183	claims under s. 736.05053 737.3054(2) and (3). A direction in
4184	the decedent's will is effective only for revocable trusts.
4185	Section 33.  Subsection (2) of section 732.513, Florida
4186	Statutes, is amended to read:
4187	732.513  Devises to trustee.--
4188	(2)  The devise shall not be invalid for any or all of the
4189	following reasons:
4190	(a)  Because the trust is amendable or revocable, or both,
4191	by any person.
4192	(b)  Because the trust has been amended or revoked in part
4193	after execution of the will or a codicil to it.
4194	(c)  Because the trust instrument or any amendment to it
4195	was not executed in the manner required for wills.
4196	(c)(d)  Because the only res of the trust is the possible
4197	expectancy of receiving, as a named beneficiary, a devise under
4198	a will or death benefits as described in s. 733.808, and even
4199	though the testator or other person has reserved any or all
4200	rights of ownership in the death benefit policy, contract, or
4201	plan, including the right to change the beneficiary.
4202	(d)(e)  Because of any of the provisions of s. 689.075.
4203	Section 34.  Section 732.603, Florida Statutes, is amended
4204	to read:
4205	(Substantial rewording of section. See
4206	s. 732.603, F.S., for present text.)
4207	732.603  Antilapse; deceased devisee; class gifts.--
4208	(1)  Unless a contrary intent appears in the will, if a
4209	devisee who is a grandparent, or a descendant of a grandparent,
4210	of the testator:
4211	(a)  Is dead at the time of the execution of the will;
4212	(b)  Fails to survive the testator; or
4213	(c)  Is required by the will or by operation of law to be
4214	treated as having predeceased the testator,
4215
4216	a substitute gift is created in the devisee's surviving
4217	descendants who take per stirpes the property to which the
4218	devisee would have been entitled had the devisee survived the
4219	testator.
4220	(2)  When a power of appointment is exercised by will,
4221	unless a contrary intent appears in the document creating the
4222	power of appointment or in the testator's will, if an appointee
4223	who is a grandparent, or a descendant of a grandparent, of the
4224	donor of the power:
4225	(a)  Is dead at the time of the execution of the will or
4226	the creation of the power;
4227	(b)  Fails to survive the testator; or
4228	(c)  Is required by the will, the document creating the
4229	power, or by operation of law to be treated as having
4230	predeceased the testator,
4231
4232	a substitute gift is created in the appointee's surviving
4233	descendants who take per stirpes the property to which the
4234	appointee would have been entitled had the appointee survived
4235	the testator. Unless the language creating a power of
4236	appointment expressly excludes the substitution of the
4237	descendants of an object of a power for the object, a surviving
4238	descendant of a deceased object of a power of appointment may be
4239	substituted for the object whether or not the descendant is an
4240	object of the power.
4241	(3)  In the application of this section:
4242	(a)  Words of survivorship in a devise or appointment to an
4243	individual, such as "if he survives me," or to "my surviving
4244	children," are a sufficient indication of an intent contrary to
4245	the application of subsections (1) and (2). Words of
4246	survivorship used by the donor of the power in a power to
4247	appoint to an individual, such as the term "if he survives the
4248	donee," or in a power to appoint to the donee's "then surviving
4249	children," are a sufficient indication of an intent contrary to
4250	the application of subsection (2).
4251	(b)  The term:
4252	1.  "Appointment" includes an alternative appointment and
4253	an appointment in the form of a class gift.
4254	2.  "Appointee" includes:
4255	a.  A class member if the appointment is in the form of a
4256	class gift.
4257	b.  An individual or class member who was deceased at the
4258	time the testator executed his or her will as well as an
4259	individual or class member who was then living but who failed to
4260	survive the testator.
4261	3.  "Devise" also includes an alternative devise and a
4262	devise in the form of a class gift.
4263	4.  "Devisee" also includes:
4264	a.  A class member if the devise is in the form of a class
4265	gift.
4266	b.  An individual or class member who was deceased at the
4267	time the testator executed his or her will as well as an
4268	individual or class member who was then living but who failed to
4269	survive the testator.
4270	(4)  This section applies only to outright devises and
4271	appointments. Devises and appointments in trust, including to a
4272	testamentary trust, are subject to s. 736.1106.
4273	Section 35.  Section 732.604, Florida Statutes, is amended
4274	to read:
4275	732.604  Failure of testamentary provision.--
4276	(1)  Except as provided in s. 732.603, if a devise other
4277	than a residuary devise fails for any reason, it becomes a part
4278	of the residue.
4279	(2)  Except as provided in s. 732.603, if the residue is
4280	devised to two or more persons, the share of a residuary devisee
4281	that fails for any reason and the devise to one of the residuary
4282	devisees fails for any reason, that devise passes to the other
4283	residuary devisee, or to the other residuary devisees in
4284	proportion to the their interests of each in the remaining part
4285	of the residue.
