Missouri Laws 456.5-504 – Discretionary trusts, interest not enforceable, when — applicability — ..
1. A beneficiary‘s interest in a trust that is subject to the trustee‘s discretion does not constitute an interest in property or an enforceable right even if the discretion is expressed in the form of a standard of distribution or the beneficiary is then serving as a trustee or cotrustee. A creditor or other claimant may not attach present or future distributions from such an interest or right, obtain an order from a court forcing the judicial sale of the interest or compelling the trustee to make distributions, or reach the interest or right by any other means, even if the trustee has abused the trustee’s discretion.
2. This section does not limit the right of a beneficiary to maintain a judicial proceeding against a trustee for an abuse of discretion or failure to comply with?a standard for distribution.
Terms Used In Missouri Laws 456.5-504
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- person: may extend and be applied to bodies politic and corporate, and to partnerships and other unincorporated associations. See Missouri Laws 1.020
- Property: includes real and personal property. See Missouri Laws 1.020
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
- Trustee: A person or institution holding and administering property in trust.
3. This section applies whether or not an interest is subject to a spendthrift provision.
4. For purposes of this section, a beneficiary’s interest in a trust is subject to the trustee’s discretion if that interest does not constitute a mandatory distribution as defined in subsection 1 of section 456.5-506.
5. Whether or not a trust contains a spendthrift provision, no creditor or other person making a claim against a beneficiary shall be entitled to any information relating to the trust’s assets or other trust records if distributions to the beneficiary are solely within the discretion of the trustee. The provisions of this subsection shall apply during the term of the trust, regardless of whether the beneficiary is also a potential remainder beneficiary of the trust.