HF 2540

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to trusts; enacting the Uniform Trust Code; 
  1.3             proposing coding for new law as Minnesota Statutes, 
  1.4             chapter 518E; repealing Minnesota Statutes 2000, 
  1.5             sections 501B.01; 501B.02; 501B.03; 501B.04; 501B.05; 
  1.6             501B.06; 501B.07; 501B.08; 501B.09; 501B.12; 501B.13; 
  1.7             501B.14; 501B.15; 501B.152; 501B.31; 501B.32; 501B.46; 
  1.8             501B.47; 501B.48; 501B.49; 501B.50; 501B.51; 501B.52; 
  1.9             501B.53; 501B.54; 501B.55; 501B.56; 501B.57; 501B.79; 
  1.10            501B.80; 501B.81; 501B.82; 501B.86; 501B.87; 501B.88; 
  1.11            501B.89; and 501B.90. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13                             ARTICLE 1
  1.14                 GENERAL PROVISIONS AND DEFINITIONS
  1.15     Section 1.  [518E.1-101] [SHORT TITLE.] 
  1.16     This chapter may be cited as the "Uniform Trust Code." 
  1.17     Sec. 2.  [518E.1-102] [SCOPE.] 
  1.18     This chapter applies to charitable or noncharitable express 
  1.19  trusts and trusts created pursuant to a statute, judgment, or 
  1.20  decree that requires the trust to be administered in the manner 
  1.21  of an express trust. 
  1.22     Sec. 3.  [518E.1-103] [DEFINITIONS.] 
  1.23     Subdivision 1.  [SCOPE.] The definitions in this section 
  1.24  apply to this chapter. 
  1.25     Subd. 2.  [ACTION.] "Action," with respect to an act of a 
  1.26  trustee, includes a failure to act. 
  1.27     Subd. 3.  [BENEFICIARY.] "Beneficiary" means a person that: 
  1.28     (1) has a present or future beneficial interest in a trust, 
  2.1   vested or contingent; or 
  2.2      (2) in a capacity other than that of trustee, holds a power 
  2.3   of appointment over trust property. 
  2.4      Subd. 4.  [CHARITABLE TRUST.] "Charitable trust" means a 
  2.5   trust or portion of a trust created for a charitable purpose 
  2.6   described in section 518E.4-105, paragraph (a). 
  2.7      Subd. 5.  [CONSERVATOR.] "Conservator" means a person 
  2.8   appointed by the court to administer the estate of a minor or 
  2.9   adult individual. 
  2.10     Subd. 6.  [ENVIRONMENTAL LAW.] "Environmental law" means a 
  2.11  federal, state, or local law, rule, regulation, or ordinance 
  2.12  relating to protection of the environment. 
  2.13     Subd. 7.  [GUARDIAN.] "Guardian" means a person appointed 
  2.14  by the court, a parent, or a spouse to make decisions regarding 
  2.15  the support, care, education, health, and welfare of a minor or 
  2.16  adult individual.  The term does not include a guardian ad litem.
  2.17     Subd. 8.  [INTERESTS OF THE BENEFICIARIES.] "Interests of 
  2.18  the beneficiaries" means the beneficial interests provided in 
  2.19  the terms of the trust. 
  2.20     Subd. 9.  [JURISDICTION.] "Jurisdiction," with respect to a 
  2.21  geographic area, includes a state or country. 
  2.22     Subd. 10.  [PERSON.] "Person" means an individual, 
  2.23  corporation, business trust, estate, trust, partnership, limited 
  2.24  liability company, association, joint venture, government, 
  2.25  governmental subdivision, agency, or instrumentality, public 
  2.26  corporation, or any other legal or commercial entity. 
  2.27     Subd. 11.  [POWER OF WITHDRAWAL.] "Power of withdrawal" 
  2.28  means a presently exercisable general power of appointment other 
  2.29  than a power exercisable only upon consent of the trustee or a 
  2.30  person holding an adverse interest. 
  2.31     Subd. 12.  [PROPERTY.] "Property" means anything that may 
  2.32  be the subject of ownership, whether real or personal, legal or 
  2.33  equitable, or any interest therein. 
  2.34     Subd. 13.  [QUALIFIED BENEFICIARY.] "Qualified beneficiary" 
  2.35  means a beneficiary who, on the date the beneficiary's 
  2.36  qualification is determined: 
  3.1      (1) is a distributee or permissible distributee of trust 
  3.2   income or principal; 
  3.3      (2) would be a distributee or permissible distributee of 
  3.4   trust income or principal if the interests of the distributees 
  3.5   described in clause (1) terminated on that date; or 
  3.6      (3) would be a distributee or permissible distributee of 
  3.7   trust income or principal if the trust terminated on that date. 
  3.8      Subd. 14.  [REVOCABLE.] "Revocable," as applied to a trust, 
  3.9   means revocable by the settlor without the consent of the 
  3.10  trustee or a person holding an adverse interest. 
  3.11     Subd. 15.  [SETTLOR.] "Settlor" means a person, including a 
  3.12  testator, who creates, or contributes property to, a trust.  If 
  3.13  more than one person creates or contributes property to a trust, 
  3.14  each person is a settlor of the portion of the trust property 
  3.15  attributable to that person's contribution except to the extent 
  3.16  another person has the power to revoke or withdraw that portion. 
  3.17     Subd. 16.  [SPENDTHRIFT PROVISION.] "Spendthrift provision" 
  3.18  means a term of a trust which restrains both voluntary and 
  3.19  involuntary transfer of a beneficiary's interest. 
  3.20     Subd. 17.  [STATE.] "State" means a state of the United 
  3.21  States, the District of Columbia, Puerto Rico, the United States 
  3.22  Virgin Islands, or any territory or insular possession subject 
  3.23  to the jurisdiction of the United States.  The term includes an 
  3.24  Indian tribe or band recognized by federal law or formally 
  3.25  acknowledged by a state. 
  3.26     Subd. 18.  [TERMS OF A TRUST.] "Terms of a trust" means the 
  3.27  manifestation of the settlor's intent regarding a trust's 
  3.28  provisions as expressed in the trust instrument or as may be 
  3.29  established by other evidence that would be admissible in a 
  3.30  judicial proceeding. 
  3.31     Subd. 19.  [TRUST INSTRUMENT.] "Trust instrument" means an 
  3.32  instrument executed by the settlor that contains terms of the 
  3.33  trust, including any amendments to the instrument. 
  3.34     Subd. 20.  [TRUSTEE.] "Trustee" includes an original, 
  3.35  additional, and successor trustee, and a cotrustee. 
  3.36     Sec. 4.  [518E.1-104] [KNOWLEDGE.] 
  4.1      (a) Subject to paragraph (b), a person has knowledge of a 
  4.2   fact if the person: 
  4.3      (1) has actual knowledge of it; 
  4.4      (2) has received a notice or notification of it; or 
  4.5      (3) from all the facts and circumstances known to the 
  4.6   person at the time in question, has reason to know it. 
  4.7      (b) An organization that conducts activities through 
  4.8   employees has notice or knowledge of a fact involving a trust 
  4.9   only from the time the information was received by an employee 
  4.10  having responsibility to act for the trust, or would have been 
  4.11  brought to the employee's attention if the organization had 
  4.12  exercised reasonable diligence.  An organization exercises 
  4.13  reasonable diligence if it maintains reasonable routines for 
  4.14  communicating significant information to the employee having 
  4.15  responsibility to act for the trust and there is reasonable 
  4.16  compliance with the routines.  Reasonable diligence does not 
  4.17  require an employee of the organization to communicate 
  4.18  information unless the communication is part of the individual's 
  4.19  regular duties or the individual knows a matter involving the 
  4.20  trust would be materially affected by the information. 
  4.21     Sec. 5.  [518E.1-105] [DEFAULT AND MANDATORY RULES.] 
  4.22     (a) Except as otherwise provided in the terms of the trust, 
  4.23  this chapter governs the duties and powers of a trustee, 
  4.24  relations among trustees, and the rights and interests of a 
  4.25  beneficiary. 
