HB 1184 -- MISSOURI UNIFORM TRUST CODE

SPONSOR:  Stevenson

COMMITTEE ACTION:  Voted "do pass" by the Committee on Judiciary
by a vote of 12 to 0.

This bill makes changes to the Missouri Uniform Trust Code.  In
its main provisions, the bill:

(1)  Revises the statutes to reflect recent changes in Uniform
Trust Code at the national level by limiting a settlor's ability
to represent and bind beneficiaries in actions to amend or
terminate trusts and adds a definition of "mandatory
distribution";

(2)  Changes cross references in the statute to conform with the
Missouri Prudent Investor Act;

(3)  Prevents special needs trusts from being subject to
termination by agreement of the settlor and beneficiaries;

(4)  Protects discretionary interests in a trust from creditors;

(5)  Abolishes the Doctrine of Worthier Title to prevent
inadvertent disqualification of special needs trusts;

(6)  Redefines "power of withdrawal";

(7)  Modifies notice requirements for charitable beneficiaries;
and

(8)  Allows qualified beneficiaries to represent other
beneficiaries in actions to modify trust administrative
provisions.

FISCAL NOTE:  No impact on state funds in FY 2007, FY 2008, and
FY 2009.

PROPONENTS:  Supporters say that the bill revises the statutes to
reflect the current practices in estates and trusts law.  The
bill changes Missouri Uniform Trust Code to conform with
technical changes made on the federal level, corrects cross
references to the Missouri Prudent Investor Act, and allows
courts to create and enforce trust agreements more effectively.

Testifying for the bill were Representative Pratt for
Representative Stevenson; and The Board of Governors of The
Missouri Bar.

OPPONENTS:  Those who oppose the bill say that it is unclear in
dealing with the powers of withdrawal and revocation of trusts.
The mechanisms in the bill for judging incompetence of the
settlor of a trust is not clearly defined.

Testifying against the bill was Missouri Land Title Association.

Alex Curchin, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:42 am