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New Florida Trust Law
The Florida legislature enacted a new trust law which has favorable asset protection features. The new statute codifies in the statutes the protective benefits of “spendthrift provisions” which limit the beneficiary’s right to assign or pledge their interest in an irrevocable trust. There are some exceptions to spendthrift protection. The new trust code also adds protection to discretionary trust where the trustee may make discretionary distributions of income and principal to the beneficiary. The law states that a beneficiary’s creditors cannot compel a trustee to make a discretionary distribution which may become subject to creditor attack. This protection applies to trusts in which the beneficiary serves as trustee with discretionary powers over his own trust share so long as distributions are subject to certain standards of discretion.
The new statute is effective in January, 2007. The statute then becomes applicable to new as well as previously settled trusts. There is a more detailed discussion of the new trust statute at my website: www.alperlaw.com, under Asset Protection Updates/New Trust Law.
posted by Jonathan Alper, asset protection and bankruptcy attorney, Orlando, Florida
September 26, 2006 in In The News | Permalink
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Comments
Should a residence be put in a revocable trust?
Posted by: Joan Gedvilas | May 2, 2008 9:40:41 AM
A friend of mine, is not married to her boyfriend of 8 years, they have had two children together, we (my husband, myself, and our two friends) were all talking the other night and he started talking about putting the house and property that is in his name alone, in a trust. He has a wife whom he married in another country, but also in Florida, how can this trust give her security?He claims it will be better for her and will ensure that she can keep the house, should anything happen to him. Yet he also says that he is the President of the trust, how can that protect her and her children? Please send answer to my email address. Thank you for your time and cooperation in this matter.
Posted by: Sande | Mar 16, 2008 8:55:12 PM
Does Florida or US require a settlement of famly trust within a certain amount of time? For instance my parent's trust has not been settled for more than three years after their deaths. Appreciate your comments.
Posted by: richard james | Jan 31, 2008 10:13:18 PM
I have been informally advised that I am an 'heir' in my recently deceased brother's trust. However, my sister-in-law and her attorney has taken the position that my sister-in-law is the "sole beneficiary" and "sole trustee" of the trust. My understanding is that she can not serve as both under Florida trust law.
If I am indeed an heir doesn't that necessarily mean that I am a beneficiary? If so, under Florida law doesn't that designate me a 'qualified beneficiary'?
How can I determine my legal status within the trust without hiring an attorney or relying on the word of my sister-in-law and her attorney?
Posted by: CV Warren | Nov 23, 2007 11:52:00 AM
Does Florida trust law provide for a statutory (business) trust as does Delaware trust law?
If so, please send links.
Michael Smith
USA-305-393-9141
Posted by: Michael Smith | Jun 20, 2007 8:03:47 AM
