Section 2.63 Bonds of Trustees

• Library: Trusts and Powers 2013 Supp

IV. (§2.63) Bonds of Trustees

Section 456.7-702, RSMo Supp. 2005, states that:

A trustee shall give bond to secure performance of the trustee’s duties only if the court finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust and the court has not dispensed with the requirement. The court may specify the amount of a bond, its liabilities, and whether sureties are necessary. The court may also modify or terminate a bond at any time.

The comments to the Missouri Uniform Trust Code state that a bond should rarely be required because a bond is required only if the trust agreement requires a bond or the court declares a bond to be necessary. 2004 Missouri Trust and Estate Legislation (MoBar Probate and Trust Committee 2004).

Under § 456.033, RSMo Supp. 2005, the imposition of, change of, and release of requirements for trustees’ bonds is one of the “internal affairs” proceedings over which jurisdiction is acquired by the circuit court of the county where a trust is registered and for which venue lies in the county where a trust is or could be registered.

The inherent jurisdiction of circuit courts to require bond of trustees is not confined by statutes. See:

· C.R. McCorkle, Annotation, Power of Court, in Absence of Statute, to Require Corporate Surety on Fiduciary Bond in Probate Proceeding, 82 A.L.R.2d 926 (1962)

· Annotation, Power or Discretion of Court, After Bond of...