SB 1087 - This act changes the Missouri Uniform Trust Code by redefining "power of withdrawal" as the power of a beneficiary to withdraw assets from a trust without the consent of the trustee or any other person, where consent is currently required. The act also redefines "revocable", for purposes of a trust, to provide that the settlor has the power to revoke the trust regardless of whether the settlor has the mental capacity to do so in fact.
The act also provides that the settlor of the trust is authorized to designate one or more persons to receive notification of the existence of the trust and of their right to request reports and other information related to the administration of the trust.
The provisions of Section 456.1-112, which provide that beneficial terms in favor of a settlor's spouse will be revoked on the date that the marriage is dissolved or annulled, will not be applicable to any trust for which a gift tax marital deduction has been claimed or allowed.
A beneficiary who is not a qualified beneficiary may be represented and bound by a qualified beneficiary, as long as there is no conflict of interest between such persons with regard to the question or dispute.
Noncharitable irrevocable trusts may be modified or terminated upon consent of the settlor and all beneficiaries without court approval, unless the trust has been established by a court under certain provisions of law.
The act also makes Section 456.4-411B, which provides that the court may terminate or modify the terms of a noncharitable trust in certain instances, applicable to trusts that become irrevocable on or after January 1, 2005, and makes Section 456.590, which allows the court to confer certain powers on trustees in certain instances, applicable to all trusts that become irrevocable prior to January 1, 2005.
A beneficiary's interest in a trust that is subject to the trustee’s discretion shall not constitute an interest in property or enforceable right. A creditor or claimant may not attach distributions from such a right, if it exists, regardless of whether or not the interest is subject to a spendthrift provision.
Additionally, the act abolishes the doctrine of worthier title and the Rule in Bingham's case as a rule of law and as a rule of construction.