Section 2.40 Holding Adverse or Conflicting Interests

• Library: Trusts and Powers 2013 Supp

b. (§2.40) Holding Adverse or Conflicting Interests

A trustee may not exercise either an implied or express
power if doing so would violate a duty owed to a beneficiary. Restatement (Second) of Trusts § 186 cmts. a and f (1959). One duty a trustee owes to beneficiaries is to administer
the trust solely in the interests of the beneficiaries. Section 456.8-802.1, RSMo Supp. 2005. Transactions involving investment or management of trust property are presumed to be affected by a conflict between a trustee’s personal and fiduciary interests if entered into with:

· the trustee’s spouse;

· the trustee’s descendants, siblings, or parents or their spouses;

· the trustee’s agent or attorney; or

· a corporation, person, or enterprise in which the trustee is an owner or has a significant interest.

Section 456.8-802.3. Transactions that are not presumed to be affected by a conflict between a trustee’s personal and fiduciary interests, if in compliance with the Missouri Prudent Investor Act, §§ 469.900–469.913, RSMo Supp. 2005, include:

· investment in an investment company or investment trust to which the trustee or an affiliate provides services;

· placing securities transactions through a broker that is affiliated with the trustee; and

· compensation to the trustee or an affiliate for...