Archive | Family Trust Company

Florida Family Trust Company Bill Update

Florida Family Trust Company Glitch Bill Passes Senate

Making its way through Florida’s legislature is Florida Senate’s family trust company bill, SB 568. This bill is informally known in Florida Bar circles as the Florida Family Trust Company Act “glitch bill.” The glitch bill fixes a number of issues in the original FTC bill enacted June, 2014.Florida family trust company update

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 Improvements On the Way

The Florida Family Trust Company Act Gets a Makeover

Making its way through Florida’s House of Representatives is HB 825, along with its companion bill in the Florida Senate, SB 568. This bill is informally known in Florida Bar circles as the Family Trust Company Act “glitch bill.” The glitch bill fixes 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 (more on this below). The following is a summary of key provisions of the glitch bill, which if enacted, would simply become part of the Florida Family Trust Company Act in its entirety.FL Family Trust Company Glitch Bill

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Florida Legislature Passes New Family Trust Company Bill

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Florida has a Family Trust Company Act, almost.

On April 30, 2014, the Florida House of Representatives voted, 112-1, in favor of the Act, following the Florida Senate’s unanimous passage on April 25th. Governor Rick Scott still needs to sign (or ignore*) the bill, but he is not expected to have any problems with it.

This means that Florida joins the ranks of Nevada, South Dakota, New Hampshire and a few other states that permit a family to establish a Family Trust Company (FTC), sometimes called a Private Trust Company (PTC). The new Act will become effective October 1, 2015. This gives us plenty of time to help families interested in creating an FTC or in moving an existing FTC from another state.

What makes Florida stand out from these other states? For starters, where would you rather have your annual Family Trust Company meeting? Kidding aside, there are a few technical details that distinguish the Florida Act from the other states’ FTC laws. Unfortunately, most of them are shortcomings compared to the provisions of the other states’ laws.

These drawbacks resulted primarily from some last-minute political maneuvering by the agency responsible for FTC oversight, the Florida Office of Financial Regulation. (This will be detailed in a later post.) But we are confident we will be able to address these issues and improve the Act with some follow-on legislation prior to the Act’s effective date.

Oakstone’s Bob Kleinknecht has been an integral part of developing the Florida Family Trust Company legislation. He is an active member of the Florida Bar’s Family Trust Company Subcommittee. Working on the Subcommittee with a number of other influential attorneys, Bob has helped craft this legislation bringing the FTC structure to Florida. Bob has also worked with FTC professionals in Nevada, South Dakota and New Hampshire, learning the intricacies of the setup, structure and mechanics of FTCs.

With the FTC coming to Florida at last, we expect a number of families will conclude that Florida has more to offer than these other jurisdictions and move their existing FTCs to Florida or decide the time is right to create a new FTC in Florida. Oakstone Law PL is ramping up to be ready for this exciting opportunity, and Bob can offer expert insight into the details and advantages of the FTC.

*Note – A little Florida legislative trivia for you: In Florida, the Governor has 15 days from receiving a bill like this to veto it. If he does nothing by that deadline, the bill becomes law automatically.

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