About Trusts Law in Missouri, United States
Trusts are powerful legal tools used in Missouri to manage and distribute assets during a person’s life and after their death. A trust is a legal arrangement in which one party, known as the trustee, holds and manages property for the benefit of another party, known as the beneficiary. Trusts are commonly used in estate planning to avoid probate, manage assets for minor children or individuals with special needs, provide for charitable giving, or ensure privacy in the management of family wealth. Missouri recognizes several types of trusts, including revocable living trusts, irrevocable trusts, testamentary trusts, and special needs trusts. Each has unique legal requirements and consequences, making it important to understand which trust best fits your needs.
Why You May Need a Lawyer
There are many situations where legal advice regarding trusts is invaluable in Missouri. Common scenarios include:
- Creating a trust as part of an estate plan to ensure your wishes are followed regarding asset distribution
- Managing or acting as a trustee and needing guidance on your fiduciary duties to avoid unintended legal consequences
- Setting up a trust for a minor child, aging parent, or loved one with special needs to secure their financial future
- Dispute resolution among beneficiaries or between beneficiaries and trustees
- Seeking to challenge or defend the validity of a trust document
- Transferring complex assets, such as businesses or real estate, into a trust
- Ensuring compliance with tax laws and avoiding unnecessary tax liability when creating or managing a trust
Local Laws Overview
Trusts in Missouri are governed primarily by the Missouri Uniform Trust Code, found in Chapter 456 of the Missouri Revised Statutes. Here are some key elements:
- Revocable living trusts are popular tools for bypassing the probate process, which can save time and preserve privacy for heirs
- Missouri does not require trusts to be registered with a court, which helps maintain a high degree of privacy
- Trustees have strict fiduciary duties under Missouri law, including duties of loyalty, impartiality, and prudent investment of trust assets
- To legally create a trust, the trustor (the person setting up the trust) must have the capacity to contract and must clearly state the trust’s purpose and beneficiaries
- Missouri law also provides for the modification or termination of trusts under certain circumstances, with or without court approval, if all beneficiaries consent or if the court finds modification or termination serves the best interests of the beneficiaries
- Special provisions exist for special needs trusts and charitable trusts under Missouri law
Frequently Asked Questions
What is the difference between a revocable and an irrevocable trust in Missouri?
A revocable trust can be changed or revoked by the trustor at any time during their lifetime, while an irrevocable trust generally cannot be altered once it is established. Each type has different tax and asset protection benefits.
Do I need to go through probate if I have a trust?
Assets held in a properly funded revocable living trust usually avoid probate in Missouri, simplifying the distribution process after death.
Can I name myself as the trustee of my own trust?
Yes, in Missouri you can serve as the trustee of your own revocable trust, and you typically designate a successor trustee who takes over management upon your incapacity or death.
What happens if a beneficiary disagrees with the trustee’s actions?
Beneficiaries have legal rights and can request an accounting or challenge the trustee’s actions in court if they believe there is a breach of duty or mismanagement.
Are trusts public record in Missouri?
No, trusts are not recorded with the court and remain private documents unless there is litigation or a dispute requiring court intervention.
Can a trust help protect my assets from creditors?
Certain trusts, like irrevocable asset protection trusts, can shield assets from creditors, but revocable trusts do not provide this protection as the assets are still considered yours for legal purposes.
Is there a minimum amount of assets required to create a trust in Missouri?
There is no minimum asset requirement, but trusts are generally more worthwhile for individuals with significant or complex assets.
Can a trust be changed after it is created?
Revocable trusts can be changed or revoked by the person who created them, while irrevocable trusts can usually only be changed under limited circumstances, such as court approval or with the consent of all beneficiaries.
Who can serve as a trustee?
You can appoint almost any competent adult or institution, such as a bank or trust company, to serve as trustee in Missouri. Many people choose a trusted friend, family member, or professional fiduciary.
How do I fund my trust?
Funding a trust involves re-titling your assets into the name of the trust. This may include deeds to real estate, bank accounts, investment accounts, and more. Assets not retitled remain outside of the trust and may still go through probate.
Additional Resources
Below are resources that can help you learn more about trusts or find legal assistance in Missouri:
- Missouri Bar Association: Provides lawyer referral services and educational materials
- Missouri Courts: Offers resources for understanding estate and trust law in Missouri
- Missouri Secretary of State: Business and charitable trust registration information
- AARP Missouri: Guides and toolkits on estate and trust planning for seniors
- Local county law libraries and legal aid organizations: Low cost or pro bono legal assistance may be available
Next Steps
If you believe you need legal advice about trusts in Missouri, consider these steps:
- Gather your important documents, such as existing wills, trust papers, asset titles, and a list of your beneficiaries and goals
- Decide on the type of trust that may fit your needs, but remain open to your lawyer’s recommendations
- Contact a qualified Missouri estate planning or trusts attorney to discuss your situation and learn about your options
- Ask questions about fees, the attorney’s experience with Missouri trust law, and the process for creating or managing your trust
- Follow the attorney’s guidance to ensure your trust is properly created, funded, and administered, giving you peace of mind and security for your beneficiaries
Taking informed steps now can ensure your wishes are respected and avoid future complications for your loved ones.
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