SB 761 - This act modifies the law regarding trusts to specifically allow for the appointment of a trust protector. The trust protector is a person who is given power over the trust by the document that creates the trust. The trust protector's powers may include: the power to remove and appoint a trustee, or name a successor trust protector, the power to modify or amend the documents that created the trust, the power to modify the interests of a beneficiary of the trust, the power to terminate the trust in favor of the beneficiary, the power to change which law applies to the trust and which state the trust is located in, and any powers that are expressly included in the trust documents.
The trust protector is not a trustee but shall act in a fiduciary capacity in carrying out the duties and powers granted by the trust instrument to the trust protector. The trust protector will not be liable for his or her acts or omissions unless they are done in breach of the trust protector's duty, in bad faith, or with reckless indifference. Unless it is established that the trust protector acted in bad faith or with reckless indifference, the trust protector will be reimbursed from the assets of the trust for the costs and expenses of defending a lawsuit against him or her. A trust protector is entitled to reasonable compensation from the trust assets for carrying out the powers given to them by the trust document.
The act also provides that the trust protector is entitled to certain information about the trust, provides authority for a trust protector to resign by providing written notice to the trustee, and specifies that the courts have jurisdiction over a trust protector while the administration of the trust is in Missouri.
This act is similar to HB 1166 (2012). This act is similar to a provision contained in HCS/HB 1256 (2012), HCS/SB 628 (2012) and HCS/SB 636 (2012).
MIKE HAMMANN