CS/HB 385 2025
CODING: Words stricken are deletions; words underlined are additions.
hb385-01-c1
Page 1 of 9
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to trusts; amending s. 736.04117, 2
F.S.; revising the definition of the term "authorized 3
trustee"; revising how an authorized trustee may 4
exercise the power to invade principal as an 5
authorized trustee administering a trust; providing 6
that notice of such exercise by an authorized trustee 7
is not a trust disclosure document; providing that a 8
trust disclosure document may not commence a 9
limitations period unless such trust disclosure 10
document is provided after the effective date of the 11
exercise of the power to invade principal by an 12
authorized trustee; providing applicability; amending 13
s. 736.08125, F.S.; providing an exception with regard 14
to protection of successor trustees; creating s. 15
736.10085, F.S.; barring certain actions initiated by 16
specified parties against prior trustees; creating s. 17
736.1110, F.S.; providing that property devised to or 18
from a revocable trust which is devised, given, or 19
distributed to a donee by a settlor during the 20
settlor's lifetime is treated as a satisfaction of 21
devise to that donee if certain criteria are met; 22
providing that property distributed or given to a 23
devisee during a settlor's lifetime is to be valued at 24
the time the devisee came into possession or enjoyment 25
CS/HB 385 2025
CODING: Words stricken are deletions; words underlined are additions.
hb385-01-c1
Page 2 of 9
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
of the property, or at the time of the death of th e 26
settlor, whichever occurs first; providing 27
applicability; amending s. 736.1502, F.S.; revising 28
the definitions of the terms "community property" and 29
"community property trust"; amending s. 736.151, F.S.; 30
providing that homestead property transferred by o ne 31
or both settlor spouses to a community property trust 32
will not be treated as a change of ownership for the 33
purposes of reassessing the property; providing that 34
such transfer qualifies as a change or transfer of 35
legal or equitable title between spouses; providing 36
construction and retroactive application; providing an 37
effective date. 38
39
Be It Enacted by the Legislature of the State of Florida: 40
41
Section 1. Paragraph (b) of subsection (1), paragraph (a) 42
of subsection (2), subsection (3), paragraph (a ) of subsection 43
(4), and paragraph (d) of subsection (8) of section 736.04117, 44
Florida Statutes, are amended, and subsection (12) is added to 45
that section, to read: 46
736.04117 Trustee's power to invade principal in trust. — 47
(1) DEFINITIONS.—As used in this section, the term: 48
(b) "Authorized trustee" means a trustee, other than the 49
settlor or a beneficiary, who has the power to invade the 50
CS/HB 385 2025
CODING: Words stricken are deletions; words underlined are additions.
hb385-01-c1
Page 3 of 9
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
principal of a trust. For the purposes of this section, an 51
authorized trustee will not be considered a settlor of a s econd 52
trust, even if the authorized trustee created the trust 53
instrument governing the second trust or made a distribution of 54
assets from the first trust to the second trust. In determining 55
settlor intent with respect to a second trust or a modification 56
of the first trust, the intent of a settlor of the first trust, 57
a settlor of the second trust, or the authorized trustee may be 58
considered. 59
(2) DISTRIBUTION FROM FIRST TRUST TO SECOND TRUST WHEN 60
AUTHORIZED TRUSTEE HAS ABSOLUTE POWER TO INVADE. — 61
(a) Unless a trust instrument expressly provides 62
otherwise, an authorized trustee who has absolute power under 63
the terms of the trust to invade its principal, referred to in 64
this section as the "first trust," to make current distributions 65
to or for the benefit of o ne or more beneficiaries may instead 66
exercise such power by modifying the terms of the first trust or 67
by appointing all or part of the principal of the trust subject 68
to such power in favor of a trustee of one or more other trusts, 69
whether created under the same trust instrument as the first 70
trust or a different trust instrument, including a trust 71
instrument created for the purposes of exercising the power 72
granted by this section, each referred to in this section as the 73
"second trust," for the current benefi t of one or more of such 74
beneficiaries only if: 75
CS/HB 385 2025
CODING: Words stricken are deletions; words underlined are additions.
