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HB 3246

Modifies the Principal and Income Act to resemble the latest version of the Uniform Fiduciary Income and Principal Act

2026 Regular Session Introduced by Cameron Parker

Missouri HB 3246 modernizes fiduciary law by adopting the Uniform Fiduciary Income and Principal Act (UFIA), standardizing income-principal allocations and governance, including Mi

Referred: Emerging Issues(H)
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Bill Summary · HB 3246

Overview

House Bill 3246 (Missouri, 2026) seeks to comprehensively modernize Missouri’s Principal and Income framework by repealing current sections and enacting a new body of law that mirrors the latest version of the Uniform Fiduciary Income and Principal Act (UFIA). The measure covers trust and estate administration, with specific emphasis on endowed care cemetery funds and broader fiduciary duties, accounting rules, and allocation standards between income and principal.

Main purpose and intent

  • Modernize Missouri’s trust and estate administration rules to align with UFIA standards. -Provide clearer, more uniform guidance on how fiduciaries allocate receipts between income and principal, adjust between income and principal, and manage variances in unitrust versus traditional income distributions. -Introduce consistent governance for endowed care cemetery funds, including oversight, recordkeeping, and jurisdictional clarity.

Key provisions and changes

  • Repeal and replacement: Repeals numerous existing sections (214.330; 469.401 through 469.467, with many subsections) and enacts 48 new sections titled to read as the Missouri Uniform Fiduciary Income and Principal Act.
  • Endowed care cemetery funds (214.330 series):
    • Mandates that endowed care funds be permanently set aside in Missouri-based trusts with Missouri-trustee controls and records.
    • Strengthens disclosure and access requirements to the office of endowed care cemeteries.
    • Specifies jurisdiction, control by Missouri law, and long-term records maintenance in Missouri.
    • Imposes specific rules on unitrust definitions, distribution timing, and punishments for noncompliance.
    • Establishes escrow arrangements if funds are not permanently set aside, with FDIC-backed escrow accounts and income distributions to cemetery operators under strict conditions.
    • Requires cemetery operators to maintain records, submit to office review, and obtain prior approval for trust agreements and amendments.
    • Codifies consent to Missouri jurisdiction for trustees and escrow agents and designates the secretary of state as service agent if no local agent exists.
  • UFIA governance and terminology:
    • Defines key fiduciary concepts (accounting period, income, principal, unitrust, beneficiary types, record, trust, estate, etc.) and clarifies when assets become subject to income interests.
    • Establishes fair, impartial administration presumptions for fiduciaries and sets standards for handling discretionary powers, including adjustments between income and principal.
    • Outlines factors for adjustments (trust terms, liquidity, tax considerations, economic conditions, preservation of principal, etc.).
    • Sets procedural rules for fiduciary decisions deemed abuses, court remedies, and instructions for resolving disputes.
  • Allocation rules:
    • Details allocation of receipts between income and principal for various asset types, including entity distributions, asset-backed securities, life insurance proceeds, rents, and distributions from partnerships or investment entities.
    • Provides criteria for capital distributions, entity distributions, and how to treat distributions from investment entities in trust accounting.
    • Specifies reporting requirements to beneficiaries and how to handle undistributed net income.

Who and what would be affected

  • Fiduciaries (trustees, personal representatives, life tenants, etc.) would adopt UFIA-based methodologies for allocating income vs. principal.
  • Endowed care cemeteries and cemetery operators would be subject to Missouri-centric governance, reporting, and approval processes for endowed care funds.
  • Courts and state offices (office of endowed care cemeteries, secretary of state as service agent) would gain new jurisdictional and oversight powers.

Procedural and timeline aspects

  • The bill repeals existing sections and enacts a comprehensive UFIA framework, effectively replacing prior rules with 48 new sections.
  • It imposes 30-day and 60-day submission/approval timelines related to endowed care trust fund agreements, with automatic approval if not disapproved within 30 days (subject to later disapproval for noncompliance).
  • It requires records be kept in Missouri or electronically accessible within 15 business days of request, reinforcing state-based administration.

If you’d like, I can provide a side-by-side comparison with current Missouri law or highlight specific sections of interest (e.g., endowed care fund provisions or key allocation rules).

Compiled from official sources — confirm details with the bill’s official record.

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