Florida Statutes 736.1204 – Powers and duties of trustee of a private foundation trust or a split interest trust
Current as of: 2023 | Check for updates
|
Other versions
(1) In the exercise of a trustee‘s powers, including the powers granted by this part, a trustee has a duty to act with due regard to the trustee’s obligation as a fiduciary, including a duty not to exercise any power in such a way as to:
(a) Deprive the trust of an otherwise available tax exemption, deduction, or credit for tax purposes;
Terms Used In Florida Statutes 736.1204
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Donor: The person who makes a gift.
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Fiduciary: A trustee, executor, or administrator.
- Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
- Internal Revenue Code: means the Internal Revenue Code of 1986, as amended. See Florida Statutes 736.1201
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- person: includes individuals, children, firms, associations, joint adventures, partnerships, estates, trusts, business trusts, syndicates, fiduciaries, corporations, and all other groups or combinations. See Florida Statutes 1.01
- Private foundation trust: means a trust, including a trust described in…. See Florida Statutes 736.1201
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
- Split interest trust: means a trust for individual and charitable beneficiaries that is subject to the provisions of…. See Florida Statutes 736.1201
- Trustee: A person or institution holding and administering property in trust.
(b) Deprive a donor of a trust asset or tax deduction or credit; or
(c) Operate to impose a tax on a donor, trust, or other person.
For purposes of this subsection, the term “tax” includes, but is not limited to, any federal, state, or local excise, income, gift, estate, or inheritance tax.
(2) Except as provided in s. 736.1205, a trustee of a private foundation trust shall make distributions at such time and in such manner as not to subject the trust to tax under s. 4942 of the Internal Revenue Code.
(3) Except as provided in subsection (4) and in s. 736.1205, a trustee of a private foundation trust, or a split interest trust to the extent that the split interest trust is subject to the provisions of s. 4947(a)(2) of the Internal Revenue Code, in the exercise of the trustee’s powers shall not:
(a) Engage in any act of self-dealing as defined in s. 4941(d) of the Internal Revenue Code;
(b) Retain any excess business holdings as defined in s. 4943(c) of the Internal Revenue Code;
(c) Make any investments in a manner that subjects the foundation to tax under s. 4944 of the Internal Revenue Code; or
(d) Make any taxable expenditures as defined in s. 4945(d) of the Internal Revenue Code.
(4) Paragraphs (3)(b) and (c) shall not apply to a split interest trust if:
(a) All the income interest, and none of the remainder interest, of the trust is devoted solely to one or more of the purposes described in s. 170(c)(2)(B) of the Internal Revenue Code, and all amounts in the trust for which a deduction was allowed under s. 170, s. 545(b)(2), s. 556(b)(2), s. 642(c), s. 2055, s. 2106(a)(2), or s. 2522 of the Internal Revenue Code have an aggregate fair market value of not more than 60 percent of the aggregate fair market value of all amounts in the trust; or
(b) A deduction was allowed under s. 170, s. 545(b)(2), s. 556(b)(2), s. 642(c), s. 2055, s. 2106(a)(2), or s. 2522 of the Internal Revenue Code for amounts payable under the terms of the trust to every remainder beneficiary but not to any income beneficiary.