reglab/statecodes huggingface dataset:
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.290 - Deposit in name of fiduciary as such.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2004, 2 histories
469.290. Deposit in name of fiduciary as such. —
If a deposit is made in a bank to the credit of a fiduciary as such, the bank is authorized to pay the amount of the deposit or any part thereof upon the check of the fiduciary, signed with the name in which such deposit is entered, without being liable to the principal, unless the bank pays the check with actual knowledge that the fiduciary is committing a breach of his obligation as fiduciary in drawing the check or with knowledge of such facts that its action in paying the check amounts to bad faith. If, however, such a check is payable to the drawee bank and is delivered to it in payment of or as security for a personal debt of the fiduciary to it, the bank is liable to the principal if the fiduciary in fact commits a breach of his obligation as fiduciary in drawing or delivering the check.
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(L. 1959 S.B. 121 § 7, A.L. 2004 H.B. 1511)
Transferred 2004; formerly 456.290
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.300 - Deposit in name of principal.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2004, 2 histories
469.300. Deposit in name of principal. —
If a check is drawn upon the account of his principal in a bank by a fiduciary who is empowered to draw checks upon his principal's account, the bank is authorized to pay such check without being liable to the principal, unless the bank pays the check with actual knowledge that the fiduciary is committing a breach of his obligation as fiduciary in drawing such check, or with knowledge of such facts that its action in paying the check amounts to bad faith. If, however, such a check is payable to the drawee bank and is delivered to it in payment of or as security for a personal debt of the fiduciary to it, the bank is liable to the principal if the fiduciary in fact commits a breach of his obligation as fiduciary in drawing or delivering the check.
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(L. 1959 S.B. 121 § 8, A.L. 2004 H.B. 1511)
Transferred 2004; formerly 456.300
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.310 - Deposit in fiduciary's personal account.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2004, 2 histories
469.310. Deposit in fiduciary's personal account. —
If a fiduciary makes a deposit in a bank to his personal credit of checks drawn by him upon an account in his own name as fiduciary, or of checks payable to him as fiduciary, or of checks drawn by him upon an account in the name of his principal if he is empowered to draw checks thereon, or of checks payable to his principal and endorsed by him, if he is empowered to endorse such checks, or if he otherwise makes a deposit of funds held by him as fiduciary, the bank receiving such deposit is not bound to inquire whether the fiduciary is committing thereby a breach of his obligation as fiduciary; and the bank is authorized to pay the amount of the deposit or any part thereof upon the personal check of the fiduciary without being liable to the principal, unless the bank receives the deposit or pays the check with actual knowledge that the fiduciary is committing a breach of his obligation as fiduciary in making such deposit or in drawing such check, or with knowledge of such facts that its action in receiving the deposit or paying the check amounts to bad faith.
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(L. 1959 S.B. 121 § 9, A.L. 2004 H.B. 1511)
Transferred 2004; formerly 456.310
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.320 - Deposit in name of two or more trustees.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2004, 2 histories
469.320. Deposit in name of two or more trustees. —
When a deposit is made in a bank in the name of two or more persons as trustees and a check is drawn upon the trust account by any trustee or trustees authorized by the other trustee or trustees to draw checks upon the trust account, neither the payee nor other holder nor the bank is bound to inquire whether it is a breach of trust to authorize such trustee or trustees to draw checks upon the trust account, and is not liable unless the circumstances be such that the action of the payee or other holder or the bank amounts to bad faith.
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(L. 1959 S.B. 121 § 10, A.L. 2004 H.B. 1511)
Transferred 2004; formerly 456.320
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.330 - Cases not provided for in law.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2004, 2 histories
469.330. Cases not provided for in law. —
In any case not provided for in sections 469.240 to 469.350 the rules of law and equity, including the law merchant and those rules of law and equity relating to trusts, agency, negotiable instruments and banking, shall continue to apply.