4286	Section 36.  Section 732.611, Florida Statutes, is amended
4287	to read:
4288	732.611  Devises to multi-generation classes to be per
4289	stirpes.--Unless the will provides otherwise, all devises to
4290	descendants, issue, and other multi-generation classes shall be
4291	per stirpes.
4292	Section 37.  Subsection (1) of section 733.212, Florida
4293	Statutes, is amended to read:
4294	733.212  Notice of administration; filing of objections.--
4295	(1)  The personal representative shall promptly serve a
4296	copy of the notice of administration on the following persons
4297	who are known to the personal representative:
4298	(a)  The decedent's surviving spouse;
4299	(b)  Beneficiaries;
4300	(c)  The trustee of any trust described in s. 733.707(3)
4301	and each qualified beneficiary of the trust as defined in s.
4302	736.0103(14) 737.303(4)(b), if each trustee is also a personal
4303	representative of the estate; and
4304	(d)  Persons who may be entitled to exempt property
4305
4306	in the manner provided for service of formal notice, unless
4307	served under s. 733.2123. The personal representative may
4308	similarly serve a copy of the notice on any devisees under a
4309	known prior will or heirs or others who claim or may claim an
4310	interest in the estate.
4311	Section 38.  Subsection (1) of section 733.602, Florida
4312	Statutes, is amended to read:
4313	733.602  General duties.--
4314	(1)  A personal representative is a fiduciary who shall
4315	observe the standards of care applicable to trustees as
4316	described by part VII of chapter 736 s. 737.302. A personal
4317	representative is under a duty to settle and distribute the
4318	estate of the decedent in accordance with the terms of the
4319	decedent's will and this code as expeditiously and efficiently
4320	as is consistent with the best interests of the estate. A
4321	personal representative shall use the authority conferred by
4322	this code, the authority in the will, if any, and the authority
4323	of any order of the court, for the best interests of interested
4324	persons, including creditors.
4325	Section 39.  Subsection (4) of section 733.805, Florida
4326	Statutes, is amended to read:
4327	733.805  Order in which assets abate.--
4328	(4)  In determining the contribution required under s.
4329	733.607(2), subsections (1)-(3) of this section and s. 736.05053
4330	737.3054(2) shall be applied as if the beneficiaries of the
4331	estate and the beneficiaries of a trust described in s.
4332	733.707(3), other than the estate or trust itself, were taking
4333	under a common instrument.
4334	Section 40.  Paragraph (j) of subsection (1) of section
4335	733.817, Florida Statutes, is amended to read:
4336	733.817  Apportionment of estate taxes.--
4337	(1)  For purposes of this section:
4338	(j)  "Residuary devise" has the meaning set forth in s.
4339	731.201(31).
4340	Section 41.  Paragraphs (a) and (f) of subsection (8) and
4341	paragraphs (a) and (d) of subsection (9) of section 738.104,
4342	Florida Statutes, are amended to read:
4343	738.104  Trustee's power to adjust.--
4344	(8)  With respect to a trust in existence on January 1,
4345	2003:
4346	(a)  A trustee shall not have the power to adjust under
4347	this section until the statement required in subsection (9) is
4348	provided and either no objection is made or any objection which
4349	is made has been terminated.
4350	1.  An objection is made if, within 60 days after the date
4351	of the statement required in subsection (9), a super majority of
4352	the eligible trust beneficiaries deliver to the trustee a
4353	written objection to the application of this section to such
4354	trust. An objection shall be deemed to be delivered to the
4355	trustee on the date the objection is mailed to the mailing
4356	address listed in the notice provided in subsection (9).
4357	2.  An objection is terminated upon the earlier of the
4358	receipt of consent from a super majority of eligible trust
4359	beneficiaries of the class that made the objection, or the
4360	resolution of the objection pursuant to paragraph (c).
4361	(f)  The objection of a super majority of eligible
4362	beneficiaries under this subsection shall be valid for a period
4363	of 1 year after the date of the notice set forth in subsection
4364	(9). Upon expiration of the objection, the trustee may
4365	thereafter give a new notice under subsection (9).
4366	(9)(a)  A trustee of a trust in existence on January 1,
4367	2003, that is not prohibited under subsection (3) from
4368	exercising the power to adjust shall, any time prior to
4369	initially exercising the power, provide to all eligible
4370	reasonably ascertainable current beneficiaries described in s.
