Florida Senate - 2021                                    SB 1070
       
       
        
       By Senator Berman
       
       
       
       
       
       31-00557A-21                                          20211070__
    1                        A bill to be entitled                      
    2         An act relating to estates and trusts; amending s.
    3         69.031, F.S.; requiring the court to allow an officer
    4         to elect to post and maintain a certain bond;
    5         requiring the court to vacate or terminate an order
    6         under certain circumstances; making technical changes;
    7         amending s. 732.507, F.S.; providing that certain
    8         provisions of a will are void upon dissolution of
    9         marriage; specifying when dissolution of marriage
   10         occurs; providing applicability; amending s. 736.0103,
   11         F.S.; defining terms; revising the definition of the
   12         term “terms of a trust”; amending s. 736.0105, F.S.;
   13         revising the exceptions for when the terms of a trust
   14         do not prevail over provisions of the Florida Trust
   15         Code; amending s. 736.0201, F.S.; authorizing certain
   16         proceedings to determine the homestead status of real
   17         property owned by a trust to be filed in the probate
   18         proceeding for the settlor’s estate; requiring that
   19         such proceedings be governed by the Florida Probate
   20         Rules; amending s. 736.0603, F.S.; transferring
   21         provisions that authorize a trustee to follow certain
   22         directions; amending s. 736.0703, F.S.; conforming
   23         provisions to changes made by the act; repealing s.
   24         736.0808, F.S., relating to powers to direct; amending
   25         s. 736.1008, F.S.; specifying that certain claims
   26         barred against a trustee or trust director are also
   27         barred against certain persons acting for that
   28         trustee; conforming provisions to changes made by the
   29         act; amending s. 736.1017, F.S.; revising the
   30         information required to be included in a certification
   31         of trust; amending s. 736.1105, F.S.; revising the
   32         effects that subsequent marriages, births, adoptions,
   33         or dissolutions of marriage have on a revocable trust;
   34         providing construction; providing applicability;
   35         creating s. 736.1109, F.S.; specifying how title
   36         passes for certain devises of homesteads which violate
   37         the State Constitution; specifying that certain powers
   38         do not subject an interest in a protected homestead to
   39         certain claims; providing applicability; creating part
   40         XIV of chapter 736, F.S., entitled the “Florida
   41         Uniform Directed Trust Act”; creating s. 736.1401,
   42         F.S.; providing a short title; creating s. 736.1403,
   43         F.S.; providing applicability; providing for the
   44         validity of certain terms in a directed trust which
   45         designate principal places of administration; creating
   46         s. 736.1405, F.S.; defining the term “power of
   47         appointment”; providing applicability; specifying the
   48         types of powers granted to persons other than
   49         trustees; creating s. 736.1406, F.S.; authorizing the
   50         terms of a trust to grant a power of direction to a
   51         trust director; specifying the powers included in a
   52         power of direction; creating s. 736.1407, F.S.;
   53         providing for limitations on trust directors; creating
   54         s. 736.1408, F.S.; providing duties and liabilities
   55         for trust directors; creating s. 736.1409, F.S.;
   56         providing duties and liabilities for directed
   57         trustees; creating s. 736.141, F.S.; requiring a
   58         trustee to provide certain information to a trust
   59         director; requiring a trust director to provide
   60         certain information to a trustee or another trust
   61         director and a qualified beneficiary; providing that a
   62         trustee or a trust director acting in reliance on
   63         certain information is not liable for a breach of
   64         trust in certain circumstances; creating s. 736.1411,
   65         F.S.; specifying that trustees and trust directors do
   66         not have a duty to monitor, inform, or advise
   67         specified persons under certain circumstances;
   68         creating s. 736.1412, F.S.; transferring provisions
   69         relating to the appointment of trustees; creating s.
   70         736.1413, F.S.; providing limitations on actions
   71         against trust directors; creating s. 736.1414, F.S.;
   72         authorizing trust directors to assert specified
   73         defenses in certain actions; creating s. 736.1415,
   74         F.S.; specifying that a trust director submits to
   75         specified personal jurisdiction by accepting
   76         appointment as a trust director; providing
   77         construction; creating s. 736.1416, F.S.; requiring
   78         trust directors to be considered a trustee for certain
   79         purposes; authorizing certain persons to make a
   80         specified written demand to accept or confirm prior
   81         acceptance of trust directorships; creating part XV of
   82         chapter 736, F.S., entitled the “Community Property
   83         Trust Act”; creating s. 736.1501, F.S.; providing a
   84         short title; creating s. 736.1502, F.S.; defining
   85         terms; creating s. 736.1503, F.S.; providing that an
   86         arrangement is a community property trust in certain
   87         circumstances; creating s. 736.1504, F.S.; authorizing
   88         settlor spouses to agree upon certain terms in an
   89         agreement establishing a community property trust;
   90         specifying when a community property trust may be
   91         amended or revoked; specifying qualified beneficiaries
   92         of community property trusts; creating s. 736.1505,
   93         F.S.; providing that settlor spouses may classify any
   94         property as community property by transferring that
   95         property to a community property trust regardless of
   96         domicile; providing for enforceability and duration of
   97         a community property trust; providing that the right
   98         to manage and control certain property is determined
   99         by the terms of the trust agreement; providing the
  100         effect of distributions from a community property
  101         trust; creating s. 736.1506, F.S.; providing for the
  102         satisfaction of obligations incurred by one or both
  103         spouses from a community property trust; creating s.
  104         736.1507, F.S.; providing for the disposition or
  105         distribution of certain property upon the death of a
  106         spouse; creating s. 736.1508, F.S.; providing for the
  107         termination of a community property trust upon
  108         dissolution of marriage; creating s. 736.1509, F.S.;
  109         providing that a community property trust does not
  110         adversely affect certain rights of a child; creating
  111         s. 736.151, F.S.; providing that certain property held
  112         in a community property trust qualifies as homestead
  113         property; creating s. 736.1511, F.S.; providing for
  114         the application of the Internal Revenue Code to a
  115         community property trust; creating s. 736.1512, F.S.;
  116         providing that a community property trust is not
  117         enforceable in certain circumstances; amending ss.
  118         736.0802, 736.08125, and 738.104, F.S.; conforming
  119         cross-references; amending s. 744.3679, F.S.;
  120         conforming a provision to changes made by the act;
  121         providing a directive to the Division of Law Revision;
  122         providing for severability; providing effective dates.
  123  
  124  Be It Enacted by the Legislature of the State of Florida:
  125  
  126         Section 1. Effective upon this act becoming a law, section
  127  69.031, Florida Statutes, is amended to read:
  128         69.031 Designated financial institutions for property
  129  assets in hands of guardians, curators, administrators,
  130  trustees, receivers, or other officers.—
  131         (1) When it is expedient in the judgment of any court
  132  having jurisdiction of any estate in process of administration
  133  by any guardian, curator, executor, administrator, trustee,
  134  receiver, or other officer, because the size of the bond
  135  required of the officer is burdensome or for other cause, the
  136  court may order part or all of the personal property assets of
  137  the estate placed with a bank, trust company, or savings and
  138  loan association (which savings and loan association is a member
  139  of the Federal Savings and Loan Insurance Corporation and doing
  140  business in this state) designated by the court, consideration
  141  being given to any bank, trust company or savings and loan
  142  association proposed by the officer. Notwithstanding the
  143  foregoing, in probate proceedings and in accordance with s.
