Disclaimer: This article is for educational purposes only and is not legal advice.
Detailed Answer
Under Missouri law, trustees must follow strict fiduciary duties set by the Missouri Uniform Trust Code (RSMo § 456.040). These duties include loyalty, prudent administration, and an obligation to keep beneficiaries informed. When a trustee misuses trust funds, beneficiaries have several tools to hold the trustee accountable:
- Request Trust Records and Accountings. Missouri law entitles beneficiaries to request annual accountings and details about trust property under RSMo § 456.040(6). Send a written demand to the trustee for complete financial statements. RSMo § 456.040.
- Review for Breach of Duty. Evaluate all transactions for conflicts of interest or self-dealing. Missouri courts consider any use of trust assets for personal gain a breach of fiduciary duty.
- Petition for Trustee Removal. If misconduct persists, beneficiaries can file a petition in the probate division of circuit court to remove the trustee for failure to administer the trust properly under RSMo § 456.7-706.
- Seek Court Remedies. Courts may surcharge the trustee to recover losses caused by improper conduct. Trustees found liable for breaches of trust can be held accountable for lost principal, interest, and attorney’s fees under RSMo § 456.7-708.
- File a Breach of Trust Lawsuit. In some cases, beneficiaries may bring a separate civil action for breach of fiduciary duty. Missouri’s five-year statute of limitations for trust claims applies (RSMo § 516.080).
Helpful Hints
- Keep detailed records of all trust communications and transactions.
- Follow formal procedures for requests by sending written notices.
- Document any suspicious transfers or missing funds.
- Consult a qualified trust attorney early to protect your rights.
- Act promptly to comply with Missouri’s statute of limitations for trust claims.