  4.26     (b) The terms of a trust prevail over any provision of this 
  4.27  chapter except: 
  4.28     (1) the requirements for creating a trust; 
  4.29     (2) the duty of a trustee to act in good faith and in 
  4.30  accordance with the purposes of the trust; 
  4.31     (3) the requirement that a trust and its terms be for the 
  4.32  benefit of its beneficiaries; 
  4.33     (4) the power of the court to modify or terminate a trust 
  4.34  under sections 518E.4-110 to 518E.4-116; 
  4.35     (5) the effect of a spendthrift provision and the rights of 
  4.36  certain creditors and assignees to reach a trust as provided in 
  5.1   article 5; 
  5.2      (6) the power of the court under section 518E.7-102 to 
  5.3   require, dispense with, modify, or terminate a bond; 
  5.4      (7) the power of the court under section 518E.7-108, 
  5.5   paragraph (b), to adjust a trustee's compensation specified in 
  5.6   the terms of the trust which is unreasonably low or high; 
  5.7      (8) the duty to notify the qualified beneficiaries of an 
  5.8   irrevocable trust who have attained 25 years of age of the 
  5.9   existence of the trust and of their right to request trustee's 
  5.10  reports and other information reasonably related to the 
  5.11  administration of the trust; 
  5.12     (9) the duty to respond to the request of a beneficiary of 
  5.13  an irrevocable trust for trustee's reports and other information 
  5.14  reasonably related to the administration of a trust; 
  5.15     (10) the effect of an exculpatory term under section 
  5.16  518E.10-108; 
  5.17     (11) the rights under sections 518E.10-110 to 518E.10-113 
  5.18  of a person other than a trustee or beneficiary; 
  5.19     (12) periods of limitation for commencing a judicial 
  5.20  proceeding; 
  5.21     (13) the power of the court to take action and exercise 
  5.22  jurisdiction that may be necessary in the interests of justice; 
  5.23  and 
  5.24     (14) the subject matter jurisdiction of the court and venue 
  5.25  for commencing a proceeding as provided in sections 518E.2-103 
  5.26  and 518E.2-104. 
  5.27     Sec. 6.  [518E.1-106] [COMMON LAW OF TRUSTS; PRINCIPLES OF 
  5.28  EQUITY.] 
  5.29     The common law of trusts and principles of equity 
  5.30  supplement this chapter, except to the extent modified by this 
  5.31  chapter or another statute of this state. 
  5.32     Sec. 7.  [518E.1-107] [GOVERNING LAW.] 
  5.33     The meaning and effect of the terms of a trust are 
  5.34  determined by: 
  5.35     (1) the law of the jurisdiction designated in the terms 
  5.36  unless the designation of that jurisdiction's law is contrary to 
  6.1   a strong public policy of the jurisdiction having the most 
  6.2   significant relationship to the matter at issue; or 
  6.3      (2) in the absence of a controlling designation in the 
  6.4   terms of the trust, the law of the jurisdiction having the most 
  6.5   significant relationship to the matter at issue. 
  6.6      Sec. 8.  [518E.1-108] [PRINCIPAL PLACE OF ADMINISTRATION.] 
  6.7      (a) Without precluding other means for establishing a 
  6.8   sufficient connection with the designated jurisdiction, terms of 
  6.9   a trust designating the principal place of administration are 
  6.10  valid and controlling if: 
  6.11     (1) a trustee's principal place of business is located in 
  6.12  or a trustee is a resident of the designated jurisdiction; or 
  6.13     (2) all or part of the administration occurs in the 
  6.14  designated jurisdiction. 
  6.15     (b) A trustee is under a continuing duty to administer the 
  6.16  trust at a place appropriate to its purposes, its 
  6.17  administration, and the interests of the beneficiaries. 
  6.18     (c) Without precluding the right of the court to order, 
  6.19  approve, or disapprove a transfer, the trustee, in furtherance 
  6.20  of the duty prescribed by paragraph (b), may transfer the 
  6.21  trust's principal place of administration to another state or to 
  6.22  a jurisdiction outside of the United States. 
  6.23     (d) The trustee shall notify the qualified beneficiaries of 
  6.24  a proposed transfer of a trust's principal place of 
  6.25  administration not less than 60 days before initiating the 
  6.26  transfer.  The notice of proposed transfer must include: 
  6.27     (1) the name of the jurisdiction to which the principal 
  6.28  place of administration is to be transferred; 
  6.29     (2) the address and telephone number at the new location at 
  6.30  which the trustee can be contacted; 
  6.31     (3) an explanation of the reasons for the proposed 
  6.32  transfer; 
  6.33     (4) the date on which the proposed transfer is anticipated 
  6.34  to occur; and 
  6.35     (5) the date, not less than 60 days after the giving of the 
  6.36  notice, by which the qualified beneficiary must notify the 
  7.1   trustee of an objection to the proposed transfer. 
  7.2      (e) The authority of a trustee under this section to 
  7.3   transfer a trust's principal place of administration terminates 
  7.4   if a qualified beneficiary notifies the trustee of an objection 
  7.5   to the proposed transfer on or before the date specified in the 
  7.6   notice. 
  7.7      (f) In connection with a transfer of the trust's principal 
  7.8   place of administration, the trustee may transfer some or all or 
  7.9   the trust property to a successor trustee designated in the 
  7.10  terms of the trust or appointed pursuant to section 518E.7-104. 
  7.11     Sec. 9.  [518E.1-109] [METHODS AND WAIVER OF NOTICE.] 
  7.12     (a) Notice to a person under this chapter or the sending of 
  7.13  a document to a person under this chapter must be accomplished 
  7.14  in a manner reasonably suitable under the circumstances and 
  7.15  likely to result in receipt of the notice or document.  
  7.16  Permissible methods of notice or for sending a document include 
  7.17  first-class mail, personal delivery, delivery to the person's 
  7.18  last known place of residence or place of business, or a 
  7.19  properly directed electronic message. 
  7.20     (b) Notice otherwise required under this chapter or a 
  7.21  document otherwise required to be sent under this chapter need 
  7.22  not be provided to a person whose identity or location is 
  7.23  unknown to and not reasonably ascertainable by the trustee. 
  7.24     (c) Notice under this chapter or the sending of a document 
  7.25  under this chapter may be waived by the person to be notified or 
  7.26  sent the document. 
  7.27     (d) Notice of a judicial proceeding must be given as 
  7.28  provided in the applicable Rules of Civil Procedure. 
  7.29     Sec. 10.  [518E.1-110] [OTHERS TREATED AS QUALIFIED 
  7.30  BENEFICIARIES.] 
  7.31     (a) Whenever notice to qualified beneficiaries of a trust 
  7.32  is required under this chapter, the trustee must also give 
  7.33  notice to any other beneficiary who has sent the trustee a 
  7.34  request for notice. 
  7.35     (b) A charitable organization expressly entitled to receive 
  7.36  benefits under the terms of a charitable trust or a person 
  8.1   appointed to enforce a trust created for the care of an animal 
  8.2   or another noncharitable purpose as provided in section 
  8.3   518E.4-108 or 518E.4-109 has the rights of a qualified 
  8.4   beneficiary under this chapter. 
  8.5      (c) The attorney general has the rights of a qualified 
  8.6   beneficiary with respect to a charitable trust having its 
  8.7   principal place of administration in this state. 
  8.8      Sec. 11.  [518E.1-111] [NONJUDICIAL SETTLEMENT AGREEMENTS.] 
  8.9      (a) For purposes of this section, "interested persons" 
  8.10  means persons whose consent would be required in order to 
  8.11  achieve a binding settlement were the settlement to be approved 
  8.12  by the court. 
  8.13     (b) Except as otherwise provided in paragraph (c), 
  8.14  interested persons may enter into a binding, nonjudicial 
  8.15  settlement agreement with respect to any matter involving a 
  8.16  trust. 
  8.17     (c) A nonjudicial settlement agreement is valid only to the 
  8.18  extent it does not violate a material purpose of the trust and 
  8.19  includes terms and conditions that could be properly approved by 
  8.20  the court under this chapter or other applicable law. 
  8.21     (d) Matters that may be resolved by a nonjudicial 
  8.22  settlement agreement include: 
  8.23     (1) the interpretation or construction of the terms of the 
  8.24  trust; 
  8.25     (2) the approval of a trustee's report or accounting; 
  8.26     (3) direction to a trustee to refrain from performing a 
  8.27  particular act or the grant to a trustee of any necessary or 
  8.28  desirable power; 
  8.29     (4) the resignation or appointment of a trustee and the 
  8.30  determination of a trustee's compensation; 
  8.31     (5) transfer of a trust's principal place of 
  8.32  administration; and 
  8.33     (6) liability of a trustee for an action relating to the 
  8.34  trust. 
