MO SB761

Repeals previous provisions governing powers to direct trustee actions and replaces them with a new statutory framework for trust protectors in Missouri trusts.

Defines a "trust protector" as a person other than the settlor, trustee, or beneficiary who is expressly granted powers in the trust instrument, which may include removing/appointing trustees, modifying the trust instrument for tax purposes, changing applicable law, or terminating the trust.

Prohibits trust protectors from removing payback requirements from certain trusts created under 42 U.S.C. Section 1396p(d)(4) or reducing income interests in marital deduction trusts, charitable remainder trusts, grantor retained annuity trusts, or qualified Sub-Chapter S trusts.

Limits trust protector liability by establishing that they act in a fiduciary capacity but are exonerated from liability unless acts or omissions were done in breach of duty, bad faith, or with reckless indifference, and allows them reasonable compensation and expense reimbursement from trust assets.

Requires trustees to follow written directions from trust protectors acting within their granted powers, exempts trustees from liability for losses resulting from such directions except in cases of bad faith or reckless indifference, and grants trust protectors the right to request trust administration information from trustees.