Source: http://www.moga.mo.gov/mostatutes/chapters/chapText456.html
Timestamp: 2016-09-25 08:48:10
Document Index: 369322050

Matched Legal Cases: ['§ 1', '§ 3493', '§ 3103', '§ 2262', '§ 2867', '§ 3540', '§ 3150', '§ 3541', '§ 3151', '§ 3541', '§ 3541', '§ 456', '§ 1', '§ 456', '§ 456', '§ 456', '§ 456']

Chapter 456 RSMO Home Statute/Constitution Search
Chapter: 459→
Bequests or transfer to spouse, valuation of.
456.001. 1. If an instrument providing for a pecuniary bequest or transfer to or for the benefit of the spouse of the testator or transferor requires or permits the satisfaction of such bequest or transfer wholly or partly by the distribution of property valued at some date or on some basis other than its fair market value at the time of distribution, and does not require that such bequest or transfer be satisfied by the distribution of assets, including cash, having an aggregate fair market value on the date or dates of distribution amounting to no less than the amount of such bequest or transfer, then in such case, the provisions of the instrument notwithstanding, any property distributed in satisfaction of such bequest or transfer shall have an aggregate fair market value on the date of distribution fairly reflecting the distributee's proportionate share of the appreciation or depreciation in value to the date of distribution of all property then available for distribution. 2. If, in any instrument which provides for a pecuniary bequest or transfer, the personal representative or trustee is empowered to satisfy such bequest or transfer by distribution of property in kind, and the instrument is silent as to the value to be given to property distributed in kind, any property distributed in satisfaction of the bequest or transfer shall be valued at the fair market value thereof on the date of distribution. 3. The phrase "pecuniary bequest or transfer", as used in this section, means a bequest or transfer either in a stated amount or in an amount determined by the use of a formula. 4. This section shall be effective with respect to wills and revocable inter vivos trusts executed or created before or after October 13, 1969, by persons who die on or after said date, and to irrevocable inter vivos trusts which are created on or after October 13, 1969. (L. 1969 S.B. 90 §§ 1, 2, 3, A.L. 2004 H.B. 1511)
Transferred 2004; formerly 456.015
Absence of active duties not to curtail powers of trustee.
456.003. When the terms of an instrument creating a trust manifest intention that the trustee shall have the legal fee simple in land, the full legal ownership of an estate for years, or the absolute legal ownership of chattels personal, investment securities or choses in action, an exercise by the trustee or a successor trustee of an express or implied power of sale, mortgage, leasing, improvement or conducting any other transaction incident to the administration of the trust, shall bind the fee simple, term of years or absolute ownership notwithstanding the execution of a future interest under the trust into a legal estate or interest by the operation of the Statute of Uses, or former section 456.003, or a judicial doctrine imposing such execution on dry or passive trusts. (RSMo 1939 § 3493, A.L. 1983 H.B. 117, A.L. 2004 H.B. 1511)
Prior revisions: 1929 § 3103; 1919 § 2262; 1909 § 2867
Transferred 2004; formerly 456.020
456.005. Proceeds of life insurance policies heretofore made payable to a trustee or trustees named as beneficiary or hereafter to be named beneficiary under an inter vivos trust shall be paid directly to the trustee or trustees and held and disposed of by the trustee or trustees as provided in the trust agreement or declaration of trust in writing made and in existence on the date of death of the insured, whether or not such trust or declaration of trust is amendable or revocable or both, or whether it may have been amended, and notwithstanding the reservation of any or all rights of ownership under the insurance policy or annuity contract; subject, however, to a valid assignment of any part of the proceeds. It is not necessary to the validity of such trust agreement or declaration of trust that it be funded or have a corpus other than the right, which need not be irrevocable, of the trustee or trustees named therein to receive such proceeds as beneficiary. A policy of life insurance or annuity contract may designate as beneficiary a trustee or trustees named or to be named by will if the designation is made in accordance with the provisions of the policy or contract whether or not the will is in existence at the time of the designation. (L. 1983 H.B. 117, A.L. 2004 H.B. 1511)
Transferred 2004; formerly 456.030
Lessor, trustee of deposits by lessee, when--exception.
456.007. 1. Whenever any person, firm or corporation, engaged in the leasing of personal property, shall require a deposit or advance payment to be made by the lessee to bind the lessee to the performance of such contract, then such money so deposited, with any accruing interest thereon, shall, until returned or applied in accordance with the terms of such contract or agreement, continue to be the money of the person making the deposit and shall become and remain a trust fund in the possession of the person with whom such deposit shall be made, and the person, firm or corporation, receiving such deposit shall be the holder of such fund as trustee, and as the trustee as herein defined shall forthwith, and within seven days after the receipt of such trust fund, deposit the same in some bank or trust company in the county in which the cestui que trust shall reside or have his principal office or place of business, and such fund shall not be mingled with any other funds or assets of such trustee. Any person, firm or corporation receiving any money in trust, as herein defined, who shall violate any of the provisions of this section shall be deemed guilty of a misdemeanor; provided, however, that this section and section 456.009 shall not apply to such transactions where the property used or leased is delivered to lessee at time of agreement and remains in the actual and continuous possession of lessee during the term of such agreement. 2. Subsection 1 of this section shall not apply to any lease entered into by lessors which are banks, trust companies, savings and loan associations, savings banks and credit unions, their subsidiaries and affiliates, or to any other financial institutions as defined in subdivision (4) of section 381.410, or to other lessors in commercial lease transactions of at least twenty-five thousand dollars. (RSMo 1939 § 3540, A.L. 1999 S.B. 386, A.L. 2004 H.B. 1511)
Prior revision: 1929 § 3150
Transferred 2004; formerly 456.040
Lessor liable for double amount of deposit so held in trust, when.
456.009. Any person, firm or corporation being a trustee, as provided in section 456.007, who shall violate any of the provisions thereof, shall pay to the depositor a sum of money double the amount of the deposit or advance payment, which may be recovered in any court of competent jurisdiction, together with a reasonable attorney's fee to be fixed by the court and collected as other costs in the case. Any waiver or attempt to waive the provisions of section 456.007 and this section shall be void. (RSMo 1939 § 3541, A.L. 2004 H.B. 1511)
Prior revision: 1929 § 3151
Transferred 2004; formerly 456.050
Trusts for benefit of employees or self-employedpersons--perpetuities--suspension of alienation.
456.011. A trust of real or personal property, or both, created as part of a stock bonus plan, pension plan, disability or death benefit plan, medical benefit plan, profit-sharing plan or retirement plan, for the exclusive benefit of employees or self-employed persons, to which contributions are made by an employer, or employees, or both, or by self-employed persons, for the purpose of distributing to such employees or self-employed persons the earnings or the principal, or both earnings and principal of the fund so held in trust, shall not be deemed to be invalid as violating any existing laws against perpetuities or suspension of the power of alienation of title to property; but such a trust may continue for such time as may be necessary to accomplish the purposes for which it may be created. (L. 1941 p. 716 § 3541-A, A.L. 1957 p. 868, A.L. 1959 S.B. 270,
A.L. 1983 H.B. 117, A.L. 2004 H.B. 1511)
Transferred 2004; formerly 456.060
Trusts for benefit of employees or self-employedpersons--accumulation.
456.013. The income arising from any property held in a trust created as part of a stock bonus plan, pension plan, disability or death benefit plan, medical benefit plan, profit-sharing plan or retirement plan for the exclusive benefit of employees or self-employed persons to which contributions are made by an employer or employees, or both, or by self-employed persons, for the purpose of distributing in accordance with such plan to such employees or self-employed persons the earnings or the principal or both earnings and principal of the trust fund, may be permitted to accumulate until the fund shall be sufficient to accomplish the purposes of such plan. (L. 1941 p. 716 § 3541-B, A.L. 1957 p. 868, A.L. 1959 S.B. 270,
Transferred 2004; formerly 456.070
Trust for benefit of employees--spendthrift trust, when--exempt fromcertain attachments, exception.
456.014. A trust created as part of a stock bonus plan, nonpublic pension plan, disability or death benefit plan, profit-sharing plan, or retirement plan, for the exclusive benefit of employees to which contributions are made by an employer, or participant, or both, for the purpose of distributing to such participant the earnings or the principal, or both earnings and principal of the fund so held in trust, shall be deemed to be a spendthrift trust if the plan or trust includes a provision restraining the assignment, alienation, or other voluntary or involuntary transfer of the interest of a participant in the trust. Prior to payment or delivery thereof to such participant by the plan trustee, such an interest of the participant shall be exempt from attachment or execution under the laws of this state, and such provision restraining the assignment, alienation, or other voluntary or involuntary transfer of the interest of a participant in the trust shall preclude any creditor of the participant from satisfying a claim from the assets or property of such a plan or trust before payment or delivery of such interest to the participant by the plan trustee, provided that the interest of any such participant shall be subject to attachment or execution pursuant to a qualified domestic relations order, as defined by Section 414(p) of the federal Internal Revenue Code, as amended, issued by a court in any proceeding for dissolution of marriage or legal separation or a proceeding for disposition of property following dissolution of marriage by a court which lacked personal jurisdiction over the absent spouse or lacked jurisdiction to dispose of marital property at the time of the original judgment of dissolution. (L. 1992 S.B. 447, A.L. 2004 H.B. 1511 § 456.015)
Transferred 2004; formerly 456.072
Applicability of sections 456.011, 456.013, and 456.014.
456.017. The provisions of sections 456.011, 456.013, and 456.014 shall apply to every trust of the kind described in such sections hereafter created or heretofore created or attempted to be created as if such sections had been effective on and after the date of the creation, or attempted creation, of each such trust. (L. 1957 p. 868, A.L. 1992 S.B. 447, A.L. 2004 H.B. 1511)
Transferred 2004; formerly 456.075
Trustees of private foundations, charitable trusts or split-interesttrusts, certain acts prohibited.
456.019. 1. In the administration of any trust which is a "private foundation", as defined in Section 509 of the United States Internal Revenue Code, a "charitable trust", as defined in Section 4947(a)(1) of the United States Internal Revenue Code, or a "split-interest trust", as defined in Section 4947(a)(2) of the United States Internal Revenue Code, the following acts shall be prohibited: (1) Engaging in any act of "self-dealing", as defined in Section 4941(d) of the United States Internal Revenue Code, which would give rise to any liability for the tax imposed by Section 4941(a) of the United States Internal Revenue Code; (2) Retaining any "excess business holdings", as defined in Section 4943(c) of the United States Internal Revenue Code, which would give rise to any liability for the tax imposed by Section 4943(a) of the United States Internal Revenue Code; (3) Making any investments which would jeopardize the carrying out of any of the exempt purposes of the trust, within the meaning of Section 4944 of the United States Internal Revenue Code, so as to give rise to any liability for the tax imposed by Section 4944(a) of the United States Internal Revenue Code; and (4) Making any "taxable expenditures", as defined in Section 4945(d) of the United States Internal Revenue Code, which would give rise to any liability for the tax imposed by Section 4945(a) of the United States Internal Revenue Code; provided, however, that this section shall not apply either to those split-interest trusts or to amounts thereof which are not subject to the prohibitions applicable to private foundations by reason of the provisions of Section 4947 of the United States Internal Revenue Code. 2. In the administration of any trust which is a "private foundation", as defined in Section 509 of the United States Internal Revenue Code, or which is a "charitable trust", as defined in Section 4947(a)(1) of the United States Internal Revenue Code, there shall be distributed, for the purposes specified in the trust instrument, for each taxable year, amounts at least sufficient to avoid liability for the tax imposed by Section 4942(a) of the United States Internal Revenue Code. 3. The provisions of subsections 1 and 2 of this section shall not apply to any trust to the extent that a court of competent jurisdiction shall determine that such application would be contrary to the terms of the instrument governing such trust and that the same may not properly be changed to conform to such sections. The trustee shall not be held liable to anyone for any payments made under subsection 2 prior to such determination. 4. Nothing in this section shall impair the rights and powers of the courts or the attorney general of this state with respect to any trust. 5. All references to sections of the United States Internal Revenue Code shall be to such law as of June 14, 1971. (L. 1971 S.B. 47, A.L. 2004 H.B. 1511)
Effective 6-14-71
Transferred 2004; formerly 456.230
Addition to trusts.
456.021. A devise or other transfer, the validity of which is determinable by the law of this state, may be made by a will or other instrument of transfer, including a designation of beneficiary under a life insurance policy, to the trustee or trustees of a trust established or to be established by the testator or transferor or by the testator or transferor and some other person or persons or by some other person or persons, including a funded or unfunded life insurance trust, although the settlor thereof has reserved any or all rights of ownership of the insurance contracts, if the trust is identified in the testator's will or the instrument of transfer and its terms are set forth in a written instrument. The devise or transfer shall not be invalid because the trust is amendable or revocable, or both, or because the trust was amended after the execution of the will, the delivery of the instrument of transfer, or the death of the testator. Notwithstanding whether a devise or transfer is made before or after August 28, 1996, a devise or transfer is valid if the devise or transfer is made only to the name of the trust or if the devise or transfer is made to the name or names of the trustee or trustees as the trustee or trustees of the trust. Unless the testator's will or the instrument of transfer provides otherwise, the property so devised: (1) Shall not be deemed to be held under a testamentary trust of the testator or transferor but shall become a part of the trust to which it is given; and (2) Shall be administered and disposed of in accordance with the provisions of the instrument or will setting forth the terms of the trust, including any amendments thereto made before the death of the testator or transferor, regardless of whether made before or after the execution of the testator's will or the delivery of the instrument of transfer, and, if the testator's will or the instrument of transfer so provides, including any amendments to the trust made after the death of the testator or transferor. A revocation or termination of the trust before the death of the testator shall cause a devise to the trustees of that trust to lapse. (L. 1983 H.B. 117, A.L. 1996 H.B. 941, A.L. 2004 H.B. 1511)
Transferred 2004; formerly 456.232
Power of appointment not exercised by will, when.
456.023. A general residuary clause in a will, or a will making general disposition of all of the testator's property, does not exercise a power of appointment granted in an instrument creating or amending a trust unless specific reference is made to the power or there is some other indication of intention to include the property subject to the power. (L. 1983 H.B. 117, A.L. 2004 H.B. 1511)
Transferred 2004; formerly 456.235
Inapplicability of the rule against perpetuities--rule prohibitingunreasonable restraints or suspension of power of alienation notviolated, when--rule against accumulations not applicable, when.
456.025. 1. The rule against perpetuities shall not apply to and any rule prohibiting unreasonable restraints on or suspension of the power of alienation shall not be violated by a trust if a trustee, or other person or persons to whom the power is properly granted or delegated, has the power pursuant to the terms of the trust or applicable law to sell the trust property during the period of time the trust continues beyond the period of the rule against perpetuities that would apply to the trust but for this subsection. 2. No rule against accumulations shall apply to a trust described in subsection 1 of this section unless the terms of the trust require that the income be accumulated during a period of time the trust continues beyond the period of the rule against perpetuities that would apply to the trust but for subsection 1 of this section. If the terms of the trust require that the income be accumulated during any period of time the trust continues beyond the period of the rule against perpetuities that would apply to the trust but for subsection 1 of this section, then during that period of time the trustee shall have the power to make discretionary distributions of net income to such recipients and in such shares and in such manner as most closely effectuates the settlor's or testator's manifested plan of distribution. 3. The provisions of this section apply to: (1) Any trust created by a will or inter vivos agreement, or pursuant to the exercise of a power of appointment other than a general power of appointment granted under a will or inter vivos agreement, executed or amended on or after August 28, 2001; (2) Any trust created pursuant to the exercise of a general power of appointment exercised in an instrument executed or amended on or after August 28, 2001; or (3) Any trust created by a will or inter vivos agreement, or pursuant to the exercise of a power of appointment granted under a will or inter vivos agreement, executed or amended before August 28, 2001, if the laws of this state become applicable to the trust after such date, the laws of any other state applied to the trust before such date, and the rule against perpetuities did not apply to the trust pursuant to the laws of the other state. 4. As used in this section, the term "trust" means an express trust created by a trust instrument, including a will, whereby a trustee has the duty to administer a trust asset for the benefit of a named or otherwise described income or principal beneficiary, or both. The term "trust" does not include a resulting or constructive trust, a business trust which provides for certificates to be issued to the beneficiary, an investment trust, a voting trust, a security instrument, a trust created by the judgment or decree of a court, a liquidation trust, or a trust for the primary purpose of paying dividends, interests, interest coupons, salaries, wages, pensions, or profits, or employee benefits of any kind, an instrument wherein a person is nominee or escrowee for another, a trust created in deposits in any financial institution, a trust that is not subject to the rule against perpetuities by reason of any other law of this state, or any other trust the nature of which does not admit of general trust administration. (L. 2001 H.B. 241, A.L. 2004 H.B. 1511)
Transferred 2004; formerly 456.236
Registration of trust.