  8.35     (e) Any interested person may request the court to approve 
  8.36  a nonjudicial settlement agreement, to determine whether the 
  9.1   representation as provided in article 3 was adequate, and to 
  9.2   determine whether the agreement contains terms and conditions 
  9.3   the court could have properly approved. 
  9.4      Sec. 12.  [518E.1-112] [RULES OF CONSTRUCTION.] 
  9.5      The rules of construction that apply in this state to the 
  9.6   interpretation of and disposition of property by will also apply 
  9.7   as appropriate to the interpretation of the terms of a trust and 
  9.8   the disposition of the trust property. 
  9.9                              ARTICLE 2
  9.10                        JUDICIAL PROCEEDINGS
  9.11     Section 1.  [518E.2-101] [ROLE OF COURT IN ADMINISTRATION 
  9.12  OF TRUST.] 
  9.13     (a) The court may intervene in the administration of a 
  9.14  trust to the extent its jurisdiction is invoked by an interested 
  9.15  person or as provided by law. 
  9.16     (b) A trust is not subject to continuing judicial 
  9.17  supervision unless ordered by the court. 
  9.18     (c) A judicial proceeding involving a trust may relate to 
  9.19  any matter involving the trust's administration, including a 
  9.20  request for instructions and an action to declare rights. 
  9.21     Sec. 2.  [518E.2-102] [JURISDICTION OVER TRUSTEE AND 
  9.22  BENEFICIARY.] 
  9.23     (a) By accepting the trusteeship of a trust having its 
  9.24  principal place of administration in this state or by moving the 
  9.25  principal place of administration to this state, the trustee 
  9.26  submits personally to the jurisdiction of the courts of this 
  9.27  state regarding any matter involving the trust. 
  9.28     (b) With respect to their interests in the trust, the 
  9.29  beneficiaries of a trust having its principal place of 
  9.30  administration in this state are subject to the jurisdiction of 
  9.31  the courts of this state regarding any matter involving the 
  9.32  trust.  By accepting a distribution from such a trust, the 
  9.33  recipient submits personally to the jurisdiction of the courts 
  9.34  of this state regarding any matter involving the trust. 
  9.35     (c) This section does not preclude other methods of 
  9.36  obtaining jurisdiction over a trustee, beneficiary, or other 
 10.1   person receiving property from the trust. 
 10.2      Sec. 3.  [518E.2-103] [SUBJECT MATTER JURISDICTION.] 
 10.3      (a) The district court has exclusive jurisdiction of 
 10.4   proceedings in this state brought by a trustee or beneficiary 
 10.5   concerning the administration of a trust. 
 10.6      (b) The district court has concurrent jurisdiction with 
 10.7   other courts of this state of other proceedings involving a 
 10.8   trust. 
 10.9      Sec. 4.  [518E.2-104] [VENUE.] 
 10.10     (a) Except as otherwise provided in paragraph (b), venue 
 10.11  for a judicial proceeding involving a trust is in the county of 
 10.12  this state in which the trust's principal place of 
 10.13  administration is or will be located and, if the trust is 
 10.14  created by will and the estate is not yet closed, in the county 
 10.15  in which the decedent's estate is being administered. 
 10.16     (b) If a trust has no trustee, venue for a judicial 
 10.17  proceeding for the appointment of a trustee is in a county of 
 10.18  this state in which a beneficiary resides, in a county in which 
 10.19  any trust property is located, and if the trust is created by 
 10.20  will, in the county in which the decedent's estate was or is 
 10.21  being administered. 
 10.22                             ARTICLE 3
 10.23                           REPRESENTATION
 10.24     Section 1.  [518E.3-101] [REPRESENTATION; BASIC EFFECT.] 
 10.25     (a) Notice to a person who may represent and bind another 
 10.26  person under this article has the same effect as if notice were 
 10.27  given directly to the other person. 
 10.28     (b) The consent of a person who may represent and bind 
 10.29  another person under this article is binding on the person 
 10.30  represented unless the person represented objects to the 
 10.31  representation before the consent would otherwise have become 
 10.32  effective. 
 10.33     (c) Except as otherwise provided in sections 518E.4-111 and 
 10.34  518E.6-102, a person who under this article may represent a 
 10.35  settlor who lacks capacity may receive notice and give a binding 
 10.36  consent on the settlor's behalf. 
 11.1      Sec. 2.  [518E.3-102] [REPRESENTATION BY HOLDER OF GENERAL 
 11.2   TESTAMENTARY POWER OF APPOINTMENT.] 
 11.3      To the extent there is no conflict of interest between the 
 11.4   holder of a general testamentary power of appointment and the 
 11.5   persons represented with respect to the particular question or 
 11.6   dispute, the holder may represent and bind persons whose 
 11.7   interests, as permissible appointees, takers in default, or 
 11.8   otherwise, are subject to the power. 
 11.9      Sec. 3.  [518E.3-103] [REPRESENTATION BY FIDUCIARIES AND 
 11.10  PARENTS.] 
 11.11     To the extent there is no conflict of interest between the 
 11.12  representative and the person represented or among those being 
 11.13  represented with respect to a particular question or dispute: 
 11.14     (1) a conservator may represent and bind the estate that 
 11.15  the conservator controls; 
 11.16     (2) a guardian may represent and bind the ward if a 
 11.17  conservator of the ward's estate has not been appointed; 
 11.18     (3) an agent having authority to act with respect to the 
 11.19  particular question or dispute may represent and bind the 
 11.20  principal; 
 11.21     (4) a trustee may represent and bind the beneficiaries of 
 11.22  the trust; 
 11.23     (5) a personal representative of a decedent's estate may 
 11.24  represent and bind persons interested in the estate; and 
 11.25     (6) a parent may represent and bind the parent's minor or 
 11.26  unborn child if a conservator or guardian for the child has not 
 11.27  been appointed. 
 11.28     Sec. 4.  [518E.3-104] [REPRESENTATION BY PERSON HAVING 
 11.29  SUBSTANTIALLY IDENTICAL INTEREST.] 
 11.30     Unless otherwise represented, a minor, incapacitated, or 
 11.31  unborn individual, or a person whose identity or location is 
 11.32  unknown and not reasonably ascertainable, may be represented by 
 11.33  and bound by another having a substantially identical interest 
 11.34  with respect to the particular question or dispute, but only to 
 11.35  the extent there is no conflict of interest between the 
 11.36  representative and the person represented. 
 12.1      Sec. 5.  [518E.3-105] [APPOINTMENT OF REPRESENTATIVE.] 
 12.2      (a) If the court determines that an interest is not 
 12.3   represented under this article, or that the otherwise available 
 12.4   representation might be inadequate, the court may appoint a 
 12.5   representative to receive notice, give consent, and otherwise 
 12.6   represent, bind, and act on behalf of a minor, incapacitated, or 
 12.7   unborn individual, or a person whose identity or location is 
 12.8   unknown.  A representative may be appointed to represent several 
 12.9   persons or interests. 
 12.10     (b) A representative may act on behalf of the individual 
 12.11  represented with respect to any matter arising under this 
 12.12  chapter, whether or not a judicial proceeding concerning the 
 12.13  trust is pending. 
 12.14     (c) In making decisions, a representative may consider 
 12.15  general benefit accruing to the living members of the 
 12.16  individual's family. 
 12.17                             ARTICLE 4
 12.18                 CREATION, VALIDITY, MODIFICATION,
 12.19                      AND TERMINATION OF TRUST
 12.20     Section 1.  [518E.4-101] [METHODS OF CREATING TRUST.] 
 12.21     A trust may be created by: 
 12.22     (1) transfer of property to another person as trustee 
 12.23  during the settlor's lifetime or by will or other disposition 
 12.24  taking effect upon the settlor's death; 
 12.25     (2) declaration by the owner of property that the owner 
 12.26  holds identifiable property as trustee; or 
 12.27     (3) exercise of a power of appointment in favor of a 
 12.28  trustee. 