  144  733.402, the court shall allow the officer at any time to elect
  145  to post and maintain bond for the value of the personal
  146  property, or such other reasonable amount determined by the
  147  court, whereupon the court shall vacate or terminate any order
  148  establishing the depository. When the property is assets are
  149  placed with the designated financial institution, it shall file
  150  a receipt therefor in the name of the estate and give the
  151  officer a copy. Such receipt shall acknowledge the property
  152  assets received by the financial institution. All interest,
  153  dividends, principal and other debts collected by the financial
  154  institution on account thereof shall be held by the financial
  155  institution in safekeeping, subject to the instructions of the
  156  officer authorized by order of the court directed to the
  157  financial institution.
  158         (2) Accountings shall be made to the officer at reasonably
  159  frequent intervals. After the receipt for the original property
  160  assets has been filed by the financial institution, the court
  161  shall waive the bond given or to be given or reduce it so that
  162  it shall apply only to the estate remaining in the hands of the
  163  officer, whichever the court deems proper.
  164         (3) When the court has ordered any property assets of an
  165  estate to be placed with a designated financial institution, any
  166  person or corporation having possession or control of any of the
  167  property assets, or owing interest, dividends, principal or
  168  other debts on account thereof, shall pay and deliver such
  169  property assets, interest, dividends, principal and other debts
  170  to the financial institution on its demand whether the officer
  171  has duly qualified or not, and the receipt of the financial
  172  institution relieves the person or corporation from further
  173  responsibility therefor.
  174         (4) Any bank, trust company, or savings and loan
  175  association which is designated under this section, may accept
  176  or reject the designation in any instance, and shall file its
  177  acceptance or rejection with the court making the designation
  178  within 15 days after actual knowledge of the designation comes
  179  to the attention of the financial institution, and if the
  180  financial institution accepts, it shall be allowed a reasonable
  181  amount for its services and expenses which the court may allow
  182  as a charge against the property assets placed with the
  183  financial institution.
  184         Section 2. Effective upon this act becoming a law, section
  185  732.507, Florida Statutes, is amended to read:
  186         732.507 Effect of subsequent marriage, birth, adoption, or
  187  dissolution of marriage.—
  188         (1) Neither subsequent marriage, birth, nor adoption of
  189  descendants shall revoke the prior will of any person, but the
  190  pretermitted child or spouse shall inherit as set forth in ss.
  191  732.301 and 732.302, regardless of the prior will.
  192         (2) Any provision of a will executed by a married person
  193  that affects the testator’s spouse is of that person shall
  194  become void upon dissolution of the marriage of the testator and
  195  the spouse, whether the marriage occurred before or after the
  196  execution of such will. Upon dissolution of marriage the divorce
  197  of that person or upon the dissolution or annulment of the
  198  marriage. After the dissolution, divorce, or annulment, the will
  199  shall be administered and construed as if the former spouse had
  200  died at the time of the dissolution of marriage, divorce, or
  201  annulment of the marriage, unless the will or the dissolution or
  202  divorce judgment expressly provides otherwise.
  203         (a)Dissolution of marriage occurs at the time the
  204  decedent’s marriage is judicially dissolved or declared invalid
  205  by court order.
  206         (b)This subsection does not invalidate a provision of a
  207  will:
  208         1.Executed by the testator after the dissolution of the
  209  marriage;
  210         2.If there is a specific intention to the contrary stated
  211  in the will; or
  212         3.If the dissolution of marriage judgment expressly
  213  provides otherwise.
  214         (3)This section applies to wills of decedents who die on
  215  or after the effective date of this section.
  216         Section 3. Present subsections (6) through (13), (14)
  217  through (21), and (22) and (23) of section 736.0103, Florida
  218  Statutes, are redesignated as subsections (8) through (15), (17)
  219  through (24), and (26) and (27), respectively, new subsections
  220  (6), (7), and (16) and subsection (25) are added to that
  221  section, and present subsection (21) of that section is amended,
  222  to read:
  223         736.0103 Definitions.—Unless the context otherwise
  224  requires, in this code:
  225         (6)“Directed trust” means a trust for which the terms of
  226  the trust grant a power of direction.
  227         (7)“Directed trustee” means a trustee that is subject to a
  228  trust director’s power of direction.
  229         (16)“Power of direction” means a power over a trust
  230  granted to a person by the terms of the trust to the extent the
  231  power is exercisable while the person is not serving as a
  232  trustee. The term includes a power over the investment,
  233  management, or distribution of trust property, a power to amend
  234  a trust instrument or terminate a trust, or a power over other
  235  matters of trust administration. The term excludes the powers
  236  listed in s. 736.1405(2).
  237         (24)(21) “Terms of a trust” means:
  238         (a)Except as otherwise provided in paragraph (b), the
  239  manifestation of the settlor’s intent regarding a trust’s
  240  provisions as:
  241         1.Expressed in the trust instrument; or
  242         2.Established by other evidence that would be admissible
  243  in a judicial proceeding; or
  244         (b)The trust’s provisions as established, determined, or
  245  amended by:
  246         1.A trustee or trust director in accordance with
  247  applicable law;
  248         2.Court order; or
  249         3.A nonjudicial settlement agreement under s. 736.0111 the
  250  manifestation of the settlor’s intent regarding a trust’s
  251  provisions as expressed in the trust instrument or as may be
  252  established by other evidence that would be admissible in a
  253  judicial proceeding.
  254         (25)“Trust director” means a person who is granted a power
  255  of direction by the terms of a trust to the extent the power is
  256  exercisable while the person is not serving as a trustee. The
  257  person is a trust director whether or not the terms of the trust
  258  refer to the person as a trust director and whether or not the
  259  person is a beneficiary or settlor of the trust.
  260         Section 4. Paragraph (b) of subsection (2) of section
  261  736.0105, Florida Statutes, is amended to read:
  262         736.0105 Default and mandatory rules.—
  263         (2) The terms of a trust prevail over any provision of this
  264  code except:
  265         (b) Subject to ss. 736.1409, 736.1411, and 736.1412, the
  266  duty of the trustee to act in good faith and in accordance with
  267  the terms and purposes of the trust and the interests of the
  268  beneficiaries.
  269         Section 5. Subsection (1) of section 736.0201, Florida
  270  Statutes, is amended, and subsection (7) is added to that
  271  section, to read:
  272         736.0201 Role of court in trust proceedings.—
  273         (1) Except as provided in subsections (5), and (6), and (7)
  274  and s. 736.0206, judicial proceedings concerning trusts shall be
  275  commenced by filing a complaint and shall be governed by the
  276  Florida Rules of Civil Procedure.
  277         (7)A proceeding to determine the homestead status of real
  278  property owned by a trust may be filed in the probate proceeding
  279  for the settlor’s estate if the settlor was treated as the owner
  280  of the interest held in the trust under s. 732.4015. The
  281  proceeding shall be governed by the Florida Probate Rules.