456.027. 1. The trustee of a trust having its principal place of administration in this state may register the trust in the probate division of the circuit court of the county wherein the principal place of administration is located. 2. "Trust" includes any express trust, private or charitable, with additions thereto, wherever and however created. It also includes a resulting or constructive trust created or determined by judgment or decree under which the trust is to be administered in the manner of an express trust. "Trust" excludes other constructive and resulting trusts, guardianships, conservatorships, decedents' estates, and trust accounts with financial institutions in the name of one or more parties as trustee for one or more beneficiaries where the fiduciary relationship is established by the form of the account and the deposit agreement with the financial institution, and there is no subject of the trust other than the sums on deposit in such account. "Trust" also excludes custodial arrangements pursuant to chapter 404, the Missouri uniform gifts to minors law, paying and transfer agencies, business trusts providing for certificates to be issued to beneficiaries, investment trusts, common trust funds, voting trusts, security instruments or arrangements, liquidation trusts, trusts for the primary purpose of paying debts, dividends, interest, salaries, wages, profits, pensions or employee benefits of any kind, and any arrangements under which a person is nominee or escrowee for another. 3. Unless otherwise designated in the trust instrument, the "principal place of administration of a trust" is the trustee's usual place of business where the records pertaining to the trust are kept, or at the trustee's residence if he has no such place of business. In the case of cotrustees, the principal place of administration, if not otherwise designated in the trust instrument, is: (1) The usual place of business of the corporate trustee if there is but one corporate cotrustee; or (2) The usual place of business or residence of the individual trustee who is a professional fiduciary if there is but one such person and no corporate cotrustee; and otherwise (3) The usual place of business or residence of any of the cotrustees as agreed upon by them. 4. "Professional fiduciary" means an individual trustee who represents himself to the public as having specialized training, experience or skills in the administration of trusts. 5. The right to register under this section does not apply to the trustee of a trust if registration would be inconsistent with the retained jurisdiction of a foreign court from which the trustee cannot obtain release of registration. (L. 1983 H.B. 117, A.L. 2004 H.B. 1511)
Transferred 2004; formerly 456.400
456.029. Such registration shall be accomplished by filing a statement, indicating the name and address of the trustee and acknowledging the trusteeship. The statement shall indicate whether the trust has been registered elsewhere and shall identify the trust: (1) In the case of a testamentary trust, by the name of the testator and the date and place of domiciliary probate; (2) In the case of a written inter vivos trust, by the name of each settlor and the original trustee and the date of the trust instrument; or (3) In the case of an oral trust, by information identifying the settlor or other source of funds and describing the time and manner of the trust's creation and the terms of the trust, including the subject matter, beneficiaries and time of performance. A registration may be withdrawn by a similar statement. (L. 1983 H.B. 117, A.L. 2004 H.B. 1511)
Transferred 2004; formerly 456.410
Records and certified copies.
456.031. The clerk of the probate division of the circuit court shall keep a record for each trust so registered, including trust registration statements, petitions and applications, demands for notices or bonds, and of any orders or responses relating thereto by the court, and establish and maintain a system for indexing, filing or recording which is sufficient to enable users of the records to identify and obtain information about such registered trusts. Upon payment of the fees required by law the clerk must issue certified copies of any record or paper filed or recorded. (L. 1983 H.B. 117, A.L. 2004 H.B. 1511)
Transferred 2004; formerly 456.420
456.033. 1. By registering a trust, or accepting the trusteeship of a registered trust, the trustee submits personally to the jurisdiction of the court in any proceeding involving the internal affairs of the trust that may be initiated by any interested person while the trust remains registered. Notice of any such proceeding shall be delivered to the trustee or mailed to him by ordinary first-class mail at his address as listed in the registration statement or as thereafter reported to the court and to his address as then known to the petitioner. 2. To the extent of their interests in the trust, all beneficiaries of a trust registered in this state are subject to the jurisdiction of the court of registration for the purposes of proceedings involving internal affairs of the trust, provided notice is given pursuant to section 472.100. 3. "Interested persons" include beneficiaries and any others having a property right in or claim against a trust estate which may be affected by a judicial proceeding. It also includes persons and other fiduciaries representing interested persons. The meaning as it relates to particular persons may vary from time to time and must be determined according to the particular purposes of, and matter involved in, any proceeding. 4. "Internal affairs" proceedings, without limitation, are those which involve interpretation or construction of the terms of the trust by declarations, instructions or judgments as to the existence, nonexistence and extent of rights, powers, privileges, immunities, duties, liabilities and remedies of trustees and beneficiaries in the administration and distribution of trusts, including but not limited to proceedings concerning: (1) The qualifications, appointment, removal, indemnification, reimbursement, exoneration or surcharge of trustees; (2) The imposition, change and release of requirements for trustees' bonds; (3) The employment of agents and compensation to them and to trustees; (4) The review and settlement of interim and final accounts; (5) The propriety of investments or of principal and income allocations; (6) The allowance of deviations from or modifications of trust terms; (7) The ascertainment of beneficiaries or of beneficial interests; (8) The requirements for release of registration or change of principal place of administration; (9) The timing and quantity of distributions and dispositions of assets; (10) The validity and effect of alienations by beneficiaries, by exercise of powers of appointment or otherwise; and (11) Terminations of trusts. (L. 1983 H.B. 117, A.L. 2004 H.B. 1511)
Evidence as to death or status--five-year absence presumption ofdeath.
456.035. 1. A certified or authenticated copy of a death certificate purporting to be issued by an official or agency of the place where the death purportedly occurred is prima facie proof of the fact, place, date and time of death and the identity of the deceased settlor, trustee, beneficiary or other interested person. 2. A certified or authenticated copy of any record or report of a governmental agency, domestic or foreign, that a person is missing, detained, dead, or alive is prima facie evidence of the status and of the dates, circumstances and places disclosed by the record or report. 3. A person who is absent for a continuous period of five years, during which he has not been heard from, and whose absence is not satisfactorily explained after diligent search or inquiry is presumed to be dead. His death is presumed to have occurred at the end of the period unless there is sufficient evidence for determining that death occurred earlier. (L. 1983 H.B. 117, A.L. 2004 H.B. 1511)
Trust property--when deemed unclaimed.
456.037. 1. Property of any kind remaining in a trust which is not subject to administration or distribution to or for an identifiable beneficiary may be deemed to be unclaimed property when the trustee, after reasonable and diligent search, is unable to find or ascertain the existence of any heirs, legal representatives, successors or assigns of any beneficiary to whom such property is distributable by the trust instrument, by any other instrument pertaining to the trust estate, or by the laws of Missouri. 2. Property of any kind remaining in a trust, which is distributable to or for the benefit of an identified beneficiary, may be deemed to be unclaimed when such beneficiary has, for three years after a good faith attempt to notify him in writing of his right to such property, failed or refused to claim the property. (L. 1983 H.B. 117, A.L. 2004 H.B. 1511)
Transferred 2004; formerly 456.640
Procedure by trustee with respect to unclaimed property.
456.039. 1. Any trustee holding such unclaimed property may file with the state treasurer a verified statement setting forth the reason or reasons why such property is presumed to be unclaimed, the efforts made to find or ascertain any heirs, legal representatives, successors or assigns of any beneficiary or beneficiaries to whom such property is distributable, a list of all instruments known to the trustee that pertain to the trust and their location, with copies of those that are in possession of the trustee, and any further facts causing the trustee to believe that the property is unclaimed, and transfer such property to the state treasurer, who shall issue his receipt therefor. 2. All property so received shall be credited to the escheat fund of the state of Missouri. (L. 1983 H.B. 117, A.L. 2004 H.B. 1511)
Transferred 2004; formerly 456.650
Unclaimed property--liability of trustee.
456.041. 1. The payment or delivery of such unclaimed property to the state treasurer by the trustee shall terminate any legal relationship between the trustee and beneficiary or apparent beneficiary to receive such property and shall release and discharge the trustee from any and all liability to such beneficiary, his heirs, personal representatives, successors and assigns by such payment or delivery, regardless of whether such property is in fact or in law unclaimed property. 2. Such payment or delivery may be pleaded as a bar to recovery and shall be a defense in any suit or action brought by the apparent owner, or his heirs, personal representatives, successors or assigns, or any claimant against the trustee by reason of the delivery of payment. (L. 1983 H.B. 117, A.L. 2004 H.B. 1511)
Power of court to permit deviations or vary terms.
456.590. 1. Where, in the management or administration of any property vested in trustees, any sale, lease, mortgage, surrender, release, or other disposition, or any purchase, investment, acquisition, expenditure, or other transaction is in the opinion of the court expedient, but the same cannot be effected by reason of the absence of any power for that purpose vested in the trustees by the trust instrument, if any, or by law, the court may by order confer upon the trustees, either generally or in any particular instance, the necessary power for the purpose, on such terms, and subject to such provisions and conditions, if any, as the court may think fit and may direct in what manner any money authorized to be expended, and the costs of any transaction, are to be paid or borne as between capital and income. 2. When all of the adult beneficiaries who are not disabled consent, the court may, upon finding that such variation will benefit the disabled, minor, unborn and unascertained beneficiaries, vary the terms of a private trust so as to reduce or eliminate the interests of some beneficiaries and increase those of others, to change the times or amounts of payments and distributions to beneficiaries, or to provide for termination of the trust at a time earlier or later than that specified by the terms. 3. The court may, from time to time, rescind or vary any order made under this section, or may make any new or further order. 4. An application to the court under this section may be made by the trustees, or by any of them, or by any person beneficially interested under the trust. (L. 1983 H.B. 117)
Modification or termination of noncharitable irrevocable trust,
uniform trust code, 456.4B-411
Definition--property and interests in property, immunity from claims,when--death of settlor, effect of--marital property rights, notaffected by transfer--applicability.
456.950. 1. As used in this section, "qualified spousal trust" means a trust: (1) The settlors of which are married to each other at the time of the creation of the trust; and (2) The terms of which provide that during the joint lives of the settlors all property transferred to, or held by, the trustee are: (a) Held and administered in one trust for the benefit of both settlors, revocable by either settlor or both settlors while either or both are alive, and each settlor having the right to receive distributions of income or principal, whether mandatory or within the discretion of the trustee, from the entire trust for the joint lives of the settlors and for the survivor's life; or (b) Held and administered in two separate shares of one trust for the benefit of each of the settlors, with the trust revocable by each settlor with respect to that settlor's separate share of that trust without the participation or consent of the other settlor, and each settlor having the right to receive distributions of income or principal, whether mandatory or within the discretion of the trustee, from that settlor's separate share for that settlor's life; or (c) Held and administered under the terms and conditions contained in paragraphs (a) and (b) of this subdivision. 2. A qualified spousal trust may contain any other trust terms that are not inconsistent with the provisions of this section, including, without limitation, a discretionary power to distribute trust property to a person in addition to a settlor. 3. All property at any time held in a qualified spousal trust, without regard to how such property was titled prior to it being so held, shall have the same immunity from the claims of a separate creditor of either settlor as if such property were held outside the trust by the settlors as tenants by the entirety, unless otherwise provided in writing by the settlor or settlors who transferred such property to the trust, and such property shall be treated for that purpose, including without limitation, federal and state bankruptcy laws, as tenants by entirety property. Property held in a qualified spousal trust shall cease to receive immunity from the claims of creditors upon the dissolution of marriage of the settlors by a court. 4. As used in this section, "property" means any interest in any type of property held in a qualified spousal trust, the income thereon, and any property into which such interest, proceeds, or income may be converted. 5. Upon the death of each settlor, all property held by the trustee of the qualified spousal trust shall be distributed as directed by the then current terms of the governing instrument of such trust. Upon the death of the first settlor to die, if immediately prior to death the predeceased settlor's interest in the qualified spousal trust was then held in such settlor's separate share, the property held in such settlor's separate share may pass into an irrevocable trust for the benefit of the surviving settlor upon such terms as the governing instrument shall direct, including without limitation a spendthrift provision as provided in section 456.5-502. 6. The respective rights of settlors who are married to each other in any property for purposes of a dissolution of the settlors' marriage shall not be affected or changed by reason of the transfer of that property to, or its subsequent administration as an asset of, a qualified spousal trust during the marriage of the settlors, unless both settlors expressly agree otherwise in writing. 7. No transfer to a qualified spousal trust shall avoid or defeat the Missouri uniform fraudulent* transfer act in chapter 428. 8. This section shall apply to all trusts which fulfill the criteria set forth in this section for a qualified spousal trust regardless of whether such trust was created before, on, or after August 28, 2011. (L. 2011 S.B. 59 § 1, A.L. 2012 S.B. 628 merged with S.B. 636, A.L.
2014 H.B. 1231 merged with S.B. 500, A.L. 2015 S.B. 164)
*Word "fraudulent" omitted from original rolls.
456.1-101. Sections 456.1-101 to 456.11-1106 shall be known and may be cited as the "Missouri Uniform Trust Code". (L. 2004 H.B. 1511)
456.1-102. Sections 456.1-101 to 456.11-1106 apply to express trusts, charitable or noncharitable, testamentary or inter vivos, and trusts created pursuant to a statute, judgment, or decree that requires the trust to be administered in the manner of an express trust. Sections 456.1-101 to 456.11-1106 do not apply to any trust created by the inherent power of the court pursuant to chapter 460. (L. 2004 H.B. 1511)
456.1-103. In sections 456.1-101 to 456.11-1106: (1) "Action," with respect to an act of a trustee, includes a failure to act; (2) "Ascertainable standard" means a standard relating to an individual's health, education, support, or maintenance within the meaning of Section 2041(b)(1)(A) or Section 2541(c)(1) of the Internal Revenue Code; (3) "Beneficiary" means a person that: (a) has a present or future beneficial interest in a trust, vested or contingent; or (b) in a capacity other than that of trustee, holds a power of appointment over trust property; (4) "Charitable trust" means a trust, or portion of a trust, created for a charitable purpose described in subsection 1 of section 456.4-405; (5) "Conservator" means a person described in subdivision (3) of section 475.010. This term does not include a conservator ad litem; (6) "Conservator ad litem" means a person appointed by the court pursuant to the provisions of section 475.097; (7) "Environmental law" means a federal, state, or local law, rule, regulation, or ordinance relating to protection of the environment; (8) "Financial institution" means a non-foreign bank, savings and loan or trust company chartered, regulated and supervised by the Missouri division of finance, the office of the comptroller of the currency, the office of thrift supervision, the National Credit Union Administration, or the Missouri division of credit union supervision. The term "non-foreign bank" shall mean a bank that is not a foreign bank within the meaning of subdivision (1) of section 361.005; (9) "Guardian" means a person described in subdivision (7)* of section 475.010. The term does not include a guardian ad litem; (10) "Interested persons" include beneficiaries and any others having a property right in or claim against a trust estate which may be affected by a judicial proceeding. It also includes fiduciaries and other persons representing interested persons. The meaning as it relates to particular persons may vary from time to time and must be determined according to the particular purposes of, and matter involved in, any proceeding; (11) "Interests of the beneficiaries" means the beneficial interests provided in the terms of the trust; (12) "Internal Revenue Code" means the United States Internal Revenue Code of 1986, as in effect on January 1, 2005, or as later amended; (13) "Jurisdiction," with respect to a geographic area, includes a state or country; (14) "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government; governmental subdivision, agency, or instrumentality; public corporation, or any other legal or commercial entity; (15) "Permissible distributee" means a beneficiary who is currently eligible to receive distributions of trust income or principal, whether mandatory or discretionary; (16) "Power of withdrawal" means a presently exercisable power of a beneficiary to withdraw assets from the trust without the consent of the trustee or any other person; (17) "Principal place of administration" of a trust is the trustee's usual place of business where the records pertaining to the trust are kept, or the trustee's residence if the trustee has no such place of business, unless otherwise designated by the terms of the trust as provided in section 456.1-108. In the case of cotrustees, the principal place of administration is, in the following order of priority: (a) The usual place of business of the corporate trustee if there is but one corporate cotrustee; (b) The usual place of business or residence of the trustee who is a professional fiduciary if there is but one such trustee and no corporate cotrustee; or (c) The usual place of business or residence of any of the cotrustees; (18) "Professional fiduciary" means an individual who represents himself or herself to the public as having specialized training, experience or skills in the administration of trusts; (19) "Property" means anything that may be the subject of ownership, whether real or personal, legal or equitable, or any interest therein; (20) "Qualified beneficiary" means a beneficiary who, on the date the beneficiary's qualification is determined: (a) is a permissible distributee; (b) would be a permissible distributee if the interests of the permissible distributees described in paragraph (a) of this subdivision terminated on that date; or (c) would be a permissible distributee if the trust terminated on that date; (21) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form; (22) "Revocable," as applied to a trust, means that the settlor has the legal power to revoke the trust without the consent of the trustee or a person holding an adverse interest, regardless of whether the settlor has the mental capacity to do so in fact; (23) "Settlor" means a person, including a testator, who creates, or contributes property to, a trust. If more than one person creates or contributes property to a trust, each person is a settlor of the portion of the trust property attributable to that person's contribution except to the extent another person has the power to revoke or withdraw that portion pursuant to the terms of the trust; (24) "Sign" means, with present intent to authenticate or adopt a record: (a) to execute or adopt a tangible symbol; or (b) to attach to or logically associate with the record an electronic sound, symbol, or process; (25) "Spendthrift provision" means a term of a trust which restrains either the voluntary or involuntary transfer or both the voluntary and involuntary transfer of a beneficiary's interest; (26) "State" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. The term includes an Indian tribe or band recognized by federal law or formally acknowledged by a state; (27) "Terms of a trust" means the manifestation of the settlor's intent regarding a trust's provisions as expressed in the trust instrument or as may be established by other evidence that would be admissible in a judicial proceeding; (28) "Trust instrument" means an instrument executed by the settlor that contains terms of the trust, including any amendments thereto; (29) "Trustee" includes an original, additional, and successor trustee, and a cotrustee. (L. 2004 H.B. 1511, A.L. 2006 S.B. 892)
*Statutory reference to subdivision (6) of section 475.010 changed to
subdivision (7) of section 475.010 to comply with section 3.060.
