469.427. Separate accounting records maintained, when, procedure. - Missouri Statutes

Separate accounting records maintained, when, procedure.

469.427. 1. If a trustee who conducts a business or other activitydetermines that it is in the best interest of all the beneficiaries toaccount separately for the business or activity instead of accounting forit as part of the trust's general accounting records, the trustee maymaintain separate accounting records for its transactions, whether or notits assets are segregated from other trust assets.

2. A trustee who accounts separately for a business or other activitymay determine the extent to which net cash receipts shall be retained forworking capital, the acquisition or replacement of fixed assets, and otherreasonably foreseeable needs of the business or activity, and the extent towhich the remaining net cash receipts are accounted for as principal orincome in the trust's general accounting records. If a trustee sellsassets of the business or other activity, other than in the ordinary courseof the business or activity, the trustee shall account for the net amountreceived as principal in the trust's general accounting records to theextent the trustee determines that the amount received is no longerrequired in the conduct of the business.

3. Activities for which a trustee may maintain separate accountingrecords include:

(1) Retail, manufacturing, service and other traditional businessactivities;

(2) Farming;

(3) Raising and selling livestock and other animals;

(4) Management of rental properties;

(5) Extraction of minerals and other natural resources;

(6) Timber operations; and

(7) Activities to which section 469.447 applies.

(L. 2001 H.B. 241)