  282         Section 6. Subsection (3) is added to section 736.0603,
  283  Florida Statutes, to read:
  284         736.0603 Settlor’s powers; powers of withdrawal.—
  285         (3)Subject to ss. 736.0403(2) and 736.0602(3)(a), the
  286  trustee may follow a direction of the settlor that is contrary
  287  to the terms of the trust while a trust is revocable.
  288         Section 7. Subsections (3), (7), and (9) of section
  289  736.0703, Florida Statutes, are amended to read:
  290         736.0703 Cotrustees.—
  291         (3) Subject to s. 736.1412, a cotrustee must participate in
  292  the performance of a trustee’s function unless the cotrustee is
  293  unavailable to perform the function because of absence, illness,
  294  disqualification under other provision of law, or other
  295  temporary incapacity or the cotrustee has properly delegated the
  296  performance of the function to another cotrustee.
  297         (7) Except as otherwise provided in s. 736.1412 subsection
  298  (9), each cotrustee shall exercise reasonable care to:
  299         (a) Prevent a cotrustee from committing a breach of trust.
  300         (b) Compel a cotrustee to redress a breach of trust.
  301         (9)If the terms of a trust provide for the appointment of
  302  more than one trustee but confer upon one or more of the
  303  trustees, to the exclusion of the others, the power to direct or
  304  prevent specified actions of the trustees, the excluded trustees
  305  shall act in accordance with the exercise of the power. Except
  306  in cases of willful misconduct on the part of the excluded
  307  trustee, an excluded trustee is not liable, individually or as a
  308  fiduciary, for any consequence that results from compliance with
  309  the exercise of the power. An excluded trustee does not have a
  310  duty or an obligation to review, inquire, investigate, or make
  311  recommendations or evaluations with respect to the exercise of
  312  the power. The trustee or trustees having the power to direct or
  313  prevent actions of the excluded trustees shall be liable to the
  314  beneficiaries with respect to the exercise of the power as if
  315  the excluded trustees were not in office and shall have the
  316  exclusive obligation to account to and to defend any action
  317  brought by the beneficiaries with respect to the exercise of the
  318  power. The provisions of s. 736.0808(2) do not apply if the
  319  person entrusted with the power to direct the actions of the
  320  excluded trustee is also a cotrustee.
  321         Section 8. Section 736.0808, Florida Statutes, is repealed.
  322         Section 9. Present subsection (7) of section 736.1008,
  323  Florida Statutes, is redesignated as subsection (8), a new
  324  subsection (7) is added to that section, and paragraph (a) of
  325  subsection (1), subsection (2), and paragraphs (a) and (c) of
  326  subsection (4) of that section are amended, to read:
  327         736.1008 Limitations on proceedings against trustees.—
  328         (1) Except as provided in subsection (2), all claims by a
  329  beneficiary against a trustee for breach of trust are barred as
  330  provided in chapter 95 as to:
  331         (a) All matters adequately disclosed in a trust disclosure
  332  document issued by the trustee or a trust director, with the
  333  limitations period beginning on the date of receipt of adequate
  334  disclosure.
  335         (2) Unless sooner barred by adjudication, consent, or
  336  limitations, a beneficiary is barred from bringing an action
  337  against a trustee for breach of trust with respect to a matter
  338  that was adequately disclosed in a trust disclosure document
  339  unless a proceeding to assert the claim is commenced within 6
  340  months after receipt from the trustee or a trust director of the
  341  trust disclosure document or a limitation notice that applies to
  342  that disclosure document, whichever is received later.
  343         (4) As used in this section, the term:
  344         (a) “Trust disclosure document” means a trust accounting or
  345  any other written report of the trustee or a trust director. A
  346  trust disclosure document adequately discloses a matter if the
  347  document provides sufficient information so that a beneficiary
  348  knows of a claim or reasonably should have inquired into the
  349  existence of a claim with respect to that matter.
  350         (c) “Limitation notice” means a written statement of the
  351  trustee or a trust director that an action by a beneficiary
  352  against the trustee for breach of trust based on any matter
  353  adequately disclosed in a trust disclosure document may be
  354  barred unless the action is commenced within 6 months after
  355  receipt of the trust disclosure document or receipt of a
  356  limitation notice that applies to that trust disclosure
  357  document, whichever is later. A limitation notice may but is not
  358  required to be in the following form: “An action for breach of
  359  trust based on matters disclosed in a trust accounting or other
  360  written report of the trustee or a trust director may be subject
  361  to a 6-month statute of limitations from the receipt of the
  362  trust accounting or other written report. If you have questions,
  363  please consult your attorney.”
  364         (7)Any claim barred against a trustee or trust director
  365  under this section is also barred against the directors,
  366  officers, and employees acting for the trustee.
  367         Section 10. Present paragraphs (e), (f), and (g) of
  368  subsection (1) of section 736.1017, Florida Statutes, are
  369  redesignated as paragraphs (f), (g), and (h), respectively, and
  370  a new paragraph (e) is added to that subsection, to read:
  371         736.1017 Certification of trust.—
  372         (1) Instead of furnishing a copy of the trust instrument to
  373  a person other than a beneficiary, the trustee may furnish to
  374  the person a certification of trust containing the following
  375  information:
  376         (e)Whether the trust contains any powers of direction, and
  377  if so, the identity of the current trust directors, the trustee
  378  powers subject to a power of direction, and whether the trust
  379  directors have directed or authorized the trustee to engage in
  380  the proposed transaction for which the certification of trust
  381  was issued.
  382         Section 11. Effective upon this act becoming a law, section
  383  736.1105, Florida Statutes, is amended to read:
  384         (Substantial rewording of section. See
  385         s. 736.1105, F.S., for present text.)
  386         736.1105Effect of subsequent marriage, birth, adoption, or
  387  dissolution of marriage.—
  388         (1)Neither subsequent marriage, birth, nor adoption of
  389  descendants shall revoke the revocable trust of any person.
  390         (2)Any provision of a revocable trust that affects the
  391  settlor’s spouse is void upon dissolution of the marriage of the
  392  settlor and the spouse, whether the marriage occurred before or
  393  after the execution of such revocable trust. Upon dissolution of
  394  marriage, the revocable trust shall be construed as if the
  395  spouse had died at the time of the dissolution of marriage.
  396         (a)Dissolution of marriage occurs at the time the
  397  decedent’s marriage is judicially dissolved or declared invalid
  398  by court order.
  399         (b)This subsection does not invalidate a provision of a
  400  revocable trust:
  401         1.Executed by the settlor after the dissolution of the
  402  marriage;
  403         2.If there is a specific intention to the contrary stated
  404  in the revocable trust; or
  405         3.If the dissolution of marriage judgment expressly
  406  provides otherwise.
  407         (3)This section applies to revocable trusts of decedents
  408  who die on or after the effective date of this section.
  409         Section 12. Section 736.1109, Florida Statutes, is created
  410  to read:
  411         736.1109Testamentary and revocable trusts; homestead
  412  protections.—
  413         (1)If a devise of homestead under a trust violates the
  414  limitations on the devise of homestead in s. 4(c), Art. X of the
  415  State Constitution, title shall pass as provided in s. 732.401
  416  at the moment of death.
