Article on Florida Family Trust Companies
Brian M. Malec (Dean Mead, P.A., Orlando, FL) and Scott A. Bowman (Proskauer Rose, Boca Raton, FL) recently published an article entitled, Florida Family Trust Companies: Tax and Nontax Considerations, 89 Fla. B. J. no. 5, 42 (May 2015). Provided below is an excerpt from the article:
On June 13, 2014, Governor Scott signed the Florida Family Trust Company Act, creating F.S. Ch. 662. The act, which becomes effective October 1, 2015, governs the formation and operation of family trust companies (FTC) in Florida. At least 14 other states1 currently have legislation authorizing FTCs (private trust companies). The act, together with favorable trust law and the absence of a state income tax, should allow Florida financial, banking, accounting, and legal service providers to gain a share of the growing FTC business. However, unresolved federal income and transfer tax issues continue to loom over the use of FTCs, whether in Florida or elsewhere. This article provides an overview of the act and discusses key tax and nontax considerations related to FTCs.
Special thanks to Jim Hillhouse for bringing this article to my attention.