Missouri Statute | Act | Code |Trusts And Estates Of Decedents And Persons Under Disability| US Code - US Statute | Chapter 456 Trusts And Trustees--the Uniform Trust Code

USA Statutes : missouri
Title : TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY
Chapter : Chapter 456 Trusts and Trustees--The Uniform Trust Code

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

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

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. No continuity with § 456.030 as
repealed by L. 1983 H.B. 117

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, RSMo, 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

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

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

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, A.L. 1983 H.B. 117, A.L. 2004 H.B. 1511)

*Transferred 2004; formerly 456.070. No continuity with § 456.013 as
repealed in L. 2001 H.B. 241.

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

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

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

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

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

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

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, RSMo, 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

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

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

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, RSMo.

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)

*Transferred 2004; formerly 456.430

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)

*Transferred 2004; formerly 456.620

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

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

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)

*Transferred 2004; formerly 456.660

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)

CROSS REFERENCE: Modification or termination of noncharitable irrevocable
trust, uniform trust code, RSMo 456.4B-411

Short title.

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)

Effective 1-1-05

Scope.

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, RSMo. (L. 2004 H.B.
1511)

Effective 1-1-05

Definitions.

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) "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.

(3) "Charitable trust" means a trust, or portion of a trust, created for
a charitable purpose described in subsection 1 of section 456.4-405.

(4) "Conservator" means a person described in subdivision (3) of section
475.010, RSMo. This term does not include a conservator ad litem.

(5) "Conservator ad litem" means a person appointed by the court pursuant
to the provisions of section 475.097, RSMo.

(6) "Environmental law" means a federal, state, or local law, rule,
regulation, or ordinance relating to protection of the environment.

(7) "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, RSMo.

(8) "Guardian" means a person described in subdivision (6) of section
475.010, RSMo. The term does not include a guardian ad litem.

(9) "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.

(10) "Interests of the beneficiaries" means the beneficial interests
provided in the terms of the trust.

(11) "Internal Revenue Code" means the United States Internal Revenue
Code of 1986, as in effect on January 1, 2005, or as later amended.

(12) "Jurisdiction," with respect to a geographic area, includes a state
or country.

(13) "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.

(14) "Permissible distributee" means a beneficiary who is currently
eligible to receive distributions of trust income or principal, whether
mandatory or discretionary.

(15) "Power of withdrawal" means a presently exercisable general power of
appointment other than a power exercisable only upon consent of the
trustee or a person holding an adverse interest.

(16) "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.

(17) "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.

(18) "Property" means anything that may be the subject of ownership,
whether real or personal, legal or equitable, or any interest therein.

(19) "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.

(20) "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.

(21) "Revocable," as applied to a trust, means revocable by the settlor
without the consent of the trustee or a person holding an adverse
interest.

(22) "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.

(23) "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.

(24) "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.

(25) "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.

(26) "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.

(27) "Trust instrument" means an instrument executed by the settlor that
contains terms of the trust, including any amendments thereto.

(28) "Trustee" includes an original, additional, and successor trustee,
and a cotrustee. (L. 2004 H.B. 1511)

Effective 1-1-05

Knowledge.

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)

Effective 1-1-05

Default and mandatory rules.

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) the duty to notify the permissible distributees of an irrevocable
trust who have attained twenty-one years of age of the existence of the
trust and of their 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 a 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. (L. 2004 H.B. 1511)

Effective 1-1-05

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)

Effective 1-1-05

Governing law.

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)

Effective 1-1-05

Principal place of administration.

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)

Effective 1-1-05

Methods and waiver of notice.

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)

Effective 1-1-05

Others treated as qualified beneficiaries.

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 section 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 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)

Effective 1-1-05

Nonjudicial settlement agreements.

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)

Effective 1-1-05

Rules of construction.

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. (L. 2004 H.B. 1511)

Effective 1-1-05

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)

Effective 1-1-05

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)

Effective 1-1-05

Venue.

456.2-204. 1. Venue for judicial proceedings involving the internal
affairs of a trust 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)

Effective 1-1-05

Representation, basic effect.

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.

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. (L. 2004 H.B. 1511)

Effective 1-1-05

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)

Effective 1-1-05

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)

Effective 1-1-05

Representation by person having substantially identical interest.

456.3-304. 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. (L. 2004
H.B. 1511)

Effective 1-1-05

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)

Effective 1-1-05

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, RSMo. (L. 2004
H.B. 1511)

Effective 1-1-05

Requirements for creation.

456.4-402. 1. Other than for a trust created by section 475.092, 475.093,
or 511.030, RSMo, 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)

Effective 1-1-05

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)

Effective 1-1-05

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)

Effective 1-1-05

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)

Effective 1-1-05

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)

Effective 1-1-05

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)

Effective 1-1-05

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)

Effective 1-1-05

Noncharitable trust without ascertainable beneficiary.

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)

Effective 1-1-05

Modification or termination of trust--proceedings for approval or
disapproval.

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)

Effective 1-1-05

Modification or termination because of unanticipated circumstances or
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)

Effective 1-1-05

Cy pres.

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)

Effective 1-1-05

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)

Effective 1-1-05

Reformation to correct mistakes.

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)

Effective 1-1-05

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)

Effective 1-1-05

Combination and division of trusts.

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)

Effective 1-1-05

Rights of beneficiary's creditor or assignee.

456.5-501. To the extent a beneficiary's interest is not protected by 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)

Effective 1-1-05

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)

Effective 1-1-05

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)

Effective 1-1-05

Discretionary trusts--effect of standard.

