Updates to Florida Trust Laws: A Comprehensive Overview

PRIVATE CLIENT

In 2022, Florida legislators passed two significant bills that brought substantial updates to the state’s trust laws. These changes have made Florida one of the most appealing states for families seeking to protect their assets and pass them down to future generations. Let’s delve into the key updates and their impact:

1. SB 1368: Extending Trust Durations

Exemption from Rule Against Perpetuities: SB 1368 provides exemptions to Florida’s rule against perpetuities. For trusts created after December 31, 2000, the bill extends the maximum duration of a trust from 90 years to up to 360 years. This change allows trusts to last longer, providing a more extended tax shield.
Trust Duration of 1,000 Years: After the implementation of SB 1368, a trust created on or after July 1, 2022, may now last for an astonishing one thousand years before it must be dissolved. This extended duration benefits families looking to preserve wealth across multiple generations.

2. Enhanced Privacy for Private Family Trusts

Reduced Disclosure Requirements: Private family trust companies no longer need to provide as many details regarding their holdings to beneficiaries. SB 1368 permits the selection of a simplified form of periodic accounting. As long as accounting records give sufficient notice of trust assets, debts, and transactions within the accounting period, beneficiaries can be kept informed without revealing all details.
Sealing Court Proceedings: SB 1304 further protects the privacy of family trusts. It allows all future court proceedings related to private family trust companies to be sealed upon written notice to the court clerk. While court records remain accessible to relevant parties (settlor, fiduciary, beneficiary, or their attorney), they are exempt from public records requirements.

3. Other Noteworthy Updates

Community Property Trust Act: Florida now allows married couples to opt for community-property treatment for assets held in a qualifying trust. This flexibility enhances estate planning options.
Spousal Limited Access Trusts (SLATs): An amendment affects Florida Spousal Limited Access Trusts, potentially allowing SLAT donors to become beneficiaries of the trust.
Florida Uniform Directed Trust Act (FUDTA): This act defines the responsibilities of trust directors and directed trustees, providing clarity in trust administration.

Conclusion

With these legislative changes, Florida has continued its march toward becoming one of the most trust-friendly states in the nation. Families can now take advantage of extended trust durations, enhanced privacy, and flexible planning options. However, it’s essential to understand that these updates apply to trusts created after specific dates and are not retroactive. If you’re considering establishing a trust in Florida, consult with legal professionals to navigate these changes effectively.

Remember, protecting your assets and ensuring their smooth transfer to future generations requires careful planning and understanding of the evolving legal landscape.

Joshua M. Stahley

Chairman, CEO, & Managing Director of Legal Services

The Law Offices of Joshua M. Stahley, P.A

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