Effective - 28 Aug 2008
456.8-802. Duty of loyalty. — 1. A trustee shall administer the trust solely in the interests of the beneficiaries.
2. Subject to the rights of persons dealing with or assisting the trustee as provided in section 456.10-1012, a sale, encumbrance, or other transaction involving the investment or management of trust property entered into by the trustee for the trustee's own personal account or which is otherwise affected by a conflict between the trustee's fiduciary and personal interests is voidable by a beneficiary affected by the transaction unless:
(1) the transaction was authorized by the terms of the trust;
(2) the transaction was approved by the court;
(3) the beneficiary did not commence a judicial proceeding within the time allowed by section 456.10-1005;
(4) the beneficiary consented to the trustee's conduct, ratified the transaction, or released the trustee in compliance with section 456.10-1009; or
(5) the transaction involves a contract entered into or claim acquired by the trustee before the person became or contemplated becoming trustee.
3. A sale, encumbrance, or other transaction involving the investment or management of trust property is presumed to be affected by a conflict between personal and fiduciary interests if it is entered into by the trustee with:
(1) the trustee's spouse;
(2) the trustee's descendants, siblings, parents, or their spouses;
(3) an agent or attorney of the trustee; or
(4) a corporation or other person or enterprise in which the trustee, or a person that owns a significant interest in the trustee, has an interest that might affect the trustee's best judgment.
4. A transaction between a trustee and a beneficiary that does not concern trust property but that occurs during the existence of the trust or while the trustee retains significant influence over the beneficiary and from which the trustee obtains an advantage is voidable by the beneficiary unless the trustee establishes that the transaction was fair to the beneficiary.
5. A transaction not concerning trust property in which the trustee engages in the trustee's individual capacity involves a conflict between personal and fiduciary interests if the transaction concerns an opportunity properly belonging to the trust.
6. The following transactions are not presumed to be affected by a conflict between the trustee's personal and fiduciary interest provided that any investment made pursuant to the transaction complies with the Missouri prudent investor act.
(1) an investment by a trustee in securities of an investment company or investment trust, or in shares or interests in a partnership or limited liability company or other entity that operates as a privately offered investment fund, to which the trustee, or its affiliate, provides services in a capacity other than as trustee.
(2) the placing of securities transactions by a trustee through a securities broker that is a part of the same company as the trustee, is owned by the trustee, or is affiliated with the trustee.
(3) in addition to the trustee's fees charged to the trust, the trustee, its affiliate, or associated entity may be compensated for any transaction or provision of services described in this subsection 6 or in subdivision (4), (5), or (6) of subsection 8 of this section; provided, however, that with respect to any investment in securities of an investment company or investment trust, or in shares or interests in a partnership or limited liability company or other entity that operates as a privately offered investment fund, to which the trustee or its affiliate provides investment advisory or investment management services or any services described in subdivision (5) of subsection 8 of this section, the trustee shall at least annually notify the persons entitled under section 456.8-813 to receive a copy of the trustee's annual report of the rate or method by which the compensation was determined.
7. In voting shares of stock or in exercising powers of control over similar interests in other forms of enterprise, the trustee shall act in the best interests of the beneficiaries. If the trust is the sole owner of a corporation or other form of enterprise, the trustee shall elect or appoint directors or other managers who will manage the corporation or enterprise in the best interests of the beneficiaries.
8. The following transactions, if fair to the beneficiaries, are not presumed to be affected by a conflict between personal and fiduciary interests and are not precluded by this section:
(1) an agreement between a trustee and a beneficiary relating to the appointment or compensation of the trustee;
(2) payment of reasonable compensation to the trustee;
(3) a transaction between a trust and another trust, decedent's estate, or conservatorship of which the trustee is a fiduciary or in which a beneficiary has an interest;
(4) a deposit of trust money in a financial institution operated by the trustee or an affiliate;
(5) a delegation and any transaction made pursuant to the delegation from a trustee to an agent that is affiliated or associated with the trustee, provided that notice of any compensation paid pursuant to the delegation is given as provided in subdivision (3) of subsection 6 of this section; or
(6) any loan from the trustee or its affiliate.