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(L. 1959 S.B. 121 § 11, A.L. 2004 H.B. 1511)
Transferred 2004; formerly 456.330
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.340 - Uniformity of interpretation.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2004, 2 histories
469.340. Uniformity of interpretation. —
This law shall be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states which enact it.
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(L. 1959 S.B. 121 § 12, A.L. 2004 H.B. 1511)
Transferred 2004; formerly 456.340
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.350 - Short title.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2004, 2 histories
469.350. Short title. —
Sections 469.240 to 469.350 may be cited as the "Uniform Fiduciaries Law".
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(L. 1959 S.B. 121 § 13, A.L. 2004 H.B. 1511)
Transferred 2004; formerly 456.350
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.401 - Definitions.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2004, 2 histories
469.401. Definitions. —
As used in sections 469.401 to 469.467, the following terms mean:
(1)
"Accounting period"
, a calendar year unless another twelve-month period is selected by a fiduciary. The term includes a portion of a calendar year or other twelve-month period that begins when an income interest begins or ends when an income interest ends;
(2)
"Beneficiary"
, an heir, legatee and devisee of a decedent's estate, and an income beneficiary and a remainder beneficiary of a trust, including any type of entity that has a beneficial interest in either an estate or a trust;
(3)
"Fiduciary"
, a personal representative, trustee, executor, administrator, successor personal representative, special administrator and any other person performing substantially the same function;
(4)
"Income"
, money or property that a fiduciary receives as current return from a principal asset, including a portion of receipts from a sale, exchange or liquidation of a principal asset, as provided in sections 469.423 to 469.449;
(5)
"Income beneficiary"
, a person to whom net income of a trust is or may be payable;
(6)
"Income interest"
, the right of an income beneficiary to receive all or part of net income, whether the terms of the trust require it to be distributed or authorize it to be distributed in the trustee's discretion;
(7)
"Mandatory income interest"
, the right of an income beneficiary to receive net income that the terms of the trust require the fiduciary to distribute;
(8)
"Net income"
, if section 469.411 applies to the trust, the unitrust amount, or if section 469.411 does not apply to the trust, the total receipts allocated to income during an accounting period minus the disbursements made from income during the same period, plus or minus transfers pursuant to sections 469.401 to 469.467 to or from income during the same period;
(9)
"Person"
, 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;
(10)
"Principal"
, property held in trust for distribution to a remainder beneficiary when the trust terminates;
(11)
"Qualified beneficiary"
, a beneficiary defined in section 456.1-103;
(12)
"Remainder beneficiary"
, a person entitled to receive principal when an income interest ends;
(13)
"Terms of a trust"
, the manifestation of the settlor's or decedent's intent expressed in a manner which is admissible as proof in a judicial proceeding, whether by written or spoken words or by conduct;
(14)
"Trustee"
, an original, additional or successor trustee, whether or not appointed or confirmed by a court;
(15)
"Unitrust amount"
, net income as defined by section 469.411.
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(L. 2001 H.B. 241, A.L. 2004 H.B. 1511)
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.402 - Applicability.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2004
469.402. Applicability. —
The provisions of sections 456.3-301 to 456.3-305 shall apply to sections 469.401 to 469.467 for all purposes.
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(L. 2004 H.B. 1511)
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.403 - Disbursements to or between principal and income, fiduciary's responsibilities.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2001
469.403. Disbursements to or between principal and income, fiduciary's responsibilities. —
1. In allocating receipts and disbursements to or between principal and income, and with respect to any matter within the scope of sections 469.413 to 469.421, a fiduciary:
(1) Shall administer a trust or estate under the terms of the trust or the will, even if there is a different provision in sections 469.401 to 469.467;
(2) May administer a trust or estate by exercising a discretionary power of administration given to the fiduciary by the terms of the trust or the will, even if the exercise of the power produces a result different from a result required or permitted by sections 469.401 to 469.467;
(3) Shall administer a trust or estate pursuant to sections 469.401 to 469.467 if the terms of the trust or the will do not contain a different provision or do not give the fiduciary a discretionary power of administration; and
(4) Shall add a receipt or charge a disbursement to principal to the extent that the terms of the trust and sections 469.401 to 469.467 do not provide a rule for allocating the receipt or disbursement to or between principal and income.
