Section 6.50 Fraud

• Library: Trusts and Powers 2013 Supp

C. (§6.50) Fraud

Section 456.4-406, RSMo Supp. 2005, flatly states that if creation of a trust is induced by fraud, the trust is “void.” The comments to this section note that fraud may be in whole or in part, and if only a part of the trust agreement is procured by fraud, only that part is void. 2004 Missouri Trust and Estate Legislation 143 (MoBar Probate and Trust Committee 2004).

The settlor can rescind a trust agreement if induced to create the trust by fraud. Sebree v. Rosen, 349 S.W.2d 865 (Mo. 1961); Shannon v. Shannon, 680 S.W.2d 367 (Mo. App. S.D. 1984); Restatement (Third) of Trusts §§ 12 and 62 (2003). The same relief is available through a trust contest after the death of the settlor. Kinney v.
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