 12.29     Sec. 2.  [518E.4-102] [REQUIREMENTS FOR CREATION.] 
 12.30     (a) A trust is created only if: 
 12.31     (1) the settlor has capacity to create a trust; 
 12.32     (2) the settlor indicates an intention to create the trust; 
 12.33     (3) the trust has a definite beneficiary or is: 
 12.34     (i) a charitable trust; 
 12.35     (ii) a trust for the care of an animal, as provided in 
 12.36  section 518E.4-108; or 
 13.1      (iii) a trust for a noncharitable purpose, as provided in 
 13.2   section 518E.4-109; 
 13.3      (4) the trustee has duties to perform; and 
 13.4      (5) the same person is not the sole trustee and sole 
 13.5   beneficiary. 
 13.6      (b) A beneficiary is definite if the beneficiary can be 
 13.7   ascertained now or in the future, subject to any applicable rule 
 13.8   against perpetuities. 
 13.9      (c) A power in a trustee to select a beneficiary from an 
 13.10  indefinite class is valid.  If the power is not exercised within 
 13.11  a reasonable time, the power fails and the property subject to 
 13.12  the power passes to the persons who would have taken the 
 13.13  property had the power not been conferred. 
 13.14     Sec. 3.  [518E.4-103] [TRUSTS CREATED IN OTHER 
 13.15  JURISDICTIONS.] 
 13.16     A trust not created by will is validly created if its 
 13.17  creation complies with the law of the jurisdiction in which the 
 13.18  trust instrument was executed, or the law of the jurisdiction in 
 13.19  which, at the time of creation: 
 13.20     (1) the settlor was domiciled, had a place of abode, or was 
 13.21  a national; 
 13.22     (2) a trustee was domiciled or had a place of business; or 
 13.23     (3) any trust property was located. 
 13.24     Sec. 4.  [518E.4-104] [TRUST PURPOSES.] 
 13.25     A trust may be created only to the extent its purposes are 
 13.26  lawful, not contrary to public policy, and possible to achieve.  
 13.27  A trust and its terms must be for the benefit of its 
 13.28  beneficiaries. 
 13.29     Sec. 5.  [518E.4-105] [CHARITABLE PURPOSES; ENFORCEMENT.] 
 13.30     (a) A charitable trust may be created for the relief of 
 13.31  poverty, the advancement of education or religion, the promotion 
 13.32  of health, governmental or municipal purposes, or other purposes 
 13.33  the achievement of which is beneficial to the community. 
 13.34     (b) If the terms of a charitable trust do not indicate a 
 13.35  particular charitable purpose or beneficiary, the court may 
 13.36  select one or more charitable purposes or beneficiaries.  The 
 14.1   selection must be consistent with the settlor's intention to the 
 14.2   extent it can be ascertained. 
 14.3      (c) The settlor of a charitable trust, among others, may 
 14.4   maintain a proceeding to enforce the trust. 
 14.5      Sec. 6.  [518E.4-106] [CREATION OF TRUST INDUCED BY FRAUD, 
 14.6   DURESS, OR UNDUE INFLUENCE.] 
 14.7      A trust is void to the extent its creation was induced by 
 14.8   fraud, duress, or undue influence. 
 14.9      Sec. 7.  [518E.4-107] [EVIDENCE OF ORAL TRUST.] 
 14.10     Except as required by a statute other than this chapter, a 
 14.11  trust need not be evidenced by a trust instrument, but the 
 14.12  creation of an oral trust and its terms may be established only 
 14.13  by clear and convincing evidence. 
 14.14     Sec. 8.  [518E.4-108] [TRUST FOR CARE OF ANIMAL.] 
 14.15     (a) A trust may be created to provide for the care of an 
 14.16  animal alive during the settlor's lifetime.  The trust 
 14.17  terminates upon the death of the animal or, if the trust was 
 14.18  created to provide for the care of more than one animal alive 
 14.19  during the settlor's lifetime, upon the death of the last 
 14.20  surviving animal. 
 14.21     (b) A trust authorized by this section may be enforced by a 
 14.22  person appointed in the terms of the trust or, if no person is 
 14.23  so appointed, by a person appointed by the court.  A person 
 14.24  having an interest in the welfare of the animal may request the 
 14.25  court to appoint a person to enforce the trust or to remove a 
 14.26  person appointed. 
 14.27     (c) Property of a trust authorized by this section may be 
 14.28  applied only to its intended use, except to the extent the court 
 14.29  determines that the value of the trust property exceeds the 
 14.30  amount required for the intended use.  Except as otherwise 
 14.31  provided in the terms of the trust, property not required for 
 14.32  the intended use must be distributed to the settlor, if then 
 14.33  living, otherwise to the settlor's successors in interest. 
 14.34     Sec. 9.  [518E.4-109] [NONCHARITABLE TRUST WITHOUT 
 14.35  ASCERTAINABLE BENEFICIARY.] 
 14.36     Except as otherwise provided in section 518E.4-108 or by 
 15.1   another statute, the following rules apply: 
 15.2      (a) A trust may be created for a noncharitable purpose 
 15.3   without a definite or definitely ascertainable beneficiary or 
 15.4   for a noncharitable but otherwise valid purpose to be selected 
 15.5   by the trustee.  The trust may not be enforced for more than 21 
 15.6   years. 
 15.7      (b) A trust authorized by this section may be enforced by a 
 15.8   person appointed in the terms of the trust or, if no person is 
 15.9   so appointed, by a person appointed by the court. 
 15.10     (c) Property of a trust authorized by this section may be 
 15.11  applied only to its intended use, except to the extent the court 
 15.12  determines that the value of the trust property exceeds the 
 15.13  amount required for the intended use.  Except as otherwise 
 15.14  provided in the terms of the trust, property not required for 
 15.15  the intended use must be distributed to the settlor, if then 
 15.16  living, otherwise to the settlor's successors in interest. 
 15.17     Sec. 10.  [518E.4-110] [MODIFICATION OR TERMINATION OF 
 15.18  TRUST; PROCEEDINGS FOR APPROVAL OR DISAPPROVAL.] 
 15.19     (a) In addition to the methods of termination prescribed by 
 15.20  sections 518E.4-111 to 518E.4-114, a trust terminates to the 
 15.21  extent the trust is revoked or expires pursuant to its terms, no 
 15.22  purpose of the trust remains to be achieved, or the purposes of 
 15.23  the trust have become unlawful, contrary to public policy, or 
 15.24  impossible to achieve. 
 15.25     (b) A proceeding to approve or disapprove a proposed 
 15.26  modification or termination under sections 518E.4-111 to 
 15.27  518E.4-116, or trust combination or division under section 
 15.28  518E.4-117, may be commenced by a trustee or beneficiary, and a 
 15.29  proceeding to approve or disapprove a proposed modification or 
 15.30  termination under section 518E.4-111 may be commenced by the 
 15.31  settlor.  The settlor of a charitable trust may maintain a 
 15.32  proceeding to modify the trust under section 518E.4-113. 
 15.33     Sec. 11.  [518E.4-111] [MODIFICATION OR TERMINATION OF 
 15.34  NONCHARITABLE IRREVOCABLE TRUST BY CONSENT.] 
 15.35     (a) A noncharitable irrevocable trust may be modified or 
 15.36  terminated upon consent of the settlor and all beneficiaries, 
 16.1   even if the modification or termination is inconsistent with a 
 16.2   material purpose of the trust.  A settlor's power to consent to 
 16.3   a trust's termination may be exercised by an agent under a power 
 16.4   of attorney only to the extent expressly authorized by the power 
 16.5   of attorney or the terms of the trust; by the settlor's 
 16.6   conservator with the approval of the court supervising the 
 16.7   conservatorship if an agent is not so authorized; or by the 
 16.8   settlor's guardian with the approval of the court supervising 
 16.9   the guardianship if an agent is not so authorized and a 
 16.10  conservator has not been appointed. 
 16.11     (b) A noncharitable irrevocable trust may be terminated 
 16.12  upon consent of all of the beneficiaries if the court concludes 
 16.13  that continuance of the trust is not necessary to achieve any 
 16.14  material purpose of the trust.  A noncharitable irrevocable 
 16.15  trust may be modified upon consent of all of the beneficiaries 
 16.16  if the court concludes that modification is not inconsistent 
 16.17  with a material purpose of the trust. 
 16.18     (c) A spendthrift provision in the terms of the trust is 
 16.19  not presumed to constitute a material purpose of the trust. 
