MO HB1166

Repeals and replaces section 456.8-808 of Missouri law to establish comprehensive regulations for trust protectors appointed under trust instruments.

Defines a trust protector as a person other than the settlor, trustee, or beneficiary who is expressly granted powers over the trust, and limits their authority to powers explicitly stated in the trust instrument.

Enumerates express powers a trust protector may be granted, including removing/appointing trustees, modifying the trust instrument for tax or legal reasons, adjusting beneficiary interests, terminating the trust, and changing applicable law.

Prohibits trust protectors from modifying certain trusts, including Medicaid payback trusts, marital deduction trusts, charitable remainder trusts, grantor retained annuity trusts, and Sub-Chapter S trusts.

Establishes that trust protectors are not fiduciaries or trustees, have no duty to beneficiaries, and are only liable if actions are proven by clear and convincing evidence to be in bad faith or reckless indifference, while granting them compensation and expense reimbursement from trust assets.