2. In exercising the power to adjust pursuant to section 469.405 or a discretionary power of administration regarding a matter within the scope of sections 469.401 to 469.467, whether granted by the terms of a trust, a will, or sections 469.401 to 469.467, a fiduciary shall administer a trust or estate impartially, based on what is fair and reasonable to all of the beneficiaries, except to the extent that the terms of the trust or the will clearly manifest an intent that the fiduciary shall or may favor one or more of the beneficiaries. A determination in accordance with sections 469.401 to 469.467 is presumed to be fair and reasonable to all of the beneficiaries.
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(L. 2001 H.B. 241)
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.409 - Bar on claim of breach of fiduciary duty, when — applicable rules.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2004, 2 histories
469.409. Bar on claim of breach of fiduciary duty, when — applicable rules. —
1. Any claim for breach of a trustee's duty to impartially administer a trust related, directly or indirectly, to an adjustment made by a fiduciary to the allocation between principal and income pursuant to subsection 1 of section 469.405 or any allocation made by the fiduciary pursuant to any authority or discretion specified in subsection 1 of section 469.403, unless previously barred by adjudication, consent or other limitation, shall be barred as provided in this section.
(1) Any such claim brought by a qualified beneficiary is barred if not asserted in a judicial proceeding commenced within two years after the trustee has sent a report to that qualified beneficiary that adequately discloses the facts constituting the claim.
(2) Any such claim brought by a beneficiary (other than a qualified beneficiary) with any interest whatsoever in the trust, no matter how remote or contingent, or whether or not the beneficiary is ascertainable or has the capacity to contract, is barred if not asserted in a judicial proceeding commenced within two years after the first to occur of:
(a) The date the trustee sent a report to all qualified beneficiaries that adequately discloses the facts constituting the claim; or
(b) The date the trustee sent a report to a person that represents the beneficiary under the provisions of subdivision (2) of subsection 2 of this section.
2. For purposes of this section the following rules shall apply:
(1) A report adequately discloses the facts constituting a claim if it provides sufficient information so that the beneficiary should know of the claim or reasonably should have inquired into its existence;
(2) Section 469.402 shall apply in determining whether a beneficiary (including a qualified beneficiary) has received notice for purposes of this section;
(3) The determination of the identity of all qualified beneficiaries shall be made on the date the report is deemed to have been sent; and
(4) This section does not preclude an action to recover for fraud or misrepresentation related to the report.
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(L. 2001 H.B. 241, A.L. 2004 H.B. 1511)
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.415 - Rights of beneficiaries to net income.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2001
469.415. Rights of beneficiaries to net income. —
1. Each beneficiary described in subdivision (4) of section 469.413 is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in undistributed principal assets, using values as of the distribution date. If a fiduciary makes more than one distribution of assets to beneficiaries to whom this section applies, each beneficiary, including one who does not receive part of the distribution, is entitled, as of each distribution date, to the net income the fiduciary has received after the date of death or terminating event or earlier distribution date but has not distributed as of the current distribution date.
2. In determining a beneficiary's share of net income, the following rules apply:
(1) The beneficiary is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in the undistributed principal assets immediately before the distribution date, including assets that later may be sold to meet principal obligations;
(2) The beneficiary's fractional interest in the undistributed principal assets shall be calculated without regard to property specifically given to a beneficiary and property required to pay pecuniary amounts not in trust;
(3) The beneficiary's fractional interest in the undistributed principal assets shall be calculated on the basis of the aggregate value of those assets as of the distribution date without reducing the value by any unpaid principal obligation;
(4) The distribution date for purposes of this section may be the date as of which the fiduciary calculates the value of the assets if that date is reasonably near the date on which assets are actually distributed.