456.1-104. 1. Subject to subsection 2 of this section, a person has knowledge of a fact if the person: (1) has actual knowledge of it; (2) has received a notice or notification of it; or (3) from all the facts and circumstances known to the person at the time in question, has reason to know it. 2. An organization that conducts activities through employees has notice or knowledge of a fact involving a trust only from the time the information was received by an employee having responsibility to act for the trust, or would have been brought to the employee's attention if the organization had exercised reasonable diligence. An organization exercises reasonable diligence if it maintains reasonable routines for communicating significant information to the employee having responsibility to act for the trust and there is reasonable compliance with the routines. Reasonable diligence does not require an employee of the organization to communicate information unless the communication is part of the individual's regular duties or the individual knows a matter involving the trust would be materially affected by the information. (L. 2004 H.B. 1511)
456.1-105. 1. Except as otherwise provided in the terms of the trust, sections 456.1-101 to 456.11-1106 govern the duties and powers of a trustee, relations among trustees, and the rights and interests of a beneficiary. 2. The terms of a trust prevail over any provision of sections 456.1-101 to 456.11-1106 except: (1) the requirements for creating a trust; (2) the duty of a trustee to act in good faith and in accordance with the purposes of the trust; (3) the requirement that a trust and its terms be for the benefit of its beneficiaries; (4) the power of the court to modify or terminate a trust under section 456.4-410, subsection 3 of section 456.4B-411, and sections 456.4-412 to 456.4-416; (5) the effect of a spendthrift provision and the rights of certain creditors and assignees to reach a trust as provided in sections 456.5-501 to 456.5-507; (6) the power of the court under section 456.7-702 to require, dispense with, or modify or terminate a bond; (7) the power of the court under subsection 2 of section 456.7-708 to adjust a trustee's compensation specified in the terms of the trust which is unreasonably low or high; (8) subject to subsection 3 of this section, the duty of a trustee of an irrevocable trust to notify each permissible distributee who has attained the age of twenty-one years of the existence of the trust and of that permissible distributee's rights to request trustee's reports and other information reasonably related to the administration of the trust; (9) the duty to respond to the request of a qualified beneficiary of an irrevocable trust for trustee's reports and other information reasonably related to the administration of the trust; (10) the effect of an exculpatory term under section 456.10-1008; (11) the rights under sections 456.10-1010 to 456.10-1013 of a person other than a trustee or beneficiary; (12) periods of limitation for commencing a judicial proceeding; (13) the power of the court to take such action and exercise such jurisdiction as may be necessary in the interests of justice; and (14) the venue for a judicial proceeding as provided in section 456.2-204.
3. For purposes of subdivision (8) of subsection 2 of this section, the settlor may designate by the terms of the trust one or more permissible distributees to receive notification of the existence of the trust and of the right to request trustee's reports and other information reasonably related to the administration of the trust in lieu of providing the notice, information or reports to any other permissible distributee who is an ancestor or lineal descendant of the designated permissible distributee. (L. 2004 H.B. 1511, A.L. 2006 S.B. 892)
Common law of trusts--principles of equity.
456.1-106. The common law of trusts and principles of equity supplement sections 456.1-101 to 456.11-1106, except to the extent modified by sections 456.1-101 to 456.11-1106 or another statute of this state. (L. 2004 H.B. 1511)
456.1-107. The meaning and effect of the terms of a trust are determined by: (1) the law of the jurisdiction designated in the terms unless the designation of that jurisdiction's law is contrary to a strong public policy of the jurisdiction having the most significant relationship to the matter at issue; or (2) in the absence of a controlling designation in the terms of the trust, the law of the jurisdiction having the most significant relationship to the matter at issue. (L. 2004 H.B. 1511)
456.1-108. 1. Without precluding other means for establishing a sufficient connection with the designated jurisdiction, terms of a trust designating the principal place of administration are valid and controlling if: (1) a trustee's principal place of business is located in or a trustee is a resident of the designated jurisdiction; or (2) all or part of the administration occurs in the designated jurisdiction. 2. Without precluding the right of the court to order, approve, or disapprove a transfer, the trustee may transfer the trust's principal place of administration to another state or to a jurisdiction outside of the United States that is appropriate to the trust's purposes, its administration, and the interests of the beneficiaries. 3. The trustee shall notify the qualified beneficiaries of a proposed transfer of a trust's principal place of administration not less than sixty days before initiating the transfer. The notice of proposed transfer must include: (1) the name of the jurisdiction to which the principal place of administration is to be transferred; (2) the address and telephone number at the new location at which the trustee can be contacted; (3) an explanation of the reasons for the proposed transfer; (4) the date on which the proposed transfer is anticipated to occur; and (5) the date, not less than sixty days after the giving of the notice, by which the qualified beneficiary must notify the trustee of an objection to the proposed transfer. 4. The authority of a trustee under this section to transfer a trust's principal place of administration without an order of a court terminates if a qualified beneficiary notifies the trustee of an objection to the proposed transfer on or before the date specified in the notice. 5. In connection with a transfer of the trust's principal place of administration, the trustee may transfer some or all of the trust property to a successor trustee designated in the terms of the trust or appointed pursuant to section 456.7-704. (L. 2004 H.B. 1511)
456.1-109. 1. Notice to a person under sections 456.1-101 to 456.11-1106 or the sending of a document to a person under sections 456.1-101 to 456.11-1106 must be accomplished in a manner reasonably suitable under the circumstances and likely to result in receipt of the notice or document. Permissible methods of notice or for sending a document include first-class mail, personal delivery, delivery to the person's last known place of residence or place of business, or a properly directed electronic message. 2. Notice otherwise required under sections 456.1-101 to 456.11-1106 or a document otherwise required to be sent under sections 456.1-101 to 456.11-1106 need not be provided to a person whose identity or location is unknown to and not reasonably ascertainable by the trustee. 3. Notice under sections 456.1-101 to 456.11-1106 or the sending of a document under sections 456.1-101 to 456.11-1106 may be waived by the person to be notified or sent the document. 4. Notice of a judicial proceeding must be given as provided in the applicable rules of civil procedure. (L. 2004 H.B. 1511)
456.1-110. 1. A specified charitable organization or a person appointed to enforce a trust created for the care of an animal or another noncharitable purpose as provided in sections 456.4-408 or 456.4-409 has the rights of a qualified beneficiary under sections 456.1-101 to 456.11-1106. 2. Except with respect to sections 456.1-108 and 456.4B-411, the attorney general of this state has the rights of a qualified beneficiary with respect to an interest in a charitable trust having its principal place of administration in this state if: (1) a specified charitable organization is not entitled to a distribution from such interest; and (2) distributions from the interest are payable in a manner that, if payable to an identifiable charitable entity, would qualify that entity as a specified charitable organization. 3. In this section a "specified charitable organization" means an identifiable charitable entity, the interest of which is not otherwise subject to any power of appointment or other power of termination, that, on the date that entity's qualification is determined: (a) is a permissible distributee; (b) would be a permissible distributee if the interests of the permissible distributees terminated on that date; or (c) would be a permissible distributee if the trust terminated on that date. 4. No provision of this section shall limit the authority of the attorney general of this state to supervise and control charitable organizations. (L. 2004 H.B. 1511, A.L. 2006 S.B. 892)
456.1-111. 1. In this section, "interested persons" means persons whose consent would be required in order to achieve a binding settlement were the settlement to be approved by the court. 2. Except as otherwise provided in subsection 3 and 6 of this section, interested persons may enter into a binding nonjudicial settlement agreement with respect to any matter involving a trust. 3. A nonjudicial settlement agreement is valid only to the extent it does not violate a material purpose of the trust and includes terms and conditions that could be properly approved by the court under sections 456.1-101 to 456.11-1106 or other applicable law. 4. Matters that may be resolved by a nonjudicial settlement agreement include: (1) the interpretation or construction of the terms of the trust; (2) the approval of a trustee's report or accounting; (3) direction to a trustee to refrain from performing a particular act or the grant to a trustee of any necessary or desirable power; (4) the resignation or appointment of a trustee and the determination of a trustee's compensation; (5) transfer of a trust's principal place of administration; and (6) liability of a trustee for an action relating to the trust. 5. Any interested person may request the court to approve a nonjudicial settlement agreement, to determine whether the representation as provided in sections 456.3-301 to 456.3-305 was adequate, and to determine whether the agreement contains terms and conditions the court could have properly approved. 6. A nonjudicial settlement agreement may not be used to terminate or modify a trust for the reasons that a court could terminate or modify a trust as set forth in subsection 1 of section 456.4B-411. (L. 2004 H.B. 1511)
Rules of construction--inapplicable to certain trusts.
456.1-112. 1. If a settlor's marriage is dissolved or annulled, any beneficial terms of a trust in favor of the settlor's former spouse or any fiduciary appointment of the settlor's former spouse is revoked on the date the marriage is dissolved or annulled, whether or not the terms of the trust refer to marital status. The terms of the trust shall be given effect as if the former spouse had died immediately before the date the dissolution or annulment became final. This subsection shall also apply to any beneficial interest or fiduciary appointment in favor of a relative of the settlor's former spouse as if such relative were the former spouse. 2. Subsection 1 of this section does not apply to the terms of a trust that provide any beneficial interest or fiduciary appointment for a former spouse or a relative of a former spouse that was created after the marriage was dissolved or annulled, or that expressly states that marriage dissolution or annulment shall not affect the designation of a former spouse or relative of a former spouse as a beneficiary or a fiduciary of the trust. 3. A court may order or the settlor and the spouse may agree before, during, or after the marriage in a binding contract or settlement agreement that subsection 1 of this section does not apply to a beneficial interest or fiduciary appointment. 4. Any terms of a trust revoked solely by this section are revived by the settlor's remarriage to the former spouse or by a nullification of the marriage dissolution or annulment. 5. In this section, "a relative of the settlor's former spouse" means an individual who is related to the settlor's former spouse by blood, adoption or affinity and who, after the divorce or annulment, is not related to the settlor by blood, adoption or affinity. 6. The provisions of this section shall not apply to any trust for which a gift tax marital deduction has been claimed or allowed under Section 2523 of the Internal Revenue Code. The provisions of this section shall not apply in a manner that would result in either: (a) a transfer to a trust being treated as an incomplete gift for federal gift tax purposes; or (b) inclusion of assets of a trust in the gross estate of a settlor for federal estate tax purposes. (L. 2004 H.B. 1511, A.L. 2006 S.B. 892)
Transfer of assets to trust subjects assets to terms of the trust.
456.1-113. Any transfer of an asset to a trustee of a trust, to such trust itself, or to a share of such trust, in a manner that is reasonably calculated to identify such trust or that share of such trust, subjects that asset to the terms of such trust or that share. (L. 2015 S.B. 164)
Role of court in administration of trust.
456.2-201. 1. The court may intervene in the administration of a trust to the extent its jurisdiction is invoked by an interested person or as provided by law. 2. A trust is not subject to continuing judicial supervision unless ordered by the court. 3. A judicial proceeding involving a trust may relate to any matter involving the trust's administration, including a request for instructions and an action to declare rights. (L. 2004 H.B. 1511)
Jurisdiction over trustee and beneficiary.
456.2-202. 1. By accepting the trusteeship of a trust having its principal place of administration in this state or by moving the principal place of administration to this state, the trustee submits personally to the jurisdiction of the courts of this state regarding the administration of the trust during any period that the principal place of administration is located in this state. 2. With respect to their interests in the trust, the beneficiaries of a trust having its principal place of administration in this state are subject to the jurisdiction of the courts of this state regarding any proceeding involving the administration of the trust. By accepting a distribution from such a trust, the recipient submits personally to the jurisdiction of the courts of this state regarding any proceeding involving the administration of the trust. 3. A judicial proceeding involving a trust may relate to any matter involving the trust's administration, including, but not limited to a proceeding to: (1) request instructions or declare rights; (2) approve a nonjudicial settlement; (3) interpret or construe the terms of the trust; (4) determine the validity of a trust or of any of its terms; (5) approve a trustee's report or accounting or compel a trustee to report or account; (6) direct a trustee to refrain from performing a particular act or grant to a trustee any necessary or desirable power; (7) review the actions of a trustee, including the exercise of a discretionary power; (8) accept the resignation of a trustee; (9) appoint or remove a trustee; (10) determine a trustee's compensation; (11) determine the liability of a trustee for an action relating to the trust and compel redress of a breach of trust by any available remedy; (12) modify or terminate a trust; (13) combine trusts or divide a trust; (14) determine liability of a trust for debts of a beneficiary and living settlor; (15) approve employment and compensation of agents; (16) determine the propriety of investments or of principal and income allocations; (17) ascertain the identity of trust beneficiaries or the respective beneficial interests of trust beneficiaries; (18) release of trust registration or change of the trust's principal place of administration; (19) determine the timing and quantity of distributions and dispositions of assets; (20) determine the validity and effect of alienations by beneficiaries, by exercise of powers of appointment or otherwise; or (21) appoint a representative for a beneficiary. 4. This section does not preclude other methods of obtaining jurisdiction over a trustee, beneficiary, or other person receiving property from the trust. (L. 2004 H.B. 1511)
456.2-204. 1. Venue for judicial proceedings involving trust administration shall be: (1) For a trust then registered in this state, in the probate division of the circuit court where the trust is registered; or (2) For a trust not then registered in this state, in the probate division of the circuit court where the trust could properly be registered; or (3) For a trust not then registered in this state and which cannot properly be registered in this state, in accordance with the rules of civil procedure. 2. Where a judicial proceeding under this chapter could be maintained in more than one place in this state, the court in which the proceeding is first commenced has the exclusive right to proceed. 3. If proceedings concerning the same trust are commenced in more than one court of this state, the court in which the proceeding was first commenced shall continue to hear the matter, and the other courts shall hold the matter in abeyance until the question of venue is decided, and if the court in which the proceeding was first commenced determines that venue is properly in another court, it shall transfer the proceeding to the other court. 4. If a court finds that in the interest of justice a proceeding or a file should be located in another court of this state, the court making the finding may transfer the proceeding or file to the other court. (L. 2004 H.B. 1511, A.L. 2006 S.B. 892)
Enforceability of mediation or arbitration provisions.
