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SB 947 - This act modifies provisions relating to powers of appointment and trust protectors. POWERS OF APPOINTMENT (Sections 456.985, 456.1035, 456.1080) Under current law, there are exceptions to the general rule that the terms of a document creating or exercising a power of appointment shall take precedence over statutes governing powers of appointment. This act adds to this list of exceptions and provides that a power of appointment can only be created when a legally valid document manifests the donor's intent to create in a powerholder a power of appointment over the appointive property exercisable in favor of a permissible appointee. Additionally, a powerholder of a nongeneral power may create a nongeneral power in a permissible appointee. TRUST PROTECTORS (Sections 456.1-103, 456.8-808) Currently, a trust may provide for the appointment of a trust protector who is defined as a person other than the settlor, trustee, or beneficiary who is granted one or more powers over the trust. This act provides that a trust may provide for one or more persons, not a trustee, settlor, or beneficiary, to be given any powers over the trust, and such person may be appointed as a trust protector or similar term. The act defines "trust protector" as any person charged in the trust instrument with any responsibilities regarding the trust. When a trust appoints a trust protector then the trust shall be deemed a direct trust, as defined in the act. A trust protector may take any action necessary in carrying out duties granted to the trust protector in the trust instrument. If the trust has granted the trust protector the authority to direct, consent, or disapprove a trustee's investment decision pursuant to the trust, then the trustee shall not be subject to the provisions of the Missouri Prudent Investor Act when acting pursuant to the trust protector's written directions. A trustee of a directed trust is not liable for any act or omission of a trust protector or for executing decisions or instructions from a trust protector. Current law provides that a trustee cannot be held liable for any loss resulting from any action taken pursuant to a trust protector's written directions, except in cases of bad faith or reckless indifference on the part of the trustee or as otherwise provided in the trust. This act removes the bad faith or reckless indifference exception to liability immunity for a trustee. The trust instrument may also provide that a trust protector is subject to the personal jurisdiction of the Missouri courts as a condition of appointment. These provisions are substantially similar to SB 171 (2017) and similar to SB 841 (2016). JESSI JAMES
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