• Bacardi: The Hangover
  • July 16, 2015
  • Law Firm: Nelson Nelson P.A. - North Miami Beach Office
  • This article is a follow up to the March 2012 Florida Bar Journal article, "Bacardi on the Rocks."[1] The article suggested that former spouses of beneficiaries of Florida discretionary trusts may be able to obtain a continuing garnishment over trust assets intended for the beneficiary, despite what appeared to be contrary law enacted as part of the 2006 Florida Trust Code in F.S. §§736.0603 and 736.0504. The article noted that those attorneys drafting estate planning documents frequently hear 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. The article suggested that 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 assets in a discretionary trust. The article stated that attorneys advising their clients that a Florida discretionary trust would protect a child's inheritance in the event of divorce, should a spouse or former spouse obtain a judgment in the form of support against such child as a result of a divorce, may be misguided.