MO HB3246

Adopts the Missouri Uniform Fiduciary Income and Principal Act, replacing 36 existing sections with 48 new sections governing how fiduciaries allocate receipts and disbursements between income and principal in trusts and estates

Authorizes fiduciaries to convert income trusts to unitrusts (and vice versa) without court approval, allowing distribution of a fixed percentage (3-5%) of trust value rather than traditional income, with required notice to beneficiaries

Expands the fiduciary's "power to adjust" between income and principal to help administer trusts impartially, while establishing specific restrictions when adjustments would affect special tax benefits or cause adverse tax consequences

Adds detailed rules for allocating receipts from entity distributions, asset-backed securities, derivatives, retirement plans, minerals, timber, and other specific asset types

Modifies endowed care cemetery trust fund requirements to prohibit trustees from exercising power of adjustment, converting between income and unitrust formats, or setting unitrust rates exceeding 5% annually