 16.20     (d) Upon termination of a trust under paragraph (a) or (b), 
 16.21  the trustee shall distribute the trust property as agreed by the 
 16.22  beneficiaries. 
 16.23     (e) If not all of the beneficiaries consent to a proposed 
 16.24  modification or termination of the trust under paragraph (a) or 
 16.25  (b), the modification or termination may be approved by the 
 16.26  court if the court is satisfied that: 
 16.27     (1) if all of the beneficiaries had consented, the trust 
 16.28  could have been modified or terminated under this section; and 
 16.29     (2) the interests of a beneficiary who does not consent 
 16.30  will be adequately protected. 
 16.31     Sec. 12.  [518E.4-112] [MODIFICATION OR TERMINATION BECAUSE 
 16.32  OF UNANTICIPATED CIRCUMSTANCES OR INABILITY TO ADMINISTER TRUST 
 16.33  EFFECTIVELY.] 
 16.34     (a) The court may modify the administrative or dispositive 
 16.35  terms of a trust or terminate the trust if, because of 
 16.36  circumstances not anticipated by the settlor, modification or 
 17.1   termination will further the purposes of the trust.  To the 
 17.2   extent practicable, the modification must be made in accordance 
 17.3   with the settlor's probable intention. 
 17.4      (b) The court may modify the administrative terms of a 
 17.5   trust if continuation of the trust on its existing terms would 
 17.6   be impracticable or wasteful or impair the trust's 
 17.7   administration. 
 17.8      (c) Upon termination of a trust under this section, the 
 17.9   trustee shall distribute the trust property in a manner 
 17.10  consistent with the purposes of the trust. 
 17.11     Sec. 13.  [518E.4-113] [CY PRES.] 
 17.12     (a) Except as otherwise provided in paragraph (b), if a 
 17.13  particular charitable purpose becomes unlawful, impracticable, 
 17.14  impossible to achieve, or wasteful: 
 17.15     (1) the trust does not fail, in whole or in part; 
 17.16     (2) the trust property does not revert to the settlor or 
 17.17  the settlor's successors in interest; and 
 17.18     (3) the court may apply the cy pres doctrine to modify or 
 17.19  terminate the trust by directing that the trust property be 
 17.20  applied or distributed, in whole or in part, in a manner 
 17.21  consistent with the settlor's charitable purposes. 
 17.22     (b) A provision in the terms of a charitable trust that 
 17.23  would result in distribution of the trust property to a 
 17.24  noncharitable beneficiary prevails over the power of the court 
 17.25  under paragraph (a) to apply the cy pres doctrine to modify or 
 17.26  terminate the trust only if, when the provision takes effect: 
 17.27     (1) the trust property is to revert to the settlor and the 
 17.28  settlor is still living; or 
 17.29     (2) fewer than 21 years have elapsed since the date of the 
 17.30  trust's creation. 
 17.31     Sec. 14.  [518E.4-114] [TERMINATION OF UNECONOMIC TRUST.] 
 17.32     (a) After notice to the qualified beneficiaries, the 
 17.33  trustee of a trust consisting of trust property having a total 
 17.34  value less than $50,000 may terminate the trust if the trustee 
 17.35  concludes that the value of the trust property is insufficient 
 17.36  to justify the cost of administration. 
 18.1      (b) The court may modify or terminate a trust or remove the 
 18.2   trustee and appoint a different trustee if it determines that 
 18.3   the value of the trust property is insufficient to justify the 
 18.4   cost of administration. 
 18.5      (c) Upon termination of a trust under this section, the 
 18.6   trustee shall distribute the trust property in a manner 
 18.7   consistent with the purposes of the trust. 
 18.8      (d) This section does not apply to an easement for 
 18.9   conservation or preservation. 
 18.10     Sec. 15.  [518E.4-115] [REFORMATION TO CORRECT MISTAKES.] 
 18.11     The court may reform the terms of a trust, even if 
 18.12  unambiguous, to conform the terms to the settlor's intention if 
 18.13  it is proved by clear and convincing evidence that both the 
 18.14  settlor's intent and the terms of the trust were affected by a 
 18.15  mistake of fact or law, whether in expression or inducement. 
 18.16     Sec. 16.  [518E.4-116] [MODIFICATION TO ACHIEVE SETTLOR'S 
 18.17  TAX OBJECTIVES.] 
 18.18     To achieve the settlor's tax objectives, the court may 
 18.19  modify the terms of a trust in a manner that is not contrary to 
 18.20  the settlor's probable intention.  The court may provide that 
 18.21  the modification has retroactive effect. 
 18.22     Sec. 17.  [518E.4-117] [COMBINATION AND DIVISION OF 
 18.23  TRUSTS.] 
 18.24     After notice to the qualified beneficiaries, a trustee may 
 18.25  combine two or more trusts into a single trust or divide a trust 
 18.26  into two or more separate trusts if the result does not impair 
 18.27  rights of any beneficiary or adversely affect achievement of the 
 18.28  purposes of the trust. 
 18.29                             ARTICLE 5
 18.30                   CREDITOR'S CLAIMS; SPENDTHRIFT
 18.31                      AND DISCRETIONARY TRUSTS
 18.32     Section 1.  [518E.5-101] [RIGHTS OF BENEFICIARY'S CREDITOR 
 18.33  OR ASSIGNEE.] 
 18.34     To the extent a beneficiary's interest is not protected by 
 18.35  a spendthrift provision, the court may authorize a creditor or 
 18.36  assignee of the beneficiary to reach the beneficiary's interest 
 19.1   by attachment of present or future distributions to or for the 
 19.2   benefit of the beneficiary or other means.  The court may limit 
 19.3   the award to such relief as is appropriate under the 
 19.4   circumstances. 
 19.5      Sec. 2.  [518E.5-102] [SPENDTHRIFT PROVISION.] 
 19.6      (a) A spendthrift provision is valid only if it restrains 
 19.7   both voluntary and involuntary transfer of a beneficiary's 
 19.8   interest. 
 19.9      (b) A term of a trust providing that the interest of a 
 19.10  beneficiary is held subject to a "spendthrift trust," or words 
 19.11  of similar import, is sufficient to restrain both voluntary and 
 19.12  involuntary transfer of the beneficiary's interest. 
 19.13     (c) A beneficiary may not transfer an interest in a trust 
 19.14  in violation of a valid spendthrift provision and, except as 
 19.15  otherwise provided in this article, a creditor or assignee of 
 19.16  the beneficiary may not reach the interest or a distribution by 
 19.17  the trustee before its receipt by the beneficiary. 
 19.18     Sec. 3.  [518E.5-103] [EXCEPTIONS TO SPENDTHRIFT 
 19.19  PROVISION.] 
 19.20     (a) In this section, "child" includes any person for whom 
 19.21  an order or judgment for child support has been entered in this 
 19.22  or another state. 
 19.23     (b) Even if a trust contains a spendthrift provision, a 
 19.24  beneficiary's child, spouse, or former spouse who has a judgment 
 19.25  or court order against the beneficiary for support or 
 19.26  maintenance, or a judgment creditor who has provided services 
 19.27  for the protection of a beneficiary's interest in the trust, may 
 19.28  obtain from a court an order attaching present or future 
 19.29  distributions to or for the benefit of the beneficiary. 
 19.30     (c) A spendthrift provision is unenforceable against a 
 19.31  claim of this state or the United States to the extent a statute 
 19.32  of this state or federal law so provides. 
 19.33     Sec. 4.  [518E.5-104] [DISCRETIONARY TRUSTS; EFFECT OF 
 19.34  STANDARD.] 
 19.35     (a) In this section, "child" includes any person for whom 
 19.36  an order or judgment for child support has been entered in this 
 20.1   or another state. 
 20.2      (b) Except as otherwise provided in paragraph (c), whether 
 20.3   or not a trust contains a spendthrift provision, a creditor of a 
 20.4   beneficiary may not compel a distribution that is subject to the 
 20.5   trustee's discretion, even if: 
 20.6      (1) the discretion is expressed in the form of a standard 
 20.7   of distribution; or 
 20.8      (2) the trustee has abused the discretion. 