3. If a fiduciary does not distribute all of the collected but undistributed net income to each person as of a distribution date, the fiduciary shall maintain appropriate records showing the interest of each beneficiary in that net income.
4. A fiduciary may apply the rules in this section, to the extent that the fiduciary considers it appropriate, to net gain or loss realized after the date of death or terminating event or earlier distribution date from the disposition of a principal asset if this section applies to the income from the asset.
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(L. 2001 H.B. 241)
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.417 - Beneficiary entitled to net income, when — asset subject to trust, when — income interest.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2001
469.417. Beneficiary entitled to net income, when — asset subject to trust, when — income interest. —
1. An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to a trust or successive income interest.
2. An asset becomes subject to a trust:
(1) On the date it is transferred to the trust in the case of an asset that is transferred to a trust during the transferor's life;
(2) On the date of a testator's death in the case of an asset that becomes subject to a trust by reason of a will, even if there is an intervening period of administration of the testator's estate; or
(3) On the date of an individual's death in the case of an asset that is transferred to a fiduciary by a third party because of the individual's death.
3. An asset becomes subject to a successive income interest on the day after the preceding income interest ends, as determined pursuant to subsection 4 of this section, even if there is an intervening period of administration to wind up the preceding income interest.
4. An income interest ends on the day before an income beneficiary dies or another terminating event occurs, or on the last day of a period during which there is no beneficiary to whom a trustee may distribute income.
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(L. 2001 H.B. 241)
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.419 - Trustee to allocate income receipt or disbursement, when.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2004, 2 histories
469.419. Trustee to allocate income receipt or disbursement, when. —
1. A trustee shall allocate an income receipt or disbursement other than one to which subdivision
*
(1) of section 469.413 applies to principal if its due date occurs before a decedent dies in the case of an estate or before an income interest begins in the case of a trust or successive income interest.
2. A trustee shall allocate an income receipt or disbursement to income if its due date occurs on or after the date on which a decedent dies or an income interest begins and it is a periodic due date. An income receipt or disbursement shall be treated as accruing from day to day if its due date is not periodic or it has no due date. The portion of the receipt or disbursement accruing before the date on which a decedent dies or an income interest begins shall be allocated to principal and the balance shall be allocated to income.
3. An item of income or an obligation is due on the date a payment is required. If a payment date is not stated, there is no due date for the purposes of sections 469.401 to 469.467. Distributions to shareholders or other owners from an entity to which section 469.423 applies are deemed to be due on the date fixed by the entity for determining who is entitled to receive the distribution or, if no date is fixed, on the declaration date for the distribution. A due date is periodic for receipts or disbursements that shall be paid at regular intervals under a lease or an obligation to pay interest or if an entity customarily makes distributions at regular intervals.
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(L. 2001 H.B. 241, A.L. 2004 H.B. 1511)
*Word "subsection" appears in original rolls.
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.421 - Mandatory income interest, undistributed income, paid when.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2001
469.421. Mandatory income interest, undistributed income, paid when. —
1. For purposes of this section, the phrase
"undistributed income"
means net income received before the date on which an income interest ends. The phrase does not include an item of income or expense that is due or accrued, or net income that has been added or is required to be added to principal under the terms of the trust.
2. When a mandatory income interest ends, the trustee shall pay to a mandatory income beneficiary who survives that date, or the estate of a deceased mandatory income beneficiary whose death causes the interest to end, the beneficiary's share of the undistributed income that is not disposed of under the terms of the trust unless the beneficiary has an unqualified power to revoke more than five percent of the trust immediately before the income interest ends. In the latter case, the undistributed income from the portion of the trust that may be revoked shall be added to principal.