hb385-01-c1
Page 4 of 9
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1. The beneficiaries of the second trust include only 76
beneficiaries of the first trust; and 77
2. The second trust does not reduce any vested interest. 78
(3) DISTRIBUTION FROM FIRST TRUST TO SECOND TRUST WHE N 79
AUTHORIZED TRUSTEE DOES NOT HAVE ABSOLUTE POWER TO INVADE. —80
Unless the trust instrument expressly provides otherwise, an 81
authorized trustee who has a power, other than an absolute 82
power, under the terms of a first trust to invade principal to 83
make current distributions to or for the benefit of one or more 84
beneficiaries may instead exercise such power by modifying the 85
terms of the first trust or by appointing all or part of the 86
principal of the first trust subject to such power in favor of a 87
trustee of one or more second trusts. If the authorized trustee 88
exercises such power: 89
(a) The second trusts, in the aggregate, must shall grant 90
each beneficiary of the first trust beneficial interests in the 91
second trusts which are substantially similar to the benefici al 92
interests of the beneficiary in the first trust. 93
(b) If the first trust grants a power of appointment to a 94
beneficiary of the first trust, the second trust must shall 95
grant such power of appointment in the second trust to such 96
beneficiary, and the cla ss of permissible appointees must shall 97
be the same as in the first trust. 98
(c) If the first trust does not grant a power of 99
appointment to a beneficiary of the first trust, the second 100
CS/HB 385 2025
CODING: Words stricken are deletions; words underlined are additions.
hb385-01-c1
Page 5 of 9
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
trust may not grant a power of appointment in the second trust 101
to such beneficiary. 102
(d) Notwithstanding paragraphs (a), (b), and (c), the term 103
of the second trust may extend beyond the term of the first 104
trust, and, for any period after the first trust would have 105
otherwise terminated, in whole or in part, under the provisions 106
of the first trust, the trust instrument of the second trust 107
may, with respect to property subject to such extended term: 108
1. Include language providing the trustee with the 109
absolute power to invade the principal of the second trust 110
during such extended term; and 111
2. Create a power of appointment, if the power holder is a 112
current beneficiary of the first trust, or expand the class of 113
permissible appointees in favor of which a power of appointment 114
may be exercised. 115
(4) DISTRIBUTION FROM FIRST TRUST TO SUPPLEMENTAL NEEDS 116
TRUST.— 117
(a) Notwithstanding subsections (2) and (3), unless the 118
trust instrument expressly provides otherwise, an authorized 119
trustee who has the power under the terms of a first trust to 120
invade the principal of the first trust to make current 121
distributions to or for the benefit of a beneficiary with a 122
disability may instead exercise such power by modifying the 123
terms of the first trust or by appointing all or part of the 124
principal of the first trust in favor of a trustee of a se cond 125
CS/HB 385 2025
CODING: Words stricken are deletions; words underlined are additions.
hb385-01-c1
Page 6 of 9
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
trust that is a supplemental needs trust if: 126
1. The supplemental needs trust benefits the beneficiary 127
with a disability; 128
2. The beneficiaries of the second trust include only 129
beneficiaries of the first trust; and 130
3. The authorized trustee determ ines that the exercise of 131
such power will further the purposes of the first trust. 132
(8) NOTICE.— 133
(d) The authorized trustee's notice under this subsection 134
is not a trust disclosure document as defined in s. 736.1008(4) 135
and does not limit the right of an y beneficiary to object to the 136
exercise of the authorized trustee's power to invade principal 137
except as otherwise provided in other applicable provisions of 138
this code. With respect to the exercise of the authorized 139
trustee's power to invade principal, such trust disclosure 140
document will not commence a limitations period unless the trust 141
disclosure document is provided after the effective date of the 142
exercise of such power to invade principal by the authorized 143
trustee. 144
(12) APPLICATION.—This section applies to all trusts that 145
are governed by the laws of this state or that have a principal 146
place of administration within this state. 147
Section 2. Subsection (3) of section 736.08125, Florida 148
Statutes, is amended to read: 149
736.08125 Protection of successor tr ustees.— 150
CS/HB 385 2025
CODING: Words stricken are deletions; words underlined are additions.