  417         (2)A power of sale or general direction to pay debts,
  418  expenses and claims within the trust instrument does not subject
  419  an interest in the protected homestead to the claims of
  420  decedent’s creditors, expenses of administration, and
  421  obligations of the decedent’s estate as provided in s.
  422  736.05053.
  423         (3)If a trust directs the sale of property that would
  424  otherwise qualify as protected homestead, and the property is
  425  not subject to the constitutional limitations on the devise of
  426  homestead under the State Constitution, title shall remain
  427  vested in the trustee and subject to the provisions of the
  428  trust.
  429         (4)This section applies only to trusts described in s.
  430  733.707(3) and to testamentary trusts.
  431         (5)This section is intended to clarify existing law and
  432  applies to the administration of trusts and estates of decedents
  433  who die before, on, or after July 1, 2021.
  434         Section 13. Part XIV of chapter 736, Florida Statutes,
  435  consisting of ss. 736.1401-736.1416, Florida Statutes, is
  436  created and entitled the “Florida Uniform Directed Trust Act.”
  437         Section 14. Section 736.1401, Florida Statutes, is created
  438  to read:
  439         736.1401Short title.—This part may be cited as the
  440  “Florida Uniform Directed Trust Act.”
  441         Section 15. Section 736.1403, Florida Statutes, is created
  442  to read:
  443         736.1403Application; principal place of administration.
  444         (1)This part applies to a trust subject to this chapter,
  445  whenever created, that has its principal place of administration
  446  in the state, subject to the following rules:
  447         (a)If the trust was created before July 1, 2021, this part
  448  applies only to a decision or action occurring on or after July
  449  1, 2021.
  450         (b)If the principal place of administration of the trust
  451  is changed to the state on or after July 1, 2021, this part
  452  applies only to a decision or action occurring on or after the
  453  date of the change.
  454         (2)In addition to the provisions of s. 736.0108, in a
  455  directed trust, terms of the trust that designate the principal
  456  place of administration of the trust in the state are valid and
  457  controlling if a trust director’s principal place of business is
  458  located in or a trust director is a resident of the state.
  459         Section 16. Section 736.1405, Florida Statutes, is created
  460  to read:
  461         736.1405Exclusions.—
  462         (1)As used in this section, the term “power of
  463  appointment” means a power that enables a person acting in a
  464  nonfiduciary capacity to designate a recipient of an ownership
  465  interest in or another power of appointment over trust property.
  466         (2)Unless the terms of a trust expressly provide otherwise
  467  by specific reference to this part, section, or paragraph, this
  468  part does not apply to:
  469         (a)A power of appointment;
  470         (b)A power to appoint or remove a trustee or trust
  471  director;
  472         (c)A power of a settlor over a trust while the trust is
  473  revocable by that settlor;
  474         (d)A power of a beneficiary over a trust to the extent the
  475  exercise or nonexercise of the power affects the beneficial
  476  interest of:
  477         1.The beneficiary; or
  478         2.Another beneficiary represented by the beneficiary under
  479  ss. 736.0301-736.0305 with respect to the exercise or
  480  nonexercise of the power;
  481         (e)A power over a trust if the terms of the trust provide
  482  that the power is held in a nonfiduciary capacity; and
  483         1.The power must be held in a nonfiduciary capacity to
  484  achieve the settlor’s tax objectives under the United States
  485  Internal Revenue Code of 1986, as amended, and regulations
  486  issued thereunder, as amended; or
  487         2.It is a power to reimburse the settlor for all or a part
  488  of the settlor’s income tax liabilities attributable to the
  489  income of the trust; or
  490         (f)A power to add or to release a power under the trust
  491  instrument if the power subject to addition or release causes
  492  the settlor to be treated as the owner of all or any portion of
  493  the trust for federal income tax purposes.
  494         (3)Unless the terms of a trust provide otherwise, a power
  495  granted to a person other than a trustee:
  496         (a)To designate a recipient of an ownership interest in
  497  trust property, including a power to terminate a trust, is a
  498  power of appointment and not a power of direction.
  499         (b)To create, modify, or terminate a power of appointment
  500  is a power of direction and not a power of appointment, except a
  501  power to create a power of appointment that is an element of a
  502  broader power to affect an ownership interest in trust property
  503  beyond the mere creation of a power of appointment, such as a
  504  power to appoint trust property in further trust, is a power of
  505  appointment and not a power of direction.
  506         Section 17. Section 736.1406, Florida Statutes, is created
  507  to read:
  508         736.1406Power of trust director.—
  509         (1)Subject to s. 736.1407, the terms of a trust may grant
  510  a power of direction to a trust director.
  511         (2)A power of direction includes only those powers granted
  512  by the terms of the trust.
  513         (3)Unless the terms of a trust provide otherwise:
  514         (a)A trust director may exercise any further power
  515  appropriate to the exercise or nonexercise of a power of
  516  direction granted to the trust director under subsection (1);
  517  and
  518         (b)Trust directors with joint powers must act by majority
  519  decision.
  520         Section 18. Section 736.1407, Florida Statutes, is created
  521  to read:
  522         736.1407Limitations on trust director.—A trust director is
  523  subject to the same rules as a trustee in a like position and
  524  under similar circumstances in the exercise or nonexercise of a
  525  power of direction or further power under s. 736.1406(3)(a)
  526  regarding:
  527         (1)A payback provision in the terms of a trust necessary
  528  to comply with the reimbursement requirements of s. 1917 of the
  529  Social Security Act, 42 U.S.C. s. 1396p(d)(4)(A), as amended,
  530  and regulations issued thereunder, as amended.
  531         (2)A charitable interest in the trust, including notice
  532  regarding the interest to the Attorney General.
  533         Section 19. Section 736.1408, Florida Statutes, is created
  534  to read:
  535         736.1408Duty and liability of trust director.—
  536         (1)Subject to subsection (2), with respect to a power of
  537  direction or further power under s. 736.1406(3)(a):
  538         (a)A trust director has the same fiduciary duty and
  539  liability in the exercise or nonexercise of the power:
  540         1.If the power is held individually, as a sole trustee in
  541  a like position and under similar circumstances; or
  542         2.If the power is held jointly with a trustee or another
  543  trust director, as a cotrustee in a like position and under
  544  similar circumstances.
  545         (b)The terms of the trust may vary the trust director’s
  546  duty or liability to the same extent the terms of the trust may
  547  vary the duty or liability of a trustee in a like position and
  548  under similar circumstances.
  549         (2)Unless the terms of a trust provide otherwise, if a
  550  trust director is licensed, certified, or otherwise authorized
  551  or permitted by law other than this part to provide health care
  552  in the ordinary course of the trust director’s business or
  553  practice of a profession, to the extent the trust director acts
  554  in that capacity the trust director has no duty or liability
  555  under this part.
  556         (3)The terms of a trust may impose a duty or liability on
  557  a trust director in addition to the duties and liabilities under
  558  this section.
  559         Section 20. Section 736.1409, Florida Statutes, is created
  560  to read:
  561         736.1409Duty and liability of directed trustee.—
  562         (1)Subject to subsection (2), a directed trustee shall
  563  take reasonable action to comply with a trust director’s
  564  exercise or nonexercise of a power of direction or further power
  565  under s. 736.1406(3)(a) and the trustee is not liable for such
  566  reasonable action.
