HCS/SS/SCS/SB 920 - This act modifies provisions of law relating to trusts and wills.
The act specifies what happens to a certain kind of property, known as tenancy by the entireties property, when it is transferred to a joint revocable trust created by a husband and a wife.
If the transfer of tenancy by the entireties property to the trust is invalidated or the trust is terminated while the husband and wife are living, the tenancy by the entireties property will automatically be deemed to be held by the husband and wife as tenancy by the entireties property.
This act also specifically allows trusts to provide for the appointment of a trust protector. A trust protector will have the powers given to them by the documents that create 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 modify the terms of a power of appointment granted by the trust, and the power to change which law applies to the trust and which state the trust is located in.
Despite contrary provisions of the Missouri uniform trust code, a trust protector will not be considered a fiduciary and will not be liable for harm to the trust or to a beneficiary of the trust, unless it is established that the trust protector acted with actual intent to harm the trust. Unless the trust protector acts in bad faith, the trust protector will be paid from the assets of the trust for any costs the trust protector pays to defend, settle, or pay a lawsuit against him.
This act also specifies that spouses may agree to leave property held as tenancy by the entireties to someone other than the surviving spouse, with the surviving spouse maintaining a life estate. This agreement between the husband and wife shall not disrupt the joint tenancy by the husband and wife during their lives.