HB608--TRUSTANDESTATEADMINISTRATION (Thompson)
COMMITTEEOFORIGIN:StandingcommitteeonFinancialInstitutions
ThisbillspecifiesthattheincomeandprincipaloftheEndowed
CareTrustFundisdeterminedunderthelawsapplicabletotrusts
withanexceptionthatthetrusteehas:nopowerofadjustmentand
conversion;nopowerandnodiscretiontodetermineormodifythe
unitrustrate;andnodiscretiontodetermineapplicablevalueto
computetheunitrustamountbeyondthatgrantedbylaw.Aunitrust
definitionofincomewillbedeterminedbythecemeteryoperatorin
thetermsoftheEndowedCareTrustFundAgreementandnotbythe
trustee. Further,noprincipalfromtheTrustFundwillbe
distributedexceptifaunitrustamountisrequiredunderthe
Agreement. Thecemeteryoperatormayinstructbyrecordforthe
trusteetodistributelessthanalltheincomedistributablefor
theyearifthecemeteryoperatordeterminesthatthemoneyisnot
needed(Section214.330,RSMo).
Thisbillestablishesthe"MissouriUniformFiduciaryIncomeand
PrincipalAct"(MUFIPA). Someofthecurrentprovisionsofthe
PrincipalandIncomeAct(PIA)havebeenupdatedtoachieve
compliancewiththeMUFIPA.
Thebillmodifiescertaindefinitionsandaddstermssuchas
"asset-backedsecurity",“court”, “currentincomebeneficiary”,
“distribution”, “estate”,“independentperson”,“personal
representative”, “record”,“settlor”,“specialtaxbenefit”,
“successiveinterest”,“successorbeneficiary”,“trust”,and
“will”.Itrepealsreferencetocurrentdefinitionsof"income
beneficiary","qualifiedbeneficiary",and"remainderbeneficiary".
ThisbillspecifiesthattheMUFIPAappliestoatrustorestate
andalifeestateorotherterminterestinwhichtheinterestof
oneormorepersonswillbesucceededbytheinterestofoneor
moreotherpersons,exceptasotherwiseprovidedinthetermsofa
trustorinMUFIPA.Inaddition,theMUFIPAapplieswhenMissouri
istheprincipalplaceofadministration ofatrustorestateor
thesitusofpropertythatisnotheldinatrustorestateandis
subjecttoalifeestateorotherterminterest.
Thebilldetailsthefiduciary'sdutiesincludingthepowerto
adjust,convertanincometrusttoaunitrust,andviceversa.In
addition,thebillspecifiesthebusinessorotheractivity
conductedbythefiduciary,theallocationofreceipts,the
determinationof"internalincomeofaseparatefund","marital
trust",interestinminerals,waterorothernaturalresources,
interestinlandusedforgrowingandcuttingtimber,"derivative", "asset-backedsecurity",anddisbursementsfromincome,allas
furtherspecifiedinthebill.
ThisbillcallsfortheapplicationofMUFIPAtoatrustorestate,
existingorcreatedonorafterAugust28,2025withexceptions
(Sections469.399to469.467).
Thebilldefines"unitrust"tomeanatrustforwhichnetincomeis
aunitrustamount,includinganexpressunitrust.
Thisbilldefinestermssuchas“applicablevalue”,“express
unitrust”,“incometrust”,“netfairvalueofatrust”,“unitrust
policy”,and“unitrustrate”.Theprovisionsthatapplyto
unitrustsdonotcreateadutytotakeorconsideractionorto
informabeneficiaryabouttheapplicabilityoftheprovisions. A
fiduciarythatingoodfaithtakesorfailstotakeanactionunder
theunitrustprovisionsisnotliabletoapersonaffectedbythe
actionorinaction.
Thebillprovidestheactionsthatthefiduciarycantakewithout
courtapproval. Thebillspecifiesdeterminations, considerations,
andproceduresrequiredofafiduciaryintakingactions. The
requirementsincludesendinganoticeinarecord,describing,and
proposingtotaketheaction,tocertainpersons,asspecifiedin
thebill.TheMUFIPAincludesprovisionsallowingthesepersonsto
objecttoaproposedaction,whereuponthefiduciaryora
beneficiarymayrequestthecourttohavetheproposedactiontaken
asproposed,takenwithmodifications, orprevented. Thisbill
containsrequirementsrelatingtotheunitrustpolicyandunitrust
rate.
Thebillprovidesforuniformityintheinterpretation and
applicationoftheMUFIPA;containsaseverabilityclause;and
explainsMUFIPA'sinteractionwiththeElectronicSignaturesin
GlobalandNationalCommerceAct,15U.S.C.Section7001etseq.
(Sections469.471to469.487).
ThisbillissimilartoHB1987(2024).