 20.9      (c) To the extent a trustee has not complied with a 
 20.10  standard of distribution or has abused a discretion: 
 20.11     (1) a distribution may be ordered by the court to satisfy a 
 20.12  judgment or court order against the beneficiary for support or 
 20.13  maintenance of the beneficiary's child, spouse, or former 
 20.14  spouse; and 
 20.15     (2) the court shall direct the trustee to pay to the child, 
 20.16  spouse, or former spouse such amount as is equitable under the 
 20.17  circumstances but not more than the amount the trustee would 
 20.18  have been required to distribute to or for the benefit of the 
 20.19  beneficiary had the trustee complied with the standard or not 
 20.20  abused the discretion. 
 20.21     (d) This section does not limit the right of a beneficiary 
 20.22  to maintain a judicial proceeding against a trustee for an abuse 
 20.23  of discretion or failure to comply with a standard for 
 20.24  distribution. 
 20.25     Sec. 5.  [518E.5-105] [CREDITOR'S CLAIM AGAINST SETTLOR.] 
 20.26     (a) Whether or not the terms of a trust contain a 
 20.27  spendthrift provision, the following rules apply: 
 20.28     (1) During the lifetime of the settlor, the property of a 
 20.29  revocable trust is subject to claims of the settlor's creditors. 
 20.30     (2) With respect to an irrevocable trust, a creditor or 
 20.31  assignee of the settlor may reach the maximum amount that can be 
 20.32  distributed to or for the settlor's benefit.  If a trust has 
 20.33  more than one settlor, the amount the creditor or assignee of a 
 20.34  particular settlor may reach may not exceed the settlor's 
 20.35  interest in the portion of the trust attributable to that 
 20.36  settlor's contribution. 
 21.1      (3) After the death of a settlor, and subject to the 
 21.2   settlor's right to direct the source from which liabilities will 
 21.3   be paid, the property of a trust that was revocable at the 
 21.4   settlor's death is subject to claims of the settlor's creditors, 
 21.5   costs of administration of the settlor's estate, the expenses of 
 21.6   the settlor's funeral and disposal of remains, and statutory 
 21.7   allowances to a surviving spouse and children to the extent the 
 21.8   settlor's probate estate is inadequate to satisfy those claims, 
 21.9   costs, expenses, and allowances. 
 21.10     (b) For purposes of this section: 
 21.11     (1) during the period the power may be exercised, the 
 21.12  holder of a power of withdrawal is treated in the same manner as 
 21.13  the settlor of a revocable trust to the extent of the property 
 21.14  subject to the power; and 
 21.15     (2) upon the lapse, release, or waiver of the power, the 
 21.16  holder is treated as the settlor of the trust only to the extent 
 21.17  the value of the property affected by the lapse, release, or 
 21.18  waiver exceeds the greater of the amount specified in section 
 21.19  2041(b)(2) or 2514(e) of the Internal Revenue Code of 1986, or 
 21.20  section 2503(b) of the Internal Revenue Code of 1986, in each 
 21.21  case as in effect on the effective date of this section. 
 21.22     Sec. 6.  [518E.5-106] [OVERDUE DISTRIBUTION.] 
 21.23     Whether or not a trust contains a spendthrift provision, a 
 21.24  creditor or assignee of a beneficiary may reach a mandatory 
 21.25  distribution of income or principal, including a distribution 
 21.26  upon termination of the trust, if the trustee has not made the 
 21.27  distribution to the beneficiary within a reasonable time after 
 21.28  the required distribution date. 
 21.29     Sec. 7.  [518E.5-107] [PERSONAL OBLIGATIONS OF TRUSTEE.] 
 21.30     Trust property is not subject to personal obligations of 
 21.31  the trustee, even if the trustee becomes insolvent or bankrupt. 
 21.32                             ARTICLE 6
 21.33                          REVOCABLE TRUSTS
 21.34     Section 1.  [518E.6-101] [CAPACITY OF SETTLOR OF REVOCABLE 
 21.35  TRUST.] 
 21.36     The capacity required to create, amend, revoke, or add 
 22.1   property to a revocable trust, or to direct the actions of the 
 22.2   trustee of a revocable trust, is the same as that required to 
 22.3   make a will. 
 22.4      Sec. 2.  [518E.6-102] [REVOCATION OR AMENDMENT OF REVOCABLE 
 22.5   TRUST.] 
 22.6      (a) Unless the terms of a trust expressly provide that the 
 22.7   trust is irrevocable, the settlor may revoke or amend the 
 22.8   trust.  This subsection does not apply to a trust created under 
 22.9   an instrument executed before the effective date of this article.
 22.10     (b) If a revocable trust is created or funded by more than 
 22.11  one settlor: 
 22.12     (1) to the extent the trust consists of community property, 
 22.13  the trust may be revoked by either spouse acting alone but may 
 22.14  be amended only by joint action of both spouses; and 
 22.15     (2) to the extent the trust consists of property other than 
 22.16  community property, each settlor may revoke or amend the trust 
 22.17  with regard to the portion of the trust property attributable to 
 22.18  that settlor's contribution. 
 22.19     (c) The settlor may revoke or amend a revocable trust: 
 22.20     (1) by substantially complying with a method provided in 
 22.21  the terms of the trust; or 
 22.22     (2) if the terms of the trust do not provide a method or 
 22.23  the method provided in the terms is not expressly made 
 22.24  exclusive, by: 
 22.25     (i) executing a later will or codicil that expressly refers 
 22.26  to the trust or specifically devises property that would 
 22.27  otherwise have passed according to the terms of the trust; or 
 22.28     (ii) any other method manifesting clear and convincing 
 22.29  evidence of the settlor's intent. 
 22.30     (d) Upon revocation of a revocable trust, the trustee shall 
 22.31  deliver the trust property as the settlor directs. 
 22.32     (e) A settlor's powers with respect to revocation, 
 22.33  amendment, or distribution of trust property may be exercised by 
 22.34  an agent under a power of attorney only to the extent expressly 
 22.35  authorized by the terms of the trust or the power. 
 22.36     (f) A conservator of the settlor or, if no conservator has 
 23.1   been appointed, a guardian of the settlor may exercise a 
 23.2   settlor's powers with respect to revocation, amendment, or 
 23.3   distribution of trust property only with the approval of the 
 23.4   court supervising the conservatorship or guardianship. 
 23.5      (g) A trustee who does not know that a trust has been 
 23.6   revoked or amended is not liable to the settlor or settlor's 
 23.7   successors in interest for distributions made and other actions 
 23.8   taken on the assumption that the trust had not been amended or 
 23.9   revoked. 
 23.10     Sec. 3.  [518E.6-103] [SETTLOR'S POWERS; POWERS OF 
 23.11  WITHDRAWAL.] 
 23.12     (a) While a trust is revocable and the settlor has capacity 
 23.13  to revoke the trust, rights of the beneficiaries are subject to 
 23.14  the control of, and the duties of the trustee are owed 
 23.15  exclusively to, the settlor. 
 23.16     (b) While a trust is revocable and the settlor does not 
 23.17  have capacity to revoke the trust, rights of the beneficiaries 
 23.18  are held by the beneficiaries. 
 23.19     (c) If a revocable trust has more than one settlor, the 
 23.20  duties of the trustee are owed to all of the settlors having 
 23.21  capacity to revoke the trust. 
 23.22     (d) During the period the power may be exercised, the 
 23.23  holder of a power of withdrawal has the rights of a settlor of a 
 23.24  revocable trust under this section to the extent of the property 
 23.25  subject to the power. 
 23.26     Sec. 4.  [518E.6-104] [LIMITATION ON ACTION CONTESTING 
 23.27  VALIDITY OF REVOCABLE TRUST; DISTRIBUTION OF TRUST PROPERTY.] 
 23.28     (a) A person may commence a judicial proceeding to contest 
 23.29  the validity of a trust that was revocable at the settlor's 
 23.30  death within the earlier of: 
 23.31     (1) three years after the settlor's death; or 
 23.32     (2) 120 days after the trustee sent the person a copy of 
 23.33  the trust instrument and a notice informing the person of the 
 23.34  trust's existence, of the trustee's name and address, and of the 
 23.35  time allowed for commencing a proceeding. 
 23.36     (b) Upon the death of the settlor of a trust that was 
 24.1   revocable at the settlor's death, the trustee may proceed to 
 24.2   distribute the trust property in accordance with the terms of 
 24.3   the trust.  The trustee is not subject to liability for doing so 
 24.4   unless: 
 24.5      (1) the trustee knows of a pending judicial proceeding 
 24.6   contesting the validity of the trust; or 
 24.7      (2) a potential contestant has notified the trustee of a 
 24.8   possible judicial proceeding to contest the trust and a judicial 
 24.9   proceeding is commenced within 60 days after the contestant sent 
 24.10  the notification. 
