AB490,110,21191. Remove a requirement pursuant to
42 USC 1396p (d) (4) to pay back a
20governmental entity for benefits provided to the permissible beneficiary at the death
21of that beneficiary.
AB490,110,2322
2. Reduce or eliminate an income interest of an income beneficiary of any of the
23following trusts:
AB490,111,224
a. A trust for which a marital deduction has been taken for federal or state
25estate tax purposes under section
2056,
2056A, or
2523 of the Internal Revenue Code
1or any comparable provision of applicable state law, during the life of the settlor's
2spouse.
AB490,111,43b. A charitable remainder trust under section
664 of the Internal Revenue
4Code, during the life of the noncharitable beneficiary.
AB490,111,65c. A trust in which the settlor has a qualified interest under section
2702 (b)
6of the Internal Revenue Code, during any period in which the settlor is a beneficiary.
AB490,111,87
d. A trust for which an election as a qualified Subchapter S Trust under section
81361(d) of the Internal Revenue Code is in place.
AB490,111,119
(c) Modify any beneficial interest in a trust that qualified for a marital
10deduction or charitable deduction from federal or state estate tax in a manner that
11would have caused the trust not to qualify for the deduction.
AB490,111,16
12(7) Settlor rights. A trust protector is not subject to the direction of the settlor
13and the settlor may not bring a cause of action against the trust protector. A trust
14protector may consider a settlor's goals, objectives, and philosophies in establishing
15the trust and the trust's structure when exercising the powers granted to the trust
16protector and may do so regardless of whether the settlor is deceased.
AB490,111,24
17(8) Duties of a trustee and a directing party. (a)
A trustee and a directing
18party shall act in accordance with a trust protector's exercise of a power granted to
19the trust protector. A trustee and a directing party are not liable for acting in
20accordance with the trust protector's exercise of a power granted to the trust
21protector unless the attempted exercise is manifestly contrary to the power granted
22to the trust protector or the trustee or the directing party knows that the attempted
23exercise would constitute a serious breach of a duty that the trust protector owes to
24the beneficiaries of the trust.
AB490,112,6
1(b) A trustee and a directing party do not have a duty to monitor the conduct
2of the trust protector, provide advice to or consult with the trust protector, or
3communicate with, warn, or apprise any beneficiary concerning instances in which
4the trustee or the directing party would or might have exercised the trustee's or the
5directing party's discretion in a manner different from the manner in which the trust
6protector exercised its discretion.
AB490,112,15
7(9) Right to information. (a) A trust protector may request information about
8the trust from the trustee and, if the requested information is related to a power
9granted to the trust protector, the trustee shall provide the requested information to
10the trust protector. If a trustee is bound by any confidentiality restrictions with
11respect to information requested by a trust protector, the trustee may require that
12the trust protector agree to be bound by the confidentiality restrictions before
13delivering such information to the trust protector. A trustee is not liable to any
14beneficiary for any loss or damages resulting from the trustee providing information
15to the trust protector that is related to the power granted to the trust protector.
AB490,112,1816
(b) Except as otherwise provided in this chapter, a trustee does not have to
17provide any information to the trust protector that the trust protector does not
18request.
AB490,112,21
19(10) Payment or reimbursement of attorney fees and costs. A trustee shall,
20in accordance with s. 701.1004, pay or reimburse a trust protector for attorney fees
21and costs to defend any claim made against the trust protector.
AB490,112,24
22(11) Application of other sections to trust protectors. Sections 701.0701,
23701.0708, 701.0709, 701.1001 to 701.1003, and 701.1005 to 701.1010 apply to a trust
24protector as if the trust protector is the trustee.
AB490,113,3
1(12) Jurisdiction. A person who accepts an appointment as a trust protector
2of a trust submits to the jurisdiction of the courts of this state, as provided in s.
3701.0202 (1).
AB490,152
4Section
152. 701.0819 of the statutes is created to read:
AB490,113,8
5701.0819 Marital deduction transfers.
(1) For purposes of this section,
6"marital deduction transfer" means a lifetime or testamentary transfer of property
7that is intended to qualify for the marital deduction as indicated by the terms of the
8trust.
AB490,113,11
9(2) In interpreting, construing, or administering a trust instrument, absent a
10clear expression of intent by the settlor to the contrary, a trustee shall apply the
11following presumptions that may only be rebutted by clear and convincing evidence:
AB490,113,1312
(a) The settlor intended to take advantage of tax deductions, exemptions,
13exclusions, and credits.
AB490,113,1614
(b) The settlor intended that any transfer made to a spouse outright and free
15of trust qualify for the gift or estate tax marital deduction and is a marital deduction
16transfer.
AB490,113,2317
(c) If the trust instrument refers to a trust as a marital trust, qualified
18terminable interest property trust, or spousal trust, or refers to qualified terminable
19interest property, section
2044,
2056,
2056A, or
2523 of the Internal Revenue Code,
20or a similar provision of applicable state law, the settlor intended that the trust and
21property passing to the trust qualify for the applicable gift or estate tax marital
22deduction and that the transfer qualifies for the marital deduction for federal and
23state gift or estate tax purposes.
AB490,114,3
1(3) If a trust receives a marital deduction transfer, the trust instrument shall
2be construed to comply with the marital deduction provisions of the Internal
3Revenue Code.
AB490,114,9
4(4) If a trust receives a marital deduction transfer, the trustee has all the
5powers, duties, and discretionary authority necessary to comply with the marital
6deduction provisions of the Internal Revenue Code. The trustee may not take any
7action or have any power that may impair the availability of the marital deduction,
8but this does not require the trustee to make the election under either section
2056 9(b) (7),
2056A (a) (3), or
2523 (f) of the Internal Revenue Code.
AB490,153
10Section
153. 701.09 (title), (1) and (2) of the statutes are renumbered 853.34
11(title), (1) and (2).
AB490,154
12Section
154. 701.09 (3), (4) and (5) of the statutes are repealed.
AB490,155
13Section
155. Subchapter IX (title) of chapter 701 [precedes 701.0901] of the
14statutes is created to read:
AB490,114,1515
chapter 701
AB490,114,1616
subchapter IX
AB490,114,1717
investment management of trusts