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What is a Qualified Beneficiary?

What We Do Apr 8, 2021
post about What is a Qualified Beneficiary?

Under Florida Trust Law, qualified beneficiaries have lots of rights. If you are the beneficiary of a Florida Trust, do you know what your rights are? Trustees also need to know what their duties to their beneficiaries are. After all, if a Trustee falls short, they commit a BREACH OF TRUST. We have provided solid free TRUST LEGAL COMMENTARY on beneficiary rights and trust disputes. Now, let’s answer the question what is a qualified beneficiary of a Florida Trust. For a free video on trust administration and beneficiary rights, click HERE.

What is a qualified beneficiary?

Defining Qualified Beneficiary

The Florida Trust Code is found at Florida Statutes, Chapter 736. It has a set of definitions. Florida Statute 731.0103 (16) defines qualified beneficiary. To read about money and trust principal and income, click on Chapter 738, Florida Statutes.

A “Qualified beneficiary” is defined as a beneficiary who is currently alive. And, on the date the beneficiary’s qualification is 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 if the interests of the distributees described in paragraph (a) terminated on that date without causing the trust to terminate; or (c) Would be a distributee or permissible distributee of trust income or principal if the trust terminated in accordance with its terms on that date. A distributee is someone to whom the trustee may give trust funds or money. Some distributees are mandatory distributees. An example of this is if the trust requires the trustee to distribute income to you each year. Or, a beneficiary may be a permissible distributee. An example of this is when the trustee has the discretion, but not the obligation, to give someone trust funds. For another free legal video on rights as a trust beneficiary, CLICK HERE.

In Plain English

This of it this way. First, you need to have a Florida Trust. Second, you need to be a beneficiary. Put another way: may the trustee give trust money to you right now? If the answer is “yes“, then you are a qualified beneficiary. You don’t need an “entitlement” to trust money. It’s enough if the trustee has the discretion to give trust funds to you. This is sometimes referred to as being a discretionary beneficiary as to income (or/and) principal. Third, might you receive trust property in the future? If a current beneficiary dies, can you get trust funds? If the answer is “yes”, you’re in. But remember, that not all beneficiaries can demand trust money from their Florida Trustee. It depends on what the trust says. Many have to request money from the trust. And even then, the trustee will want to know what you need the money for and may even want a budget or financial data. To remove your Florida Trustee, consider reading this free Florida Trust Insight. To suspend your Florida Trustee, consider reading this Florida Trust Insight for free.