1. Any person, as settlor, except a beneficiary or a beneficiary’s spouse, may contribute assets not including assets of the beneficiary or the beneficiary’s spouse in trust to the board as trustee, for the benefit of the beneficiary. Upon such contribution, the settlor’s completion and execution of trust documents provided by the trustee, and the trustee’s review, approval and execution of the trust documents, a trust account for the beneficiary shall thereby be created. A trust account to which assets that do not include assets of a beneficiary or of a beneficiary’s spouse are contributed shall be referred to as a “third party trust account”, and shall be held and administered in trust for the benefit of the beneficiary as provided in this section.

2. The settlor may designate a cotrustee, and a successor or successors to the co-trustee, to act together with the trustee as trustees of the third party trust account; provided that the beneficiary or the beneficiary’s spouse may not act as cotrustee or successor cotrustee; and provided further that court approval of the beneficiary, cotrustee or successor trustee shall be required in connection with any third party trust account created pursuant to subsection 2 of section 473.657.

3. If the board determines, in its good faith judgment, that a cotrustee has breached his or her fiduciary duties, either as a result of an act of commission or omission, then the board may, by written notice to such cotrustee, remove such cotrustee, appoint a successor cotrustee, or serve as sole trustee.

4. At the death of the beneficiary, the board of trustees shall promptly determine the principal balance of the trust account and, after payment of any expenses of the beneficiary as the board may authorize and all fees and expenses of the board, shall distribute to the persons, entities, or organizations designated by the settlor as remainder beneficiaries in the trust documents:

(1) An amount equal to one hundred percent of the principal balance if the beneficiary shall not have received any benefits provided by use of trust account income or principal; or

(2) An amount equal to seventy-five percent of the principal balance if the beneficiary shall have received any benefits provided by use of trust account income or principal; and

(3) Any principal not distributed pursuant to the provisions of subdivision (2) of this subsection, and any undistributed income shall be distributed to the charitable trust established pursuant to the provisions of section 402.207;

(4) If any individual remainder beneficiary named by the settlor is not then living, then in the absence of contrary instructions in the trust documents completed by the settlor, such remainder beneficiary’s share shall be distributed to such remainder beneficiary’s heirs at law, as determined by the laws of the state of the beneficiary’s residence at the time of the beneficiary’s death.

5. Notwithstanding the provisions of subsection 4 of this section to the contrary, the settlor may voluntarily agree that a smaller percentage of the principal balance in any trust account established by such settlor than is provided in subsection 4 of this section be distributed to the remainder beneficiaries designated in the trust documents; and that a corresponding larger percentage of the principal balance in such trust account be distributed either to the charitable trust or to a designated restricted account within the charitable trust.