3. When a trustee's obligation to pay a fixed annuity or a fixed fraction of the value of the trust's assets ends, the trustee shall prorate the final payment if and to the extent required by applicable law to accomplish a purpose of the trust or its settlor relating to income, gift, estate or other tax requirements.
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(L. 2001 H.B. 241)
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.423 - Allocations by trustee — entity defined.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2004, 2 histories
469.423. Allocations by trustee — entity defined. —
1. For purposes of this section, the term
"entity"
means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a trustee has an interest, other than a trust or estate to which section 469.425 applies, a business or activity to which section 469.427 applies, or an asset-backed security to which section 469.449 applies.
2. Except as otherwise provided in this section, a trustee shall allocate to income money received from an entity.
3. A trustee shall allocate the following receipts from an entity to principal:
(1) Property other than money;
(2) Money received in one distribution or a series of related distributions in exchange for part or all of a trust's interest in the entity;
(3) Money received in total or partial liquidation of the entity; and
(4) Money received from an entity that is a regulated investment company or a real estate investment trust if the money distributed is a capital gain dividend for federal income tax purposes.
4. Money is received in partial liquidation:
(1) To the extent that the entity, at or near the time of a distribution, indicates that such money is a distribution in partial liquidation; or
(2) If the total amount of money and property received in a distribution or series of related distributions is greater than twenty percent of the entity's gross assets, as shown by the entity's year-end financial statements immediately preceding the initial receipt.
5. Money is not received in partial liquidation, nor may it be taken into account pursuant to subdivision (2) of subsection 4 of this section, to the extent that such money does not exceed the amount of income tax that a trustee or beneficiary shall pay on taxable income of the entity that distributes the money.
6. A trustee may rely upon a statement made by an entity about the source or character of a distribution if the statement is made at or near the time of distribution by the entity's board of directors or other person or group of persons authorized to exercise powers to pay money or transfer property comparable to those of a corporation's board of directors.
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(L. 2001 H.B. 241, A.L. 2004 H.B. 1511)
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.425 - Allocations to income or principal.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2001
469.425. Allocations to income or principal. —
A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a distribution of principal from such a trust or estate. If a trustee purchases an interest in a trust that is an investment entity, or a decedent or donor transfers an interest in such a trust to a trustee, section 469.423 or 469.449 shall apply to a receipt from the trust.
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(L. 2001 H.B. 241)
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.427 - Separate accounting records maintained, when, procedure.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2001
469.427. Separate accounting records maintained, when, procedure. —
1. If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for it as part of the trust's general accounting records, the trustee may maintain separate accounting records for its transactions, whether or not its assets are segregated from other trust assets.
2. A trustee who accounts separately for a business or other activity may determine the extent to which net cash receipts shall be retained for working capital, the acquisition or replacement of fixed assets, and other reasonably foreseeable needs of the business or activity, and the extent to which the remaining net cash receipts are accounted for as principal or income in the trust's general accounting records. If a trustee sells assets of the business or other activity, other than in the ordinary course of the business or activity, the trustee shall account for the net amount received as principal in the trust's general accounting records to the extent the trustee determines that the amount received is no longer required in the conduct of the business.
3. Activities for which a trustee may maintain separate accounting records include:
(1) Retail, manufacturing, service and other traditional business activities;
(2) Farming;
(3) Raising and selling livestock and other animals;
(4) Management of rental properties;
(5) Extraction of minerals and other natural resources;
(6) Timber operations; and
(7) Activities to which section 469.447 applies.