 24.11     (c) A beneficiary of a trust that is determined to have 
 24.12  been invalid is liable to return any distribution received. 
 24.13                             ARTICLE 7
 24.14                         OFFICE OF TRUSTEE
 24.15     Section 1.  [518E.7-101] [ACCEPTING OR DECLINING 
 24.16  TRUSTEESHIP.] 
 24.17     (a) Except as otherwise provided in paragraph (c), a person 
 24.18  designated as trustee accepts the trusteeship: 
 24.19     (1) by substantially complying with a method of acceptance 
 24.20  provided in the terms of the trust; or 
 24.21     (2) if the terms of the trust do not provide a method or 
 24.22  the method provided in the terms is not expressly made 
 24.23  exclusive, by accepting delivery of the trust property, 
 24.24  exercising powers or performing duties as trustee, or otherwise 
 24.25  indicating acceptance of the trusteeship. 
 24.26     (b) A person designated as trustee who has not yet accepted 
 24.27  the trusteeship may reject the trusteeship.  A designated 
 24.28  trustee who does not accept the trusteeship within a reasonable 
 24.29  time after knowing of the designation is deemed to have rejected 
 24.30  the trusteeship. 
 24.31     (c) A person designated as trustee, without accepting the 
 24.32  trusteeship, may: 
 24.33     (1) act to preserve the trust property if, within a 
 24.34  reasonable time after acting, the person sends a rejection of 
 24.35  the trusteeship to the settlor or, if the settlor is dead or 
 24.36  lacks capacity, to a qualified beneficiary; and 
 25.1      (2) inspect or investigate trust property to determine 
 25.2   potential liability under environmental or other law or for any 
 25.3   other purpose. 
 25.4      Sec. 2.  [518E.7-102] [TRUSTEE'S BOND.] 
 25.5      (a) A trustee shall give bond to secure performance of the 
 25.6   trustee's duties only if the court finds that a bond is needed 
 25.7   to protect the interests of the beneficiaries or is required by 
 25.8   the terms of the trust and the court has not dispensed with the 
 25.9   requirement. 
 25.10     (b) The court may specify the amount of a bond, its 
 25.11  liabilities, and whether sureties are necessary.  The court may 
 25.12  modify or terminate a bond at any time. 
 25.13     (c) A regulated financial service institution qualified to 
 25.14  do trust business in this state need not give bond, even if 
 25.15  required by the terms of the trust. 
 25.16     Sec. 3.  [518E.7-103] [COTRUSTEES.] 
 25.17     (a) Cotrustees who are unable to reach a unanimous decision 
 25.18  may act by majority decision. 
 25.19     (b) If a vacancy occurs in a cotrusteeship, the remaining 
 25.20  cotrustees may act for the trust. 
 25.21     (c) A cotrustee must participate in the performance of a 
 25.22  trustee's function unless the cotrustee is unavailable to 
 25.23  perform the function because of absence, illness, 
 25.24  disqualification under other law, or other temporary incapacity 
 25.25  or the cotrustee has properly delegated the performance of the 
 25.26  function to another trustee. 
 25.27     (d) If a cotrustee is unavailable to perform duties because 
 25.28  of absence, illness, disqualification under other law, or other 
 25.29  temporary incapacity, and prompt action is necessary to achieve 
 25.30  the purposes of the trust or to avoid injury to the trust 
 25.31  property, the remaining cotrustee or a majority of the remaining 
 25.32  cotrustees may act for the trust. 
 25.33     (e) A trustee may not delegate to a cotrustee the 
 25.34  performance of a function the settlor reasonably expected the 
 25.35  trustees to perform jointly.  Unless a delegation was 
 25.36  irrevocable, a trustee may revoke a delegation previously made. 
 26.1      (f) Except as otherwise provided in paragraph (g), a 
 26.2   trustee who does not join in an action of another trustee is not 
 26.3   liable for the action. 
 26.4      (g) Each trustee shall exercise reasonable care to: 
 26.5      (1) prevent a cotrustee from committing a serious breach of 
 26.6   trust; and 
 26.7      (2) compel a cotrustee to redress a serious breach of trust.
 26.8      (h) A dissenting trustee who joins in an action at the 
 26.9   direction of the majority of the trustees and who notified any 
 26.10  cotrustee of the dissent at or before the time of the action is 
 26.11  not liable for the action unless the action is a serious breach 
 26.12  of trust. 
 26.13     Sec. 4.  [518E.7-104] [VACANCY IN TRUSTEESHIP; APPOINTMENT 
 26.14  OF SUCCESSOR.] 
 26.15     (a) A vacancy in a trusteeship occurs if: 
 26.16     (1) a person designated as trustee rejects the trusteeship; 
 26.17     (2) a person designated as trustee cannot be identified or 
 26.18  does not exist; 
 26.19     (3) a trustee resigns; 
 26.20     (4) a trustee is disqualified or removed; 
 26.21     (5) a trustee dies; or 
 26.22     (6) a guardian or conservator is appointed for an 
 26.23  individual serving as trustee. 
 26.24     (b) If one or more cotrustees remain in office, a vacancy 
 26.25  in a trusteeship need not be filled.  A vacancy in a trusteeship 
 26.26  must be filled if the trust has no remaining trustee. 
 26.27     (c) A vacancy in a trusteeship required to be filled must 
 26.28  be filled in the following order of priority: 
 26.29     (1) by a person designated in the terms of the trust to act 
 26.30  as successor trustee; 
 26.31     (2) by a person appointed by unanimous agreement of the 
 26.32  qualified beneficiaries; or 
 26.33     (3) by a person appointed by the court. 
 26.34     (d) Whether or not a vacancy in a trusteeship exists or is 
 26.35  required to be filled, the court may appoint an additional 
 26.36  trustee or special fiduciary whenever the court considers the 
 27.1   appointment necessary for the administration of the trust. 
 27.2      Sec. 5.  [518E.7-105] [RESIGNATION OF TRUSTEE.] 
 27.3      (a) A trustee may resign: 
 27.4      (1) upon at least 30 days' notice to the qualified 
 27.5   beneficiaries and all cotrustees; or 
 27.6      (2) with the approval of the court. 
 27.7      (b) In approving a resignation, the court may issue orders 
 27.8   and impose conditions reasonably necessary for the protection of 
 27.9   the trust property. 
 27.10     (c) Any liability of a resigning trustee or of any sureties 
 27.11  on the trustee's bond for acts or omissions of the trustee is 
 27.12  not discharged or affected by the trustee's resignation. 
 27.13     Sec. 6.  [518E.7-106] [REMOVAL OF TRUSTEE.] 
 27.14     (a) The settlor, a cotrustee, or a beneficiary may request 
 27.15  the court to remove a trustee, or a trustee may be removed by 
 27.16  the court on its own initiative. 
 27.17     (b) The court may remove a trustee if: 
 27.18     (1) the trustee has committed a serious breach of trust; 
 27.19     (2) lack of cooperation among cotrustees substantially 
 27.20  impairs the administration of the trust; 
 27.21     (3) because of unfitness, unwillingness, or persistent 
 27.22  failure of the trustee to administer the trust effectively, the 
 27.23  court determines that removal of the trustee best serves the 
 27.24  interests of the beneficiaries; or 
 27.25     (4) there has been a substantial change of circumstances or 
 27.26  removal is requested by all of the qualified beneficiaries, the 
 27.27  court finds that removal of the trustee best serves the 
 27.28  interests of all of the beneficiaries and is not inconsistent 
 27.29  with a material purpose of the trust, and a suitable cotrustee 
 27.30  or successor trustee is available. 
 27.31     (c) Pending a final decision on a request to remove a 
 27.32  trustee, or in lieu of or in addition to removing a trustee, the 
 27.33  court may order such appropriate relief under section 
 27.34  518E.10-101, paragraph (b), as may be necessary to protect the 
 27.35  trust property or the interests of the beneficiaries. 