4371	737.303(4)(b)1. and all reasonably ascertainable remainder
4372	beneficiaries described in s. 737.303(4)(b)2. a statement
4373	containing the following:
4374	1.  The name, telephone number, street address, and mailing
4375	address of the trustee and of any individuals who may be
4376	contacted for further information;
4377	2.  A statement that unless a super majority of the
4378	eligible beneficiaries objects to the application of this
4379	section to the trust within 60 days after the date the statement
4380	pursuant to this subsection was served, s. 738.104 shall apply
4381	to the trust; and
4382	3.  A statement that, if s. 738.104 applies to the trust,
4383	the trustee will have the power to adjust between income and
4384	principal and that such a power may have an effect on the
4385	distributions to such beneficiary from the trust.
4386	(d)  For purposes of subsection (8) and this subsection,
4387	the term:
4388	1.  "Eligible beneficiaries" means:
4389	a.  If at the time the determination is made there is one
4390	or more beneficiaries described in s. 736.0103(14)(c), the
4391	beneficiaries described in s. 736.0103(14)(a) and (c); or
4392	b.  If there is no beneficiary described in s.
4393	736.0103(14)(c), the beneficiaries described in s.
4394	736.0103(14)(a) and (b).
4395	2.  A "Super majority of the eligible trust beneficiaries"
4396	means:
4397	a.  If at the time the determination is made there is one
4398	or more beneficiaries described in s. 736.0103(14)(c), at least
4399	two-thirds in interest of the reasonably ascertainable current
4400	beneficiaries described in s. 736.0103(14)(a) 737.303(4)(b)1. or
4401	two-thirds in interest of the reasonably ascertainable remainder
4402	beneficiaries described in s. 736.0103(14)(c) 737.303(4)(b)2.,
4403	if the interests of the beneficiaries are reasonably
4404	ascertainable; otherwise, it means two-thirds in number of
4405	either such class; or
4406	b.  If there is no beneficiary described in s.
4407	736.0103(14)(c), at least two-thirds in interest of the
4408	beneficiaries described in s. 736.0103(14)(a) or two-thirds in
4409	interest of the beneficiaries described in s. 736.0103(14)(b),
4410	if the interests of the beneficiaries are reasonably
4411	ascertainable, otherwise, two-thirds in number of either such
4412	class.
4413	Section 42.  Subsection (4) of section 738.1041, Florida
4414	Statutes, is amended to read:
4415	738.1041  Total return unitrust.--
4416	(4)  All determinations made pursuant to sub-subparagraph
4417	(2)(b)2.b. shall be conclusive if reasonable and made in good
4418	faith. Such determination shall be conclusively presumed to have
4419	been made reasonably and in good faith unless proven otherwise
4420	in a proceeding commenced by or on behalf of a person interested
4421	in the trust within the time provided in s. 736.1008 737.307.
4422	The burden will be on the objecting interested party to prove
4423	that the determinations were not made reasonably and in good
4424	faith.
4425	Section 43.  Subsection (5) of section 738.202, Florida
4426	Statutes, is amended to read:
4427	738.202  Distribution to residuary and remainder
4428	beneficiaries.--
4429	(5)  The value of trust assets shall be determined on an
4430	asset-by-asset basis and shall be conclusive if reasonable and
4431	determined in good faith. Determinations based on appraisals
4432	performed within 2 years before or after the valuation date
4433	shall be presumed reasonable. The value of trust assets shall be
4434	conclusively presumed to be reasonable and determined in good
4435	faith unless proven otherwise in a proceeding commenced by or on
4436	behalf of a person interested in the trust within the time
4437	provided in s. 736.1008 737.307.
4438	Section 44.  Paragraph (a) of subsection (12) of section
4439	739.102, Florida Statutes, is amended to read:
4440	739.102  Definitions.--As used in this chapter, the term:
4441	(12)  "Trust" means:
4442	(a)  An express trust (including an honorary trust or a
4443	trust under s. 736.0408 737.116), charitable or noncharitable,
4444	with additions thereto, whenever and however created; and
4445
4446	As used in this chapter, the term "trust" does not include a
4447	constructive trust or a resulting trust.
4448	Section 45.  Paragraphs (b) and (f) of subsection (6) of
4449	section 744.331, Florida Statutes, are amended to read:
4450	744.331  Procedures to determine incapacity.--
4451	(6)  ORDER DETERMINING INCAPACITY.--If, after making
4452	findings of fact on the basis of clear and convincing evidence,
4453	the court finds that a person is incapacitated with respect to
4454	the exercise of a particular right, or all rights, the court
4455	shall enter a written order determining such incapacity. A
4456	person is determined to be incapacitated only with respect to
4457	those rights specified in the order.
