Title XLII, Estates and Trusts

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.History.—s. 35, ch. 2024-216.

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.History.—s. 1, ch. 2002-42; s. 32, ch. 2012-49; s. 49, ch. 2024-216.

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…

This chapter may be cited as the “Florida Uniform Disclaimer of Property Interests Act.”History.—s. 1, ch. 2005-108.

As used in this chapter, the term:(1) “Benefactor” means the creator of the interest that is subject to a disclaimer.(2) “Beneficiary designation” means an instrument, other than an instrument creating or amending a trust, naming the beneficiary of:(a) An annuity or insurance pol…

This chapter applies to disclaimers of any interest in or power over property, whenever created. Except as provided in s. 739.701, this chapter is the exclusive means by which a disclaimer may be made under Florida law.History.—s. 1, ch. 2005-108.

(1) A person may disclaim, in whole or in part, conditionally or unconditionally, any interest in or power over property, including a power of appointment. A person may disclaim the interest or power even if its creator imposed a spendthrift provision or similar restriction on tr…

Except for a disclaimer governed by s. 739.202, s. 739.203, or s. 739.204, the following rules apply to a disclaimer of an interest in property:(1) The disclaimer takes effect as of the time the instrument creating the interest becomes irrevocable or, if the interest arose under …

(1) Upon the death of a holder of jointly held property:(a) If, during the deceased holder’s lifetime, the deceased holder could have unilaterally regained a portion of the property attributable to the deceased holder’s contributions without the consent of any other holder, anoth…

(1) The survivorship interest in property held as a tenancy by the entirety to which the survivor succeeds by operation of law upon the death of the cotenant may be disclaimed as provided in this chapter. For purposes of this chapter only, the deceased tenant’s interest in proper…

If a trustee having the power to disclaim under the instrument creating the fiduciary relationship or pursuant to court order disclaims an interest in property that otherwise would have become trust property, the interest does not become trust property.History.—s. 1, ch. 2005-108…

If a holder disclaims a power of appointment or other power not held in a fiduciary capacity, the following rules apply:(1) If the holder has not exercised the power, the disclaimer takes effect as of the time the instrument creating the power becomes irrevocable.(2) If the holde…

(1) A disclaimer of an interest in property by an appointee of a power of appointment takes effect as of the time the instrument by which the holder exercises the power becomes irrevocable.(2) A disclaimer of an interest in property by an object, or taker in default of an exercis…

(1) If a fiduciary disclaims a power held in a fiduciary capacity which has not been exercised, the disclaimer takes effect as of the time the instrument creating the power becomes irrevocable.(2) If a fiduciary disclaims a power held in a fiduciary capacity which has been exerci…

(1) Subject to subsections (2) through (12), delivery of a disclaimer may be effected by personal delivery, first-class mail, or any other method that results in its receipt. A disclaimer sent by first-class mail shall be deemed to have been delivered on the date it is postmarked…

A disclaimer may be made at any time unless barred under s. 739.402.History.—s. 1, ch. 2005-108.

(1) A disclaimer is barred by a written waiver of the right to disclaim.(2) A disclaimer of an interest in property is barred if any of the following events occur before the disclaimer becomes effective:(a) The disclaimant accepts the interest sought to be disclaimed;(b) The disc…

Notwithstanding any provision of this chapter other than s. 739.402, if, as a result of a disclaimer or transfer, the disclaimed or transferred interest is treated pursuant to the provisions of s. 2518 of the Internal Revenue Code of 1986 as never having been transferred to the d…

(1) A disclaimer of an interest in or relating to real estate does not provide constructive notice to all persons unless the disclaimer contains a legal description of the real estate to which the disclaimer relates and unless the disclaimer is filed for recording in the office o…