Legislative Session number- 89

Bill Name: SF0578

1E Relating to trusts

ARTICLE 1 - GENERAL PROVISIONS

"Minnesota Trust
Code"; specifying applicability; defining terms; providing for governing law,
rules, administration, notices, settlement agreements, and rules of
construction

ARTICLE 2 - JUDICIAL PROCEEDINGS

Specifying role of court in
administration of trust and nature of judicial proceedings, subject matter of
judicial proceedings, orders for hearing and notice, order and appeal,
court-supervised trusts, personal jurisdiction over trustee and beneficiary,
venue, and application

ARTICLE 3 - REPRESENTATION

Specifying
representation basic effect, representation by holder of a general power,
fiduciaries and parents, persons having substantially identical interest, and
court

ARTICLE 4 - CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF
TRUST

Specifying methods of creating trusts, requirements for creation,
trusts created in other jurisdictions, trust purposes, creation of trust induced
by fraud, evidence of oral trust, noncharitable trust without ascertainable
beneficiary, trust termination or modification conditions, reformation to
correct mistakes, and combination and division of trusts

ARTICLE 5 -
SPENDTHRIFT TRUSTS; CREDITOR'S CLAIMS

Providing a spendthrift provision,
right to compel distribution, creditor claims, overdue distribution, and
personal obligations of trustee

ARTICLE 6 - REVOCABLE TRUSTS

Specifying
requirements and conditions for capacity of settlor of revocable trust,
revocation or amendment of revocable trusts, written statements regarding
tangible personal property, settlor powers, limitation on action contesting
validity of revocable trust, and distribution of trust property

ARTICLE 7 -
OFFICE OF TRUSTEE

Providing for accepting or declining trusteeship, trustee's
bond, cotrustees, vacancies, successor appointment, trustee resignation and
removal, property delivery, trustee compensation, and expense
reimbursement

ARTICLE 8 - DUTIES AND POWERS OF TRUSTEE

Specifying duties
to administer trust, loyalty, impartiality, prudence, delegation, directed
trusts, property control, record keeping and property identification, claim
enforcement, report duty, discretionary powers, general and specific trustee
powers, and distribution upon termination

ARTICLE 9 - PRUDENT INVESTOR ACT
RECODIFICATION

"Minnesota Prudent Investor Act"; specifying investment and
management of trust assets

ARTICLE 10 - LIABILITY OF TRUSTEES AND RIGHTS OF
PERSON DEALING WITH TRUSTEE

Providing remedies for breach of trust, damages
for breach, remedies, attorney fees and costs, limitation of action, reliance on
trust instrument, events affecting administration, exculpation, beneficiary
consent, personal liability limitation, interest, protection, certificate, and
affidavit

ARTICLE 11 - UNIFORM PRINCIPAL AND INCOME ACT
RECODIFICATION

"Uniform Principal and Income Act"; defining terms; specifying
trustee duties, income, principal, charges, when right to income arises and
apportionment of income, income earned during administration, entity
distributions, bond premium, sole proprietorships, natural resources
disposition, timber, annuities, compensation, retirement plans, trustee power to
adjust, charges against income and principal, nontrust estates, application,
income or principal ascertainment, and uniformity of interpretation

ARTICLE
12 - MISCELLANEOUS PROVISIONS RECODIFICATION

Providing for a memorial fund,
suspension of the power of alienation, trusts forming part of retirement plans,
trust not affected, trusts linked to public assistance eligibility, supplemental
needs trusts, public health care programs, effect of dissolution of marriage,
settlor and agents of settlor, bona fide purchasers protected, certificate of
custodianship, and affidavit

ARTICLE 13 - APPLICATION AND CONSTRUCTION OF
TRUST CODE

Specifying uniformity of application and construction


ARTICLE
14 - POWERS OF APPOINTMENT

Specifying common law of powers retained,
varieties of power, extent of done authority to appoint or contract to appoint
an estate, exercise of a power, trust decanting, rights of creditors, revocation
and release, and rule against perpetuities; defining terms; repealing powers of
appointment

ARTICLE 15 - CONFORMING CHANGES

Making conforming
changes

ARTICLE 16 - REPEALER

Repealing trust statutory provisions;
providing for revisor's instruction
(je)