456.2-205. 1. Subject to the exception in subsection 2 of this section, a provision in a trust instrument requiring the mediation or arbitration of disputes between or among the beneficiaries, a fiduciary, a person granted nonfiduciary powers under the trust instrument, or any combination of such persons is enforceable. 2. A provision in a trust instrument requiring the mediation or arbitration of disputes relating to the validity of a trust is not enforceable unless all interested persons with regard to the dispute consent to the mediation or arbitration of the dispute. (L. 2014 S.B. 500)
Representation, basic effect--prohibited, when.
456.3-301. 1. Notice to a person who may represent and bind another person under sections 456.3-301 to 456.3-305 has the same effect as if notice were given directly to the other person. 2. The consent of a person who may represent and bind another person under sections 456.3-301 to 456.3-305 is binding on the person represented unless the person represented objects to the representation before the consent would otherwise have become effective. Except that, such consent is binding on the person represented regardless of whether the person represented objects under this subsection, if the person who may represent and bind is: (1) The holder of a testamentary power of appointment described in section 456.3-302 and the interests of the person represented are subject to the power; (2) The conservator, conservator ad litem, or guardian described in subdivision* (1), (2), or (3) of section 456.3-303 and the person represented is disabled; or (3) A parent described in subdivision (4) of section 456.3-303 and the person represented is a minor or unborn child of the parent. 3. Except as otherwise provided in sections 456.4A-411 and 456.6-602, a person who under sections 456.3-301 to 456.3-305 may represent a settlor who lacks capacity may receive notice and give a binding consent on the settlor's behalf. 4. A settlor may not represent and bind a beneficiary under sections 456.3-301 to 456.3-305 with respect to the termination or modification of a trust under section 456.4A-411. (L. 2004 H.B. 1511, A.L. 2006 S.B. 892, A.L. 2011 S.B. 59)
Representation by holder of general testamentary power of appointment.
456.3-302. The holder of a testamentary power of appointment may represent and bind persons whose interests, as permissible appointees, takers in default, or otherwise, are subject to the power. In this section "testamentary power of appointment" means a testamentary power of appointment exercisable without the consent of the creator of the power or person holding an adverse interest in favor of: (1) a class of appointees that includes the holder, the holder's estate, the holder's creditors, or the creditors of the holder's estate; or (2) all persons other than the holder, the holder's estate, the holder's creditor's, or the creditors of the holder's estate. (L. 2004 H.B. 1511)
Representation by fiduciaries and parents.
456.3-303. To the extent there is no conflict of interest between the representative and the person represented or among those being represented with respect to a particular question or dispute: (1) a conservator may represent and bind the estate that the conservator controls; (2) a conservator ad litem may represent and bind the ward with respect to a particular question or dispute over which a conservator does not have authority; (3) a guardian may represent and bind the ward with respect to a particular question or dispute if a conservator or conservator ad litem is not authorized to act with respect to that particular question or dispute; (4) a parent may represent and bind the parent's minor or unborn child if a conservator, conservator ad litem, or guardian for the child has not been appointed; (5) an agent having authority to act with respect to the particular question or dispute may represent and bind the principal; (6) a trustee may represent and bind the beneficiaries of the trust; and (7) a personal representative of a decedent's estate may represent and bind persons interested in the estate. (L. 2004 H.B. 1511)
Representation by person having substantially identical interest.
456.3-304. 1. Unless otherwise represented, a minor, incapacitated, or unborn individual, or a person whose identity or location is unknown and not reasonably ascertainable, may be represented by and bound by another having a substantially identical interest with respect to the particular question or dispute, but only to the extent there is no conflict of interest between the representative and the person represented with respect to a particular question or dispute. 2. Unless otherwise represented, a beneficiary who is not a qualified beneficiary may be represented by and bound by a qualified beneficiary having a substantially identical interest with respect to the particular question or dispute, but only to the extent there is no conflict of interest with respect to the particular question or dispute between the representative and the person represented, in any court proceeding under subsection 2 of section 456.4-412, or in a nonjudicial settlement agreement entered into under section 456.1-111 in lieu of such a court proceeding. (L. 2004 H.B. 1511, A.L. 2006 S.B. 892)
Appointment of representative.
456.3-305. 1. If the court determines that an interest is not represented under sections 456.3-301 to 456.3-305 or that the otherwise available representation might be inadequate, the court may appoint a representative to receive notice, give consent, and otherwise represent, bind, and act on behalf of a minor, incapacitated, or unborn individual, or a person whose identity or location is unknown. A representative may be appointed to represent several persons or interests. 2. A representative may act on behalf of the individual represented with respect to any matter arising under sections 456.1-101 to 456.11-1106, whether or not a judicial proceeding concerning the trust is pending. 3. In making decisions, a representative may consider general benefits accruing to the living members of the individual's family. (L. 2004 H.B. 1511)
Methods of creating trust.
456.4-401. A trust may be created by: (1) transfer of property to another person as trustee during the settlor's lifetime or by will or other disposition taking effect upon the settlor's death; (2) declaration by the owner of property that the owner holds identifiable property as trustee; (3) exercise of a power of appointment in favor of a trustee; or (4) a court under section 475.092, 475.093, or 511.030, or 42 U.S.C. Section 1396p(d)(4). (L. 2004 H.B. 1511, A.L. 2006 S.B. 892)
Requirements for creation.
456.4-402. 1. Other than for a trust created by section 475.092, 475.093, or 511.030, or 42 U.S.C. Section 1396p(d)(4), a trust is created only if: (1) the settlor has capacity to create a trust; (2) the settlor indicates an intention to create the trust; (3) the trust has a definite beneficiary or is: (a) a charitable trust; (b) a trust for the care of an animal, as provided in section 456.4-408; or (c) a trust for a noncharitable purpose, as provided in section 456.4-409; (4) the trustee has duties to perform; and (5) the same person is not the sole trustee and sole beneficiary. 2. A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities. 3. A power in a trustee to select a beneficiary from an indefinite class is valid. If the power is not exercised within a reasonable time, the power fails and the property subject to the power passes to the persons who would have taken the property had the power not been conferred. (L. 2004 H.B. 1511, A.L. 2006 S.B. 892)
Trusts created in other jurisdictions.
456.4-403. A trust not created by will is validly created if its creation complies with the law of the jurisdiction in which the trust instrument was executed, or the law of the jurisdiction in which, at the time of creation: (1) the settlor was domiciled, had a place of abode, or was a national; (2) a trustee was domiciled or had a place of business; or (3) any trust property was located. (L. 2004 H.B. 1511)
Trust purposes.
456.4-404. A trust may be created only to the extent its purposes are lawful, not contrary to public policy, and possible to achieve. A trust and its terms must be for the benefit of its beneficiaries. (L. 2004 H.B. 1511)
Charitable purposes--enforcement.
456.4-405. 1. A charitable trust may be created for the relief of poverty, the advancement of education or religion, the promotion of health, governmental or municipal purposes, or other purposes the achievement of which is beneficial to the community. 2. If the terms of a charitable trust do not indicate a particular charitable purpose or beneficiary, the court may select one or more charitable purposes or beneficiaries. The selection must be consistent with the settlor's intention to the extent it can be ascertained. 3. The settlor of a charitable trust, among others, may maintain a proceeding to enforce the trust. (L. 2004 H.B. 1511)
Creation of trust induced by fraud, duress, or undue influence.
456.4-406. A trust is void to the extent its creation was induced by fraud, duress, or undue influence. (L. 2004 H.B. 1511)
Evidence of oral trust.
456.4-407. 1. Except as provided in subsection 2 of this section, a trust need not be evidenced by a trust instrument, but the creation of an oral trust and its terms may be established only by clear and convincing evidence. 2. Other than for a conveyance by which a trust may arise or result by the implication or construction of law, all declarations or creations of trust of any lands, tenements or hereditaments shall be manifested and proved by some writing signed by the party who is, or shall be, by law, enabled to declare such trusts, or by the party's last will, in writing, or else they shall be void. (L. 2004 H.B. 1511)
Trust for care of animal.
456.4-408. 1. A trust may be created to provide for the care of an animal alive during the settlor's lifetime. The trust terminates upon the death of the animal or, if the trust was created to provide for the care of more than one animal alive during the settlor's lifetime, upon the death of the last surviving animal. 2. A trust authorized by this section may be enforced by a person appointed in the terms of the trust or, if no person is so appointed, by a person appointed by the court. A person having an interest in the welfare of the animal may request the court to appoint a person to enforce the trust or to remove a person appointed. 3. Property of a trust authorized by this section may be applied only to its intended use, except to the extent the court determines that the value of the trust property exceeds the amount required for the intended use. Except as otherwise provided in the terms of the trust, property not required for the intended use must be distributed to the settlor, if then living, otherwise to the settlor's successors in interest. (L. 2004 H.B. 1511)
456.4-409. Except as otherwise provided in section 456.4-408 or by another statute, the following rules apply: (1) A trust may be created for a noncharitable purpose without a definite or definitely ascertainable beneficiary or for a noncharitable but otherwise valid purpose to be selected by the trustee. The trust may not be enforced for more than twenty-one years. (2) A trust authorized by this section may be enforced by a person appointed in the terms of the trust or, if no person is so appointed, by a person appointed by the court. (3) Property of a trust authorized by this section may be applied only to its intended use, except to the extent the court determines that the value of the trust property exceeds the amount required for the intended use. Except as otherwise provided in the terms of the trust, property not required for the intended use must be distributed to the settlor, if then living, otherwise to the settlor's successors in interest. (L. 2004 H.B. 1511)
Modification or termination of trust--proceedings for approval ordisapproval.
456.4-410. 1. In addition to the methods of termination prescribed by sections 456.4A-411 to 456.4-414, a trust terminates to the extent the trust is revoked or expires pursuant to its terms, no purpose of the trust remains to be achieved, or the purposes of the trust have become unlawful, contrary to public policy, or impossible to achieve. 2. A proceeding to approve or disapprove a proposed modification or termination under sections 456.4A-411 to 456.4-416, or trust combination or division under section 456.4-417, may be commenced by a trustee or beneficiary, and a proceeding to approve or disapprove a proposed modification or termination under section 456.4A-411 may be commenced by the settlor. The settlor of a charitable trust may maintain a proceeding to modify the trust under section 456.4-413. (L. 2004 H.B. 1511)
Modification or termination because of unanticipated circumstancesor inability to administer trust effectively.
456.4-412. 1. The court may modify the dispositive terms of a trust or terminate the trust if, because of circumstances not anticipated by the settlor, modification or termination will further the purposes of the trust. To the extent practicable, the modification must be made in accordance with the settlor's probable intention. 2. The court may modify the management or administrative terms of a trust if modification will further the purposes of the trust. 3. Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust. (L. 2004 H.B. 1511)
456.4-413. 1. Except as otherwise provided in subsection 2 of this section, if a particular charitable purpose becomes unlawful, impracticable, impossible to achieve, or wasteful: (1) the trust does not fail, in whole or in part; (2) the trust property does not revert to the settlor or the settlor's successors in interest; and (3) the court may apply cy pres to modify or terminate the trust by directing that the trust property be applied or distributed, in whole or in part, in a manner consistent with the settlor's charitable purposes. 2. A provision in the terms of a charitable trust that would result in distribution of the trust property to a noncharitable beneficiary prevails over the power of the court under subsection 1 of this section to apply cy pres to modify or terminate the trust only if, when the provision takes effect: (1) the trust property is to revert to the settlor and the settlor is still living; or (2) fewer than twenty-one years have elapsed since the date of the trust's creation. (L. 2004 H.B. 1511)
Modification or termination of uneconomic trust.
456.4-414. 1. After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property having a total value less than one hundred thousand dollars may terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration. 2. The court may modify or terminate a trust or remove the trustee and appoint a different trustee if it determines that the value of the trust property is insufficient to justify the cost of administration. 3. Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust. 4. This section does not apply to an easement for conservation or preservation. (L. 2004 H.B. 1511)
456.4-415. The court may reform the terms of a trust, even if unambiguous, to conform the terms to the settlor's intention if it is proved by clear and convincing evidence that both the settlor's intent and the terms of the trust were affected by a mistake of fact or law, whether in expression or inducement. (L. 2004 H.B. 1511)
Modification to achieve settlor's tax objectives.
456.4-416. To achieve the settlor's tax objectives, the court may modify the terms of a trust in a manner that is not contrary to the settlor's probable intention. The court may provide that the modification has retroactive effect. (L. 2004 H.B. 1511)
456.4-417. After notice to the qualified beneficiaries, a trustee may combine two or more trusts into a single trust or divide a trust into two or more separate trusts, if the result does not impair rights of any beneficiary or adversely affect achievement of the purposes of the trust. The terms of each new trust created by a division under this section do not have to be identical if the interest of each beneficiary is substantially the same under the terms of the trust prior to its division and the combined terms of all trusts after the division. Two or more trusts may be combined into a single trust if the interests of each beneficiary in the trust resulting from the combination are substantially the same as the combined interests of the beneficiary in the trusts prior to the combination. The trustee shall determine the terms controlling any trust after its combination as authorized by this section. (L. 2004 H.B. 1511)
Distribution of trust income or principal to qualified remainderbeneficiary, when--applicability to irrevocable trust, when.
456.4-418. 1. During any period of time that this section applies to an irrevocable trust, the trustee shall have the authority in its discretion to distribute trust income or principal to a qualified remainder beneficiary of the trust. For purposes of this section, a "qualified remainder beneficiary" is a descendant of a permissible distributee who will be eligible to receive distributions of trust income or principal, whether mandatory or discretionary, upon the termination of the interest of such permissible distributee or upon the termination of the trust. 2. This section shall apply to an irrevocable trust that is administered in this state if: (1) The trustee may distribute trust income or principal to one or more permissible distributees; (2) No distributions of trust income or principal have been made to any permissible distributee during the ten-year period preceding the notice required by subsection 5 of this section; (3) The trustee determines that there will be sufficient assets in the trust for the trustee to meet its obligations to the permissible distributees after any distributions authorized by this section; (4) The trustee determines that the application of this section to the trust is not inconsistent with a material purpose of the trust; (5) The trustee determines that the application of this section to a trust that is exempt from the federal generation-skipping transfer tax will not cause the trust to become subject to such tax; and (6) The trust became irrevocable on or before September 25, 1985. 3. After the trustee determines that this section applies to a trust, this section shall continue to apply to the trust until the first to occur of the following: (1) The termination of the interests of all the beneficiaries who were permissible distributees on the date of the notice required by subsection 5 of this section; (2) The termination of the trust; or (3) The trustee determines that additional distributions under this section will impair the ability of the trustee to meet its obligation to the permissible distributees. 4. A spendthrift provision in the terms of a trust is not presumed inconsistent with the application of this section to the trust. 5. The trustee shall notify the qualified beneficiaries of the trust that the trustee has determined that this section applies to a trust not less than sixty days before distributing trust income or principal to any qualified remainder beneficiary. 6. A trustee acting in good faith shall not be liable to any beneficiary for acting or failing to act under this section. (L. 2009 H.B. 239)
Distributions of income and principal of first trusts and secondtrusts, discretionary power of trustee--notice requirements.
