Chapter 738 — Chapter 738

This chapter may be cited as the “Florida Uniform Fiduciary Income and Principal Act.”

As used in this chapter, the term:(1) “Accounting period” means a calendar year unless a fiduciary selects another period of 12 calendar months or approximately 12 calendar months. The term includes a part of a calendar year or another period of 12 calendar months or approximatel…

Except as otherwise provided in the terms of a trust or this chapter, this chapter applies to all of the following:(1) A trust or an estate.(2) A life estate or other term interest in which the interest of one or more persons will be succeeded by the interest of one or more other…

Except as otherwise provided in the terms of a trust or this chapter, this chapter applies when this state is the principal place of administration of a trust or estate or the situs of property that is not held in a trust or estate and is subject to a life estate or other term in…

(1) In making an allocation or determination or exercising discretion under this chapter, a fiduciary shall do all of the following:(a) Act in good faith, based on what is a fair and reasonable fee to all beneficiaries;(b) Administer a trust or estate impartially, except to the e…

(1) As used in this section, the term “fiduciary decision” means any of the following:(a) A fiduciary’s allocation between income and principal or other determination regarding income and principal required or authorized by the terms of the trust or this chapter.(b) The fiduciary…

(1) Except as otherwise provided in the terms of a trust or this section, a fiduciary, in a record without court approval, may adjust between income and principal if the fiduciary determines that the exercise of the power to adjust will assist the fiduciary in administering the t…

For purposes of this section and ss. 738.302-738.310:(1) “Applicable value” means the amount of the net fair market value of a trust taken into account under s. 738.307.(2) “Express unitrust” means a trust for which, under the terms of the trust without regard to this section and…

(1) Except as otherwise provided in subsection (2), ss. 738.301-738.310 apply to all of the following:(a) An income trust, unless the terms of the trust expressly prohibit the use of ss. 738.301-738.310 by a specific reference to this paragraph or corresponding provision of prior…

(1) By complying with subsections (2) and (6), and without court approval, a fiduciary may do any of the following:(a) Convert an income trust to a unitrust if the fiduciary adopts in a record a unitrust policy for the trust which provides:1. That in administering the trust, the …

(1) A notice required by s. 738.303(2)(b) must be sent in a manner authorized under s. 736.0109 to all of the following:(a) The qualified beneficiaries determined under s. 736.0103, other than the Attorney General.(b) Each person that is granted a power over the trust by the term…

(1) In administering a unitrust under ss. 738.301-738.310, a fiduciary shall follow a unitrust policy adopted under s. 738.303(1)(a) or (b) or amended or replaced under s. 738.303(1)(b).(2) A unitrust policy must provide all of the following:(a) The unitrust rate or method for de…

(1) A unitrust rate must be at least 3 percent and not more than 5 percent. Within those limits, the unitrust rate may be:(a) A fixed unitrust rate; or(b)1. A unitrust rate that is determined for each period using:a. A market index or other published data; orb. A mathematical ble…

(1) A unitrust policy must provide the method for determining the fair market value of an asset for the purpose of determining the unitrust amount, including all of the following:(a) The frequency of valuing the asset, which need not require a valuation in every period.(b) The da…

(1) A unitrust policy must provide the period used under ss. 738.306 and 738.307. The period must be the calendar year.(2) A unitrust policy may provide standards for:(a) Using fewer preceding periods under s. 738.306(1)(b)1. or (2)(a) or (b) if:1. The trust was not in existence …

(1) This section applies to a trust that, by its governing instrument, requires or allows income or net income to be calculated as a unitrust amount.(2) The trustee of an express unitrust may determine the unitrust amount by reference to the net fair market value of the unitrust’…

Following the conversion of an income trust to a unitrust, the trustee shall consider the unitrust amount as paid from the following sources, which are listed in order of priority:(1) Net accounting income determined under this chapter as if the trust were not a unitrust;(2) Ordi…

(1) For purposes of this section, the term:(a) “Capital distribution” means an entity distribution of money which is a:1. Return of capital; or2. Distribution in total or partial liquidation of the entity.(b) “Entity”:1. Means a corporation, partnership, limited liability company…

A fiduciary shall allocate to income an amount received as a distribution of income, including a unitrust distribution under ss. 738.301-738.310, from a trust or an estate in which the fiduciary has an interest, other than an interest purchased in a trust that is an investment en…

(1) This section applies to a business or other activity conducted by a fiduciary if the fiduciary determines that it is in the best interests of the beneficiaries to account separately for the business or other activity instead of:(a) Accounting for the business or other activit…

A fiduciary shall allocate to principal:(1) To the extent not allocated to income under this chapter, an asset received from any of the following:(a) An individual during the individual’s lifetime.(b) An estate.(c) A trust on termination of an income interest.(d) A payor under a …

To the extent that a fiduciary does not account for the management of rental property as a business under s. 738.403, the fiduciary shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a leas…

(1) This section does not apply to an obligation to which s. 738.409, s. 738.410, s. 738.411, s. 738.412, s. 738.414, s. 738.415, or s. 738.416 applies.(2) A fiduciary shall allocate to income, without provision for amortization of premium, an amount received as interest on an ob…

