CS/HB 823 Summary

• Amends the Florida Uniform Principal and Income Act by defining "carrying value" as the fair market value of assets when received by fiduciaries, with provisions for adjustment upon fiduciary changes.

• Eliminates a trustee's ability to release the power to adjust between principal and income when converting trusts to unitrusts, and deletes provisions allowing such conversions for certain trust forms.

• Revises total return unitrust provisions by defining "average fair market value," changing the "unitrust amount" definition, and clarifying requirements for express total return unitrusts created by grantors.

• Makes broad terminology changes throughout the act, substituting "fiduciary" for "trustee" in multiple sections to clarify that provisions apply to all fiduciaries, not just trustees.

• Takes effect January 1, 2013, and modifies rules governing allocation of receipts and disbursements between income and principal, including updates to provisions on entity distributions, liquidating assets, and income tax treatment.