456.4-419. 1. Unless the terms of the trust instrument expressly provide otherwise, a trustee who has discretionary power under the terms of a trust to make a distribution of income or principal, whether or not limited by an ascertainable standard, to or for the benefit of one or more beneficiaries of a trust, the first trust, may instead exercise such discretionary power by appointing all or part of the income or principal subject to such discretionary power in favor of a trustee of a second trust, the second trust, created under either the same or different trust instrument in the event that the trustee of the first trust decides that the appointment is necessary or desirable after taking into account the terms and purposes of the first trust, the terms and purposes of the second trust, and the consequences of the distribution. 2. The following provisions apply to any exercise of the authority granted by subsection 1 of this section: (1) The second trust may have as beneficiaries only one or more of those beneficiaries of the first trust to or for whom any discretionary distribution may be made from the first trust and who are proper objects of the exercise of the power, or one or more of those other beneficiaries of the first trust to or for whom a distribution of income or principal may have been made in the future from the first trust at a time or upon the happening of an event specified under the first trust; (2) Unless the exercise of such power is limited by an ascertainable standard, no trustee of the first trust may exercise such authority to make a distribution from the first trust if: (a) Such trustee is a beneficiary of the first trust; or (b) Any beneficiary may remove and replace the trustee of the first trust with a related or subordinate party to such beneficiary within the meaning of Section 672(c) of the Internal Revenue Code; (3) Except if participating in a change that is needed for a distribution to any such beneficiary under an ascertainable standard, no trustee shall exercise such authority to the extent that doing so would have the effect either of: (a) Increasing the distributions that can be made in the future from the second trust to the trustee of the first trust or to a beneficiary who can remove and replace the trustee of the first trust with a related or subordinate party to such beneficiary within the meaning of Section 672(c) of the Internal Revenue Code; or (b) Removing restrictions on discretionary distributions imposed by the instrument under which the first trust was created; (4) In the case of any trust contributions which have been treated as gifts qualifying for the exclusion from gift tax described in Section 2503(b) of the Internal Revenue Code, by reason of the application of Section 2503(c), the governing instrument for the second trust shall provide that the beneficiary's remainder interest shall vest no later than the date upon which such interest would have vested under the terms of the governing instrument for the first trust; (5) The exercise of such authority may not reduce any income interest of any income beneficiary of any of the following trusts: (a) A trust for which a marital deduction has been taken for federal tax purposes under Section 2056 or 2523 of the Internal Revenue Code or for state tax purposes under any comparable provision of applicable state law; (b) A charitable remainder trust under Section 664 of the Internal Revenue Code; (c) A grantor retained annuity trust under Section 2702 of the Internal Revenue Code; or (d) A trust which has been qualified as a Subchapter S trust under Section 1361(d) of the Internal Revenue Code or an electing small business trust under Section 1361(e) of the Internal Revenue Code; (6) The exercise of such authority does not apply to trust property subject to a presently exercisable power of withdrawal held by a trust beneficiary to whom, or for the benefit of whom, the trustee has authority to make distributions, unless after the exercise of such authority, such beneficiary's power of withdrawal is unchanged with respect to the trust property; and (7) A spendthrift clause or a provision in the trust instrument that prohibits amendment or revocation of the trust shall not preclude the trustee from exercising the authority granted by subsection 1 of this section. 3. At least sixty days prior to making a discretionary distribution under subsection 1 of this section, the trustee of the first trust shall notify the permissible distributees of the second trust, or the qualified beneficiaries of the second trust if there are no permissible distributees of the second trust, of the distribution. A beneficiary may waive the right to the notice required by this subsection and, with respect to future distributions, may withdraw a waiver previously given. 4. In exercising the authority granted by subsection 1 of this section, the trustee shall remain subject to all fiduciary duties otherwise imposed under the trust instrument and Missouri law. 5. This section does not impose on a trustee a duty to exercise the authority granted by subsection 1 of this section in favor of another trust or to consider exercising such authority in favor of another trust. 6. This section is intended to codify and, from and after enactment, to provide certain limitations to the common law of this state, and this section applies to any trust governed by the laws of this state, including a trust whose principal place of administration is transferred to this state before or after the enactment of this section. (L. 2011 S.B. 59)
No-contest clause, claims for relief.
456.4-420. 1. If a trust instrument containing a no-contest clause is or has become irrevocable, an interested person may file a petition to the court for an interlocutory determination whether a particular motion, petition, or other claim for relief by the interested person would trigger application of the no-contest clause or would otherwise trigger a forfeiture that is enforceable under applicable law and public policy. 2. The petition described in subsection 1 of this section shall be verified under oath. The petition may be filed by an interested person either as a separate judicial proceeding, or brought with other claims for relief in a single judicial proceeding, all in the manner prescribed generally for such proceedings under this chapter. If a petition is joined with other claims for relief, the court shall enter its order or judgment on the petition before proceeding any further with any other claim for relief joined therein. In ruling on such a petition, the court shall consider the text of the clause, the context to the terms of the trust instrument as a whole, and in the context of the verified factual allegations in the petition. No evidence beyond the pleadings and the trust instrument shall be taken except as required to resolve an ambiguity in the no-contest clause. 3. An order or judgment determining a petition described in subsection 1 of this section shall have the effect set forth in subsections 4 and 5 of this section, and shall be subject to appeal as with other final judgments. If the order disposes of fewer than all claims for relief in a judicial proceeding, that order is subject to interlocutory appeal in accordance with the applicable rules for taking such an appeal. If an interlocutory appeal is taken, the court may stay the pending judicial proceeding until final disposition of said appeal on such terms and conditions as the court deems reasonable and proper under the circumstances. A final ruling on the applicability of a no-contest clause shall not preclude any later filing and adjudication of other claims related to the trust. 4. An order or judgment, in whole or in part, on a petition described in subsection 1 of this section shall result in the no-contest clause being enforceable to the extent of the court's ruling, and shall govern application of the no-contest clause to the extent that the interested person then proceeds forward with the claims described therein. In the event such an interlocutory order or judgment is vacated, reversed, or otherwise modified on appeal, no interested person shall be prejudiced by any reliance, through action, inaction, or otherwise, on the order or judgment prior to final disposition of the appeal. 5. An order or judgment shall have effect only as to the specific trust terms and factual basis recited in the petition. If claims are later filed that are materially different than those upon which the order or judgment is based, then to the extent such new claims are raised, the party in whose favor the order or judgment was entered shall have no protection from enforcement of the no-contest clause otherwise afforded by the order and judgment entered under this section. 6. For purposes of this section, a "no-contest clause" shall mean a provision in a trust instrument purporting to rescind a donative transfer to, or a fiduciary appointment of, any person, or that otherwise effects a forfeiture of some or all of an interested person's beneficial interest in a trust estate as a result of some action taken by the beneficiary. This definition shall not be construed in any way as determining whether a no-contest clause is enforceable under applicable law and public policy in a particular factual situation. As used in this section, the term "no-contest clause" shall also mean an "in terrorem clause". 7. A no-contest clause is not enforceable against an interested person in, but not limited to, the following circumstances: (1) Filing a motion, petition, or other claim for relief objecting to the jurisdiction or venue of the court over a proceeding concerning a trust, or over any person joined, or attempted to be joined, in such a proceeding; (2) Filing a motion, petition, or other claim for relief concerning an accounting, report, or notice that has or should have been made by a trustee, provided the interested person otherwise has standing to do so under applicable law, including, but not limited to, section 456.6-603; (3) Filing a motion, petition, or other claim for relief under chapter 475 concerning the appointment of a guardian or conservator for the settlor; (4) Filing a motion, petition, or other claim for relief under chapter 404 concerning the settlor; (5) Disclosure to any person of information concerning a trust instrument or that is relevant to a proceeding before the court concerning the trust instrument or property of the trust estate, unless such disclosure is otherwise prohibited by law; (6) Filing a motion, pleading, or other claim for relief seeking approval of a nonjudicial settlement agreement concerning a trust instrument, as set forth in section 456.1-111; (7) To the extent a petition under subsection 1 of this section is limited to the procedure and purpose described therein. 8. In any proceeding brought under this section, the court may award costs, expenses, and attorneys' fees to any party, as provided in section 456.10-1004. (L. 2014 H.B. 1231 merged with S.B. 500 merged with S.B. 621)
Modification or termination of noncharitable irrevocable trust byconsent, exceptions.
456.4A-411. 1. Except for a trust established by a court under section 475.092, 475.093, 511.030, or 42 U.S.C. Section 1396p(d)(4), a noncharitable irrevocable trust may be modified or terminated upon consent of the settlor and all beneficiaries, without court approval, even if the modification or termination is inconsistent with a material purpose of the trust. A settlor's power to consent to a trust's termination or modification may be exercised by an agent under a power of attorney only to the extent expressly authorized by the power of attorney or the terms of the trust; by the settlor's conservator with the approval of the court supervising the conservatorship if an agent is not so authorized; or by the settlor's conservator ad litem with the approval of the court if an agent is not so authorized and a conservator has not been appointed. 2. Upon termination of a trust under subsection 1 of this section, the trustee shall distribute the trust property as agreed by the beneficiaries. 3. If not all of the beneficiaries consent to a proposed modification or termination of the trust under subsection 1 of this section, the modification or termination may be approved by the court if the court is satisfied that: (1) if all of the beneficiaries had consented, the trust could have been modified or terminated under subsection 1 of this section; and (2) the interests of a beneficiary who does not consent will be adequately protected. (L. 2004 H.B. 1511 § 456.4-411A, A.L. 2006 S.B. 892 § 456.4-411A)
Modification or termination of noncharitable irrevocable trust byconsent--applicability.
456.4B-411. 1. When all of the adult beneficiaries having the capacity to contract consent, the court may, upon finding that the interest of any nonconsenting beneficiary will be adequately protected, modify the terms of a noncharitable irrevocable trust so as to reduce or eliminate the interests of some beneficiaries and increase those of others, change the times or amounts of payments and distributions to beneficiaries, or provide for termination of the trust at a time earlier or later than that specified by its terms. The court may at any time upon its own motion appoint a representative pursuant to section 456.3-305 to represent a nonconsenting beneficiary. The court shall appoint such a representative upon the motion of any party, unless the court determines such an appointment is not appropriate under the circumstances. 2. Upon termination of a trust under subsection 1 of this section, the trustee shall distribute the trust property as directed by the court. 3. If a trust cannot be terminated or modified under subsection 1 of this section because not all adult beneficiaries having capacity to contract consent or the terms of the trust prevent such modification or termination, the modification or termination may be approved by the court if the court is satisfied that the interests of a beneficiary, other than the settlor, who does not consent will be adequately protected, modification or termination will benefit a living settlor who is also a beneficiary, and: (1) in the case of a termination, the party seeking termination establishes that continuance of the trust is not necessary to achieve any material purpose of the trust; or (2) in the case of a modification, the party seeking modification establishes that the modification is not inconsistent with a material purpose of the trust, and the modification is not specifically prohibited by the terms of the trust. 4. This section shall apply to trusts created under trust instruments that become irrevocable on or after January 1, 2005. The provisions of section 456.590 shall apply to all trusts that were created under trust instruments that become irrevocable prior to January 1, 2005. (L. 2004 H.B. 1511 § 456.4-411B, A.L. 2006 S.B. 892 § 456.4-411B)
Rights of beneficiary's creditor or assignee, exceptions.
456.5-501. Except as otherwise provided in sections 456.5-502 to 456.5-507, to the extent a beneficiary's interest is not subject to a spendthrift provision, an assignee or a judgment creditor of the beneficiary may, without court order, reach the beneficiary's interest by attachment of present or future distributions to or for the benefit of the beneficiary or other means. The court may limit the award to such relief as is appropriate under the circumstances. (L. 2004 H.B. 1511, A.L. 2006 S.B. 892, A.L. 2007 H.B. 220)
Spendthrift provision.
456.5-502. 1. A spendthrift provision is valid if it restrains either the voluntary or involuntary transfer or both the voluntary and involuntary transfer of a beneficiary's interest. 2. A term of a trust providing that the interest of a beneficiary is held subject to a "spendthrift trust," or words of similar import, is sufficient to restrain both voluntary and involuntary transfers of the beneficiary's interest. 3. A beneficiary may not transfer an interest in a trust in violation of a valid spendthrift provision and, except as otherwise provided in sections 456.5-501 to 456.5-507, a creditor or assignee of the beneficiary may not reach the interest or a distribution by the trustee before its receipt by the beneficiary. (L. 2004 H.B. 1511)
Exceptions to spendthrift provision.
456.5-503. 1. In this section, (1) "Child" includes any person for whom an order or judgment for child support has been entered in this or another state, and (2) "Judgment" means a judgment which may be executed in this state. 2. Even if a trust contains a spendthrift provision, a beneficiary's child, spouse, or former spouse who has a judgment against the beneficiary for support or maintenance, or a judgment creditor who has provided services for the protection of a beneficiary's interest in the trust, may obtain from a court an order attaching present or future trust income. If there is more than one permissible distributee, the court may grant relief as is equitable under the circumstances. 3. A spendthrift provision is unenforceable against a claim of this state or the United States to the extent a statute of this state or federal law so provides. (L. 2004 H.B. 1511)
Discretionary trusts, interest not enforceable,when--applicability--effect of standard.
456.5-504. 1. A beneficiary's interest in a trust that is subject to the trustee's discretion does not constitute an interest in property or an enforceable right even if the discretion is expressed in the form of a standard of distribution or the beneficiary is then serving as a trustee or cotrustee. A creditor or other claimant may not attach present or future distributions from such an interest or right, obtain an order from a court forcing the judicial sale of the interest or compelling the trustee to make distributions, or reach the interest or right by any other means, even if the trustee has abused the trustee's discretion. 2. This section does not limit the right of a beneficiary to maintain a judicial proceeding against a trustee for an abuse of discretion or failure to comply with a standard for distribution. 3. This section applies whether or not an interest is subject to a spendthrift provision. 4. For purposes of this section, a beneficiary's interest in a trust is subject to the trustee's discretion if that interest does not constitute a mandatory distribution as defined in subsection 1 of section 456.5-506. (L. 2004 H.B. 1511, A.L. 2006 S.B. 892)
Creditor's claim against settlor.
456.5-505. 1. Whether or not the terms of a trust contain a spendthrift provision, during the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor's creditors. 2. With respect to an irrevocable trust without a spendthrift provision, a creditor or assignee of the settlor may reach the maximum amount that can be distributed to or for the settlor's benefit. If a trust has more than one settlor, the amount the creditor or assignee of a particular settlor may reach may not exceed the settlor's interest in the portion of the trust attributable to that settlor's contribution. 3. With respect to an irrevocable trust with a spendthrift provision, a spendthrift provision will prevent the settlor's creditors from satisfying claims from the trust assets except: (1) Where the conveyance of assets to the trust was fraudulent as to creditors pursuant to the provisions of chapter 428; or (2) To the extent of the settlor's beneficial interest in the trust assets, if at the time the trust became irrevocable: (a) The settlor was the sole beneficiary of either the income or principal of the trust or retained the power to amend the trust; or (b) The settlor was one of a class of beneficiaries and retained a right to receive a specific portion of the income or principal of the trust that was determinable solely from the provisions of the trust instrument. 4. In the event that a trust meets the requirements set forth in subsection 3 of this section, a settlor's creditors may not reach the settlor's beneficial interest in that trust regardless of any testamentary power of appointment retained by the settlor that is exercisable by the settlor in favor of any appointees other than the settlor, the settlor's estate, the settlor's creditors, or the creditors of the settlor's estate. 5. Any trustee who has a duty or power to pay the debts of a deceased settlor may publish a notice in a newspaper published in the county designated in subdivision (3) of this subsection once a week for four consecutive weeks in substantially the following form: To all persons interested in the estate of .............................................., decedent. The undersigned .............................................. is acting as Trustee under a trust the terms of which provide that the debts of the decedent may be paid by the Trustee(s) upon receipt of proper proof thereof. The address of the Trustee is ................................................ All creditors of the decedent are noticed to present their claims to the undersigned within six (6) months from the date of the first publication of this notice or be forever barred. ............................................................ Trustee (1) If such publication is duly made by the trustee, any debts not presented to the trustee within six months from the date of the first publication of the preceding notice shall be forever barred as against the trustee and the trust property. (2) A trustee shall not be liable to account to the decedent's personal representative under the provisions of section 461.300 by reason of any debt barred under the provisions of this subsection. (3) Such publication shall be in a newspaper published in: (a) The county in which the domicile of the settlor at the time of his or her death is situated; (b) If the settlor had no domicile in this state at the time of his or her death, any county wherein trust assets are located; except that, when the major part of the trust assets in this state consist of real estate, the notice shall be published in the county in which the real estate or the major part thereof is located; or (c) If the settlor had no domicile in this state at the time of his or her death and no trust assets are located therein, the county wherein the principal place of administration of the trust is located. (4) For purposes of this subsection, the term "domicile" means the place in which the settlor voluntarily fixed his or her abode, not for a mere special or temporary purpose, but with a present intention of remaining there permanently or for an indefinite term. 6. For purposes of this section: (1) During the period the power may be exercised, the holder of a power of withdrawal is treated in the same manner as the settlor of a revocable trust to the extent of the property subject to the power; and (2) Upon the lapse, release, or waiver of the power, the holder is treated as the settlor of the trust only to the extent the value of the property affected by the lapse, release, or waiver exceeds the greater of the amount specified in Sections 2041(b)(2), 2514(e) or 2503(b) of the Internal Revenue Code. 7. This section shall not apply to a spendthrift trust described, defined, or established in section 456.014. (L. 2004 H.B. 1511, A.L. 2009 H.B. 239, A.L. 2011 S.B. 59)
Mandatory distribution defined--overdue distribution.
