How “Qualified Beneficiary” is Defined - Commentary to Florida Trust Code

Legal Commentary on the Definition of “Qualified Beneficiary”

Fla. Stat. § 736.0103(19) defines the term “qualified beneficiary.” The text of the subsection reads:

“Qualified beneficiary” means a living beneficiary who, on the date the beneficiary’s qualification is determined:

(a) Is a distributee or permissible distributee of trust income or principal;

(b) Would be a distributee or permissible distributee of trust income or principal if the interests of the distributees described in paragraph (a) terminated on that date without causing the trust to terminate; or

(c) Would be a distributee or permissible distributee of trust income or principal if the trust terminated in accordance with its terms on that date.

A person is a qualified beneficiary of a trust if that person currently falls into one of three categories.

Category A: A person is a qualified beneficiary if that person is a distributee or permissible distributee of trust income or principal. Thus, if one is either currently entitled to a distribution or currently eligible for a possible distribution, then that person is a qualified beneficiary.

Category B: Imagine that all the people in Category A lost their trust interests (perhaps because they died) without the trust terminating. If such a thing is possible, then consider who would become the new members of Category A as a result. All of the people who would become members of Category A in that hypothetical are members of Category B and thus are already qualified beneficiaries.

Category C: Imagine that the trust terminated in accordance with its terms today. If such a thing is possible, then consider who would become the new members of Category A as a result. All of the people who would become members of Category A in that hypothetical are members of Category C and thus are already qualified beneficiaries.

Everyone who falls under each of the above categories is a qualified beneficiary. This entitles them to certain rights under the Florida Trust Code, including the right to an accounting from the trustee.

There are also certain others treated as qualified beneficiaries under Fla. Stat. § 736.0110.

History of the Definition of “Qualified Beneficiary”

The term “qualified beneficiary” has been consistently defined since the Florida Trust Code took effect in 2007. However, the placement of the definition has changed multiple times. In 2007, the term was defined in Fla. Stat. § 736.0103(14).

The definition was taken verbatim from the Uniform Trust Code.

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