Bill Text: MO HB230 | 2011 | Regular Session | Introduced
Bill Title: Changes the laws regarding the Missouri Uniform Trust Code
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-04-12 - Referred: Judiciary (H) [HB230 Detail]
Download: Missouri-2011-HB230-Introduced.html
FIRST REGULAR SESSION
96TH GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVES DAVIS (Sponsor), JONES (89), DIEHL, LANT, KELLEY (126), LICHTENEGGER AND WHITE (Co-sponsors).
0125L.01I D. ADAM CRUMBLISS, Chief Clerk
AN ACT
To amend chapter 456, RSMo, by adding thereto three new sections relating to the Missouri uniform trust code.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 456, RSMo, is amended by adding thereto three new sections, to be known as sections 456.1-113, 456.8-818, and 1, to read as follows:
456.1-113. 1. If a husband and wife own real or personal property as tenants by the entireties and transfer such property to the trustee of a trust, the terms of which provide that husband and wife are both settlors of that trust, then during any period that such property, or any investment or reinvestment thereof, is held by the trustee of that trust, such property shall be deemed to be tenancy by the entireties property and shall retain its characteristics as tenancy by the entireties property for all purposes.
2. Unless the terms of the transfer or the terms of the trust specifically provide otherwise, while both husband and wife are living and after the death of the first of them, the trustee shall administer such property as tenancy by the entireties property, including but not limited to administering such property in the following manner:
(1) The husband and wife while both shall be living shall be the sole permissible distributees of such property, or any interest therein, and of any income or benefits derived from the property;
(2) The husband and wife while both shall be living, and the survivor of them, shall have the power at any time and from time to time to withdraw or to appoint to any person or persons any part or all of such property; and
(3) The power to revoke or amend the trust shall be vested in and exercisable by the husband and wife while both of them are living and by the survivor of them.
3. In the event that any transfer of tenancy by entireties property to the trustee of the trust is held to be invalid by any court of proper jurisdiction while both husband and wife are living, or the trust is terminated by a court decree or by its terms while both husband and wife are living, then immediately upon the occurrence of any such event, any such tenancy by entireties property held by the trustee shall automatically be deemed to be held individually by the husband and wife, as tenants by the entireties, free and clear of the trust, without any further action required on the part of the trustee or husband and wife.
456.8-818. 1. A trust instrument may provide for the appointment of a trust protector. For the purposes of this section, a person designated with a status or title, other than that of a beneficiary or as a trustee, with powers similar to those specified in subsection 2 of this section is a trust protector, except to the extent otherwise provided in the trust instrument.
2. A trust protector appointed by the trust instrument has the powers, delegations, and functions conferred on the trust protector by the trust instrument. These powers, delegations and functions may include, but are not limited to, the following:
(1) Remove and appoint a trustee or name a successor trust protector;
(2) Modify or amend the trust instrument for any valid purpose or reason, including, without limitation, to:
(a) achieve favorable tax status or to respond to changes in the Internal Revenue Code or state law, or the rulings and regulations under such Code or law;
(b) modify or amend the trustee's administration, financial, and investment powers as set forth in the trust instrument;
(c) modify or amend the trust principal and income distribution provisions;
(d) reflect legal changes that affect trust administration;
(e) correct errors or ambiguities that might otherwise require court construction; or
(f) correct a drafting error that defeats a grantor's clear intent;
(3) Increase, decrease, modify, or restrict the interests of any beneficiary of the trust;
(4) Modify the terms of a power of appointment granted by the trust; or
(5) Change the applicable law governing the trust or the trust situs.
3. Except to the extent otherwise specifically provided in the trust instrument, a modification authorized under subsection 2 of this section shall not:
(1) Grant a beneficial interest to an individual or a class of individuals unless the individual or class of individuals is specifically provided for under the trust instrument;
(2) Modify the beneficial interest of a governmental unit in a trust created under 42 U.S.C. Section 1396p(d)(4); or
(3) Grant any power or authority that would create a taxable gift for federal gift tax purposes by the trust protector or cause the inclusion of any assets of the trust in the gross estate of the trust protector for federal estate tax purposes.
4. Notwithstanding any provision of the Missouri uniform trust code to the contrary, but except to the extent otherwise provided by the trust instrument, a trust protector:
(1) is not a trustee or fiduciary and is not liable or accountable as a trustee or fiduciary because of an act or omission of the trust protector when performing or failing to perform the duties of a trust protector under the trust instrument;
(2) is permitted and authorized to exercise the trust protector's best judgment in its course of service and will not be liable for any act or omission to act unless it is conclusively established that the act or omission to act was motivated by an actual intent to harm any trust, for which the trust protector is acting or any beneficiary of such trust, or is an act of self-dealing for personal pecuniary benefit;
(3) is entitled to payment or reimbursement of the reasonable costs and expenses from the assets of the trust for which the trust protector is acting (including attorney's fees) of defending, settlement, or judgment of any claim made against the trust protector for claims made arising from actions taken by the trust protector acting in that capacity, unless it is conclusively established by a court decision from which no appeal may be taken that the trust protector's conduct was in bad faith; and
(4) absent bad faith on the part of the trust protector, the trust protector is exonerated from any and all liability for the trust protector's acts or omissions or the acts or omissions of any fiduciary or any beneficiary under the trust instrument or arising from any exercise or nonexercise of the powers and discretions conferred under the trust instrument.
Section 1. An estate held by entirety may be devised by a joint testamentary disposition. By agreement and joint act, a husband and wife by joint testamentary disposition may devise a remainder over after life enjoyment by the surviving spouse. Such act shall not disrupt or terminate the joint tenancy by the husband and wife during the life of both.
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