  567         (2)A directed trustee may not comply with a trust
  568  director’s exercise or nonexercise of a power of direction or
  569  further power under s. 736.1406(3)(a) to the extent that by
  570  complying the trustee would engage in willful misconduct.
  571         (3)Before complying with a trust director’s exercise of a
  572  power of direction, the directed trustee shall determine whether
  573  or not the exercise is within the scope of the trust director’s
  574  power of direction. The exercise of a power of direction is not
  575  outside the scope of a trust director’s power of direction
  576  merely because the exercise constitutes or may constitute a
  577  breach of trust.
  578         (4)An exercise of a power of direction under which a trust
  579  director may release a trustee or another trust director from
  580  liability for breach of trust is not effective if:
  581         (a)The breach involved the trustee’s or other director’s
  582  willful misconduct;
  583         (b)The release was induced by improper conduct of the
  584  trustee or other director in procuring the release; or
  585         (c)At the time of the release, the trust director did not
  586  know the material facts relating to the breach.
  587         (5)A directed trustee that has reasonable doubt about its
  588  duty under this section may apply to the court for instructions,
  589  with attorney fees and costs to be paid from assets of the trust
  590  as provided in this code.
  591         (6)The terms of a trust may impose a duty or liability on
  592  a directed trustee in addition to the duties and liabilities
  593  under this part.
  594         Section 21. Section 736.141, Florida Statutes, is created
  595  to read:
  596         736.141Duty to provide information.—
  597         (1)Subject to s. 736.1411, a trustee shall provide
  598  information to a trust director to the extent the information is
  599  reasonably related to the powers or duties of the trust
  600  director.
  601         (2)Subject to s. 736.1411, a trust director shall provide
  602  information to a trustee or another trust director to the extent
  603  the information is reasonably related to the powers or duties of
  604  the trustee or other trust director.
  605         (3)A trustee that acts in reliance on information provided
  606  by a trust director is not liable for a breach of trust to the
  607  extent the breach resulted from the reliance, unless by so
  608  acting the trustee engages in willful misconduct.
  609         (4)A trust director that acts in reliance on information
  610  provided by a trustee or another trust director is not liable
  611  for a breach of trust to the extent the breach resulted from the
  612  reliance, unless by so acting the trust director engages in
  613  willful misconduct.
  614         (5)A trust director shall provide information within the
  615  trust director’s knowledge or control to a qualified beneficiary
  616  upon a written request of a qualified beneficiary to the extent
  617  the information is reasonably related to the powers or duties of
  618  the trust director.
  619         Section 22. Section 736.1411, Florida Statutes, is created
  620  to read:
  621         736.1411No duty to monitor, inform, or advise.—
  622         (1)Notwithstanding s. 736.1409(1), unless the terms of a
  623  trust provide otherwise:
  624         (a)A trustee does not have a duty to:
  625         1.Monitor a trust director; or
  626         2.Inform or give advice to a settlor, beneficiary,
  627  trustee, or trust director concerning an instance in which the
  628  trustee might have acted differently than the trust director.
  629         (b)By taking an action described in paragraph (a), a
  630  trustee does not assume the duty excluded by paragraph (a).
  631         (2)Notwithstanding s. 736.1408(1), unless the terms of a
  632  trust provide otherwise:
  633         (a)A trust director does not have a duty to:
  634         1.Monitor a trustee or another trust director; or
  635         2.Inform or give advice to a settlor, beneficiary,
  636  trustee, or another trust director concerning an instance in
  637  which the trust director might have acted differently than a
  638  trustee or another trust director.
  639         (b)By taking an action described in paragraph (a), a trust
  640  director does not assume the duty excluded by paragraph (a).
  641         Section 23. Section 736.1412, Florida Statutes, is created
  642  to read:
  643         736.1412Application to cotrustee.—
  644         (1)The terms of a trust may provide for the appointment of
  645  more than one trustee but confer upon one or more of the
  646  trustees, to the exclusion of the others, the power to direct or
  647  prevent specified actions of the trustees.
  648         (2)The excluded trustees shall act in accordance with the
  649  exercise of the power in the manner, and with the same duty and
  650  liability, as directed trustees with respect to a trust
  651  director’s power of direction under ss. 736.1409, 736.141, and
  652  736.1411.
  653         (3)The trustee or trustees having the power to direct or
  654  prevent actions of the excluded trustees shall be liable to the
  655  beneficiaries with respect to the exercise of the power as if
  656  the excluded trustees were not in office and shall have the
  657  exclusive obligation to account to and to defend any action
  658  brought by the beneficiaries with respect to the exercise of the
  659  power.
  660         Section 24. Section 736.1413, Florida Statutes, is created
  661  to read:
  662         736.1413Limitation of action against trust director.—
  663         (1)An action against a trust director for breach of trust
  664  must be commenced within the same limitation period as under s.
  665  736.1008 in an action for breach of trust against a trustee in a
  666  like position and under similar circumstances.
  667         (2)A trust accounting or any other written report of a
  668  trustee or a trust director has the same effect on the
  669  limitation period for an action against a trust director for
  670  breach of trust that such trust accounting or written report
  671  would have under s. 736.1008 in an action for breach of trust
  672  against a trustee in a like position and under similar
  673  circumstances.
  674         Section 25. Section 736.1414, Florida Statutes, is created
  675  to read:
  676         736.1414Defenses in action against trust director.—In an
  677  action against a trust director for breach of trust, the trust
  678  director may assert the same defenses a trustee in a like
  679  position and under similar circumstances could assert in an
  680  action for breach of trust against the trustee.
  681         Section 26. Section 736.1415, Florida Statutes, is created
  682  to read:
  683         736.1415Jurisdiction over trust director.—
  684         (1)By accepting appointment as a trust director of a trust
  685  subject to this part, the trust director submits to the personal
  686  jurisdiction of the courts of the state regarding any matter
  687  related to a power or duty of the trust director.
  688         (2)This section does not preclude other methods of
  689  obtaining jurisdiction over a trust director.
  690         Section 27. Section 736.1416, Florida Statutes, is created
  691  to read:
  692         736.1416Office of trust director.—
  693         (1)Unless the terms of a trust provide otherwise, a trust
  694  director shall be considered a trustee for purposes of the
  695  following:
  696         (a)Role of court under s. 736.0201.
  697         (b)Proceedings for review of employment of agents and
  698  review of compensation of trustee and employees of a trust under
  699  s. 736.0206.
  700         (c)Representation by holder of power of appointment under
  701  s. 736.0302(4).
  702         (d)Designated representative under s. 736.0306(2).
  703         (e)Requirements for creation of a trust under s.
  704  736.0402(3).
  705         (f)As to allowing application by the trust director for
  706  judicial modification, construction, or termination under s.
  707  736.04113, s. 736.04114, s. 736.04115, or s. 736.0414(2) if the
  708  trust director is so authorized by the terms of the trust.
  709         (g)Discretionary trusts and the effect of a standard under
  710  s. 736.0504.
