MO HB1608

Allows a husband and wife to transfer property held as tenants by the entirety into a joint revocable trust while preserving the tenancy by the entirety characteristics, including creditor protection.

Requires the trust agreement to name both spouses as initial sole trustees, be revocable only by joint consent, and prohibit either spouse from exercising control over trust assets without the other's consent during their joint lifetime.

Protects transferred tenancy by the entirety property from creditors of only one spouse, maintaining the same protection as if the property remained outside the trust.

Provides that property held as tenants by the entirety transferred to the trust receives a full stepped-up basis equal to 100 percent of fair market value at the first spouse's death for estate and income tax purposes.

Permits individual property transferred to the trust to be treated as first converted to tenancy by the entirety unless explicitly designated otherwise, and allows trustee transactions without requiring both trustees' consent unless the trust agreement requires it.