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Trust Termination, Trustee Final Accounting

Unless there are specific terms in a trust document providing otherwise, a trust terminates and ends generally when the “trustee gives a final accounting and conveys the trust property to the beneficiaries.” Shannon v. Johnson, 741 S.W.2d 791, 794 (Mo. Ct. App. 1987). A trust’s termination date is important for numerous reasons, not the least of […]

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Exceptions to Trust Spendthrift Clauses

A spendthrift provision in a trust generally prohibts a creditor from trying to collect a debt  of a beneficiary  by seizing the beneficiary’s interest in a trust to satisfy the debt. These types of clauses are commonly included in trusts because the trust-creator (i.e., “settlor”) wants the trust money and assets to be used for […]

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Trustee Good Faith Discretion, Breach of Trust

A trustee has the duty to exercise the requisite care, skill and diligence of a person of ordinary prudence would exercise. Jarvis v. Boatmen’s National Bank of St. Louis, 478 S.W.2d 266, 273 (Mo. 1972). The specific actions necessary to accomplish this goal depends on the nature of the trust, particularly its assets and distribution schemes. […]

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Spendthrift Clause Enforceability in Trusts

A spendthrift clause is a provision in a trust which prohbits a beneficiary’s interest from being assigned and prevents a creditor from attaching that interest. Bruce G Robert QTIP Marital Trust v. Grasson, 332 S.W.3d 248, 256 (Mo. Ct. App. 2010). What this  means is that the beneficiary cannot voluntarily assign out the interest in the […]

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Special Skills/Expertise of a Trustee

A trustee owes an array of fiduciary duties to trust beneficiaries. The nature and extent of these duties can potentially be enlarged if the trustee possesses special skills or expertise. Under Section 456.8-806, RSMo, “[a] trustee who has special skills or expertise, or is named trustee in reliance upon the trustee’s representation that the trustee […]

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Trust Opportunities, Trustee Breach of Loyalty

Corporate directors/officers and trustees are similar in that they are both fiduciaries and owe others (i.e., shareholders or beneficiaries, respectively) a duty of loyalty. As part of the duty of loyalty, the “corporate opportunity doctrine” forbids a corporate director from acquiring for his or her own benefit an opportunity that would have been valuable and […]

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Trust Litigation

Trust litigation is becoming more frequent. This is due to a number of factors, such as changes in trust laws and an ageing segment of the population who created trusts. Another important factor is that the Uniform Trust Code, which has been mostly adopted in Missouri, permits a broad range of individuals to file lawsuits […]

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Missouri Trust Litigation: Proposed Distribution, Objecting to Distribution

Sometimes a trustee is unsure of how to distribute the assets. This can occur even where the terms of the trust are clear. This sometimes is caused by the nature of the assets (e.g., difficult to divide real estate), threats of litigation, or disputes on how things should be divided among the beneficiaries. There are Court […]

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Equitable Retainer

Trust, estate and probate law has many interesting quirks. An example of this is the equitable retainer doctrine. In short, it is a legal concept which, in practice, reduces the amount of inheritance a heir may receive if the heir had a debt to the deceased. In other words, if you are to inherit money from […]

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Delegation by Trustee, Agents

A trust administration can be complex, particularly if it includes securities, real estate or business interests. Sometimes more than just the trustee is needed to make decisions. As a general rule, trustees are entitled to delegate to an agent duties and powers that a prudent trustee could properly delegate under the circumstances. Lorimont Place, Inc. v. […]

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