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.

Missouri House of Representatives
Last Updated November 26, 2001 at 11:43 am