FL H1089

Creates Section 736.08145, Florida Statutes, authorizing trustees of grantor trusts to reimburse the person treated as owner for federal, state, or other income tax liability attributable to the trust's income, gains, deductions, or credits

Prohibits life insurance policies held in the trust, their cash values, or loan proceeds secured by such policies from being used for tax reimbursement if the person receiving reimbursement is an insured

Applies to all trusts created on, before, or after July 1, 2020, unless the trustee provides written notification at least 60 days in advance to irrevocably elect out, or unless application would reduce federal tax benefits such as gift exclusions, marital deductions, or charitable deductions

Prohibits trustees from exercising these reimbursement powers if the trustee is treated as the trust owner, is a beneficiary, or is a related or subordinate party to the owner or beneficiary

Effective date: July 1, 2020