Please carefully read the revisions to the Unclaimed Property Statutes identified below. These revisions have changed the dormancy period for properties held by fiduciaries under trust instruments (Section 717.1125 F.S.) from 5 years to 2 years. Sections 736.0102 and 736.0103 clarify the trust instruments that are impacted by the changes.
We recommend that you use the Property Type Code TR10 if you are reporting unclaimed properties that fall under section 717.1125 F.S.
SUMMARY OF THE REVISIONS
Effective October 1, 2013, Sections 2-4, Chapter 2013-172, Laws of Florida, revised the following statutes relating to unclaimed property reporting:
- Section 2. Present subsections (22) and (23) of section 717.101, Florida Statutes, are redesignated as subsections (23) and (24), respectively, and a new subsection (22) is added to that section to read:
- 717.101 Definitions. - As used in this chapter, unless the context otherwise requires:
- (22) "Trust instrument" means a trust instrument as defined in s. 736.0103.
- Section 3. Subsection (1) of section 717.112, Florida Statutes, is amended to read:
- 717.112 Property held by agents and fiduciaries. - (1) Except as provided in ss. 717.1125 and 733.816, all intangible property and any income or increment thereon held in a fiduciary capacity for the benefit of another person is presumed unclaimed unless the owner has within
5 years after it has become payable or distributable increased or decreased the principal, accepted payment of principal or income, communicated concerning the property, or otherwise indicated an interest as evidenced by a memorandum or other record on file with the
- Section 4. Section 717.1125, Florida Statutes, is created to read:
- 717.1125 Property held by fiduciaries under trust instruments. - All intangible property and any income or increment thereon held in a fiduciary capacity for the benefit of another person under a trust instrument is presumed unclaimed unless the owner has, within 2 years
after it has become payable or distributable, increased or decreased the principal, accepted payment of principal or income, communicated concerning the property, or otherwise indicated an interest as evidenced by a memorandum or other record on file with the fiduciary.
Section 736.0102, Florida Statutes, appears to provide clarification regarding the type of "trust instruments" that may be impacted by the legislation. Section 736.0102, Florida Statutes, states with emphasis added:
- (1) Except as otherwise provided in this section, this code applies to express trusts, charitable or non-charitable, and trusts created pursuant to a law, judgment, or decree that requires the trust to be administered in the manner of an express trust.
- (2) This code does not apply to constructive or resulting trust; conservatorships; custodial arrangements pursuant to the Florida Uniform Transfers to Minors Act;business trusts providing for certificates to be issued to benficiaries;common trust funds;trusts created by the form of the
account or by the deposit agreement at a financial institution;voting trusts;security arrangements;liquidation trusts;trusts for the primary purpose of paying debts, dividends, interest, salaries, wages, profits, pensions, or employee benefits of any kind; and any arrangement under which a person
is nominee or escrowee for another.
- (3) This code does not apply to any land trust under s. 689.071, except to the extent provided in s. 689.071(7), s. 721.08(2)(c)4, or s. 721.53(1)(e). A trust governed at its creation by t his chapter, former chapter 737, or any prior trust statute superseded or replaced by any provision
of former chapter 737, is not a land trust regardless of any amendment or modification of the trust, any changes in the assets held in the trust, or any continuing trust resulting from the distribution or retention in further trust of assets from the trust.