How “Permissible Distributee” is Defined - Commentary to Florida Trust Code

Legal Commentary on the Definition of “Permissible Distributee”

Fla. Stat. § 736.0103(15) defines the term “permissible distributee.” The text of the subsection reads:

“Permissible distributee” means a beneficiary who is currently eligible to receive a distribution.

First, in order to be a permissible distributee, one must be a beneficiary. Thus, a permissible distributee must have some sort of beneficial interest in the trust. Other interested persons—such as creditors—would not qualify as a permissible distributee.

Second, a permissible distributee is “currently” eligible to receive a trust distribution. Thus, it is not sufficient to be eligible for a distribution at some date in the future or to have been eligible at some point in the past; there must be a present eligibility.

Finally, a permissible distributee is “eligible” for a distribution. This is a broader standard than the one used in the definition of “distributee,” which requires an entitlement to a distribution. A permissible distributee is not necessarily entitled to a trust distribution; one may be a permissible distributee simply because the trust terms allow for a possible disitrbution. For example, assume that Tabatha the Trustee has absolute discretion under the terms of a trust to either distribute or not distribute to Bob the Beneficiary at any point in the month of May. During the month of May, Bob is a permissible distributee, regardless of whether Tabatha decides to actually make any distributions to Bob during that month.

History of the Definition of “Permissible Distributee”

The term “permissible distributee” was not part of the Florida Trust Code when the Code took effect in 2007. The term “permissible distributee” was added to the Florida Trust Code in 2013. It has been consistently defined in the Code ever since.

The term “permissible distributee” is not defined in the Uniform Trust Code. It appears that Florida copied this definition verbatim from the District of Columbia’s Uniform Trust Act of 2003.

This article is part of the PTM Legal Commentary to the Florida Trust Code. Click here to navigate through the entire commentary.