  711         (h)Creditors’ claims against settlor under s.
  712  736.0505(1)(c).
  713         (i)Trustee’s duty to pay expenses and obligations of a
  714  settlor’s estate under s. 736.05053(4).
  715         (j)Acceptance or declination under s. 736.0701.
  716         (k)Giving of bond to secure performance under s. 736.0702.
  717         (l)Vacancy and appointment of successor under s. 736.0704.
  718         (m)Resignation under s. 736.0705.
  719         (n)Removal under s. 736.0706, but not to give the trust
  720  director the power to request removal of a trustee.
  721         (o)Reasonable compensation under s. 736.0708.
  722         (p)Reimbursement of expenses under s. 736.0709.
  723         (q)Payment of costs or attorney fees under s. 736.0802(10)
  724  if the trust director has a power of direction or, if the trust
  725  director has a further power to direct, the payment of such
  726  costs or attorney fees under s. 736.1406(2) or (3)(a).
  727         (r)Discretionary power and tax savings provisions under s.
  728  736.0814.
  729         (s)Administration pending outcome of contest or other
  730  proceeding under s. 736.08165.
  731         (t)Applicability of chapter 518 under s. 736.0901.
  732         (u)Nonapplication of prudent investor rule under s.
  733  736.0902.
  734         (v)Remedies for breach of trust under s. 736.1001.
  735         (w)Damages for breach of trust under s. 736.1002.
  736         (x)Damages in absence of breach under s. 736.1003.
  737         (y)Attorney fees and costs under s. 736.1004.
  738         (z)Trustee’s attorney fees under s. 736.1007(5), (6), and
  739  (7).
  740         (aa)Reliance on a trust instrument under s. 736.1009.
  741         (bb)Events affecting administration under s. 736.1010.
  742         (cc)Exculpation under s. 736.1011.
  743         (dd)Beneficiary’s consent, release, or ratification under
  744  s. 736.1012.
  745         (ee)Limitations on actions against certain trusts under s.
  746  736.1014.
  747         (2)If a person has not accepted a trust directorship under
  748  the terms of the trust or under s. 736.0701 or a trustee,
  749  settlor, or a qualified beneficiary of the trust is uncertain
  750  whether such acceptance has occurred, a trustee, settlor, or a
  751  qualified beneficiary of the trust may make a written demand on
  752  a person designated to serve as a trust director, with a written
  753  copy to the trustees, to accept or confirm prior acceptance of
  754  the trust directorship in writing. A written acceptance, written
  755  acknowledgment of prior acceptance, or written declination of
  756  the trust directorship shall be delivered by the designated
  757  trust director within 60 days after receipt of such demand to
  758  all trustees, qualified beneficiaries, and the settlor if
  759  living.
  760         Section 28. Part XV of chapter 736, Florida Statutes,
  761  consisting of ss. 736.1501-736.1512, Florida Statutes, is
  762  created and entitled the “Community Property Trust Act.”
  763         Section 29. Section 736.1501, Florida Statutes, is created
  764  to read:
  765         736.1501Short title.—This part may be cited as the
  766  “Community Property Trust Act.”
  767         Section 30. Section 736.1502, Florida Statutes, is created
  768  to read:
  769         736.1502Definitions.—Unless the context otherwise
  770  requires, as used in this part:
  771         (1)“Community property” means the property and the
  772  appreciation of and income from the property owned by a
  773  qualified trustee of a community property trust during the
  774  marriage of the settlor spouses. The property owned by a
  775  community property trust pursuant to this part and the
  776  appreciation of and income from such property shall be deemed to
  777  be community property for purposes of general law.
  778         (2)“Community property trust” means an express trust that
  779  complies with s. 736.1503 and is created on or after July 1,
  780  2021.
  781         (3)“Decree” means a judgment or other order of a court of
  782  competent jurisdiction.
  783         (4)“Dissolution” means either:
  784         (a)Termination of a marriage by a decree of dissolution,
  785  divorce, annulment, or declaration of invalidity; or
  786         (b)Entry of a decree of legal separation maintenance.
  787         (5)“During marriage” means a period that begins at
  788  marriage and ends upon the dissolution of marriage or upon the
  789  death of a spouse.
  790         (6)“Qualified trustee” means either:
  791         (a)A natural person who is a resident of the state; or
  792         (b)A company authorized to act as a trustee in the state.
  793  
  794  A qualified trustee’s powers include, but are not limited to,
  795  maintaining records for the trust on an exclusive or a
  796  nonexclusive basis and preparing or arranging for the
  797  preparation of, on an exclusive or a nonexclusive basis, any
  798  income tax returns that must be filed by the trust.
  799         (7)“Settlor spouses” means a married couple who
  800  establishes a community property trust pursuant to this part.
  801         Section 31. Section 736.1503, Florida Statutes, is created
  802  to read:
  803         736.1503Requirements for community property trust.—An
  804  arrangement is a community property trust if one or both settlor
  805  spouses transfer property to a trust that:
  806         (1)Expressly declares that the trust is a community
  807  property trust within the meaning of this part.
  808         (2)Has at least one trustee who is a qualified trustee,
  809  provided that both spouses or either spouse also may be a
  810  trustee.
  811         (3)Is signed by both settlor spouses consistent with the
  812  formalities required for the execution of a trust under this
  813  chapter.
  814         (4)Contains substantially the following language in
  815  capital letters at the beginning of the community property trust
  816  agreement:
  817  
  818         THE CONSEQUENCES OF THIS COMMUNITY PROPERTY TRUST MAY
  819         BE VERY EXTENSIVE, INCLUDING, BUT NOT LIMITED TO, YOUR
  820         RIGHTS WITH RESPECT TO CREDITORS AND OTHER THIRD
  821         PARTIES, AND YOUR RIGHTS WITH YOUR SPOUSE DURING THE
  822         COURSE OF YOUR MARRIAGE, AT THE TIME OF A DIVORCE, AND
  823         UPON THE DEATH OF YOU OR YOUR SPOUSE. ACCORDINGLY,
  824         THIS TRUST AGREEMENT SHOULD BE SIGNED ONLY AFTER
  825         CAREFUL CONSIDERATION. IF YOU HAVE ANY QUESTIONS ABOUT
  826         THIS TRUST AGREEMENT, YOU SHOULD SEEK COMPETENT AND
  827         INDEPENDENT LEGAL ADVICE.
  828  
  829         Section 32. Section 736.1504, Florida Statutes, is created
  830  to read:
  831         736.1504Agreement establishing community property trust;
  832  amendments and revocation.—
  833         (1)In the agreement establishing a community property
  834  trust, the settlor spouses may agree upon:
  835         (a)The rights and obligations in the property transferred
  836  to the trust, notwithstanding when and where the property is
  837  acquired or located.
  838         (b)The management and control of the property transferred
  839  into the trust.
  840         (c)The disposition of the property transferred to the
  841  trust on dissolution, death, or the occurrence or nonoccurrence
  842  of another event, subject to ss. 736.1507 and 736.1508.
  843         (d)Whether the trust is revocable or irrevocable.
  844         (e)Any other matter that affects the property transferred
  845  to the trust and does not violate public policy or general law
  846  imposing a criminal penalty, or result in the property not being
  847  treated as community property under the laws of any
  848  jurisdiction.