456.5-506. 1. As used in this section, "mandatory distribution" means a distribution of income or principal which the trustee is required to make to a beneficiary under the terms of the trust, including a distribution upon termination of the trust. The term does not include a distribution subject to the exercise of the trustee's discretion even if (1) the discretion is expressed in the form of a standard of distribution, or (2) the terms of the trust authorizing a distribution couple language of discretion with language of direction. 2. Whether or not a trust contains a spendthrift provision, a creditor or assignee of a beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not made the distribution to the beneficiary within a reasonable time after the required distribution date. (L. 2004 H.B. 1511, A.L. 2006 S.B. 892)
Personal obligations of trustee.
456.5-507. Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt. (L. 2004 H.B. 1511)
Attachment and judicial sale of trust property prohibited,when--definitions.
456.5-508. 1. A creditor or other claimant of a beneficiary or other person holding a special power of appointment or a testamentary general power of appointment may not attach trust property or beneficial interests subject to the power, obtain an order from a court forcing a judicial sale of the trust property, compel the exercise of the power, or reach the trust property or beneficial interests by any other means. 2. This section shall not limit the ability of a creditor or other claimant to reach a beneficial interest as otherwise provided in sections 456.5-501 to 456.5-507. 3. In this section "special power of appointment" means a power of appointment exercisable in favor of one or more appointees other than the holder, the holder's estate, the holder's creditors, or the creditors of the holder's estate, and a "testamentary general power of appointment" means a power of appointment exercisable at the death of the holder, without the consent of the creator of the power or of a person holding an adverse interest in favor of the holder, the holder's estate, the holder's creditors, or the creditors of the holder's estate. (L. 2011 S.B. 59)
Capacity of settlor of revocable trust.
456.6-601. The capacity required to create, amend, revoke, or add property to a revocable trust, or to direct the actions of the trustee of a revocable trust, is the same as that required to make a will. (L. 2004 H.B. 1511)
Revocation or amendment of revocable trust.
456.6-602. 1. Unless the terms of a trust expressly provide that the trust is irrevocable, the settlor may revoke or amend the trust. This subsection does not apply to a trust created under an instrument executed before January 1, 2005. 2. If a revocable trust is created or funded by more than one settlor: (1) to the extent the trust consists of community property, the trust may be revoked by either spouse acting alone but may be amended only by joint action of both spouses; and (2) to the extent the trust consists of property other than community property, each settlor may revoke or amend the trust with regard to the portion of the trust property attributable to that settlor's contribution. 3. The settlor may revoke or amend a revocable trust: (1) if the terms of the trust provide a method of amendment or revocation, by substantially complying with any method provided in the terms of the trust; or (2) if the terms of the trust do not provide a method, by any other method manifesting clear and convincing evidence of the settlor's intent, including the terms of a later duly probated will or codicil that identify the trust being revoked or the trust terms being amended. 4. Upon revocation of a revocable trust, the trustee shall deliver the trust property as the settlor directs. 5. A settlor's powers with respect to revocation, amendment, or distribution of trust property may be exercised by an agent under a power of attorney only to the extent expressly authorized by the terms of the trust or the power. 6. A conservator of the settlor or, if no conservator has been appointed, a conservator ad litem of the settlor may exercise a settlor's powers with respect to revocation, amendment, or distribution of trust property only with the approval of the court supervising the conservator or the conservator ad litem. 7. A trustee who does not know that a trust has been revoked or amended is not liable to the settlor or settlor's successors in interest for distributions made and other actions taken on the assumption that the trust had not been amended or revoked. (L. 2004 H.B. 1511)
Settlor's powers--powers of withdrawal.
456.6-603. 1. While a trust is revocable and the settlor has capacity to revoke the trust, rights of the beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the settlor. 2. A settlor is presumed to have capacity for the purposes of subsection 1 of this section until either the settlor is adjudicated totally incapacitated or disabled or the trustee has received an affidavit of incapacity. 3. If a revocable trust has more than one settlor, the duties of the trustee are owed to all of the settlors having capacity to revoke the trust. 4. During the period the power may be exercised, the holder of a power of withdrawal has the rights of a settlor of a revocable trust under this section to the extent of the property subject to the power. 5. In this section, an "affidavit of incapacity" means a written certificate furnished by at least one licensed medical doctor that states that the settlor lacks capacity to revoke the trust. (L. 2004 H.B. 1511)
Limitation on action contesting validity of revocabletrust--distribution of trust property.
456.6-604. 1. A person may commence a judicial proceeding to contest the validity of a trust that was revocable at the settlor's death within the earliest of: (1) two years after the settlor's death; (2) six months after the trustee sent the person a copy of the trust instrument and a notice informing the person of the trust's existence, of the trustee's name and address, and of the time allowed for commencing a proceeding; or (3) in the case of a trust that was revocable at the settlor's death that is entitled to a distribution under the settlor's will, on the date that any contest of that will is barred under the provisions of section 473.083, provided that a copy of the trust instrument was filed with the probate division within ninety days of the first publication of notice of granting of letters on the estate of the decedent under section 473.033. 2. For purposes of subdivision (2) of subsection 1 of this section, the trustee may provide the documentation and information set forth in that subsection to: (1) all persons who would be entitled to notice of granting of letters on the estate of the decedent under section 473.033; and (2) all persons whose interests are, in the opinion of the trustee, adversely affected by the terms of the trust. 3. Upon the death of the settlor of a trust that was revocable at the settlor's death, the trustee may proceed to distribute the trust property in accordance with the terms of the trust. The trustee is not subject to liability for doing so unless: (1) the trustee knows of a pending judicial proceeding contesting the validity of the trust; or (2) a potential contestant has notified the trustee of a possible judicial proceeding to contest the trust and a judicial proceeding is commenced within sixty days after the contestant sent the notification. 4. A beneficiary of a trust that is determined to have been invalid is liable to return any distribution received. (L. 2004 H.B. 1511)
Accepting of declining trusteeship.
456.7-701. 1. Except as otherwise provided in subsection 3 of this section, a person designated as trustee accepts the trusteeship: (1) by substantially complying with a method of acceptance provided in the terms of the trust; or (2) if the terms of the trust do not provide a method or the method provided in the terms is not expressly made exclusive, by accepting delivery of the trust property, exercising powers or performing duties as trustee, or otherwise indicating acceptance of the trusteeship. 2. A person designated as trustee who has not yet accepted the trusteeship may decline the trusteeship. A designated trustee who does not accept the trusteeship within a reasonable time after knowing of the designation is deemed to have declined the trusteeship. 3. A person designated as trustee, without accepting the trusteeship, may:
(1) act to preserve the trust property if, within a reasonable time after acting, the person sends a declination of the trusteeship to the settlor or, if the settlor is dead or lacks capacity, to a qualified beneficiary; and (2) inspect or investigate trust property to determine potential liability under environmental or other law or for any other purpose. (L. 2004 H.B. 1511)
Trustee's bond.
456.7-702. 1. A trustee shall give bond to secure performance of the trustee's duties only if the court finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust and the court has not dispensed with the requirement. 2. The court may specify the amount of a bond, its liabilities, and whether sureties are necessary. The court may modify or terminate a bond at any time. (L. 2004 H.B. 1511)
456.7-703. 1. Cotrustees shall act by majority decision. 2. If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the trust. 3. A cotrustee must participate in the performance of a trustee's function unless the cotrustee is unavailable to perform the function because of absence, illness, disqualification under other law, or other temporary incapacity or the cotrustee has properly delegated the performance of the function to another trustee. 4. If a cotrustee is unavailable to perform duties because of absence, illness, disqualification under other law, or other temporary incapacity, and prompt action is necessary to achieve the purposes of the trust or to avoid injury to the trust property, the remaining cotrustee or a majority of the remaining cotrustees may act for the trust. 5. A trustee may delegate to a cotrustee the performance of a function in accordance with subsection 1 of section 456.8-807. Unless a delegation was irrevocable, a trustee may revoke a delegation previously made. 6. Except as otherwise provided in subsection 7 of this section, a trustee who does not join in an action of another trustee is not liable for the action. 7. Each trustee shall exercise reasonable care to: (1) prevent a cotrustee from committing a serious breach of trust; and (2) compel a cotrustee to redress a serious breach of trust. 8. A dissenting trustee who joins in an action at the direction of the majority of the trustees and who notified any cotrustee of the dissent at or before the time of the action is not liable for the action unless the action is a serious breach of trust. (L. 2004 H.B. 1511, A.L. 2006 S.B. 892)
Vacancy in trusteeship--appointment of successor.
456.7-704. 1. A vacancy in a trusteeship occurs if: (1) a person designated as trustee declines the trusteeship; (2) a person designated as trustee cannot be identified or does not exist; (3) a trustee resigns; (4) a trustee is disqualified or removed; (5) a trustee dies; or (6) a guardian or conservator is appointed for an individual serving as trustee. 2. If one or more cotrustees remain in office, a vacancy in a trusteeship need not be filled. A vacancy in a trusteeship must be filled if the trust has no remaining trustee. 3. A vacancy in a trusteeship required to be filled must be filled in the following order of priority: (1) by a person designated in or pursuant to the terms of the trust to act as successor trustee; (2) by a person appointed by a majority in number of the qualified beneficiaries; or (3) by a person appointed by the court. 4. Whether or not a vacancy in a trusteeship exists or is required to be filled, the court may appoint an additional trustee or special fiduciary whenever the court considers the appointment necessary for the administration of the trust. (L. 2004 H.B. 1511)
456.7-705. 1. A trustee may resign: (1) upon at least 30 days' notice to the qualified beneficiaries, the settlor, if living, and all cotrustees; or (2) with the approval of the court. 2. In approving a resignation, the court may issue orders and impose conditions reasonably necessary for the protection of the trust property. 3. Any liability of a resigning trustee or of any sureties on the trustee's bond for acts or omissions of the trustee is not discharged or affected by the trustee's resignation. (L. 2004 H.B. 1511)
456.7-706. 1. The settlor, a cotrustee, or a qualified beneficiary may request the court to remove a trustee, or a trustee may be removed by the court on its own initiative. 2. The court may remove a trustee if: (1) the trustee has committed a serious breach of trust; (2) lack of cooperation among cotrustees substantially impairs the administration of the trust; (3) because of unfitness, unwillingness, or persistent failure of the trustee to administer the trust effectively, the court determines that removal of the trustee best serves the interests of the beneficiaries; or (4) the trustee has substantially and materially reduced the level of services provided to that trust and has failed to reinstate a substantially equivalent level of services within ninety days after receipt of notice by the settlor, a cotrustee, or a qualified beneficiary or removal is requested by all of the qualified beneficiaries and in either such case the party seeking removal establishes to the court that: (a) removal of the trustee best serves the interests of all of the beneficiaries; (b) removal of the trustee is not inconsistent with a material purpose of the trust; and (c) a suitable cotrustee or successor trustee is available and willing to serve. 3. In an action to remove a trustee under subdivision (4) of subsection 2 of this section, the following apply: (1) In the event that a corporation is the trustee being removed, a suitable replacement cotrustee or successor trustee shall be another corporation qualified to conduct trust business in this state. (2) In the event that a successor trustee is not appointed under the provisions of section 456.7-704 or the court finds that all potential successor trustees are not suitable, then the court may appoint such trustee or trustees as the court finds suitable under the circumstances. (3) With respect to a trust created under an instrument executed before January 1, 2005, the provisions of subdivision (4) of subsection 2 of this section shall not apply if the instrument contains any procedures concerning removal of any trustee. 4. Pending a final decision on a request to remove a trustee, or in lieu of or in addition to removing a trustee, the court may order such appropriate relief under subsection 2 of section 456.10-1001 as may be necessary to protect the trust property or the interests of the beneficiaries. (L. 2004 H.B. 1511)
456.7-707. 1. Unless a cotrustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee or other person entitled to it, a trustee who has resigned or been removed has the duties of a trustee and the powers necessary to protect the trust property. 2. A trustee who has resigned or been removed shall proceed expeditiously to deliver the trust property within the trustee's possession to the cotrustee, successor trustee, or other person entitled to it. (L. 2004 H.B. 1511)
456.7-708. 1. If the terms of a trust do not specify the trustee's compensation, a trustee is entitled to compensation that is reasonable under the circumstances. 2. If the terms of a trust specify the trustee's compensation, the trustee is entitled to be compensated as specified, but the court may allow more or less compensation if: (1) the duties of the trustee are substantially different from those contemplated when the trust was created; or (2) the compensation specified by the terms of the trust would be unreasonably low or high. 3. For purposes of this section, reasonable compensation may include fees that take into account the administration of both income and principal whether or not the will or trust instrument contains provisions relating to compensation of the trustee. (L. 2004 H.B. 1511)
456.7-709. 1. A trustee is entitled to be reimbursed out of the trust property, with interest as appropriate, for: (1) expenses that were properly incurred in the administration of the trust; and (2) to the extent necessary to prevent unjust enrichment of the trust, expenses that were not properly incurred in the administration of the trust. 2. An advance by the trustee of money for the protection of the trust gives rise to a lien against trust property to secure reimbursement with reasonable interest. (L. 2004 H.B. 1511)
456.8-801. Upon acceptance of a trusteeship, the trustee shall administer the trust in good faith, in accordance with its terms and purposes and the interests of the beneficiaries, and in accordance with sections 456.1-101 to 456.11-1106. (L. 2004 H.B. 1511)
456.8-802. 1. A trustee shall administer the trust solely in the interests of the beneficiaries. 2. Subject to the rights of persons dealing with or assisting the trustee as provided in section 456.10-1012, a sale, encumbrance, or other transaction involving the investment or management of trust property entered into by the trustee for the trustee's own personal account or which is otherwise affected by a conflict between the trustee's fiduciary and personal interests is voidable by a beneficiary affected by the transaction unless: (1) the transaction was authorized by the terms of the trust; (2) the transaction was approved by the court; (3) the beneficiary did not commence a judicial proceeding within the time allowed by section 456.10-1005; (4) the beneficiary consented to the trustee's conduct, ratified the transaction, or released the trustee in compliance with section 456.10-1009; or (5) the transaction involves a contract entered into or claim acquired by the trustee before the person became or contemplated becoming trustee. 3. A sale, encumbrance, or other transaction involving the investment or management of trust property is presumed to be affected by a conflict between personal and fiduciary interests if it is entered into by the trustee with: (1) the trustee's spouse; (2) the trustee's descendants, siblings, parents, or their spouses; (3) an agent or attorney of the trustee; or (4) a corporation or other person or enterprise in which the trustee, or a person that owns a significant interest in the trustee, has an interest that might affect the trustee's best judgment. 4. A transaction between a trustee and a beneficiary that does not concern trust property but that occurs during the existence of the trust or while the trustee retains significant influence over the beneficiary and from which the trustee obtains an advantage is voidable by the beneficiary unless the trustee establishes that the transaction was fair to the beneficiary. 5. A transaction not concerning trust property in which the trustee engages in the trustee's individual capacity involves a conflict between personal and fiduciary interests if the transaction concerns an opportunity properly belonging to the trust. 6. The following transactions are not presumed to be affected by a conflict between the trustee's personal and fiduciary interest provided that any investment made pursuant to the transaction complies with the Missouri prudent investor act. (1) an investment by a trustee in securities of an investment company or investment trust, or in shares or interests in a partnership or limited liability company or other entity that operates as a privately offered investment fund, to which the trustee, or its affiliate, provides services in a capacity other than as trustee. (2) the placing of securities transactions by a trustee through a securities broker that is a part of the same company as the trustee, is owned by the trustee, or is affiliated with the trustee. (3) in addition to the trustee's fees charged to the trust, the trustee, its affiliate, or associated entity may be compensated for any transaction or provision of services described in this subsection 6 or in subdivision (4), (5), or (6) of subsection 8 of this section; provided, however, that with respect to any investment in securities of an investment company or investment trust, or in shares or interests in a partnership or limited liability company or other entity that operates as a privately offered investment fund, to which the trustee or its affiliate provides investment advisory or investment management services or any services described in subdivision (5) of subsection 8 of this section, the trustee shall at least annually notify the persons entitled under section 456.8-813 to receive a copy of the trustee's annual report of the rate or method by which the compensation was determined. 7. In voting shares of stock or in exercising powers of control over similar interests in other forms of enterprise, the trustee shall act in the best interests of the beneficiaries. If the trust is the sole owner of a corporation or other form of enterprise, the trustee shall elect or appoint directors or other managers who will manage the corporation or enterprise in the best interests of the beneficiaries. 8. The following transactions, if fair to the beneficiaries, are not presumed to be affected by a conflict between personal and fiduciary interests and are not precluded by this section: (1) an agreement between a trustee and a beneficiary relating to the appointment or compensation of the trustee; (2) payment of reasonable compensation to the trustee; (3) a transaction between a trust and another trust, decedent's estate, or conservatorship of which the trustee is a fiduciary or in which a beneficiary has an interest; (4) a deposit of trust money in a financial institution operated by the trustee or an affiliate; (5) a delegation and any transaction made pursuant to the delegation from a trustee to an agent that is affiliated or associated with the trustee, provided that notice of any compensation paid pursuant to the delegation is given as provided in subdivision (3) of subsection 6 of this section; or (6) any loan from the trustee or its affiliate. 9. The court may appoint a special fiduciary to make a decision with respect to any proposed transaction that might violate this section if entered into by the trustee. (L. 2004 H.B. 1511, A.L. 2008 S.B. 1235)
456.8-803. If a trust has two or more beneficiaries, the trustee shall act impartially in investing, managing, and distributing the trust property, giving due regard to the beneficiaries' respective interests. (L. 2004 H.B. 1511)
456.8-804. A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distributional requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution. (L. 2004 H.B. 1511)
456.8-805. In administering a trust, the trustee may incur only costs that are reasonable in relation to the trust property, the purposes of the trust, and the skills of the trustee. (L. 2004 H.B. 1511)
Trustee's skills.
