Florida Senate - 2014                                     SB 826
       
       
        
       By Senator Joyner
       
       
       
       
       
       19-00646-14                                            2014826__
    1                        A bill to be entitled                      
    2         An act relating to trusts; amending ss. 736.0703 and
    3         736.1011, F.S.; limiting the liability of excluded
    4         trustees; providing an exception; authorizing trusts
    5         to provide for exculpation of excluded trustees under
    6         certain circumstances; providing an effective date.
    7          
    8  Be It Enacted by the Legislature of the State of Florida:
    9  
   10         Section 1. Subsection (9) of section 736.0703, Florida
   11  Statutes, is amended to read:
   12         736.0703 Cotrustees.—
   13         (9) If the terms of a trust instrument provide for the
   14  appointment of more than one trustee but confer upon one or more
   15  of the trustees, to the exclusion of the others, the power to
   16  direct or prevent specified actions of the trustees, the
   17  excluded trustees shall act in accordance with the exercise of
   18  the power. Except in cases of willful misconduct on the part of
   19  the trustee with the authority to direct or prevent actions of
   20  the trustees of which the excluded trustee has actual knowledge,
   21  An excluded trustee is not liable, individually or as a
   22  fiduciary, for any consequence that results from compliance with
   23  the exercise of the power, regardless of the information
   24  available to the excluded trustee, unless with respect to the
   25  exercise of such power the excluded trustee has actual knowledge
   26  of willful misconduct by the trustee entrusted with the power to
   27  direct or prevent actions of the excluded trustees. To the
   28  extent provided by terms of the trust, an excluded trustee may
   29  be exculpated from that liability even if the excluded trustee
   30  has actual knowledge of willful misconduct by the trustee
   31  entrusted with the power to direct or prevent actions of the
   32  excluded trustees. An excluded trustee has no duty or trustees.
   33  The excluded trustees are relieved of any obligation to review,
   34  inquire, investigate, or make recommendations or evaluations
   35  with respect to the exercise of the power. The trustee entrusted
   36  with or trustees having the power to direct or prevent actions
   37  of the excluded trustees shall be liable to the beneficiaries
   38  with respect to the exercise of the power as if the excluded
   39  trustees were not in office and shall have the exclusive
   40  obligation to account to and to defend any action brought by the
   41  beneficiaries with respect to the exercise of the power. This
   42  subsection does not exculpate an excluded trustee from liability
   43  arising from his or her willful misconduct.
   44         Section 2. Subsection (3) is added to section 736.1011,
   45  Florida Statutes, to read:
   46         736.1011 Exculpation of trustee.—
   47         (3) This section does not apply to terms of a trust which
   48  exculpate an excluded trustee from liability for any consequence
   49  that results from compliance with the exercise of a power
   50  described in s. 736.0703(9).
   51         Section 3. This act shall take effect July 1, 2014.