Florida Banking February 2024

TRUST AND WEALTH MANAGEMENT

BY KENNETH PRATT, FBA SENIOR VICE PRESIDENT OF GOVERNMENT AFFAIRS 2024 LEGISLATIVE UPDATE FOR FBA’S TRUST DIVISION

E very year, the FBA’s Trust and Wealth Management Division reviews and/or proposes new legislation that shapes the laws as they pertain to the trust and wealth management industry. There are mainly two bills under current consideration by the Florida Legislature that will have an impact if passed during the 2024 Legislative Session. This article will flesh out some of the history and the perceived need for these

and even adding several new terms in the definitions section to modernize the act to address some of the more recent industry trends regarding trust and estate administration. Additionally, the updated act takes aim at the unlimited “lookback rule” which presented difficulties for fiduciaries in their administration efforts. By placing into Florida law a defined lookback period of three years, if passed, trustees will have a

bright line rule to rely on. This would dictate how far back in the life of the trust or estate a trustee must go in their calculations. This issue was one of several important updates offered to the Bar committee by FBA members. The approach of the drafters was to, as much as possible, maintain the language and concepts of the uniform law, as promulgated by the Uniform Law Commission. Amendments or changes were limited unless the stakeholders agreed that there was sufficient rationale for the committee to deviate from the

two legislative items. SB 1316 and HB 1093 — Uniform Fiduciary Income and Principal Act (UFPIA) The legislation is the product of a special subcommittee of lawyers associated with the Real Property Probate and Trust Law Section of the Florida Bar. Florida’s UFPIA was first adopted by Florida’s Legislature over 20 years ago. According to Florida Bar experts, if Florida were to adopt these changes in 2024, we would be just the eighth state in the nation to update these rules.

“THERE ARE MAINLY TWO BILLS UNDER CURRENT CONSIDERATION BY THE FLORIDA LEGISLATURE THAT WILL HAVE AN IMPACT IF PASSED DURING THE 2024 LEGISLATIVE SESSION.”

uniform law’s recommendations. The FBA’s Trust and Wealth Management Division has voted to support passage of this legislation. SB 1064 and HB 923 – Wills and Estates Probate Documents This proposal amends section 28.223, Florida Statutes, with the intent of maintaining necessary

This section of Florida law addresses the complex rules of how personal representatives who administer estates and trustees who administer trusts go about allocating receipts and disbursements to income and principal. The overall goal of this act is to ensure testator intent is realized regarding the distribution of assets to trust beneficiaries, heirs and devisees. The proposed law takes aim at clarifying, expanding

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