CCS SCS HCS HB 241 -- TRUSTS AND ESTATES This bill revises the law governing the administration of trusts. The bill: (1) Redefines the standards and processes used to determine which parts of a trust constitute principal and which constitute income from that principal, as well as trustees' obligations in administering those trusts; (2) Makes current market investment principles, including diversification, applicable to trust estates, unless the trust document specifically provides otherwise; (3) Defines many terms to be consistent with changes to the Internal Revenue Code as well as the Prudent Investor Act, enacted in 1996; (4) Adopts and sets the "unitrust amount" (the default mechanism used to determine how much of a portfolio to count as income) at 3%; (5) Repeals the rule against perpetuities as it applies to trusts, under certain conditions; and (6) Reduces the statute of limitations, from 5 years to 2 years, for claims of breach of trust resulting from a trustee's allocation of income and principal.Copyright (c) Missouri House of Representatives