9. The court may appoint a special fiduciary to make a decision with respect to any proposed transaction that might violate this section if entered into by the trustee.
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(L. 2004 H.B. 1511, A.L. 2008 S.B. 1235)
Structure Missouri Revised Statutes
Title XXXI - Trusts and Estates of Decedents and Persons Under Disability
Chapter 456 - Trusts and Trustees — The Uniform Trust Code
Section 456.001 - Bequests or transfer to spouse, valuation of.
Section 456.003 - Absence of active duties not to curtail powers of trustee.
Section 456.005 - Life insurance trusts.
Section 456.006 - Health savings account, trust may be created, when.
Section 456.007 - Lessor, trustee of deposits by lessee, when — exception.
Section 456.009 - Lessor liable for double amount of deposit so held in trust, when.
Section 456.013 - Trusts for benefit of employees or self-employed persons — accumulation.
Section 456.017 - Applicability of sections 456.011, 456.013, and 456.014.
Section 456.021 - Addition to trusts.
Section 456.026 - Rule against perpetuities, trust subject to, when.
Section 456.027 - Registration of trust.
Section 456.029 - Registration procedure.
Section 456.031 - Records and certified copies.
Section 456.033 - Effect of registration.
Section 456.035 - Evidence as to death or status — five-year absence presumption of death.
Section 456.037 - Trust property — when deemed unclaimed.
Section 456.039 - Procedure by trustee with respect to unclaimed property.
Section 456.041 - Unclaimed property — liability of trustee.
Section 456.970 - Short title.
Section 456.975 - Definitions.
Section 456.980 - Governing Law — common law and principles of equity.
Section 456.985 - Act to govern powers — exceptions.
Section 456.990 - Creations of power of appointment.
Section 456.995 - Nontransferability.
Section 456.1005 - Rules of classification.
Section 456.1010 - Power to revoke or amend.
Section 456.1015 - Requisites for exercise of power of appointment.
Section 456.1020 - Intent to exercise — determining intent from residuary clause.
Section 456.1025 - Intent to exercise — after-acquired power.
Section 456.1030 - Substantial compliance with donor-imposed formal requirement.
Section 456.1035 - Permissible appointment.
Section 456.1040 - Appointment to deceased appointee or permissible appointee's descendant.
Section 456.1045 - Impermissible appointment.
Section 456.1050 - Selective allocation doctrine.
Section 456.1060 - Disposition of unappointed property under released or unexercised general power.
Section 456.1075 - Powerholder's authority to revoke or amend exercise.
Section 456.1080 - Disclaimer.
Section 456.1085 - Authority to release — method of release — revocation or amendment of release.
Section 456.1095 - Remedy for breach of contract to appoint or not to appoint.
Section 456.1100 - Creditor claim — general power created by powerholder.
Section 456.1105 - Creditor claim — general power not created by powerholder.
Section 456.1110 - Power to withdraw.
Section 456.1115 - Creditor claim — nongeneral power.
Section 456.1125 - Uniformity of application and construction.
Section 456.1130 - Relation to Electronic Signatures in Global and National Commerce Act.
Section 456.1135 - Application to existing relationships.
Section 456.1-101 - Short title.
Section 456.1-103 - Definitions.
Section 456.1-104 - Knowledge.
Section 456.1-105 - Default and mandatory rules.
Section 456.1-106 - Common law of trusts — principles of equity.
Section 456.1-107 - Governing law.
Section 456.1-108 - Principal place of administration.
Section 456.1-109 - Methods and waiver of notice.
Section 456.1-110 - Others treated as qualified beneficiaries.
Section 456.1-111 - Nonjudicial settlement agreements.
Section 456.1-112 - Rules of construction — inapplicable to certain trusts.
Section 456.1-113 - Transfer of assets to trust subjects assets to terms of the trust.
Section 456.1-114 - Familial relationships.
Section 456.2-201 - Role of court in administration of trust.
Section 456.2-202 - Jurisdiction over trustee and beneficiary.
Section 456.2-205 - Enforceability of mediation or arbitration provisions.
Section 456.3-301 - Representation, basic effect — prohibited, when.
Section 456.3-302 - Representation by holder of general testamentary power of appointment.
