PBCBA BAR BULLETINS pbcba_bulletin_october 2018 | Page 15

(Cont. from pg. 14)
Who Is A Beneficiary/Qualified Beneficiary Of A Trust?
The trust provided that upon H’s death, a
portion of the principal would be placed
into a marital trust for the benefit of W
while the remainder would be placed in a
separate residuary trust for the benefit of
W and her descendants. The residuary trust
permitted discretionary distributions to W’s
descendants, but only during her lifetime.
After W died, Brown and Brown-Hill became
co-trustees of the trusts. The assets of both
trusts were to fund two separate residuary
trusts for Brown and Brown-Thill. Brown’s
children were discretionary income and
principal beneficiaries of Brown’s separate
trust.
§736.0103(16)], terminated, Brown would be
a qualified beneficiary under (b), as would
Brown’s children under (c). If the separate
trusts had already been created, Brown’s
children would be permissible distributees
under (a), and his children under (b). Under
any of the above circumstances,…their
interest is in the proper administration of
the trust before and after Saurine’s trusts
terminate, since the principal of Saurine’s
trusts will eventually flow into their father’s
trust, and finally to them.”
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On those facts, the court found that Brown’s
children were qualified beneficiaries under
Florida law as defined in §736.0103(16), F.S.
The court reasoned, in part, as follows: “None
of the beneficiaries are currently entitled
to trust income or principal, given that
Saurine’s estate has not been terminated
and discretionary disbursements could
have been made only during her lifetime.
Assuming the interests of Saurine, who is
the only distributee under subsection (a) [of
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