Florida Wills & Trusts: October 2000 Summary

Rule Against Perpetuities

As noted in our last update letter, the Florida Legislature modified the statutory Rule Against Perpetuities by increasing the maximum permissible period from 90 years to 360 years (P.L. 2000-245, amending §689.225). This law, as well as the companion provision allowing both judicial and nonjudicial reformation of trusts (§§737.4031 and 737.4032), will become effective on December 31, 2000. You can now choose the 360 year statutory period for your perpetuities provision. Note, however, that the provision is not effective for an irrevocable trust unless executed after December 31 and is not effective for a revocable trust or Will if the grantor or testator dies prior to January 1. Prohibiting judicial modification and allowing nonjudicial modification are now offered as options if you do not choose the new 360 year statutory period. For simplicity and to ensure consistency, the separate questions on Rule Against Perpetuities for the GST Exempt Trust, the Trusts for Children, and the Trusts for Descendants have been removed--all three trusts are now tied to the savings clause perpetuities provision.

Medical and End of Life Issues

As noted in our last update, the legislature made some relatively minor changes effective June 15, 2000 (in P.L. 2000-295) to Chapter 765 dealing with medical and end of life issues. Both the short and long form health care surrogates have been modified accordingly.

Updated Product Features

Grandchild's Trust Added

You can now draft an irrevocable grandchild's trust using Florida Wills & Trusts. Select "Trusts" at the main menu and then select "Grandchild's Trust." The Grandchild's Trust can be drafted with either Crummey or I.R.C. §2503(c) withdrawal powers.

IRS Revenue Procedure Charitable Remainder Trusts Added

A new separate title, "Rev. Proc. Charitable Remainder Trusts," is included with this update. Use this title to generate inter vivos charitable remainder unitrusts and annuity trusts for one life, two lives concurrent, and two lives consecutive under IRS Revenue Procedures 89-20, 89-21, 90-30, 90-31, and 90-32. Notice 2000-37 (2000-29 I.R.B. 118), issued July 17, 2000, invites suggestions for updating these forms.