Section 456.3-303 - Representation by fiduciaries and parents.
Section 456.3-304 - Representation by person having substantially identical interest.
Section 456.3-305 - Appointment of representative.
Section 456.4-401 - Methods of creating trust.
Section 456.4-402 - Requirements for creation.
Section 456.4-403 - Trusts created in other jurisdictions.
Section 456.4-404 - Trust purposes.
Section 456.4-405 - Charitable purposes — enforcement.
Section 456.4-406 - Creation of trust induced by fraud, duress, or undue influence.
Section 456.4-407 - Evidence of oral trust.
Section 456.4-408 - Trust for care of animal.
Section 456.4-409 - Noncharitable trust without ascertainable beneficiary.
Section 456.4-410 - Modification or termination of trust — proceedings for approval or disapproval.
Section 456.4-414 - Modification or termination of uneconomic trust.
Section 456.4-415 - Reformation to correct mistakes.
Section 456.4-416 - Modification to achieve settlor's tax objectives.
Section 456.4-417 - Combination and division of trusts.
Section 456.4-420 - No-contest clause, claims for relief.
Section 456.5-501 - Rights of beneficiary's creditor or assignee, exceptions.
Section 456.5-502 - Spendthrift provision.
Section 456.5-503 - Exceptions to spendthrift provision.
Section 456.5-505 - Creditor's claim against settlor.
Section 456.5-506 - Mandatory distribution defined — overdue distribution.
Section 456.5-507 - Personal obligations of trustee.
Section 456.5-508 - Creditor claim, appointive property not subject to, when.
Section 456.6-601 - Capacity of settlor of revocable trust.
Section 456.6-602 - Revocation or amendment of revocable trust.
Section 456.6-603 - Settlor's powers — powers of withdrawal.
Section 456.7-701 - Accepting of declining trusteeship.
Section 456.7-702 - Trustee's bond.
Section 456.7-703 - Cotrustees.
Section 456.7-704 - Vacancy in trusteeship — appointment of successor.
Section 456.7-705 - Resignation of trustee.
Section 456.7-706 - Removal of trustee.
Section 456.7-707 - Delivery of property by former trustee.
Section 456.7-708 - Compensation of trustee.
Section 456.7-709 - Reimbursement of expenses.
Section 456.8-801 - Duty to administer trust.
Section 456.8-802 - Duty of loyalty.
Section 456.8-803 - Impartiality.
Section 456.8-804 - Prudent administration.
Section 456.8-805 - Costs of administration.
Section 456.8-806 - Trustee's skills.
Section 456.8-807 - Delegation by trustee.
Section 456.8-808 - Powers to direct — trust protector, powers, limitations.
Section 456.8-809 - Control and protection of trust property.
Section 456.8-810 - Record keeping and identification of trust property.
Section 456.8-811 - Enforcement and defense of claims.
Section 456.8-812 - Collecting trust property.
Section 456.8-813 - Duty to inform and report — inapplicable, when.
Section 456.8-814 - Discretionary powers — tax savings.
Section 456.8-815 - General powers of trustee.
Section 456.8-816 - Specific powers of trustee.
Section 456.8-817 - Distribution upon termination.
Section 456.10-1001 - Remedies for breach of trust.
Section 456.10-1002 - Damages for breach of trust.
Section 456.10-1003 - Damages in absence of breach.
Section 456.10-1004 - Attorney's fees and costs.
Section 456.10-1005 - Limitation of action against trustee.
Section 456.10-1006 - Reliance on trust instrument.
Section 456.10-1007 - Event affecting administration or distribution.
Section 456.10-1008 - Exculpation of trustee.
Section 456.10-1009 - Beneficiary's consent, release, or ratification.
Section 456.10-1010 - Limitation on personal liability of trustee.
Section 456.10-1011 - Interest as general partner.
Section 456.10-1012 - Protection of person dealing with trustee.
Section 456.10-1013 - Certification of trust.
Section 456.11-1101 - Uniformity of application and construction.
Section 456.11-1102 - Electronic records and signatures.
Section 456.11-1103 - Severability clause.
Section 456.11-1104 - Effective date.
Section 456.11-1106 - Application to existing relationships.