1. If it is established in a proceeding conducted in a manner similar to a proceeding for the appointment of a conservator of the estate that a person is a minor or disabled, or has a physical or mental disability as defined under state or federal law, the court, without appointing a conservator, may authorize, direct or ratify any transaction necessary or desirable to achieve any security, service, or care arrangement meeting the foreseeable needs of the person.

2. When it has been established in such a proceeding that the person is a minor or disabled, or has a physical or mental disability as defined under state or federal law, the court, without appointing a conservator, may authorize, direct or ratify any contract or other transaction relating to the person’s financial affairs or involving such person’s estate if the court determines that the transaction is in the best interests of the person and if such action would otherwise be within the power of the court. A transaction pursuant to this section may include the establishment by the court or other grantor of an inter vivos trust, including a trust that complies with the provisions of 42 U.S.C. § 1396p(d)(4), on behalf of the person provided that upon such person’s death, after the payment of trustees’ fees, any payments to the state Medicaid agency that are required by the provisions of 42 U.S.C. § 1396p(d)(4) are made and, provided further, that any creditor of the person other than the state of Missouri shall also be paid all sums due for such person’s care, maintenance and support, to the extent trust property is sufficient therefor, and, provided, such trust shall terminate upon such person’s death and any amounts remaining in the trust after the foregoing payments shall be distributed to the remainder beneficiaries designated in the trust or as designated pursuant to the exercise of a power of appointment set forth in the trust. This section shall not be interpreted to require all such trusts to be established by a court proceeding.

3. Before approving a protective arrangement or other transaction pursuant to this section, the court shall consider the interests of creditors and dependents of the person and, in view of such person’s disability, whether such person needs the continuing protection of a conservator. The court may appoint a special conservator to assist in the accomplishment of any protective arrangement or other transaction authorized pursuant to this section who shall have the authority conferred by the order and serve until discharged by order after report to the court of all matters done pursuant to the order of appointment.

4. Notwithstanding any other law to the contrary, the trustee of any trust created or approved by a Missouri court prior to August 28, 1999, for the benefit of a person who is a minor or disabled, or has a physical or mental disability as defined under state or federal law shall not be liable to the state of Missouri or to any creditor of such person if, on August 28, 1999, the trust does not have sufficient assets to reimburse the state of Missouri for medical assistance paid on such person’s behalf pursuant to a state plan as provided in Title 42 of the United States Code or to reimburse a creditor for sums due for such person’s care, maintenance and support. Any such trust which is in existence as of August 28, 1999, shall be subject to subsection 2 of this section, as amended, notwithstanding any provisions of such trust to the contrary. The trustee shall not be liable for any distributions or payments made prior to August 28, 1999, pursuant to the terms of such trust.