4458	(b)  When an order determines that a person is incapable of
4459	exercising delegable rights, the court must consider and find
4460	whether there is an alternative to guardianship which will
4461	sufficiently address the problems of the incapacitated person. A
4462	guardian must be appointed to exercise the incapacitated
4463	person's delegable rights unless the court finds there is an
4464	alternative. A guardian may not be appointed if the court finds
4465	there is an alternative to guardianship which will sufficiently
4466	address the problems of the incapacitated person. In any order
4467	declaring a person incapacitated the court must find that
4468	alternatives to guardianship were considered and that no
4469	alternative to guardianship will sufficiently address the
4470	problems of the ward.
4471	(f)  Upon the filing of a verified statement by an
4472	interested person stating:
4473	1.  That he or she has a good faith belief that the alleged
4474	incapacitated person's trust, trust amendment, or durable power
4475	of attorney is invalid; and
4476	2.  A reasonable factual basis for that belief,
4477
4478	the trust, trust amendment, or durable power of attorney shall
4479	not be deemed to be an alternative to the appointment of a
4480	guardian. The appointment of a guardian does not limit the
4481	court's power to determine that certain authority granted by a
4482	durable power of attorney is to remain exercisable by the
4483	attorney in fact. When an order is entered which determines that
4484	a person is incapable of exercising delegable rights, a guardian
4485	must be appointed to exercise those rights.
4486	Section 46.  Paragraph (a) of subsection (6) of section
4487	744.361, Florida Statutes, is amended to read:
4488	744.361  Powers and duties of guardian.--
4489	(6)  A guardian who is given authority over any property of
4490	the ward shall:
4491	(a)  Protect and preserve the property and invest it
4492	prudently as provided in chapter 518 defined in s. 737.302,
4493	apply it as provided in s. 744.397, and account for it
4494	faithfully.
4495	Section 47.  Subsections (11) and (18) of section 744.441,
4496	Florida Statutes, are amended to read:
4497	744.441  Powers of guardian upon court approval.--After
4498	obtaining approval of the court pursuant to a petition for
4499	authorization to act, a plenary guardian of the property, or a
4500	limited guardian of the property within the powers granted by
4501	the order appointing the guardian or an approved annual or
4502	amended guardianship report, may:
4503	(11)  Prosecute or defend claims or proceedings in any
4504	jurisdiction for the protection of the estate and of the
4505	guardian in the performance of his or her duties. Before
4506	authorizing a guardian to bring an action described in s.
4507	736.0207, the court shall first find that the action appears to
4508	be in the ward's best interests during the ward's probable
4509	lifetime. If the court denies a request that a guardian be
4510	authorized to bring an action described in s. 736.0207, the
4511	court shall review the continued need for a guardian and the
4512	extent of the need for delegation of the ward's rights.
4513	(18)  When the ward's will evinces an objective to obtain a
4514	United States estate tax charitable deduction by use of a split
4515	interest trust (as that term is defined in s. 736.1201 737.501),
4516	but the maximum charitable deduction otherwise allowable will
4517	not be achieved in whole or in part, execute a codicil on the
4518	ward's behalf amending said will to obtain the maximum
4519	charitable deduction allowable without diminishing the aggregate
4520	value of the benefits of any beneficiary under such will.
4521	Section 48.  Section 744.462, Florida Statutes, is created
4522	to read:
4523	744.462  Determination regarding alternatives to
4524	guardianship.--Any judicial determination concerning the
4525	validity of the ward's durable power of attorney, trust, or
4526	trust amendment shall be promptly reported in the guardianship
4527	proceeding by the guardian of the property. If the instrument
4528	has been judicially determined to be valid or if, after the
4529	appointment of a guardian, a petition is filed alleging that
4530	there is an alternative to guardianship which will sufficiently
4531	address the problems of the ward, the court shall review the
4532	continued need for a guardian and the extent of the need for
4533	delegation of the ward's rights.
4534	Section 49.  Sections 737.101, 737.105, 737.106, 737.111,
4535	737.115, 737.116, 737.201, 737.202, 737.203, 737.2035, 737.204,
4536	737.2041, 737.205, 737.206, 737.2065, 737.207, 737.208, 737.209,
4537	737.301, 737.302, 737.303, 737.3035, 737.304, 737.305, 737.3053,
4538	737.3054, 737.3055, 737.306, 737.3061, 737.307, 737.308,
4539	737.309, 737.401, 737.402, 737.4025, 737.403, 737.4031,
4540	737.4032, 737.4033, 737.404, 737.405, 737.406, 737.501, 737.502,
4541	737.503, 737.504, 737.505, 737.506, 737.507, 737.508, 737.509,
4542	737.510, 737.511, 737.512, 737.6035, 737.621, 737.622, 737.623,
4543	737.624, 737.625, 737.626, and 737.627, Florida Statutes, are
4544	repealed.
4545	Section 50.  This act shall take effect July 1, 2007.

CODING: Words stricken are deletions; words underlined are additions.