456.025. Inapplicability of the rule against perpetuities--rule prohibiting unreasonable restraints or suspension of power of alienation not violated, when--rule against accumulations not applicable,

MISSOURI STATUTES AND CODES

456.025. Inapplicability of the rule against perpetuities--rule prohibiting unreasonable restraints or suspension of power of alienation not violated, when--rule against accumulations not applicable,

Inapplicability of the rule against perpetuities--rule prohibitingunreasonable restraints or suspension of power of alienation notviolated, when--rule against accumulations not applicable, when.

456.025. 1. The rule against perpetuities shall not apply to and anyrule prohibiting unreasonable restraints on or suspension of the power ofalienation shall not be violated by a trust if a trustee, or other personor persons to whom the power is properly granted or delegated, has thepower pursuant to the terms of the trust or applicable law to sell thetrust property during the period of time the trust continues beyond theperiod of the rule against perpetuities that would apply to the trust butfor this subsection.

2. No rule against accumulations shall apply to a trust described insubsection 1 of this section unless the terms of the trust require that theincome be accumulated during a period of time the trust continues beyondthe period of the rule against perpetuities that would apply to the trustbut for subsection 1 of this section. If the terms of the trust requirethat the income be accumulated during any period of time the trustcontinues beyond the period of the rule against perpetuities that wouldapply to the trust but for subsection 1 of this section, then during thatperiod of time the trustee shall have the power to make discretionarydistributions of net income to such recipients and in such shares and insuch manner as most closely effectuates the settlor's or testator'smanifested plan of distribution.

3. The provisions of this section apply to:

(1) Any trust created by a will or inter vivos agreement, or pursuantto the exercise of a power of appointment other than a general power ofappointment granted under a will or inter vivos agreement, executed oramended on or after August 28, 2001;

(2) Any trust created pursuant to the exercise of a general power ofappointment exercised in an instrument executed or amended on or afterAugust 28, 2001; or

(3) Any trust created by a will or inter vivos agreement, or pursuantto the exercise of a power of appointment granted under a will or intervivos agreement, executed or amended before August 28, 2001, if the laws ofthis state become applicable to the trust after such date, the laws of anyother state applied to the trust before such date, and the rule againstperpetuities did not apply to the trust pursuant to the laws of the otherstate.

4. As used in this section, the term "trust" means an express trustcreated by a trust instrument, including a will, whereby a trustee has theduty to administer a trust asset for the benefit of a named or otherwisedescribed income or principal beneficiary, or both. The term "trust" doesnot include a resulting or constructive trust, a business trust whichprovides for certificates to be issued to the beneficiary, an investmenttrust, a voting trust, a security instrument, a trust created by thejudgment or decree of a court, a liquidation trust, or a trust for theprimary purpose of paying dividends, interests, interest coupons, salaries,wages, pensions, or profits, or employee benefits of any kind, aninstrument wherein a person is nominee or escrowee for another, a trustcreated in deposits in any financial institution, a trust that is notsubject to the rule against perpetuities by reason of any other law of thisstate, or any other trust the nature of which does not admit of generaltrust administration.