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(L. 2001 H.B. 241)
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.429 - Allocations to principal.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2001
469.429. Allocations to principal. —
A trustee shall allocate to principal:
(1) To the extent not allocated to income pursuant to sections 469.401 to 469.467, assets received from a transferor during the transferor's lifetime, a decedent's estate, a trust with a terminating income interest, or a payer under a contract naming the trust or its trustee as beneficiary;
(2) Money or other property received from the sale, exchange, liquidation or change in form of a principal asset, including realized profit, subject to sections 469.423 to 469.467;
(3) Amounts recovered from third parties to reimburse the trust because of disbursements described in subdivision (7) of subsection 1 of section 469.453 or for other reasons to the extent not based on the loss of income;
(4) Proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income;
(5) Net income received in an accounting period during which there is no beneficiary to whom a trustee may or shall distribute income; and
(6) Other receipts as provided in sections 469.435 to 469.449.
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(L. 2001 H.B. 241)
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.431 - Rental property, allocation to income.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2001
469.431. Rental property, allocation to income. —
To the extent that a trustee accounts for receipts from rental property pursuant to this section, the trustee shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. An amount received as a refundable deposit, including a security deposit or a deposit that is to be applied as rent for future periods, shall be added to principal and held subject to the terms of the lease and is not available for distribution to a beneficiary until the trustee's contractual obligations have been satisfied with respect to that amount.
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(L. 2001 H.B. 241)
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.432 - Interest allocated to income — amounts received from sale, redemption or disposition of an obligation to pay money to principal.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2001
469.432. Interest allocated to income — amounts received from sale, redemption or disposition of an obligation to pay money to principal. —
1. An amount received as interest, whether determined at a fixed, variable or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, shall be allocated to income without any provision for amortization of premium.
2. A trustee shall allocate to principal an amount received from the sale, redemption or other disposition of an obligation to pay money to the trustee more than one year after it is purchased or acquired by the trustee, including an obligation whose purchase price or value when it is acquired is less than its value at maturity. If the obligation matures within one year after it is purchased or acquired by the trustee, an amount received in excess of its purchase price or its value when acquired by the trust shall be allocated to income.
3. This section does not apply to an obligation to which section 469.437, 469.439, 469.441, 469.443, 469.447 or 469.449 applies.
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(L. 2001 H.B. 241)
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.433 - Life insurance proceeds allocated to principal — dividends allocated to income.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2001
469.433. Life insurance proceeds allocated to principal — dividends allocated to income. —
1. Except as otherwise provided in subsection 2 of this section, a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its trustee is named as beneficiary, including a contract that insures the trust or its trustee against loss for damage to, destruction of, or loss of title to a trust asset. The trustee shall allocate dividends on an insurance policy to income if the premiums on the policy are paid from income, and to principal if the premiums are paid from principal.
2. A trustee shall allocate to income proceeds of a contract that insures the trustee against loss of occupancy or other use by an income beneficiary, loss of income, or, subject to section 469.427, loss of profits from a business.
3. This section does not apply to a contract to which section 469.437 applies.
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(L. 2001 H.B. 241)
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.435 - Insubstantial amounts may be allocated to principal, exceptions — presumption of insubstantial amount, when.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2004, 2 histories
469.435. Insubstantial amounts may be allocated to principal, exceptions — presumption of insubstantial amount, when. —
If a trustee determines that an allocation between principal and income required by section 469.437, 469.439, 469.441, 469.443 or 469.449 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in subsection 3 of section 469.405 applies to the allocation. This power may be exercised by a cotrustee in the circumstances described in subsection 4 of section 469.405 and may be released for the reasons and in the manner described in subsection 5 of section 469.405. An allocation is presumed to be insubstantial if:
(1) The amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than ten percent; or
(2) The value of the asset producing the receipt for which the allocation would be made is less than ten percent of the total value of the trust's assets at the beginning of the accounting period.
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(L. 2001 H.B. 241, A.L. 2004 H.B. 1511)
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.439 - Ten percent of receipts from liquidating asset allocated to income, remainder to principal.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2001
469.439. Ten percent of receipts from liquidating asset allocated to income, remainder to principal. —
1. As used in this section, the phrase
"liquidating asset"
means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The phrase includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than one year under an arrangement that does not provide for the payment of interest on the unpaid balance. The phrase does not include a payment subject to section 469.437, resources subject to section 469.441, timber subject to section 469.443, an activity subject to section 469.447, an asset subject to section 469.449, or any asset for which the trustee establishes a reserve for depreciation pursuant to section 469.455.
