Raborn fix goes to the governor: RPPTL supported the legislation.
HB 529 by Rep. Joe Negron, R-Stuart, and SB 1986 by Sen. Dave Aronberg, D-Greenacres, correct a recent federal court opinion and re-establish the generally accepted and broadly relied upon interpretation of the statutory requirements in F.S. [section] 689.07, for conveyance of real property to a person as a "trustee" and not as an individual, provided that the conveyance contains the trust date or an identifier of the trust, according to the section.
"This legislation re-establishes the fundamental trust conveyance principles that practitioners have relied on for decades," Negron said. "I am pleased to have assisted my colleagues in sponsoring legislation that will give additional assurances as they advise their trust clients."
In re Raborn, a recent bankruptcy case interpreting [section] 689.07, held that because the deed conveying the real property at issue was not recorded and did not name the beneficiaries of the trust or state the purpose of the trust, that the deed to Raborn, as trustee of the trust, conveyed a fee simple interest in the real property to trustee individually. Raborn was a departure from the commonly held interpretation of [section] 689.07 held since its passage in 1939, according to the RPPTL section. The bill sought to prevent adverse consequences from Raborn on the practice of real property and trust law and on individuals who hold real property in trust.
"We are happy to assist the RPPTL section of the Bar and bring clarity to a potentially difficult situation," said Aronberg. "In Re Raborn reversed over 60 years of commonly accepted real property and trust law, and it was important to pass this law quickly to avoid a loss of trust protection for the thousands of Floridians with real property assets held in trust."
HB 529 (SB 1986) passed the legislature with unanimous support and is awaiting transmittal to the governor.
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|Publication:||Florida Bar News|
|Date:||Apr 30, 2004|
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