HCS HB 1511 -- TRUST AND ESTATE ADMINISTRATION

SPONSOR:  Byrd

COMMITTEE ACTION:  Voted "do pass" by the Committee on Judiciary
by a vote of 17 to 0.

This substitute enacts the Missouri Uniform Trust Code.  In its
main provisions, the code:

(1)  Sets general provisions and definitions regarding trust
administration;

(2)  Establishes rules regarding court jurisdiction and venue for
actions concerning trusts;

(3)  Provides rules for the representation of minor, unborn, and
unascertained beneficiaries and other interested persons by
fiduciaries in judicial and non-judicial contexts;

(4)  Specifies the requirements for creating, modifying, and
terminating trusts;

(5)  Sets provisions regarding the ability of creditors of trust
settlors or beneficiaries to reach trust assets, including the
effect of spendthrift clauses;

(6)  Sets and clarifies provisions relating to revocable trusts,
including a settlor's necessary legal capacity to create a valid
revocable trust, a presumption that trusts are revocable unless
otherwise specified, and requirements for trust amendments and
revocations;

(7)  Contains default rules for dealing with the office of
trustee, which may be modified by the terms of the trust;

(8)  Details the fiduciary duties of trustees and enumerates
trustees' powers; and

(9)  Specifies the liability of trustees and the rights of
persons dealing with trustees.

The substitute also moves the Missouri Prudent Investor Act and
the Missouri Principal and Income Act from Chapter 456, RSMo, to
Chapter 469.

The substitute creates a rebuttable presumption of undue
influence for certain asset transfers to in-home health care
providers who are not closely related to the grantor.

FISCAL NOTE:  No impact on state funds in FY 2005, FY 2006, and
FY 2007.

PROPONENTS:  Supporters say that Missouri's trust laws developed
sporadically over the years in response to specific problems and
issues and fails to address recent developments.  The bill will
provide more uniform, comprehensive, and up-to-date trust laws.

Testifying for the bill were Representative Byrd; Board of
Governors of the Missouri Bar; Bank of America; Missouri Bankers
Association; and St. Louis Trust Company.

OPPONENTS:  There was no opposition voiced to the committee.

Julie Jinkens McNitt, Legislative Analyst

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:15 am