2. A trustee shall allocate to income ten percent of the receipts from a liquidating asset and the balance to principal.
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(L. 2001 H.B. 241)
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.441 - Allocation of interest in minerals or other natural resources — interest in water, allocation of.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2001
469.441. Allocation of interest in minerals or other natural resources — interest in water, allocation of. —
1. To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the trustee shall allocate them as follows:
(1) If received as nominal delay rental or nominal annual rent on a lease, a receipt shall be allocated to income;
(2) If received from a production payment, a receipt shall be allocated to income if and to the extent that the agreement creating the production payment provides a factor for interest or its equivalent. The balance shall be allocated to principal;
(3) If an amount received as a royalty, shut-in-well payment, take-or-pay payment, bonus or delay rental is more than nominal, ninety percent shall be allocated to principal and the balance to income;
(4) If an amount is received from a working interest or any other interest not provided for in subdivision (1), (2) or (3) of this subsection, ninety percent of the net amount received shall be allocated to principal and the balance to income.
2. An amount received on account of an interest in water that is renewable shall be allocated to income. If the water is not renewable, ninety percent of the amount shall be allocated to principal and the balance to income.
3. Sections 469.401 to 469.467 apply whether or not a decedent or donor was extracting minerals, water or other natural resources before the interest became subject to the trust.
4. If a trust owns an interest in minerals, water or other natural resources on August 28, 2001, the trustee may allocate receipts from the interest as provided in sections 469.401 to 469.467 or in the manner used by the trustee before August 28, 2001. If the trust acquires an interest in minerals, water or other natural resources after August 28, 2001, the trustee shall allocate receipts from the interest as provided in sections 469.401 to 469.467.
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(L. 2001 H.B. 241)
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.443 - Sale of timber and related products, allocation of net receipts.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2001
469.443. Sale of timber and related products, allocation of net receipts. —
1. To the extent that a trustee accounts for receipts from the sale of timber and related products pursuant to this section, the trustee shall allocate the net receipts:
(1) To income to the extent that the amount of timber removed from the land does not exceed the rate of growth of the timber during the accounting periods in which a beneficiary has a mandatory income interest;
(2) To principal to the extent that the amount of timber removed from the land exceeds the rate of growth of the timber or the net receipts are from the sale of standing timber;
(3) To or between income and principal if the net receipts are from the lease of timberland or from a contract to cut timber from land owned by a trust, by determining the amount of timber removed from the land under the lease or contract and applying the rules in subdivisions (1) and (2) of this subsection; or
(4) To principal to the extent that advance payments, bonuses and other payments are not allocated pursuant to either subdivision (1), (2) or (3) of this subsection.
2. In determining net receipts to be allocated pursuant to subsection 1 of this section, a trustee shall deduct and transfer to principal a reasonable amount for depletion.
3. Sections 469.401 to 469.467 apply whether or not a decedent or transferor was harvesting timber from the property before it became subject to the trust.
4. If a trust owns an interest in timberland on August 28, 2001, the trustee may allocate net receipts from the sale of timber and related products as provided in sections 469.401 to 469.467 or in the manner used by the trustee before August 28, 2001. If the trust acquires an interest in timberland after August 28, 2001, the trustee shall allocate net receipts from the sale of timber and related products as provided in sections 469.401 to 469.467.
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(L. 2001 H.B. 241)
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.445 - Marital deduction, insufficient income, allowable actions.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2001
469.445. Marital deduction, insufficient income, allowable actions. —
1. If a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the spouse with sufficient income from or use of the trust assets, and if the amounts that the trustee transfers from principal to income pursuant to section 469.405 and distributes to the spouse from principal pursuant to the terms of the trust are insufficient to provide the spouse with the beneficial enjoyment required to obtain the marital deduction, the spouse may require the trustee to make property productive of income, convert property within a reasonable time, or exercise the power conferred by subsection 1 of section 469.405. The trustee may decide which action or combination of actions to take.
