Florida Family Trust Company Glitch Bill, well, Glitches
A bill, informally known in Florida Bar circles as the Florida Family Trust Company Act “glitch bill,” has run into a snag. The glitch bill would fix a number of issues in the original FTC bill enacted June, 2014.
The glitch bill has been anticipated since before that enactment, and that expectation was the main reason for the Act’s October 1, 2015 effective date.
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Florida Family Trust Company Bill Status, as of May 18, 2015:
The glitch bill moved through all of the various legislative committees with no noted opposition. On April 27th, 2015, the bill passed the Florida Senate, 39-0. The House was expected to pass and enroll the bill in the following few days. But, as you may know, the Florida House picked up its ball and went home abruptly the next day.
Contacts in the Florida legislature indicate the bill is not likely to make it into a special session the House is expected to begin later this month. There is a possibility that the bill will be fast-tracked for early passage in the Florida legislature’s next session beginning early 2016.
While certainly not highest among legislative priorities, the glitch bill was poised to provide needed clarity in Florida’s Family Trust Company Act. The Act’s effective date is rapidly approaching. It goes into effect on October 1, 2015, glitches and all. Probably the biggest cloud over the Act is uncertainty about the Florida Office of Financial Regulation’s (OFR) standard and frequency of review. For more on the contents of the glitch bill, see this post.
Some pre-existing family trust companies in Florida, currently operating under special dispensation from OFR, have until year end to register or apply under the Act. Certainly those families were looking to the glitch bill for clarification on just what sort of entity they would be registering. And also looking for clarification on what set of rules they would be under.
Looks like they and we will have to wait a little longer for clarity.
How Can Oakstone Law Help?
Oakstone Law’s founder Bob Kleinknecht has been an integral part of building the Florida Family Trust Company legislation which originally became law in June, 2014. He is a member of the Florida Bar’s Family Trust Company Subcommittee of the Estate and Trust Tax Planning Committee. Working on the Subcommittee with a number of other influential attorneys in the state of Florida, and with Florida’s Office of Financial Regulation, Bob has helped craft legislation that will give families the opportunity to create their own family trust company (FTC) right here in Florida.
Bob has also worked with FTC professionals in New Hampshire, Nevada and South Dakota, learning the ins and outs of the setup, structures and mechanics. Now that the FTC is finally coming to Florida, we expect a number of families will decide that Florida has more to offer than these other jurisdictions and move their existing FTC to Florida or create a new FTC in the state. We are ramping up to be ready for this exciting opportunity.
For more information on Florida Family Trust Companies, and to download our free whitepaper, Family Trust Companies in Florida, click here.
About Oakstone Law, PL
Oakstone Law PL was founded by Bob Kleinknecht. A member of the Florida Family Trust Company Subcommittee, the Estate Tax & Trust Planning (ETTP) Committee and the Real Property, Probate & Trust Law (RPPTL) Section of the Florida Bar, Kleinknecht has 15 years’ experience.
Prior to founding Oakstone law, he spent more than eight years serving as a personal, in-house estate, tax and charitable planning attorney for a Forbes 400 family in New York and Florida. Before that he was an estate planning and estate settlement attorney with prominent firms in Boston and Washington, D.C. after beginning his career with a boutique firm in Naples, Florida.
Licensed in Florida and Massachusetts, Kleinknecht has developed a practice model that eliminates billing by the hour and offers a streamlined, customized client process supported by technology, security and a personal approach.
For more information on Oakstone Law, click here. To get in touch with us, click here to send us an email, or call 239-206-3454. Our office is located at 5137 Castello Drive, Suite 2 in Naples, Florida 34103.