Fla. Stat. 738.414
Derivatives or options

(1)

As used in this section, the term “derivative” means a contract, an instrument, or other arrangement, or combination of contracts, instruments, or other arrangements, of which the value, rights, and obligations are, in whole or in part, dependent on or derived from an underlying tangible or intangible asset, a group of tangible or intangible assets, an index, or an occurrence of an event. The term includes stocks, fixed income securities, and financial instruments and arrangements based on indices, commodities, interest rates, weather-related events, and credit-default events.

(2)

To the extent that a fiduciary does not account for a transaction in derivatives as a business under s. 738.403, the fiduciary shall allocate 10 percent of receipts from the transaction and 10 percent of disbursements made in connection with the transaction to income and allocate the balance to principal.

(3)

Subsection (4) applies if:A fiduciary:
Grants an option to buy property from a trust, regardless of whether the trust owns the property when the option is granted;
Grants an option that permits another person to sell property to the trust; or
Acquires an option to buy property for the trust or an option to sell an asset owned by the trust; and
The fiduciary or other owner of the asset is required to deliver the asset if the option is exercised.

(a)

A fiduciary:Grants an option to buy property from a trust, regardless of whether the trust owns the property when the option is granted;Grants an option that permits another person to sell property to the trust; orAcquires an option to buy property for the trust or an option to sell an asset owned by the trust; and
1. Grants an option to buy property from a trust, regardless of whether the trust owns the property when the option is granted;
2. Grants an option that permits another person to sell property to the trust; or
3. Acquires an option to buy property for the trust or an option to sell an asset owned by the trust; and

(b)

The fiduciary or other owner of the asset is required to deliver the asset if the option is exercised.

(4)

If this subsection applies, the fiduciary must allocate 10 percent to income and allocate the balance to principal of the following amounts:An amount received for granting the option;An amount paid to acquire the option; andGain or loss realized on the exercise, exchange, settlement, offset, closing, or expiration of the option.

(a)

An amount received for granting the option;

(b)

An amount paid to acquire the option; and

(c)

Gain or loss realized on the exercise, exchange, settlement, offset, closing, or expiration of the option.

Source: Section 738.414 — Derivatives or options, https://www.­flsenate.­gov/Laws/Statutes/2024/0738.­414 (accessed Aug. 7, 2025).

738.101
Short title 738.102
Definitions 738.103
Scope 738.104
Governing law 738.201
Fiduciary duties 738.202
Judicial review of exercise of discretionary power 738.203
Fiduciary’s power to adjust 738.301
Definitions 738.302
Applications 738.303
Authority of fiduciary 738.304
Notice 738.305
Unitrust policy 738.306
Unitrust rate 738.307
Applicable value 738.308
Period 738.309
Express unitrust 738.310
Other rules 738.401
Character of receipts from entity 738.402
Distribution from trust or estate 738.403
Business or other activity conducted by fiduciary 738.404
Principal receipts 738.405
Rental property 738.406
Receipt on obligation to be paid in money 738.407
Insurance policy or contract 738.408
Insubstantial allocation not required 738.409
Deferred compensation, annuity, or similar payment 738.410
Liquidating asset 738.411
Minerals, water, and other natural resources 738.412
Timber 738.413
Marital deduction property not productive of income 738.414
Derivatives or options 738.415
Asset-backed securities 738.416
Other financial instrument or arrangement 738.501
Disbursement from income 738.502
Disbursement from principal 738.503
Transfers from income to principal for depreciation 738.504
Reimbursement of income from principal 738.505
Reimbursement of principal from income 738.506
Income taxes 738.507
Adjustment between income and principal because of taxes 738.508
Apportionment of property expenses between tenant and remainderman 738.601
Determination and distribution of net income 738.602
Distribution to successor beneficiary 738.701
When right to income begins and ends 738.702
Apportionment of receipts and disbursements when decedent dies or income interest begins 738.703
Apportionment when income interest ends 738.801
Uniformity of application and construction 738.802
Relation to Electronic Signatures in Global and National Commerce Act 738.803
Severability 738.804
Application

Current through Fall 2025

§ 738.414. Derivatives or options's source at flsenate​.gov