• Bacardi on the Rocks
  • July 21, 2012 | Author: Barry A. Nelson
  • Law Firm: Nelson & Nelson, P.A. - North Miami Beach Office
  • This article explores discretionary and spendthrift trusts under the Florida Trust Code and discusses the Florida Supreme Court case of Bacardi v. White, 463 So. 2d 218 (Fla. 1985). Those drafting estate planning documents frequently hear that one objective of a parent who wants all or a portion of a child's inheritance to pass into a trust, rather than outright, is to prevent the child's spouse from reaching such assets in the event of divorce. Beneficiaries of Florida trusts (as well as their lawyers) may be surprised that even when a discretionary trust is created to protect a child's inheritance, a former spouse may have rights as an exception creditor to reach trust assets that are protected from creditors, such as one holding a judgment resulting from a car accident, physician, or other professional malpractice or tort.