UTC Based, but Tailored for Florida Families
As a state popular for living, retiring, and passing down wealth, Florida’s trust laws need to be strong. To create consistency and protect individuals who use trusts for estate planning, the state adopted much of the Uniform Trust Code (UTC), a model law used across the country to simplify and standardize trust administration.
But while Florida’s Trust Code closely follows the UTC, it includes several important state-specific modifications. Working with a Palm Harbor estate planning lawyer ensures your trust is structured correctly, complies with state-specific rules, and maximizes the benefits available under Florida law.
Built on an Important Framework
The UTC provides a foundation for trust law, establishing clear rules for creating trusts, managing them, protecting beneficiaries, and resolving disputes. Florida incorporated this framework into the Florida Statutes, creating a comprehensive, organized body of trust law.
Like the UTC, Florida’s Trust Code covers:
- Creation, modification, and termination of trusts
- Trustee duties and powers
- Rights of beneficiaries
- Trust accounting requirements
- Judicial oversight and dispute resolution
But instead of adopting the UTC word-for-word, Florida tailored many sections to align with existing state property law, homestead protections, and long-standing estate planning practices.
Key Florida-Specific Modifications
Whether you’re creating a new trust or administering an existing one, Florida’s Trust Code offers strong protections but also introduces complexities not found in many other jurisdictions.
For one, stronger homestead protections are in place. Under Florida law, homestead property is subject to strict rules. Florida’s Trust Code incorporates these rules, meaning that even if a trust attempts to direct a different result, the state’s homestead laws prevail. This creates a unique layer of protection (and complexity) not found in most UTC states.
Florida expands on the UTC’s trustee obligations too, by requiring more specific notices and accountings, especially when beneficiaries are entitled to mandatory distributions. These requirements aim to increase transparency and protect beneficiaries from mismanagement. For example, Florida mandates annual trust accountings unless waived, and provides detailed standards for the content and format of those accountings.
Additionally, while the UTC allows modification under certain conditions, Florida goes further by establishing more flexible ways to modify or terminate irrevocable trusts, including judicial and nonjudicial methods. Florida recognizes modification due to unanticipated circumstances, decanting, and nonjudicial settlement agreements. These tools give trustees and beneficiaries more options to address changing needs.
Florida strengthens spendthrift protections beyond the UTC as well. It does so by clearly stating that beneficiaries cannot voluntarily or involuntarily transfer their interest. This helps shield trust assets from creditors, divorcing spouses, and legal judgments.
A significant diversion from the UTC is the state allowing trusts to last up to 1,000 years, a far longer duration than most UTC states. This makes Florida very attractive for dynasty trusts and multigenerational estate planning. Have a discussion with a Palm Harbor estate planning lawyer to learn more.
Are you in a situation where you need to learn more about the state’s trust code? Bring your question to the attorneys at Miaoulis Law if you live in Palm Harbor, FL or Pinellas County, FL. Schedule a confidential consultation today.