456.5-504. 1. Except as otherwise provided in section 456.5-503, whether
or not a trust contains a spendthrift provision, a creditor of a
beneficiary may not compel a distribution that is subject to the
trustee's discretion, even if:

(1) the discretion is expressed in the form of a standard of
distribution; or

(2) the trustee has abused the 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. (L. 2004 H.B. 1511)

Effective 1-1-05

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, RSMo; 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. Any trustee who has a duty or power to pay the debts of a deceased
settlor may publish a notice in some newspaper published in the county
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, RSMo, by reason
of any debt barred under the provisions of this subsection.

5. 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.

6. This section shall not apply to a spendthrift trust described,
defined, or established in section 456.014*. (L. 2004 H.B. 1511)

Effective 1-1-05

*Section "456.018" appears in original rolls, an apparent typographical
error.

Overdue distribution.

456.5-506. 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)

Effective 1-1-05

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)

Effective 1-1-05

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)

Effective 1-1-05

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)

Effective 1-1-05

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)

Effective 1-1-05

Limitation on action contesting validity of revocable trust--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, RSMo, 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, RSMo.

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, RSMo; 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)

Effective 1-1-05

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)

Effective 1-1-05

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)

Effective 1-1-05

Cotrustees.

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 not delegate to a cotrustee the performance of a
function the settlor reasonably expected the trustees to perform jointly.
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)

Effective 1-1-05

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)

Effective 1-1-05

Resignation of trustee.

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)

Effective 1-1-05

Removal of trustee.

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)

Effective 1-1-05

Delivery of property by former trustee.

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)

Effective 1-1-05

Compensation of trustee.

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)

Effective 1-1-05

Reimbursement of expenses.

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)

Effective 1-1-05

Duty to administer trust.

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)

Effective 1-1-05

Duty of loyalty.

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 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 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)

Effective 1-1-05

Impartiality.

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)

Effective 1-1-05

Prudent administration.

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)

Effective 1-1-05

Costs of administration.

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)

Effective 1-1-05

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)

Effective 1-1-05

Delegation by trustee.

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)

Effective 1-1-05

Powers to direct.

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. If the terms of a trust confer upon a person other than the settlor of
a revocable trust power to direct certain actions of the trustee, the
trustee shall act in accordance with an exercise of the power unless the
attempted exercise is contrary to the terms of the trust or the trustee
knows the attempted exercise would constitute a serious breach of a
fiduciary duty that the person holding the power owes to the
beneficiaries of the trust.

3. The terms of a trust may confer upon a trustee or other person a power
to direct the modification or termination of the trust.

4. A person, other than a beneficiary, who holds a power to direct is
presumptively a fiduciary who, as such, is required to act in good faith
with regard to the purposes of the trust and the interests of the
beneficiaries. The holder of a power to direct is liable for any loss
that results from breach of a fiduciary duty. (L. 2004 H.B. 1511)

Effective 1-1-05

Control and protection of trust property.

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)

Effective 1-1-05

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)

Effective 1-1-05

Enforcement and defense of claims.

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)

Effective 1-1-05

Collecting trust property.

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)

Effective 1-1-05

Duty to inform and report.

456.8-813. 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. 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 60 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 sixty 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. Subdivisions (2) and
(3) of this subsection do not apply to a trust that became irrevocable
before January 1, 2005.

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. (L. 2004 H.B. 1511)

Effective 1-1-05

Discretionary powers--tax savings.

456.8-814. 1. Notwithstanding the breadth of discretion granted to a
trustee in the terms of the trust, including the use of such terms as
"absolute," "sole," or "uncontrolled," the trustee shall exercise a
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 relating to the
trustee's individual health, education, support, or maintenance within
the meaning of Section 2041(b)(1)(A) or 2514(c)(1) of the Internal
Revenue Code;

(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)

Effective 1-1-05

General powers of trustee.

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)

Effective 1-1-05

Specific powers of trustee.

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, RSMo, or a personal
custodian under sections 404.400 to 404.650, RSMo, 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) sign and deliver contracts and other instruments that are useful to
achieve or facilitate the exercise of the trustee's powers.

(26) 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

(27) To invest and reinvest trust assets in accordance with sections
469.900 to 469.913, RSMo; including investing and reinvesting 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,
RSMo. (L. 2004 H.B. 1511)

Effective 1-1-05

Distribution upon termination.

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)

Effective 1-1-05

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)

Effective 1-1-05

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)

Effective 1-1-05

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)

Effective 1-1-05

Attorney's fees and costs.

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)

Effective 1-1-05

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)

Effective 1-1-05

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)

Effective 1-1-05

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)

Effective 1-1-05

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)

Effective 1-1-05

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)

Effective 1-1-05

Limitation on personal liability of trustee.

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)

Effective 1-1-05

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)

Effective 1-1-05

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)

Effective 1-1-05

Certification of trust.

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)

Effective 1-1-05

Uniformity of application and construction.

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)

Effective 1-1-05

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)

Effective 1-1-05

Severability clause.

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)

Effective 1-1-05

Effective date.

456.11-1104. Sections 456.1-101 to 456.11-1106 take effect on January 1,
2005. (L. 2004 H.B. 1511)

Effective 1-1-05

Application to existing relationships.

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)

Effective 1-1-05

Modification or termination of noncharitable irrevocable trust by consent.

456.4A-411. 1. 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)

Effective 1-1-05

Modification or termination of noncharitable irrevocable trust by consent.

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 on or after January 1,
2005. The provisions of section 456.590 shall apply to all trusts created
prior to January 1, 2005. (L. 2004 H.B. 1511 § 456.4-411B)

Effective 1-1-05

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