MISSOURI PRUDENT INVESTOR ACT
2019 Missouri Revised Statutes
Title XXXI – Trusts and Estates of Decedents and Persons Under Disability
Chapter 469 – Disclaimers of Property
Sections 469.900 to 469.913 – Missouri Prudent Investor Act
469.900. Citation of law–definitions. – Sections 469.900 to 469.913 shall be known, and may be cited, as the “Missouri Prudent Investor Act”. As used in this act, the term “trustee” includes independent personal representatives and trustees, whether of express or implied trusts, and the term “trust” includes independently administered estates.
(L. 1996 H.B. 1432, A.L. 2004 H.B. 1511); *Transferred 2004; formerly 456.900
469.901. Trustee duties, settlor may restrict or expand. — 1. Except as otherwise provided in subsection 2 of this section, or by other applicable laws, a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule set forth in this act*.
2. A settlor may expand or restrict the prudent investor rule detailed in this act* by express provisions in the trust instrument. A trustee is not liable to a beneficiary for the trustee’s good faith reliance on these express provisions.
(L. 1996 H.B. 1432, A.L. 2004 H.B. 1511); Transferred 2004; formerly 456.901
469.902. Trustee duties and powers — decisions to be evaluated in context of trust. — 1. A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution.
2. A trustee’s investment and management decisions respecting individual assets and courses of action must be evaluated not in isolation but in the context of the trust portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the trust.
3. When investing and managing trust assets, a trustee shall consider the following as are relevant to the trust or its beneficiaries:
(1) General economic conditions;
(2) The possible effect of inflation or deflation;
(3) The expected tax consequences of investment decisions or strategies;
(4) The role that each investment or course of action plays within the overall trust portfolio;
(5) The expected total return from income and the appreciation of capital;
(6) Other resources of the beneficiaries known to the trustee;
(7) Needs for liquidity, regularity of income, and preservation or appreciation of capital;
(8) An asset’s special relationship or special value, if any, to the purposes of the trust or to one or more of the beneficiaries; and
(9) The size of the portfolio, nature and estimated duration of the fiduciary relationship and distribution requirements under the governing instrument.
4. A trustee shall make a reasonable effort to ascertain facts relevant to the investment and management of trust assets.
5. A trustee may invest in any kind of property or type of investment consistent with the standards of this act*.
6. A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee’s representation that the trustee has special skills or expertise, has a duty to use those special skills or expertise when investing and managing trust assets.
(L. 1996 H.B. 1432, A.L. 2004 H.B. 1511); Transferred 2004; formerly 456.902
469.903. Diversification required, exception. — A trustee shall diversify the investments of the trust unless the trustee reasonably determines that, because of special circumstances, the purposes of the trust are better served without diversifying.
(L. 1996 H.B. 1432, A.L. 2004 H.B. 1511); Transferred 2004; formerly 456.903
469.904. Trust assets, retention and disposition. — Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of assets in order to bring the trust portfolio into compliance with the purposes, terms, distribution requirements, and other circumstances of the trust, and with the requirements of this act*.
(L. 1996 H.B. 1432, A.L. 2004 H.B. 1511); Transferred 2004; formerly 456.904
469.905. To whom duty owed. — A trustee shall invest and manage the trust assets solely in the interest of the beneficiaries.
(L. 1996 H.B. 1432, A.L. 2004 H.B. 1511); Transferred 2004; formerly 456.905
469.906. Multiple beneficiaries, duty owed to whom. — If a trust has two or more beneficiaries, the trustee shall act impartially in investing and managing the trust assets, taking into account any differing interests of the beneficiaries.
(L. 1996 H.B. 1432, A.L. 2004 H.B. 1511); Transferred 2004; formerly 456.906
469.907. Restriction on costs. — In investing and managing trust assets, a trustee may only incur costs that are appropriate and reasonable in relation to the assets, the purposes of the trust, and the skills of the trustee.
(L. 1996 H.B. 1432, A.L. 2004 H.B. 1511); Transferred 2004; formerly 456.907
469.908. Prudent investor rule, standard. — The prudent investor rule imposes a standard of conduct, but does not contemplate a specific outcome or performance. Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee’s decision or action and not by hindsight.
(L. 1996 H.B. 1432, A.L. 2004 H.B. 1511); Transferred 2004; formerly 456.908
469.909. Trustee powers, delegation — agent duties — liability of agent — agent submits to jurisdiction, when. — 1. A trustee may delegate investment and management functions that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in:
(1) Selecting an agent suitable to the exercise of the delegated function, taking into account the nature and the value of the assets subject to such delegation and the expertise of the agent;
(2) Establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and
(3) Periodically reviewing the agent’s actions in order to monitor the agent’s performance and compliance with the terms of the delegation.
2. In performing a delegated function, an agent owes a duty to the trust to exercise reasonable care to comply with the terms of the delegation.
3. A trustee who complies with the requirements of subsection 1 of this section is not liable to the beneficiaries or to the trust for the decisions or actions of the agent to whom the function was delegated.
4. By accepting the delegation of a trust function from the trustee of a trust that is subject to the law of this state, an agent submits to the jurisdiction of the courts of this state even if the delegation agreement provides otherwise.
(L. 1996 H.B. 1432, A.L. 2004 H.B. 1511); Transferred 2004; formerly 456.909
469.910. Trust terms and phrases, definition. — The following terms or comparable language in the provisions of a trust, unless otherwise limited or modified, authorize any investment or strategy permitted under this act*: “investments permissible by law for investment of trust funds”, “legal investments”, “authorized investments”, “using the judgment and care under the circumstances then prevailing that persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital”, “prudent man rule”, “prudent trustee rule”, “prudent person rule”, and “prudent investor rule”.
(L. 1996 H.B. 1432, A.L. 2004 H.B. 1511); Transferred 2004; formerly 456.910
469.911. Applicability of certain sections. — Except as otherwise specifically provided in the terms of the trust or in sections 456.035 to 456.041 and sections 469.900 to 469.913, the provisions of sections 456.035 to 456.041 and sections 469.900 to 469.913 shall apply to any trust established before or after August 28, 2004, and to any trust asset acquired by the trustee before or after August 28, 2004.
(L. 1996 H.B. 1432, A.L. 2004 H.B. 1511); Transferred 2004; formerly 456.911
469.912. Interpretation of certain sections. — This act* shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this act** among the states enacting it.
(L. 1996 H.B. 1432, A.L. 2004 H.B. 1511); Transferred 2004; formerly 456.912
469.913. Specific statutory standards to control. — The general assembly recognizes that persons, corporations, entities or state agencies who have responsibility for investing funds may be subject to a standard that is specifically set forth in other statutes. Under such circumstances, such persons, corporations, entities or state agencies shall comply with the standard of investment set forth in the other statute, and this act* shall not modify or repeal that standard.
(L. 1996 H.B. 1432, A.L. 2004 H.B. 1511); Transferred 2004; formerly 456.913