Missouri Laws 456.019 – Trustees of private foundations, charitable trusts or split-interest ..
1. In the administration of any trust which is a “private foundation”, as defined in Section 509 of the United States Internal Revenue Code, a “charitable trust”, as defined in Section 4947(a)(1) of the United States Internal Revenue Code, or a “split-interest trust”, as defined in Section 4947(a)(2) of the United States Internal Revenue Code, the following acts shall be prohibited:
(1) Engaging in any act of “self-dealing”, as defined in Section 4941(d) of the United States Internal Revenue Code, which would give rise to any liability for the tax imposed by Section 4941(a) of the United States Internal Revenue Code;
Terms Used In Missouri Laws 456.019
- following: when used by way of reference to any section of the statutes, mean the section next preceding or next following that in which the reference is made, unless some other section is expressly designated in the reference. See Missouri Laws 1.020
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- State: when applied to any of the United States, includes the District of Columbia and the territories, and the words "United States" includes such district and territories. See Missouri Laws 1.020
- Trustee: A person or institution holding and administering property in trust.
- United States: includes such district and territories. See Missouri Laws 1.020
(2) Retaining any “excess business holdings”, as defined in Section 4943(c) of the United States Internal Revenue Code, which would give rise to any liability for the tax imposed by Section 4943(a) of the United States Internal Revenue Code;
(3) Making any investments which would jeopardize the carrying out of any of the exempt purposes of the trust, within the meaning of Section 4944 of the United States Internal Revenue Code, so as to give rise to any liability for the tax imposed by Section 4944(a) of the United States Internal Revenue Code; and
(4) Making any “taxable expenditures”, as defined in Section 4945(d) of the United States Internal Revenue Code, which would give rise to any liability for the tax imposed by Section 4945(a) of the United States Internal Revenue Code; provided, however, that this section shall not apply either to those split-interest trusts or to amounts thereof which are not subject to the prohibitions applicable to private foundations by reason of the provisions of Section 4947 of the United States Internal Revenue Code.
2. In the administration of any trust which is a “private foundation”, as defined in Section 509 of the United States Internal Revenue Code, or which is a “charitable trust”, as defined in Section 4947(a)(1) of the United States Internal Revenue Code, there shall be distributed, for the purposes specified in the trust instrument, for each taxable year, amounts at least sufficient to avoid liability for the tax imposed by Section 4942(a) of the United States Internal Revenue Code.
3. The provisions of subsections 1 and 2 of this section shall not apply to any trust to the extent that a court of competent jurisdiction shall determine that such application would be contrary to the terms of the instrument governing such trust and that the same may not properly be changed to conform to such sections. The trustee shall not be held liable to anyone for any payments made under subsection 2 prior to such determination.
4. Nothing in this section shall impair the rights and powers of the courts or the attorney general of this state with respect to any trust.
5. All references to sections of the United States Internal Revenue Code shall be to such law as of June 14, 1971.