  849         (2)In the event of the death of a settlor spouse, the
  850  surviving spouse may amend a community property trust regarding
  851  the disposition of that spouse’s one-half share of the community
  852  property, regardless of whether the agreement provides that the
  853  community property trust is irrevocable.
  854         (3)A community property trust may be amended or revoked by
  855  the settlor spouses unless the agreement itself specifically
  856  provides that the community property trust is irrevocable.
  857         (4)Notwithstanding any other provision of this code, the
  858  settlor spouses shall be deemed to be the only qualified
  859  beneficiaries of a community property trust until the death of
  860  one of the settlor spouses, regardless of whether the trust is
  861  revocable or irrevocable. After the death of one of the settlor
  862  spouses, the surviving spouse shall be deemed to be the only
  863  qualified beneficiary as to his or her share of the community
  864  property trust.
  865         Section 33. Section 736.1505, Florida Statutes, is created
  866  to read:
  867         736.1505Classification of property as community property;
  868  enforcement; duration; management and control; effect of
  869  distributions.—
  870         (1)Whether both, one, or neither is domiciled in the
  871  state, settlor spouses may classify any or all of their property
  872  as community property by transferring that property to a
  873  community property trust and providing in the trust that the
  874  property is community property pursuant to this part.
  875         (2)A community property trust is enforceable without
  876  consideration.
  877         (3)All property owned by a community property trust is
  878  community property under the laws of the state during the
  879  marriage of the settlor spouses.
  880         (4)The right to manage and control property that is
  881  transferred to a community property trust is determined by the
  882  terms of the trust agreement.
  883         (5)When property is distributed from a community property
  884  trust, the property shall no longer constitute community
  885  property within the meaning of this part, provided that
  886  community property as classified by a jurisdiction other than
  887  the state retains its character as community property to the
  888  extent otherwise provided by ss. 732.216-732.228.
  889         Section 34. Section 736.1506, Florida Statutes, is created
  890  to read:
  891         736.1506Satisfaction of obligations.—Except as provided in
  892  s. 4, Art. X of the State Constitution:
  893         (1)An obligation incurred by only one spouse before or
  894  during the marriage may be satisfied from that spouse’s one-half
  895  share of a community property trust.
  896         (2)An obligation incurred by both spouses during the
  897  marriage may be satisfied from a community property trust of the
  898  settlor spouses.
  899         Section 35. Section 736.1507, Florida Statutes, is created
  900  to read:
  901         736.1507Death of a spouse.—Upon the death of a spouse,
  902  one-half of the aggregate value of the property held in a
  903  community property trust established by the settlor spouses
  904  reflects the share of the surviving spouse and is not subject to
  905  testamentary disposition by the decedent spouse or distribution
  906  under the laws of succession of the state. The other one-half of
  907  the value of that property reflects the share of the decedent
  908  spouse and is subject to testamentary disposition or
  909  distribution under the laws of succession of the state. Unless
  910  provided otherwise in the community property trust agreement,
  911  the trustee has the power to distribute assets of the trust in
  912  divided or undivided interests and to adjust resulting
  913  differences in valuation. A distribution in kind may be made on
  914  the basis of a non-pro rata division of the aggregate value of
  915  the trust assets, on the basis of a pro rata division of each
  916  individual asset, or by using both methods. The decedent’s
  917  spouse’s one-half share shall not be included in the elective
  918  estate.
  919         Section 36. Section 736.1508, Florida Statutes, is created
  920  to read:
  921         736.1508Dissolution of marriage.—Upon the dissolution of
  922  the marriage of the settlor spouses, the community property
  923  trust shall terminate and the trustee shall distribute one-half
  924  of the trust assets to each spouse, with each spouse receiving
  925  one-half of each asset, unless otherwise agreed to in writing by
  926  both spouses. For purposes of this act, s. 61.075 does not apply
  927  to the disposition of the assets and liabilities held in a
  928  community property trust.
  929         Section 37. Section 736.1509, Florida Statutes, is created
  930  to read:
  931         736.1509Right of child to support.—A community property
  932  trust does not adversely affect the right of a child of the
  933  settlor spouses to support that either spouse would be required
  934  to give under the applicable laws of the settlor spouses’ state
  935  of domicile.
  936         Section 38. Section 736.151, Florida Statutes, is created
  937  to read:
  938         736.151Homestead property.—
  939         (1)Property that is transferred to or acquired subject to
  940  a community property trust may continue to qualify or may
  941  initially qualify as the settlor spouses’ homestead within the
  942  meaning of s. 4(a)(1), Art. X of the State Constitution and for
  943  all purposes of general law, provided that the property would
  944  qualify as the settlor spouses’ homestead if title was held in
  945  one or both of the settlor spouses’ individual names.
  946         (2)The settlor spouses shall be deemed to have beneficial
  947  title in equity to the homestead property held subject to a
  948  community property trust for all purposes, including for
  949  purposes of s. 196.031.
  950         Section 39. Section 736.1511, Florida Statutes, is created
  951  to read:
  952         736.1511Application of Internal Revenue Code; community
  953  property classified by another jurisdiction.—For purposes of the
  954  application of s. 1014(b)(6) of the Internal Revenue Code of
  955  1986, 26 U.S.C. s. 1014(b)(6), as of January 1, 2021, a
  956  community property trust is considered a trust established under
  957  the community property laws of the state. Community property, as
  958  classified by a jurisdiction other than this state, which is
  959  transferred to a community property trust retains its character
  960  as community property while in the trust. If the trust is
  961  revoked and property is transferred on revocation of the trust,
  962  the community property as classified by a jurisdiction other
  963  than the state retains its character as community property to
  964  the extent otherwise provided by ss. 732.216-732.228.
  965         Section 40. Section 736.1512, Florida Statutes, is created
  966  to read:
  967         736.1512Unenforceable trusts.—
  968         (1)A community property trust executed during marriage is
  969  not enforceable if the spouse against whom enforcement is sought
  970  proves that:
  971         (a)The trust was unconscionable when made;
  972         (b)The spouse against whom enforcement is sought did not
  973  execute the community property trust agreement voluntarily; or
  974         (c)Before execution of the community property trust
  975  agreement, the spouse against whom enforcement is sought:
  976         1.Was not given a fair and reasonable disclosure of the
  977  property and financial obligations of the other spouse.
  978         2.Did not voluntarily sign a written waiver expressly
  979  waiving right to disclosure of the property and financial
  980  obligations of the other spouse beyond the disclosure provided.
  981         3.Did not have notice of the property or financial
  982  obligations of the other spouse.
  983         (2)Whether a community property trust is unconscionable
  984  shall be determined by a court as a matter of law.
  985         (3)A community property trust may not be deemed
  986  unenforceable because the settlor spouses did not have separate
  987  legal representation when executing the trust.
  988         Section 41. Paragraph (f) of subsection (5) of section
  989  736.0802, Florida Statutes, is amended to read:
  990         736.0802 Duty of loyalty.—
  991         (5)
  992         (f)1. The trustee of a trust as defined in s. 731.201 may
  993  request authority to invest in investment instruments described
  994  in this subsection other than a qualified investment instrument,
  995  by providing to all qualified beneficiaries a written request
  996  containing the following:
  997         a. The name, telephone number, street address, and mailing
  998  address of the trustee and of any individuals who may be
  999  contacted for further information.