hb385-01-c1
Page 7 of 9
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(3) Except as provided in s. 736.10085, nothing in this 151
section does not affect affects any liability of the prior 152
trustee or the right of the successor trustee or any beneficiary 153
to pursue an action or claim against the prior trustee. 154
Section 3. Section 736.10085, Florida Statutes, is created 155
to read: 156
736.10085 Claims against former trustees. —An action or 157
claim by a successor trustee or other person acting on behalf of 158
the trust against a prior trustee is barred to the same extent 159
that the action or claim would be barred if brought by the 160
beneficiary whose interests are represented by the successor 161
trustee or other person acting on behalf of the trust. 162
Section 4. Section 736.1110, Florida Statutes, is created 163
to read: 164
736.1110 Ademption by satisfaction.— 165
(1) Property devised to or from a revocable trust which a 166
settlor gave to a donee during the settlor's lifetime or which 167
is distributed from a revocable trust to a donee during the 168
settlor's lifetime is to be treated as a satisfactio n of a 169
devise to that donee, in whole or in part, upon the settlor's 170
death, if any of the following circumstances applies: 171
(a) The trust instrument provides for the deduction of the 172
lifetime gift or distribution. 173
(b) The settlor or the trustee of the r evocable trust 174
declares in a contemporaneous writing that the gift or 175
CS/HB 385 2025
CODING: Words stricken are deletions; words underlined are additions.
hb385-01-c1
Page 8 of 9
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
distribution is to be deducted from the devise or is in 176
satisfaction of the devise. 177
(c) The devisee acknowledges in writing that the gift or 178
distribution is in satisfaction of the devi se. 179
(2) For purposes of part satisfaction, property 180
distributed or given during the settlor's lifetime is valued at 181
the time the devisee came into possession or enjoyment of the 182
property or at the time of the death of the settlor, whichever 183
occurs first. 184
(3) This section applies to revocable trusts that become 185
irrevocable on or after July 1, 2025. 186
Section 5. Subsections (1) and (2) of section 736.1502, 187
Florida Statutes, are amended to read: 188
736.1502 Definitions. —Unless the context otherwise 189
requires, as used in this part: 190
(1) "Community property" means the property and the 191
appreciation of and income from the property owned by a 192
qualified trustee of a community property trust during the 193
marriage of the settlor spouses. The property owned by a 194
community property trust pursuant to this part and the 195
appreciation of and income from such property are shall be 196
deemed to be community property for purposes of general law. 197
(2) "Community property trust" means an express trust that 198
complies with s. 736.150 3 and is created, amended, restated, or 199
modified on or after July 1, 2021. 200
CS/HB 385 2025
CODING: Words stricken are deletions; words underlined are additions.
hb385-01-c1
Page 9 of 9
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
Section 6. Subsection (3) is added to section 736.151, 201
Florida Statutes, to read: 202
736.151 Homestead property. — 203
(3) A transfer of homestead property by one or both of the 204
settlor spouses to a community property trust will not be 205
treated as a change of ownership for purposes of reassessing the 206
property and instead qualifies as a change or transfer of legal 207
or equitable title between spouses as described in s. 208
193.155(3)(a)2. 209
Section 7. The amendments made by this act to ss. 210
736.04117, 736.1502, and 736.151, Florida Statutes, are remedial 211
and apply to trusts created before, on, or after the effective 212
date of this act. 213
Section 8. This act shall take effect upon becoming a law. 214