456.8-806. A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, shall use those special skills or expertise. (L. 2004 H.B. 1511)
456.8-807. 1. A trustee may delegate to an agent duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in: (1) selecting an agent; (2) establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and (3) periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the terms of the delegation. 2. In performing a delegated function, an agent owes a duty to the trust to exercise reasonable care to comply with the terms of the delegation. 3. A trustee who complies with subsection 1 of this section is not liable to the beneficiaries or to the trust for an action of the agent to whom the function was delegated. 4. By accepting a delegation of powers or duties from the trustee of a trust that is subject to the law of this state, an agent submits to the jurisdiction of the courts of this state. (L. 2004 H.B. 1511)
Powers to direct--appointment of trust protector, powers, limitations.
456.8-808. 1. While a trust is revocable, the trustee may follow a direction of the settlor that is contrary to the terms of the trust. 2. A trust instrument may provide for the appointment of a trust protector. For purposes of this section, a "trust protector", whether referred to in the trust instrument by that name or by some other name, is a person, other than the settlor, a trustee, or a beneficiary, who is expressly granted in the trust instrument one or more powers over the trust. 3. A trust protector appointed in the trust instrument shall have only the powers granted to the trust protector by the express terms of the trust instrument, and a trust protector is only authorized to act within the scope of the authority expressly granted in the trust instrument. Without limiting the authority of the settlor to grant powers to a trust protector, the express powers that may be granted include, but are not limited to, the following: (1) Remove and appoint a trustee or name a successor trustee or trust protector; (2) Modify or amend the trust instrument to: (a) Achieve favorable tax status or respond to changes in the Internal Revenue Code or state law, or the rulings and regulations under such code or law; (b) Reflect legal changes that affect trust administration; (c) Correct errors or ambiguities that might otherwise require court construction; or (d) Correct a drafting error that defeats a grantor's intent; (3) Increase, decrease, modify, or restrict the interests of the beneficiary or beneficiaries of the trust; (4) Terminate the trust in favor of the beneficiary or beneficiaries of the trust; (5) Change the applicable law governing the trust and the trust situs; or (6) Such other powers as are expressly granted to the trust protector in the trust instrument. 4. Notwithstanding any provision in the trust instrument to the contrary, a trust protector shall have no power to modify a trust to: (1) Remove a requirement from a trust created to meet the requirements of 42 U.S.C. Section 1396p(d)(4) to pay back a governmental entity for benefits provided to the permissible beneficiary of the trust at the death of that beneficiary; or (2) Reduce or eliminate an income interest of the income beneficiary of any of the following types of trusts: (a) A trust for which a marital deduction has been taken for federal tax purposes under Section 2056 or 2523 of the Internal Revenue Code or for state tax purposes under any comparable provision of applicable state law, during the life of the settlor's spouse; (b) A charitable remainder trust under Section 664 of the Internal Revenue Code, during the life of the noncharitable beneficiary; (c) A grantor retained annuity trust under Section 2702 of the Internal Revenue Code, during any period in which the settlor is a beneficiary; or (d) A trust for which an election as a qualified Sub-Chapter S Trust under Section 1361(d) of the Internal Revenue Code is currently in place. 5. Except to the extent otherwise provided in a trust instrument specifically referring to this subsection, the trust protector shall not exercise a power in a way that would result in a taxable gift for federal gift tax purposes or cause the inclusion of any assets of the trust in the trust protector's gross estate for federal estate tax purposes. 6. Except to the extent otherwise provided in the trust instrument and in subsection 7 of this section, and notwithstanding any provision of sections 456.1-101 to 456.11-1106 to the contrary: (1) A trust protector shall act in a fiduciary capacity in carrying out the powers granted to the trust protector in the trust instrument, and shall have such duties to the beneficiaries, the settlor, or the trust as set forth in the trust instrument. A trust protector is not a trustee, and is not liable or accountable as a trustee when performing or declining to perform the express powers given to the trust protector in the trust instrument. A trust protector is not liable for the acts or omissions of any fiduciary or beneficiary under the trust instrument; (2) A trust protector is exonerated from any and all liability for the trust protector's acts or omissions, or arising from any exercise or nonexercise of the powers expressly conferred on the trust protector in the trust instrument, unless it is established by a preponderance of the evidence that the acts or omissions of the trust protector were done or omitted in breach of the trust protector's duty, in bad faith or with reckless indifference; (3) A trust protector is authorized to exercise the express powers granted in the trust instrument at any time and from time to time after the trust protector acquires knowledge of their appointment as trust protector and of the powers granted; (4) A trust protector is entitled to receive, from the assets of the trust for which the trust protector is acting, reasonable compensation, and reimbursement of the reasonable costs and expenses incurred, in determining whether to carry out, and in carrying out, the express powers given to the trust protector in the trust instrument; (5) A trust protector is entitled to receive, from the assets of the trust for which the trust protector is acting, reimbursement of the reasonable costs and expenses, including attorney's fees, of defending any claim made against the trust protector arising from the acts or omissions of the trust protector acting in that capacity unless it is established by clear and convincing evidence that the trust protector was acting in bad faith or with reckless indifference; and (6) The express powers granted in the trust instrument shall not be exercised by the trust protector for the trust protector's own personal benefit. 7. If a trust protector is granted a power in the trust instrument to direct, consent to, or disapprove a trustee's actual or proposed investment decision, distribution decision, or other decision of the trustee required to be performed under applicable trust law in carrying out the duties of the trustee in administering the trust, then only with respect to such power, excluding the powers identified in subsection 3 of this section, the trust protector shall have the same duties and liabilities as if serving as a trustee under the trust instrument. 8. A trustee shall carry out the written directions given to the trustee by a trust protector acting within the scope of the powers expressly granted to the trust protector in the trust instrument. Except in cases of bad faith or reckless indifference on the part of the trustee, or as otherwise provided in the trust instrument, the trustee shall not be liable for any loss resulting directly or indirectly from any act taken or omitted as a result of the written direction of the trust protector or the failure of the trust protector to provide consent. Except as otherwise provided in the trust instrument, the trustee shall have no duty to monitor the conduct of the trust protector, provide advice to or consult with the trust protector, or communicate with or warn or apprise any beneficiary concerning instances in which the trustee would or might have exercised the trustee's own discretion in a manner different from the manner directed by the trust protector. 9. Except to the extent otherwise expressly provided in the trust instrument, the trust protector shall be entitled to receive information regarding the administration of the trust as follows: (1) Upon the request of the trust protector, unless unreasonable under the circumstances, the trustee shall promptly provide to the trust protector any and all information related to the trust that may relate to the exercise or nonexercise of a power expressly granted to the trust protector in the trust instrument. The trustee has no obligation to provide any information to the trust protector except to the extent a trust protector requests information under this section; (2) The request of the trust protector for information under this section shall be with respect to a single trust that is sufficiently identified to enable the trustee to locate the records of the trust; and (3) If the trustee is bound by any confidentiality restrictions with respect to an asset of a trust, a trust protector who requests information under this section about such asset shall agree to be bound by the confidentiality restrictions that bind the trustee before receiving such information from the trustee. 10. A trust protector may resign by giving thirty days' written notice to the trustee and any successor trust protector. A successor trust protector, if any, shall have all the powers expressly granted in the trust instrument to the resigning trust protector unless such powers are expressly modified for the successor trust protector. 11. A trust protector of a trust having its principal place of administration in this state submits personally to the jurisdiction of the courts of this state during any period that the principal place of administration of the trust is located in this state and the trust protector is serving in such capacity. (L. 2004 H.B. 1511, A.L. 2012 S.B. 628)
456.8-809. A trustee shall take reasonable steps to take control of and protect the trust property, except that this duty does not apply to, and the trustee is not responsible for, items of tangible personal property that are property of a trust revocable by the settlor and that are not in the possession or control of the trustee. (L. 2004 H.B. 1511)
Record keeping and identification of trust property.
456.8-810. 1. A trustee shall keep adequate records of the administration of the trust. 2. A trustee shall keep trust property separate from the trustee's own property. 3. Except as otherwise provided in subsection 4 of this section, a trustee shall cause the trust property to be designated so that the interest of the trust, to the extent feasible, appears in records maintained by a party other than a trustee or beneficiary. 4. If the trustee maintains records clearly indicating the respective interests, a trustee may invest as a whole the property of two or more separate trusts. (L. 2004 H.B. 1511)
456.8-811. A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust. (L. 2004 H.B. 1511)
456.8-812. A trustee shall take reasonable steps to compel a former trustee or other person to deliver trust property to the trustee, and to redress a breach of trust known to the trustee to have been committed by a former trustee. (L. 2004 H.B. 1511)
Duty to inform and report--inapplicable, when.
456.8-813. 1. (1) A trustee shall keep the qualified beneficiaries of the trust reasonably informed about the administration of the trust and of the material facts necessary for them to protect their interests. A trustee shall be presumed to have fulfilled this duty if the trustee complies with the notice and information requirements prescribed in subsections 2 to 7 of this section. (2) Unless unreasonable under the circumstances, a trustee shall promptly respond to a beneficiary's request for information related to the administration of the trust. 2. A trustee: (1) upon request of a beneficiary, shall promptly furnish to the beneficiary a copy of the trust instrument; (2) within one hundred * twenty days after accepting a trusteeship, shall notify the qualified beneficiaries of the acceptance and of the trustee's name, address, and telephone number; (3) within one hundred * twenty days after the date the trustee acquires knowledge of the creation of an irrevocable trust, or the date the trustee acquires knowledge that a formerly revocable trust has become irrevocable, whether by the death of the settlor or otherwise, shall notify the qualified beneficiaries of the trust's existence, of the identity of the settlor or settlors, of the right to request a copy of the trust instrument, and of the right to a trustee's report as provided in subsection 3 of this section; and (4) shall notify the qualified beneficiaries in advance of any change in the method or rate of the trustee's compensation. 3. A trustee shall send to the permissible distributees of trust income or principal, and to other beneficiaries who request it, at least annually and at the termination of the trust, a report of the trust property, liabilities, receipts, and disbursements, including the source and amount of the trustee's compensation, a listing of the trust assets and, if feasible, their respective market values. Upon a vacancy in a trusteeship, unless a cotrustee remains in office, a report must be sent to the qualified beneficiaries by the former trustee. A personal representative, conservator, or guardian may send the qualified beneficiaries a report on behalf of a deceased or incapacitated trustee. 4. A beneficiary may waive the right to a trustee's report or other information otherwise required to be furnished under this section. A beneficiary, with respect to future reports and other information, may withdraw a waiver previously given. 5. A trustee may charge a reasonable fee to a beneficiary for providing information under this section. 6. The request of any beneficiary for information under any provision of this section shall be with respect to a single trust that is sufficiently identified to enable the trustee to locate the records of the trust. 7. If the trustee is bound by any confidentiality restrictions with respect to an asset of a trust, any beneficiary who is eligible to receive information pursuant to this section about such asset shall agree to be bound by the confidentiality restrictions that bind the trustee before receiving such information from the trustee. 8. This section does not apply to a trust created under a trust instrument that became irrevocable before January 1, 2005, and the law in effect prior to January 1, 2005, regarding the subject matter of this section shall continue to apply to those trusts. (L. 2004 H.B. 1511, A.L. 2006 S.B. 892, A.L. 2011 S.B. 59)
Discretionary powers--tax savings.
