## Facts

- In 1989, Sylvia Gelt created an irrevocable trust providing that, upon her death, a portion would fund a credit shelter trust for her husband, Samuel.
- Upon Samuel’s death, the credit shelter trust was divided into three separate subtrusts for the couple’s daughters.
- During their lifetimes, each daughter was entitled to income and principal distributions from her respective subtrust.
- The daughters lacked general or testamentary powers of appointment over principal or undistributed income.
- Each daughter’s subtrust terminated at her death, with the remaining balance redistributed to the subtrust(s) of the surviving daughter(s).
- After the last daughter’s death, the trust terminated and the trustee was directed to distribute remaining principal and undistributed income to three named charities, including Hadassah.
- After Samuel died in 2016 (with all three daughters still living), the trustee filed an action seeking to resign and alleged that the daughters and charities were qualified beneficiaries.
- The daughters moved for summary judgment, arguing the charities were not qualified beneficiaries; the trial court granted the motion.
- Hadassah appealed the summary judgment ruling.

## Issues

1. Whether charities expressly designated to receive the remainder upon termination of the current distributees’ interests are “qualified beneficiaries” under the Florida Trust Code, § 736.0110(3) (2017).

## Decision

- The Fourth District Court of Appeal reversed the summary judgment.
- The court held that, under the plain language of § 736.0110(3), the charities had the rights of qualified beneficiaries.
- The case was remanded for further proceedings consistent with that determination.

## Legal Principles

- A charitable organization expressly designated to receive distributions has the rights of a qualified beneficiary if, on the relevant date, it:
  - is a current distributee or permissible distributee; or
  - would become a distributee or permissible distributee upon termination of the interests of other distributees then receiving or eligible to receive distributions; or
  - would be a distributee or permissible distributee if the trust terminated on that date.
- When a trust provides that charities receive the remaining trust property upon the termination of the current distributees’ interests, the charities fall within the statutory category of organizations that “would be” distributees upon that termination.
- Qualified beneficiary status matters because a trustee’s statutory duties to inform and account run to qualified beneficiaries.

## Conclusion

The court concluded that the named charitable remainder beneficiaries qualified for statutory “qualified beneficiary” rights because they would receive distributions upon termination of the daughters’ interests, and it reversed the trial court’s contrary summary judgment.


Hadassah, The Women’s Zionist Org. of Am., Inc. v. Melcer, 268 So. 3d 759 (Fla. Dist. Ct. App. 2019)