(1) This section does not apply to a contract to which s. 738.409 applies.(2) Except as otherwise provided in subsection (3), a fiduciary shall allocate to principal the proceeds of a life insurance policy or other contract received by the fiduciary as beneficiary, including a co…

(1) If a fiduciary determines that an allocation between income and principal required by s. 738.409, s. 738.410, s. 738.411, s. 738.412, or s. 738.415 is insubstantial, the fiduciary may allocate the entire amount to principal, unless s. 738.203(5) applies to the allocation.(2) …

(1) As used in this section, the term:(a) “Internal income of the separate fund” means the amount determined under subsection (2).(b) “Marital trust” means a trust:1. Of which the settlor’s surviving spouse is the only current income beneficiary and is entitled to a distribution …

(1) As used in this section, the term “liquidating asset” means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a limited time. The term includes a leasehold, patent, copyright, royalty right, and right to receive payments dur…

(1) To the extent that a fiduciary does not account for a receipt from an interest in minerals, water, or other natural resources as a business under s. 738.403, the fiduciary shall allocate the receipt:(a) To income, to the extent received:1. As delay rental or annual rent on a …

(1) To the extent that a fiduciary does not account for receipts from the sale of timber and related products as a business under s. 738.403, the fiduciary shall allocate the net receipts:(a) To income, to the extent that the amount of timber cut from the land does not exceed the…

(1) If a trust received property for which a gift or estate tax marital deduction was allowed, or if a trust received property satisfying the requirements of s. 732.2025(2)(a) and (c), and such property has been used in whole or in part to satisfy an election by a surviving spous…

(1) As used in this section, the term “derivative” means a contract, an instrument, or other arrangement, or combination of contracts, instruments, or other arrangements, of which the value, rights, and obligations are, in whole or in part, dependent on or derived from an underly…

(1) Except as otherwise provided in subsection (2), a fiduciary shall allocate to income a receipt from or related to an asset-backed security, as defined in s. 738.102, to the extent that the payor identifies the payment as being from interest or other current return and allocat…

A fiduciary shall allocate receipts from or related to a financial instrument or arrangement not otherwise addressed by this chapter. The allocation must be consistent with ss. 738.414 and 738.415.

Subject to s. 738.504, and except as otherwise provided in s. 738.601(3)(b) or (c), a fiduciary shall disburse from income:(1) One-half of:(a) The regular compensation of the fiduciary and of any person providing investment advisory, custodial, or other services to the fiduciary …

(1) Subject to s. 738.505, and except as otherwise provided in s. 738.601(3)(b), a fiduciary shall disburse all of the following from principal:(a) The balance of the disbursements described in s. 738.501(1) and (3), after application of s. 738.501(2).(b) The fiduciary’s compensa…

(1) For purposes of this section, “depreciation” means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a tangible asset having a useful life of more than 1 year.(2) A fiduciary may transfer to principal a reasonable amount of the net cash rece…

(1) If a fiduciary makes or expects to make an income disbursement described in subsection (2), the fiduciary may transfer an appropriate amount from principal to income in one or more accounting periods to reimburse income.(2) To the extent that the fiduciary has not been and do…

(1) If a fiduciary makes or expects to make a principal disbursement described in subsection (2), the fiduciary may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or to provide a reserve for future principal disbur…

(1) A tax required to be paid by a fiduciary which is based on receipts allocated to income must be paid from income.(2) A tax required to be paid by a fiduciary which is based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax…

(1) A fiduciary may make an adjustment between income and principal to offset the shifting of economic interests or tax benefits between current income beneficiaries and successor beneficiaries which arises from:(a) An election or decision the fiduciary makes regarding a tax matt…

(1) For purposes of this section, the term:(a) “Remainderman” means the holder of the remainder interests after the expiration of a tenant’s estate in property.(b) “Tenant” means the holder of an estate for life or term of years in real property or personal property, or both.(2) …

(1) This section applies when:(a) The death of an individual results in the creation of an estate or trust; or(b) An income interest in a trust terminates, whether the trust continues or is distributed.(2) A fiduciary of an estate or trust with an income interest that terminates …

(1) Except to the extent that ss. 738.301-738.310 apply for a beneficiary that is a trust, each beneficiary described in s. 738.601(5) is entitled to receive a share of the net income equal to the beneficiary’s fractional interest in undistributed principal assets, using carrying…

(1) An income beneficiary is entitled to net income in accordance with the terms of the trust from the date an income interest begins. The income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to:(…

(1) A fiduciary shall allocate an income receipt or disbursement, other than a receipt to which s. 738.601(2) applies, to principal if its due date occurs before the date on which:(a) For an estate, the decedent died; or(b) For a trust or successive interest, an income interest b…

(1) As used in this section, the term “undistributed income” means net income received on or before the date on which an income interest ends. The term does not include an item of income or expense which is due or accrued or net income that has been added or is required to be add…

In applying and construing this act, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.

This chapter modifies, limits, or supersedes the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. ss. 7001 et seq., but does not modify, limit, or supersede s. 101(c) of that act, 15 U.S.C. s. 7001(c), or authorize electronic delivery of any of the notices des…

If any provision of this chapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the provision…

Except as provided in the terms of the trust or this chapter, this chapter shall apply to any receipt or expense received or incurred and any disbursement made after January 1, 2025, by any trust or estate, whether established before or after January 1, 2025, and whether the asse…