A January 9,2019 Fourth DCA opinion discusses what is required for a charity to be considered a qualified beneficiary of a Florida trust. Why is being a “qualified beneficiary” important? It is important because trustees of West Palm Beach or Orlando trusts are only required to “inform and account” to the trust’s qualified beneficiaries.
Here, three sisters of an irrevocable Florida trust dispute whether several charities are qualified beneficiaries of a trust under the Florida Trust Code. The trial court found that the charities were NOT qualified beneficiaries, but the Fourth DCA reversed. The Fourth DCA explained that, under section 736.0110(1)(b), the charities ARE qualified beneficiaries. This is because, it is very clear in the Florida trust that ,if the daughters’ interests terminate, the charities take the remainder.
736.0110 Others treated as qualified beneficiaries.—
(1) A charitable organization expressly designated to receive distributions under the terms of a charitable trust has the rights of a qualified beneficiary under this code if the charitable organization, on the date the charitable organization’s qualification is being determined:
(a) Is a distributee or permissible distributee of trust income or principal;
(b) Would be a distributee or permissible distributee of trust income or principal on termination of the interests of other distributees or permissible distributees then receiving or eligible to receive distributions; or
(c) Would be a distributee or permissible distributee of trust income or principal if the trust terminated on that date.
(2) A person appointed to enforce a trust created for the care of an animal or another noncharitable purpose as provided in s. 736.0408 or s. 736.0409 has the rights of a qualified beneficiary under this code.
(3) The Attorney General may assert the rights of a qualified beneficiary with respect to a charitable trust having its principal place of administration in this state. The Attorney General has standing to assert such rights in any judicial proceedings.
History.—s. 1, ch. 2006-217; s. 5, ch. 2017-155.