2. In cases not governed by subsection 1 of this section, proceeds from the sale or other disposition of an asset are principal without regard to the amount of income the asset produces during any accounting period.
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(L. 2001 H.B. 241)
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.447 - Transactions in derivatives allocated to principal — options to sell or buy property allocated to principal.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2001
469.447. Transactions in derivatives allocated to principal — options to sell or buy property allocated to principal. —
1. As used in this section, the term
"derivative"
means a contract or financial instrument or a combination of contracts and financial instruments which gives a trust the right or obligation to participate in some or all changes in the price of a tangible or intangible asset or group of assets, or changes in a rate, an index of prices or rates, or other market indicator for an asset or a group of assets.
2. To the extent that a trustee does not account pursuant to section 469.427 for transactions in derivatives, the trustee shall allocate to principal receipts from and disbursements made in connection with those transactions.
3. If a trustee grants an option to buy property from the trust, whether or not the trust owns the property when the option is granted, grants an option that permits another person to sell property to the trust, or acquires an option to buy property for the trust or an option to sell an asset owned by the trust, and the trustee or other owner of the asset is required to deliver the asset if the option is exercised, an amount received for granting the option shall be allocated to principal. An amount paid to acquire the option shall be paid from principal. A gain or loss realized upon the exercise of an option, including an option granted to a settlor of the trust for services rendered, shall be allocated to principal.
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(L. 2001 H.B. 241)
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.449 - Allocation of collateral financial assets and asset-backed securities.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2004, 2 histories
469.449. Allocation of collateral financial assets and asset-backed securities. —
1. As used in this section, the phrase
"asset-backed security"
means an asset whose value is based upon the right it gives the owner to receive distributions from the proceeds of financial assets that provide collateral for the security. The phrase includes an asset that gives the owner the right to receive from the collateral financial assets only the interest or other current return or only the proceeds other than interest or current return. The phrase does not include an asset to which section 469.423 or 469.437 applies.
2. If a trust receives a payment from interest or other current return and from other proceeds of the collateral financial assets, the trustee shall allocate to income the portion of the payment which the payer identifies as being from interest or other current return and shall allocate the balance of the payment to principal.
3. If a trust receives one or more payments in exchange for the trust's entire interest in an asset-backed security in one accounting period, the trustee shall allocate the payments to principal. If a payment is one of a series of payments that will result in the liquidation of the trust's interest in the security over more than one accounting period, the trustee shall allocate ten percent of the payment to income and the balance to principal.
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(L. 2001 H.B. 241, A.L. 2004 H.B. 1511)
2023 Missouri Revised Statutes › Title XXXI - Trusts and Estates of Decedents and Persons Under Disability › Chapter 469 - Disclaimers of Property › Section 469.451 - Required disbursements from income.

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter 469
• Effective - 28 Aug 2001
469.451. Required disbursements from income. —
A trustee shall make the following disbursements from income to the extent that they are not disbursements to which paragraph (b) or (c) of subdivision (2) of section 469.413 applies:
(1) One-half of the regular compensation of the trustee and of any person providing investment advisory or custodial services to the trustee;
(2) One-half of all expenses for accountings, judicial proceedings, or other matters that involve both the income and remainder interests;
(3) All of the other ordinary expenses incurred in connection with the administration, management or preservation of trust property and the distribution of income, including interest, ordinary repairs, regularly recurring taxes assessed against principal, and expenses of a proceeding or other matter that concerns primarily the income interest; and
(4) Recurring premiums on insurance covering the loss of a principal asset or the loss of income from or use of the asset.
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(L. 2001 H.B. 241)