 1000         b. A statement that the investment or investments cannot be
 1001  made without the consent of a majority of each class of the
 1002  qualified beneficiaries.
 1003         c. A statement that, if a majority of each class of
 1004  qualified beneficiaries consent, the trustee will have the right
 1005  to make investments in investment instruments, as defined in s.
 1006  660.25(6), which are owned or controlled by the trustee or its
 1007  affiliate, or from which the trustee or its affiliate receives
 1008  compensation for providing services in a capacity other than as
 1009  trustee, that such investment instruments may include investment
 1010  instruments sold primarily to trust accounts, and that the
 1011  trustee or its affiliate may receive fees in addition to the
 1012  trustee’s compensation for administering the trust.
 1013         d. A statement that the consent may be withdrawn
 1014  prospectively at any time by written notice given by a majority
 1015  of any class of the qualified beneficiaries.
 1016  
 1017  A statement by the trustee is not delivered if the statement is
 1018  accompanied by another written communication other than a
 1019  written communication by the trustee that refers only to the
 1020  statement.
 1021         2. For purposes of paragraph (e) and this paragraph:
 1022         a. “Majority of the qualified beneficiaries” means:
 1023         (I) If at the time the determination is made there are one
 1024  or more beneficiaries as described in s. 736.0103(19)(c) s.
 1025  736.0103(16)(c), at least a majority in interest of the
 1026  beneficiaries described in s. 736.0103(19)(a) s.
 1027  736.0103(16)(a), at least a majority in interest of the
 1028  beneficiaries described in s. 736.0103(19)(b) s.
 1029  736.0103(16)(b), and at least a majority in interest of the
 1030  beneficiaries described in s. 736.0103(19)(c) s.
 1031  736.0103(16)(c), if the interests of the beneficiaries are
 1032  reasonably ascertainable; otherwise, a majority in number of
 1033  each such class; or
 1034         (II) If there is no beneficiary as described in s.
 1035  736.0103(19)(c) s. 736.0103(16)(c), at least a majority in
 1036  interest of the beneficiaries described in s. 736.0103(19)(a) s.
 1037  736.0103(16)(a) and at least a majority in interest of the
 1038  beneficiaries described in s. 736.0103(19)(b) s.
 1039  736.0103(16)(b), if the interests of the beneficiaries are
 1040  reasonably ascertainable; otherwise, a majority in number of
 1041  each such class.
 1042         b. “Qualified investment instrument” means a mutual fund,
 1043  common trust fund, or money market fund described in and
 1044  governed by s. 736.0816(3).
 1045         c. An irrevocable trust is created upon execution of the
 1046  trust instrument. If a trust that was revocable when created
 1047  thereafter becomes irrevocable, the irrevocable trust is created
 1048  when the right of revocation terminates.
 1049         Section 42. Paragraph (a) of subsection (2) of section
 1050  736.08125, Florida Statutes, is amended to read:
 1051         736.08125 Protection of successor trustees.—
 1052         (2) For the purposes of this section, the term:
 1053         (a) “Eligible beneficiaries” means:
 1054         1. At the time the determination is made, if there are one
 1055  or more beneficiaries as described in s. 736.0103(19)(c) s.
 1056  736.0103(16)(c), the beneficiaries described in s.
 1057  736.0103(19)(a) and (c) s. 736.0103(16)(a) and (c); or
 1058         2. If there is no beneficiary as described in s.
 1059  736.0103(19)(c) s. 736.0103(16)(c), the beneficiaries described
 1060  in s. 736.0103(19)(a) and (b) s. 736.0103(16)(a) and (b).
 1061         Section 43. Paragraph (d) of subsection (9) of section
 1062  738.104, Florida Statutes, is amended to read:
 1063         738.104 Trustee’s power to adjust.—
 1064         (9)
 1065         (d) For purposes of subsection (8) and this subsection, the
 1066  term:
 1067         1. “Eligible beneficiaries” means:
 1068         a. If at the time the determination is made there are one
 1069  or more beneficiaries described in s. 736.0103(19)(c) s.
 1070  736.0103(16)(c), the beneficiaries described in s.
 1071  736.0103(19)(a) and (c) s. 736.0103(16)(a) and (c); or
 1072         b. If there is no beneficiary described in s.
 1073  736.0103(19)(c) s. 736.0103(16)(c), the beneficiaries described
 1074  in s. 736.0103(19)(a) and (b) s. 736.0103(16)(a) and (b).
 1075         2. “Super majority of the eligible beneficiaries” means:
 1076         a. If at the time the determination is made there are one
 1077  or more beneficiaries described in s. 736.0103(19)(c) s.
 1078  736.0103(16)(c), at least two-thirds in interest of the
 1079  beneficiaries described in s. 736.0103(19)(a) s. 736.0103(16)(a)
 1080  or two-thirds in interest of the beneficiaries described in s.
 1081  736.0103(19)(c) s. 736.0103(16)(c), if the interests of the
 1082  beneficiaries are reasonably ascertainable; otherwise, it means
 1083  two-thirds in number of either such class; or
 1084         b. If there is no beneficiary described in s.
 1085  736.0103(19)(c) s. 736.0103(16)(c), at least two-thirds in
 1086  interest of the beneficiaries described in s. 736.0103(19)(a) s.
 1087  736.0103(16)(a) or two-thirds in interest of the beneficiaries
 1088  described in s. 736.0103(19)(b) s. 736.0103(16)(b), if the
 1089  interests of the beneficiaries are reasonably ascertainable,
 1090  otherwise, two-thirds in number of either such class.
 1091         Section 44. Subsection (1) of section 744.3679, Florida
 1092  Statutes, is amended to read:
 1093         744.3679 Simplified accounting procedures in certain
 1094  cases.—
 1095         (1) In a guardianship of property, when all property assets
 1096  of the estate is are in designated depositories under s. 69.031
 1097  and the only transactions that occur in that account are
 1098  interest accrual, deposits from a settlement, or financial
 1099  institution service charges, the guardian may elect to file an
 1100  accounting consisting of:
 1101         (a) The original or a certified copy of the year-end
 1102  statement of the ward’s account from the financial institution;
 1103  and
 1104         (b) A statement by the guardian under penalty of perjury
 1105  that the guardian has custody and control of the ward’s property
 1106  as shown in the year-end statement.
 1107         Section 45. The Division of Law Revision is directed to
 1108  replace the phrase “the effective date of this section” wherever
 1109  it occurs in this act with the date those sections become law.
 1110         Section 46. If any provision of this act or the application
 1111  thereof to any person or circumstance is held invalid, the
 1112  invalidity does not affect other provisions or applications of
 1113  this act which can be given effect without the invalid provision
 1114  or application, and to this end the provisions of this act are
 1115  severable.
 1116         Section 47. Except as otherwise expressly provided in this
 1117  act and except for this section, which shall take effect upon
 1118  this act becoming a law, this act shall take effect July 1,
 1119  2021.