Fla. Stat. § 738.602 — Florida Code / Title XLII / Chapter 738 / Section 738.602
738.602 Distribution to successor beneficiary.
Status: in_force

(1) Except to the extent that ss. 738.301-738.310 apply for a beneficiary that is a trust, each beneficiary described in s. 738.601(5) is entitled to receive a share of the net income equal to the beneficiary’s fractional interest in undistributed principal assets, using carrying values as of the distribution date. If a fiduciary makes more than one distribution of assets to beneficiaries to which this section applies, each beneficiary, including a beneficiary who does not receive part of the distribution, is entitled, as of each distribution date, to a share of the net income the fiduciary received after the decedent’s death, an income interest’s other terminating event, or the preceding distribution by the fiduciary.

(2) In determining a beneficiary’s share of net income under subsection (1), the following rules apply: (a) The beneficiary is entitled to receive a share of the net income equal to the beneficiary’s fractional interest in the undistributed principal assets immediately before the distribution date. (b) The beneficiary’s fractional interest under paragraph (a) must be calculated: 1. On the aggregate carrying value of the assets as of the distribution date; and 2. Reduced by: a. Any liabilities of the estate or trust; b. Property specifically given to a beneficiary under the decedent’s will or the terms of the trust; and c. Property required to pay pecuniary amounts not in trust. (c) If a disproportionate distribution of principal is made to any beneficiary, the respective fractional interests of all beneficiaries in the undistributed principal assets must be recomputed by: 1. Adjusting the carrying value of the principal assets to their fair market value before the distribution; 2. Reducing the fractional interest of the recipient of the disproportionate distribution in the remaining principal assets by the fair market value of the principal distribution; and 3. Recomputing the fractional interests of all beneficiaries in the remaining principal assets based upon the now restated carrying values. (d) The distribution date under paragraph (a) may be the date as of which the fiduciary calculates the value of the assets if that date is reasonably near the date on which the assets are distributed. All distributions to a beneficiary must be valued based on the assets’ fair market value on the date of the distribution.

(3) To the extent that a fiduciary does not distribute under this section all the collected but undistributed net income to each beneficiary as of a distribution date, the fiduciary shall maintain records showing the interest of each beneficiary in the net income.

(4) If this section applies to income from an asset, a fiduciary may apply the requirements in this section to net gain or loss realized from the disposition of the asset after the decedent’s date of death, an income interest’s terminating event, or the preceding distribution by the fiduciary.

(5) The carrying value or fair market value of trust assets shall be determined on an asset-by-asset basis and is conclusive if reasonable and determined in good faith. Determinations of fair market value based on appraisals performed within 2 years before or after the valuation date are presumed reasonable. The values of trust assets are conclusively presumed to be reasonable and determined in good faith unless proven otherwise in a proceeding commenced by or on behalf of a person interested in the trust within the time provided in s. 736.1008.

History: s. 1, ch. 2002-42; s. 1, ch. 2009-207; s. 20, ch. 2012-49; s. 59, ch. 2022-4; s. 45, ch. 2024-216.