456.8-814. 1. Notwithstanding the use of such terms as "absolute," "sole," or "uncontrolled," in the exercise of discretion under an ascertainable standard, the trustee shall exercise such discretionary power in good faith and in accordance with the terms and purposes of the trust and the interests of the beneficiaries. 2. Subject to subsection 4 of this section, and unless the terms of the trust expressly indicate that a rule in this subsection does not apply: (1) a person other than a settlor who is a beneficiary and trustee of a trust that confers on the trustee a power to make discretionary distributions to or for the trustee's personal benefit may exercise the power only in accordance with an ascertainable standard; (2) a trustee may not exercise a power to make discretionary distributions to satisfy a legal obligation of support that the trustee personally owes another person; and (3) for purposes of this subsection 2 of this section, the term "trustee" shall include a person who is deemed to have any power of a trustee, whether because such person has the right to remove or replace any trustee, because a reciprocal trust or power doctrine applies, or for any other reason. 3. A power whose exercise is limited or prohibited by subsection 2 may be exercised by a majority of the remaining trustees whose exercise of the power is not so limited or prohibited. If the power of all trustees is so limited or prohibited, the court may appoint a special fiduciary with authority to exercise the power. 4. Subsection 2 of this section does not apply to: (1) a power held by the settlor's spouse who is the trustee of a trust for which a marital deduction, as defined in Section 2056(b)(5) or 2523(b)(5) of the Internal Revenue Code was previously allowed; (2) any trust during any period that the trust may be revoked or amended by its settlor; or (3) a trust if contributions to the trust qualify for the annual exclusion under Section 2503(c) of the Internal Revenue Code. (L. 2004 H.B. 1511, A.L. 2006 S.B. 892)
456.8-815. 1. A trustee, without authorization by the court, may exercise: (1) powers conferred by the terms of the trust; and (2) except as limited by the terms of the trust: (a) all powers over the trust property which an unmarried competent owner has over individually owned property; (b) any other powers appropriate to achieve the proper investment, management, and distribution of the trust property; and (c) any other powers conferred by sections 456.1-101 to 456.11-1106. 2. The exercise of a power is subject to the fiduciary duties prescribed by section 456.8-801 to 456.8-814. (L. 2004 H.B. 1511)
456.8-816. Without limiting the authority conferred by section 456.8-815, a trustee may: (1) collect trust property and accept or reject additions to the trust property from a settlor or any other person; (2) acquire or sell property in divided or undivided interests, for cash or on credit, at public or private sale; (3) exchange, partition, or otherwise change the character of trust property; (4) deposit trust money in an account in a financial institution; (5) borrow money, with or without security, and mortgage or pledge trust property for a period within or extending beyond the duration of the trust; (6) with respect to an interest in a proprietorship, partnership, limited liability company, business trust, corporation, or other form of business or enterprise, continue the business or other enterprise and take any action that may be taken by shareholders, members, or property owners, including merging, dissolving, or otherwise changing the form of business organization or contributing additional capital; (7) with respect to stocks or other securities, exercise the rights of an absolute owner, including the right to: (a) vote, or give proxies to vote, with or without power of substitution, or enter into or continue a voting trust agreement; (b) hold a security in the name of a nominee or in other form without disclosure of the trust so that title may pass by delivery; (c) pay calls, assessments, and other sums chargeable or accruing against the securities, and sell or exercise stock subscription or conversion rights; and (d) deposit the securities with a depositary or other financial institution; (8) with respect to an interest in real property, construct, or make ordinary or extraordinary repairs to, alterations to, or improvements in, buildings or other structures, demolish improvements, raze existing or erect new party walls or buildings, subdivide or develop land, dedicate land to public use or grant public or private easements, and make or vacate plats and adjust boundaries; (9) enter into a lease for any purpose as lessor or lessee, including a lease or other arrangement for exploration and removal of natural resources, with or without the option to purchase or renew, for a period within or extending beyond the duration of the trust; (10) grant an option involving a sale, lease, or other disposition of trust property or acquire an option for the acquisition of property, including an option exercisable beyond the duration of the trust, and exercise an option so acquired; (11) insure the property of the trust against damage or loss and insure the trustee, the trustee's agents, and beneficiaries against liability arising from the administration of the trust; (12) abandon or decline to administer property of no value or of insufficient value to justify its collection or continued administration; (13) with respect to possible liability for violation of environmental law: (a) inspect or investigate property the trustee holds or has been asked to hold, or property owned or operated by an organization in which the trustee holds or has been asked to hold an interest, for the purpose of determining the application of environmental law with respect to the property; (b) take action to prevent, abate, or otherwise remedy any actual or potential violation of any environmental law affecting property held directly or indirectly by the trustee, whether taken before or after the assertion of a claim or the initiation of governmental enforcement; (c) decline to accept property into trust or disclaim any power with respect to property that is or may be burdened with liability for violation of environmental law; (d) compromise claims against the trust which may be asserted for an alleged violation of environmental law; and (e) pay the expense of any inspection, review, abatement, or remedial action to comply with environmental law; (14) pay or contest any claim, settle a claim by or against the trust, and release, in whole or in part, a claim belonging to the trust; (15) pay taxes, assessments, compensation of the trustee and of employees and agents of the trust, and other expenses incurred in the administration of the trust; (16) exercise elections with respect to federal, state, and local taxes; (17) select a mode of payment under any employee benefit or retirement plan, annuity, or life insurance payable to the trustee, exercise rights thereunder, including exercise of the right to indemnification for expenses and against liabilities, and take appropriate action to collect the proceeds; (18) make loans out of trust property, including loans to a beneficiary on terms and conditions the trustee considers to be fair and reasonable under the circumstances, and the trustee has a lien on future distributions for repayment of those loans; (19) pledge trust property to guarantee or secure loans made by others to a beneficiary; (20) appoint a trustee to act in another jurisdiction with respect to trust property located in the other jurisdiction, confer upon the appointed trustee all of the powers and duties of the appointing trustee, require that the appointed trustee furnish security, and remove any trustee so appointed; (21) pay an amount distributable to a beneficiary who is under a legal disability or who the trustee reasonably believes is incapacitated, by paying it directly to the beneficiary or applying it for the beneficiary's benefit, or by: (a) paying it to the beneficiary's conservator or, if the beneficiary does not have a conservator, the beneficiary's guardian; (b) paying it to the beneficiary's custodian under the Missouri transfers to minors law under sections 404.005 to 404.094, or a personal custodian under sections 404.400 to 404.650, and, for that purpose, creating a custodianship or custodial trust; (c) if the trustee does not know of a conservator, guardian, custodian, or custodial trustee, paying it to an adult relative or other person having legal or physical care or custody of the beneficiary, to be expended on the beneficiary's behalf; or (d) managing it as a separate fund on the beneficiary's behalf, subject to the beneficiary's continuing right to withdraw the distribution; (22) on distribution of trust property or the division or termination of a trust, make distributions in divided or undivided interests, allocate particular assets in proportionate or disproportionate shares, value the trust property for those purposes, and adjust for resulting differences in valuation; (23) resolve a dispute concerning the interpretation of the trust or its administration by mediation, arbitration, or other procedure for alternative dispute resolution; (24) prosecute or defend an action, claim, or judicial proceeding in any jurisdiction to protect trust property and the trustee in the performance of the trustee's duties; (25) to engage and compensate attorneys, accountants, investment advisors, or other agents, and to delegate to them trustee's duties and functions in accordance with the provisions of section 456.8-807; (26) sign and deliver contracts and other instruments that are useful to achieve or facilitate the exercise of the trustee's powers; (27) on termination of the trust, exercise the powers appropriate to wind up the administration of the trust and distribute the trust property to the persons entitled to it; and (28) to invest and reinvest trust assets in accordance with sections 469.900 to 469.913; including investing and reinvesting trust assets in United States government obligations, either directly or in the form of securities of, or other interests in, any open-end or closed-end management type investment company or investment trust registered pursuant to the Investment Company Act of 1940, as amended, including but not limited to United States government obligations and repurchase agreements fully collateralized by such obligations, notwithstanding that the governing instrument or order directs, requires, authorizes, or restricts investment in or to United States government obligations or repurchase agreements fully collateralized by such obligations, and in securities or obligations of any state or its political subdivisions, including securities or obligations that are underwritten by the trustee or an affiliate of the trustee or a syndicate in which the trustee or an affiliate of the trustee is a member which meet the standards established by the division of finance pursuant to subsection 5 of section 362.550. (L. 2004 H.B. 1511, A.L. 2006 S.B. 892, A.L. 2008 S.B. 1235)
456.8-817. 1. Upon termination or partial termination of a trust, the trustee may send to the beneficiaries a proposal for distribution. The right of any beneficiary to object to the proposed distribution terminates if the beneficiary does not notify the trustee of an objection within thirty days after the proposal was sent but only if the proposal informed the beneficiary of the right to object and of the time allowed for objection. 2. Upon the occurrence of an event terminating or partially terminating a trust, the trustee shall proceed expeditiously to distribute the trust property to the persons entitled to it, subject to the right of the trustee to retain a reasonable reserve for the payment of debts, expenses, and taxes. 3. A release by a beneficiary of a trustee from liability for breach of trust is invalid to the extent: (1) it was induced by improper conduct of the trustee; or (2) the beneficiary, at the time of the release, did not know of the beneficiary's rights or of the material facts relating to the breach. (L. 2004 H.B. 1511)
Remedies for breach of trust.
456.10-1001. 1. A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust. 2. To remedy a breach of trust that has occurred or may occur, the court may: (1) compel the trustee to perform the trustee's duties; (2) enjoin the trustee from committing a breach of trust; (3) compel the trustee to redress a breach of trust by paying money, restoring property, or other means; (4) order a trustee to account; (5) appoint a special fiduciary to take possession of the trust property and administer the trust; (6) suspend the trustee; (7) remove the trustee as provided in section 456.7-706; (8) reduce or deny compensation to the trustee; (9) subject to section 456.10-1012, void an act of the trustee, impose a lien or a constructive trust on trust property, or trace trust property wrongfully disposed of and recover the property or its proceeds; or (10) order any other appropriate relief. (L. 2004 H.B. 1511)
Damages for breach of trust.
456.10-1002. 1. A trustee who commits a breach of trust is liable to the beneficiaries affected for the greater of: (1) the amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred; or (2) the profit the trustee made by reason of the breach. 2. Except as otherwise provided in this subsection, if more than one trustee is liable to the beneficiaries for a breach of trust, a trustee is entitled to contribution from the other trustee or trustees that are also liable. A trustee is not entitled to contribution if the trustee was substantially more at fault than another trustee or if the trustee committed the breach of trust in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries. A trustee who received a benefit from the breach of trust is not entitled to contribution from another trustee to the extent of the benefit received. (L. 2004 H.B. 1511)
Damages in absence of breach.
456.10-1003. 1. A trustee is accountable to an affected beneficiary for any profit made by the trustee arising from the administration of the trust, even absent a breach of trust. 2. Absent a breach of trust, a trustee is not liable to a beneficiary for a loss or depreciation in the value of trust property or for not having made a profit. (L. 2004 H.B. 1511)
456.10-1004. In a judicial proceeding involving the administration of a trust, the court, as justice and equity may require, may award costs and expenses, including reasonable attorney's fees, to any party, to be paid by another party or from the trust that is the subject of the controversy. (L. 2004 H.B. 1511)
Limitation of action against trustee.
456.10-1005. 1. A beneficiary may not commence a proceeding against a trustee for breach of trust more than one year after the last to occur of the date the beneficiary or a representative of the beneficiary was sent a report that adequately disclosed the existence of a potential claim for breach of trust and the date the trustee informed the beneficiary of the time allowed for commencing a proceeding with respect to any potential claim adequately disclosed on the report. 2. A report adequately discloses the existence of a potential claim for breach of trust if it provides sufficient information so that the beneficiary or representative knows of the potential claim or should have inquired into its existence. 3. If subsection 1 of this section does not apply, a judicial proceeding by a beneficiary against a trustee for breach of trust must be commenced within five years after the first to occur of: (1) the removal, resignation, or death of the trustee; (2) the termination of the beneficiary's interest in the trust; or (3) the termination of the trust. (L. 2004 H.B. 1511)
Reliance on trust instrument.
456.10-1006. A trustee who acts in reasonable reliance on the terms of the trust as expressed in the trust instrument is not liable to a beneficiary for a breach of trust to the extent the breach resulted from the reliance. (L. 2004 H.B. 1511)
Event affecting administration or distribution.
456.10-1007. If the happening of an event, including marriage, divorce, performance of educational requirements, or death, affects the administration or distribution of a trust, a trustee who has exercised reasonable care to ascertain the happening of the event is not liable for a loss resulting from the trustee's lack of knowledge. (L. 2004 H.B. 1511)
Exculpation of trustee.
456.10-1008. 1. A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it: (1) relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries; or (2) was inserted as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor. 2. Unless the settlor was represented by an attorney not employed by the trustee with respect to the trust containing the exculpatory term, an exculpatory term drafted or caused to be drafted by the trustee is invalid as an abuse of a fiduciary or confidential relationship unless the trustee proves that the exculpatory term is fair under the circumstances and that its existence and contents were adequately communicated to the settlor. (L. 2004 H.B. 1511)
Beneficiary's consent, release, or ratification.
456.10-1009. A trustee is not liable to a beneficiary for breach of trust if the beneficiary, while having capacity, consented to the conduct constituting the breach, released the trustee from liability for the breach, or ratified the transaction constituting the breach, unless: (1) the consent, release, or ratification of the beneficiary was induced by improper conduct of the trustee; or (2) at the time of the consent, release, or ratification, the beneficiary did not know of the beneficiary's rights or of the material facts relating to the breach. (L. 2004 H.B. 1511)
456.10-1010. 1. Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into in the trustee's fiduciary capacity in the course of administering the trust if the trustee in the contract disclosed the fiduciary capacity. 2. A trustee is personally liable for torts committed in the course of administering a trust, or for obligations arising from ownership or control of trust property, including liability for violation of environmental law, only if the trustee is personally at fault. 3. A claim based on a contract entered into by a trustee in the trustee's fiduciary capacity, on an obligation arising from ownership or control of trust property, or on a tort committed in the course of administering a trust, may be asserted in a judicial proceeding against the trustee in the trustee's fiduciary capacity, whether or not the trustee is personally liable for the claim. (L. 2004 H.B. 1511)
Interest as general partner.
456.10-1011. 1. Except as otherwise provided in subsection 3 of this section or unless personal liability is imposed in the contract, a trustee who holds an interest as a general partner in a general or limited partnership is not personally liable on a contract entered into by the partnership after the trust's acquisition of the interest if the fiduciary capacity was disclosed in the contract or in a statement previously filed with the secretary of state of this state. 2. Except as otherwise provided in subsection 3 of this section, a trustee who holds an interest as a general partner is not personally liable for torts committed by the partnership or for obligations arising from ownership or control of the interest unless the trustee is personally at fault. 3. The immunity provided by this section does not apply if an interest in the partnership is held by the trustee in a capacity other than that of trustee or is held by the trustee's spouse or one or more of the trustee's descendants, siblings, or parents, or the spouse of any of them. 4. If the trustee of a revocable trust holds an interest as a general partner, the settlor is personally liable for contracts and other obligations of the partnership as if the settlor were a general partner. (L. 2004 H.B. 1511)
Protection of person dealing with trustee.
456.10-1012. 1. A person other than a beneficiary who in good faith assists a trustee, or who in good faith and for value deals with a trustee, without knowledge that the trustee is exceeding or improperly exercising the trustee's powers is protected from liability as if the trustee properly exercised the power. 2. A person other than a beneficiary who in good faith deals with a trustee is not required to inquire into the extent of the trustee's powers or the propriety of their exercise. 3. A person who in good faith delivers assets to a trustee need not ensure their proper application. 4. A person other than a beneficiary who in good faith assists a former trustee, or who in good faith and for value deals with a former trustee, without knowledge that the trusteeship has terminated is protected from liability as if the former trustee were still a trustee. 5. Comparable protective provisions of other laws relating to commercial transactions or transfer of securities by fiduciaries prevail over the protection provided by this section. (L. 2004 H.B. 1511)
456.10-1013. 1. Instead of furnishing a copy of the trust instrument to a person other than a beneficiary, the trustee may furnish to the person a certification of trust containing the following information: (1) that the trust exists and the date the trust instrument was executed; (2) the identity of the settlor; (3) the identity and address of the currently acting trustee; (4) the powers of the trustee; (5) the revocability or irrevocability of the trust and the identity of any person holding a power to revoke the trust; (6) the authority of cotrustees to sign or otherwise authenticate and whether all or less than all are required in order to exercise powers of the trustee; (7) the trust's taxpayer identification number; and (8) the manner of taking title to trust property. 2. A certification of trust must be signed by all the trustees. A third party may require that the certification of trust be acknowledged or guaranteed. 3. A certification of trust must state that the trust has not been revoked, modified, or amended in any manner that would cause the representations contained in the certification of trust to be incorrect. 4. A certification of trust need not contain the dispositive terms of a trust. 5. A recipient of a certification of trust may require the trustee to furnish copies of those excerpts from the original trust instrument and later amendments which designate the trustee and confer upon the trustee the power to act in the pending transaction. 6. A person who acts in reliance upon a certification of trust without knowledge that the representations contained therein are incorrect is not liable to any person for so acting and may assume without inquiry the existence of the facts contained in the certification. Knowledge of the terms of the trust may not be inferred solely from the fact that a copy of all or part of the trust instrument is held by the person relying upon the certification. 7. A person who in good faith enters into a transaction in reliance upon a certification of trust may enforce the transaction against the trust property as if the representations contained in the certification were correct. 8. A person making a demand for the trust instrument in addition to a certification of trust or excerpts is liable for damages if the court determines that the person did not act in good faith in demanding the trust instrument. 9. This section does not limit the right of a person to obtain a copy of the trust instrument in a judicial proceeding concerning the trust. (L. 2004 H.B. 1511)
456.11-1101. In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it. (L. 2004 H.B. 1511)
Electronic records and signatures.
456.11-1102. Sections 456.1-101 to 456.11-1106 modify, limit, and supersede the federal Electronic Signatures in Global and National Commerce Act (15 U.S.C. Section 7001, et seq.) but do not modify, limit, or supersede Section 101(c) of that act (15 U.S.C. Section 7001(c)) or authorize electronic delivery of any of the notices described in Section 103(b) of that act (15 U.S.C. Section 7003(b)). (L. 2004 H.B. 1511)
456.11-1103. If any provision of sections 456.1-101 to 456.11-1106 or its application to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of sections 456.1-101 to 456.11-1106 which can be given effect without the invalid provision or application, and to this end the provisions of sections 456.1-101 to 456.11-1106 are severable. (L. 2004 H.B. 1511)
456.11-1104. Sections 456.1-101 to 456.11-1106 take effect on January 1, 2005. (L. 2004 H.B. 1511)
456.11-1106. 1. Except as otherwise provided in sections 456.1-101 to 456.11-1106, on January 1, 2005: (1) Sections 456.1-101 to 456.11-1106 apply to all trusts created before, on, or after January 1, 2005; (2) Sections 456.1-101 to 456.11-1106 apply to all judicial proceedings concerning trusts commenced on or after January 1, 2005; (3) Sections 456.1-101 to 456.11-1106 apply to judicial proceedings concerning trusts commenced before January 1, 2005, unless the court finds that application of a particular provision of sections 456.1-101 to 456.11-1106 would substantially interfere with the effective conduct of the judicial proceedings or prejudice the rights of the parties, in which case the particular provision of sections 456.1-101 to 456.11-1106 does not apply and the superseded law applies; (4) Any rule of construction or presumption provided in sections 456.1-101 to 456.11-1106 apply to trust instruments executed before January 1, 2005, unless there is a clear indication of a contrary intent in the terms of the trust; (5) An act done before January 1, 2005, is not affected by any provisions contained in sections 456.1-101 to 456.11-1106; and (6) Section 456.590 shall not apply to trusts created under an instrument executed on or after January 1, 2005. 2. If a right is acquired, extinguished, or barred upon the expiration of a prescribed period that has commenced to run under any other statute before January 1, 2005, that statute continues to apply to the right even if it has been repealed or superseded. (L. 2004 H.B. 1511)