Section 31 Drafting Funding Provisions

• Library: Trust and Estate Legislation 2012

Splitting of assets contributed to a QSJT between two separate shares is particularly sensitive. Traditionally splitting assets has been done by having two schedules:

1. Schedule A to list the assets constituting the share of one settlor

2. Schedule B to list the assets constituting the share of the other settlor’s assets

The problem is that rarely do settlors fill out the schedules. There may be a role for schedules to list exceptions to the default funding and allocation rules set forth in the documents. Thus, one approach is to have the document provide that all assets contributed to the trust are automatically divided equally between the two shares. Note that there is no requirement in the QSJT Statute, § 456.950, RSMo Supp. 2011, that the property be equally split. There...