Opinion ID: 2448088
Heading Depth: 1
Heading Rank: 2

Heading: Powers of the Trustee and the Circuit Court

Text: Other issues raised in this case are the duty owed by the trustee to the estate, the duty of the trustee to the inmate, and the role of the circuit court and the inmate in enforcing those duties. An analysis of the type of trust created under Chapter 460 clarifies these issues. The traditional concern underlying Chapter 460 has been the balancing of the rights of creditors and the rights of the inmate over the estate. As such, a Chapter 460 trust contains elements of both constructive trusts and spendthrift trusts. A Chapter 460 trust resembles a constructive trust in that it is imposed to protect those with legitimate claims on the estate at the time of the inmate's incarceration. A Chapter 460 trust resembles a spendthrift trust as, while it permits the inmate some access to his estate, it prevents wasting the estate before all creditors are paid. These two underlying concepts define the powers of the trustee. The trustee has a duty, under both common law concepts of fiduciary duty and the specific language of § 460.100 RSMo Supp.1990, to pursue any meritorious claims that the estate has against third parties and to present any meritorious defense against any third party, including alleged creditors. The trustee has a duty to provide money from the estate for the support of the inmate. The trustee has the duty to manage that estate as a prudent person would. This duty includes all the powers listed in § 456.520 RSMo 1986 to the extent that they are consistent with the purposes of a Chapter 460 trust. The duty of the circuit court is somewhat restricted by the nature of the trust imposed on an inmate. As the purpose of the trust is to prevent an inmate from wasting the estate, it would defeat this purpose to require a full trial of every allegation raised by an inmate against a trustee. The circuit court does, however, have a duty to remove a trustee who refuses to perform his duties. Cf. § 456.190 RSMo 1986. As such, especially in cases where the trust was imposed on the inmate at the request of a creditor, the judge of the circuit court should examine the petition of the inmate to determine if it indicates a violation of the trustee's duty (as opposed to a mere dislike of the decisions of the trustee). Only if the petition alleges facts which constitute a violation of duty should the court require formal proceedings. The judgment below is affirmed. All concur.