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Committee hears bill to modernize trust law and define digital assets (HB608)
Summary
Representative Terry Thompson and estate-and-trust advocates urged adoption of the Uniform Fiduciary Income and Principal Act (House Bill 608) to give fiduciaries more flexibility and to address modern assets such as cryptocurrency; proponents said similar reforms have passed in other states.
Representative Terry Thompson introduced House Bill 608, the Uniform Fiduciary Income and Principal Act, telling the Missouri House Committee on Financial Institutions the measure would modernize how fiduciaries allocate income and principal and give trustees greater flexibility.
"I'm going to use that word flexibility," Thompson said, repeatedly urging that the bill allows trusts to be tailored to clients’ needs and to respond to changes in tax law and portfolio theory. Thompson said similar bills have passed committee before but stalled at year-end in prior sessions.
John Challis, an estate and trust attorney from St. Louis and chair of the probate and trust division of the Missouri Bar, testified in support and described precise changes. He said the bill would modify provisions in chapter 469 and harmonize the 2001 principal-and-income law with the Missouri Uniform Trust Code adopted in 2004. Challis told the committee the revision would introduce a statutory concept for digital assets so fiduciaries and financial institutions have clearer authority to hold and administer cryptocurrency and other digital property.
Challis said nine states have enacted the current revision and named several examples, including Kansas and Arkansas. He said passage would give Missouri a competitive advantage for trust business and reduce incentives for clients to move trusts to other states.
The committee asked about practical issues. Representative Castile asked whether trustees already encounter cryptocurrencies; Challis said many institutions currently decline to accept trusts holding crypto because existing statutes are unclear. On competitiveness, members said an updated statute could retain and attract trust business.
Andy Briscoe, registered lobbyist for the Missouri Bar, also testified in support. No witnesses testified in opposition. The committee concluded the public hearing on HB 608 and did not record a final committee vote during the hearing.
What’s next: The bill received supportive testimony from practitioners and trade representatives; the committee may take formal action at a later date.
