Read the full stored bill text
SECOND REGULAR SESSION
HOUSE BILL NO. 2863
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE P ARKER.
6516H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o repeal section 456.4-420, RSMo, and to enact in lieu thereof one new section relating to
claims for relief.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 456.4-420, RSMo, is repealed and one new section enacted in lieu
2 thereof, to be known as section 456.4-420, to read as follows:
456.4-420. 1. If a trust instrument containing a no-contest clause is or has become
2 irrevocable, an interested person may file a petition to the court for [ an interlocutory ] a
3 determination whether a particular [ motion, petition, or other ] claim for relief by the
4 interested person would trigger application of the no-contest clause [ or would otherwise
5 trigger a forfeiture ] that is enforceable under applicable law and public policy .
6 2. The petition described in subsection 1 of this section shall be verified under oath.
7 The petition [ may ] shall be filed by an interested person either as a separate judicial
8 proceeding, or brought with other claims for relief in a single judicial proceeding, all in the
9 manner prescribed generally for such proceedings under this chapter . If a petition is joined
10 with other claims for relief, the interes ted person shall seek and the court shall enter its
11 order or judgment on the petition before proceeding any further with [ any other claim for
12 relief joined therein ] the matter . In ruling on such a petition, the court shall consider the text
13 of the clause, the context to the terms of the trust instrument as a whole, and in the context of
14 the verified factual allegations in the petition. No evidence beyond the pleadings and the trust
15 instrument shall be taken except as required to resolve an ambiguity in the no-contest clause.
16 3. An order or judgment [ determining a petition ] making a determination described
17 in subsection 1 of this section shall have the ef fect set forth in subsections 4 and 5 of this
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
18 section, and shall be subject to appeal as with other final judgments. [ If the ] An order that
19 disposes of fewer than all claims for relief in a [ judicial ] proceeding[ , that order ] under this
20 section is subject to [ interlocutory ] immediate appeal in accordance with the applicable rules
21 for taking such an appeal. If an [ interlocutory ] appeal is taken, the court may stay the pending
22 judicial proceeding until final disposition of said appeal on such terms and conditions as the
23 court deems reasonable and proper under the circumstances. A final ruling on the
24 applicability of a no-contest clause shall not preclude any later filing and adjudication of other
25 claims related to the trust.
26 4. An order or judgment, in whole or in part, on a petition described in subsection 1 of
27 this section shall result in the no-contest clause being enforceable to the extent of the court's
28 ruling, and shall govern application of the no-contest clause to the extent that the interested
29 person then proceeds forward with the claims described therein. In the event such an
30 [ interlocutory ] order or judgment is vacated, reversed, or otherwise modified on appeal, no
31 interested person shall be prejudiced by any reliance, through action, inaction, or otherwise,
32 on the order or judgment prior to final disposition of the appeal.
33 5. An order or judgment shall have ef fect [ only ] as to the claims, specific trust terms ,
34 and factual basis recited in the petition and shall rela te to all actions taken by all parties in
35 the lawsuit under the rules of civil pr ocedur e and this chapter . If claims are later filed or
36 amended that are materially dif ferent than those upon which the order or judgment is based,
37 then to the extent such new claims are raised, the party in whose favor the order or judgment
38 was entered shall have no protection from enforcement of the no-contest clause otherwise
39 af forded by the order and judgment entered under this section.
40 6. For purposes of this section, a "no-contest clause" shall mean a provision in a trust
41 instrument purporting to rescind a donative transfer to, or a fiduciary appointment of, any
42 person, or that otherwise ef fects a forfeiture of some or all of an interested person's beneficial
43 interest in a trust estate as a result of some action taken by the beneficiary . This definition
44 shall not be construed in any way as determining whether a no-contest clause is enforceable
45 under applicable law and public policy in a particular factual situation. As used in this
46 section, the term "no-contest clause" shall also mean an "in terrorem clause".
47 7. A no-contest clause is not enforceable against an interested person in[ , but not
48 limited to, ] the following circumstances:
49 (1) Filing a motion, petition, or other claim for relief objecting to the jurisdiction or
50 venue of the court over a proceeding concerning a trust, or over any person joined, or
51 attempted to be joined, in such a proceeding;
52 (2) Filing a motion, petition, or other claim for relief concerning an accounting,
53 report, or notice that has or should have been made by a trustee, provided the interested
HB 2863 2
54 person otherwise has standing to do so under applicable law , including, but not limited to,
55 section 456.6-603;
56 (3) Filing a motion, petition, or other claim for relief under chapter 475 concerning
57 the appointment of a guardian or conservator for the settlor;
58 (4) Filing a motion, petition, or other claim for relief under chapter 404 concerning
59 the settlor;
60 (5) Disclosure to any person of information concerning a trust instrument or that is
61 relevant to a proceeding before the court concerning the trust instrument or property of the
62 trust estate, unless such disclosure is otherwise prohibited by law;
63 (6) Filing a motion, pleading, or other claim for relief seeking approval of a
64 nonjudicial settlement agreement concerning a trust instrument, as set forth in section 456.1-
65 1 1 1;
66 (7) [ T o the extent ] Filing a petition under [ subsection 1 of ] this section , prov ided the
67 petition is limited to the [ procedure and purpose ] pr ocedur es and purposes described
68 [ therein ] her ein;
69 (8) Participation in a lawsuit consistent with the rules of civil pro cedur e by any
70 inter ested person if the interes ted person has not asserted any affirmative claim for
71 r elief;
72 (9) As to the interes ted persons to an action to the extent the court determines
73 that the application of the no-contest clause is void or unenfor ceable as against the
74 public policy of this state;
75 (10) The scope of the no-contest clause does not include the factual allegations of
76 the petition as the factual allegations apply to the specific terms of the trust; and
77 (1 1) A no-contest clause that seeks to cause a forfeitur e against a beneficiary
78 challenging a trust term that would otherwise be pr ohibited under subsection 2 of
79 section 456.1-105 or section 456.10-1008 .
80 8. An interes ted person who does not seek a determination in accordance with
81 the pr ovisions of this section is not ther eafter pr ohibited in any manner fr om
82 challenging the validity or application of a no-contest clause in a pr oceeding without the
83 pr otections afforded by this section.
84 [ 8. ] 9. In any proceeding brought under this section, the court may award costs,
85 expenses, and attorneys' fees to any party , as provided in section 456.10-1004.
✔
HB 2863 3