 27.36     Sec. 7.  [518E.7-107] [DELIVERY OF PROPERTY BY FORMER 
 28.1   TRUSTEE.] 
 28.2      (a) Unless a cotrustee remains in office or the court 
 28.3   otherwise orders, and until the trust property is delivered to a 
 28.4   successor trustee or other person entitled to it, a trustee who 
 28.5   has resigned or been removed has the duties of a trustee and the 
 28.6   powers necessary to protect the trust property. 
 28.7      (b) A trustee who has resigned or been removed shall 
 28.8   proceed expeditiously to deliver the trust property within the 
 28.9   trustee's possession to the cotrustee, successor trustee, or 
 28.10  other person entitled to it. 
 28.11     Sec. 8.  [518E.7-108] [COMPENSATION OF TRUSTEE.] 
 28.12     (a) If the terms of a trust do not specify the trustee's 
 28.13  compensation, a trustee is entitled to compensation that is 
 28.14  reasonable under the circumstances. 
 28.15     (b) If the terms of a trust specify the trustee's 
 28.16  compensation, the trustee is entitled to be compensated as 
 28.17  specified, but the court may allow more or less compensation if: 
 28.18     (1) the duties of the trustee are substantially different 
 28.19  from those contemplated when the trust was created; or 
 28.20     (2) the compensation specified by the terms of the trust 
 28.21  would be unreasonably low or high. 
 28.22     Sec. 9.  [518E.7-109] [REIMBURSEMENT OF EXPENSES.] 
 28.23     (a) A trustee is entitled to be reimbursed out of the trust 
 28.24  property, with interest as appropriate, for: 
 28.25     (1) expenses that were properly incurred in the 
 28.26  administration of the trust; and 
 28.27     (2) to the extent necessary to prevent unjust enrichment of 
 28.28  the trust, expenses that were not properly incurred in the 
 28.29  administration of the trust. 
 28.30     (b) An advance by the trustee of money for the protection 
 28.31  of the trust gives rise to a lien against trust property to 
 28.32  secure reimbursement with reasonable interest. 
 28.33                             ARTICLE 8
 28.34                    DUTIES AND POWERS OF TRUSTEE
 28.35     Section 1.  [518E.8-101] [DUTY TO ADMINISTER TRUST.] 
 28.36     Upon acceptance of a trusteeship, the trustee shall 
 29.1   administer the trust in good faith, in accordance with its terms 
 29.2   and purposes and the interests of the beneficiaries, and in 
 29.3   accordance with this chapter. 
 29.4      Sec. 2.  [518E.8-102] [DUTY OF LOYALTY.] 
 29.5      (a) A trustee shall administer the trust solely in the 
 29.6   interests of the beneficiaries. 
 29.7      (b) Subject to the rights of persons dealing with or 
 29.8   assisting the trustee as provided in section 518E.10-112, a 
 29.9   sale, encumbrance, or other transaction involving the investment 
 29.10  or management of trust property entered into by the trustee for 
 29.11  the trustee's own personal account or which is otherwise 
 29.12  affected by a conflict between the trustee's fiduciary and 
 29.13  personal interests is voidable by a beneficiary affected by the 
 29.14  transaction unless: 
 29.15     (1) the transaction was authorized by the terms of the 
 29.16  trust; 
 29.17     (2) the transaction was approved by the court; 
 29.18     (3) the beneficiary did not commence a judicial proceeding 
 29.19  within the time allowed by section 518E.10-105; 
 29.20     (4) the beneficiary consented to the trustee's conduct, 
 29.21  ratified the transaction, or released the trustee in compliance 
 29.22  with section 518E.10-109; or 
 29.23     (5) the transaction involves a contract entered into or 
 29.24  claim acquired by the trustee before the person became or 
 29.25  contemplated becoming trustee. 
 29.26     (c) A sale, encumbrance, or other transaction involving the 
 29.27  investment or management of trust property is presumed to be 
 29.28  affected by a conflict between personal and fiduciary interests 
 29.29  if it is entered into by the trustee with: 
 29.30     (1) the trustee's spouse; 
 29.31     (2) the trustee's descendants, siblings, parents, or their 
 29.32  spouses; 
 29.33     (3) an agent or attorney of the trustee; or 
 29.34     (4) a corporation or other person or enterprise in which 
 29.35  the trustee, or a person that owns a significant interest in the 
 29.36  trustee, has an interest that might affect the trustee's best 
 30.1   judgment. 
 30.2      (d) A transaction between a trustee and a beneficiary that 
 30.3   does not concern trust property but that occurs during the 
 30.4   existence of the trust or while the trustee retains significant 
 30.5   influence over the beneficiary and from which the trustee 
 30.6   obtains an advantage is voidable by the beneficiary unless the 
 30.7   trustee establishes that the transaction was fair to the 
 30.8   beneficiary. 
 30.9      (e) A transaction not concerning trust property in which 
 30.10  the trustee engages in the trustee's individual capacity 
 30.11  involves a conflict between personal and fiduciary interests if 
 30.12  the transaction concerns an opportunity properly belonging to 
 30.13  the trust. 
 30.14     (f) An investment by a trustee in securities of an 
 30.15  investment company or investment trust to which the trustee, or 
 30.16  its affiliate, provides services in a capacity other than as 
 30.17  trustee is not presumed to be affected by a conflict between 
 30.18  personal and fiduciary interests if the investment complies with 
 30.19  the prudent investor rule of section 501B.151.  The trustee may 
 30.20  be compensated by the investment company or investment trust for 
 30.21  providing those services out of fees charged to the trust if the 
 30.22  trustee at least annually notifies the persons entitled under 
 30.23  section 518E.8-113 to receive a copy of the trustee's annual 
 30.24  report of the rate and method by which the compensation was 
 30.25  determined. 
 30.26     (g) In voting shares of stock or in exercising powers of 
 30.27  control over similar interests in other forms of enterprise, the 
 30.28  trustee shall act in the best interests of the beneficiaries.  
 30.29  If the trust is the sole owner of a corporation or other form of 
 30.30  enterprise, the trustee shall elect or appoint directors or 
 30.31  other managers who will manage the corporation or enterprise in 
 30.32  the best interests of the beneficiaries. 
 30.33     (h) This section does not preclude the following 
 30.34  transactions, if fair to the beneficiaries: 
 30.35     (1) an agreement between a trustee and a beneficiary 
 30.36  relating to the appointment or compensation of the trustee; 
 31.1      (2) payment of reasonable compensation to the trustee; 
 31.2      (3) a transaction between a trust and another trust, 
 31.3   decedent's estate, or conservatorship of which the trustee is a 
 31.4   fiduciary or in which a beneficiary has an interest; 
 31.5      (4) a deposit of trust money in a regulated financial 
 31.6   service institution operated by the trustee; or 
 31.7      (5) an advance by the trustee of money for the protection 
 31.8   of the trust. 
 31.9      (i) The court may appoint a special fiduciary to make a 
 31.10  decision with respect to any proposed transaction that might 
 31.11  violate this section if entered into by the trustee. 
 31.12     Sec. 3.  [518E.8-103] [IMPARTIALITY.] 
 31.13     If a trust has two or more beneficiaries, the trustee shall 
 31.14  act impartially in investing, managing, and distributing the 
 31.15  trust property, giving due regard to the beneficiaries' 
 31.16  respective interests. 
 31.17     Sec. 4.  [518E.8-104] [PRUDENT ADMINISTRATION.] 
 31.18     A trustee shall administer the trust as a prudent person 
 31.19  would, by considering the purposes, terms, distributional 
 31.20  requirements, and other circumstances of the trust.  In 
 31.21  satisfying this standard, the trustee shall exercise reasonable 
 31.22  care, skill, and caution. 
 31.23     Sec. 5.  [518E.8-105] [COSTS OF ADMINISTRATION.] 
 31.24     In administering a trust, the trustee may incur only costs 
 31.25  that are reasonable in relation to the trust property, the 
 31.26  purposes of the trust, and the skills of the trustee. 
 31.27     Sec. 6.  [518E.8-106] [TRUSTEE'S SKILLS.] 
 31.28     A trustee who has special skills or expertise, or is named 
 31.29  trustee in reliance upon the trustee's representation that the 
 31.30  trustee has special skills or expertise, shall use those special 
 31.31  skills or expertise. 
 31.32     Sec. 7.  [518E.8-107] [DELEGATION BY TRUSTEE.] 
 31.33     (a) A trustee may delegate duties and powers that a prudent 
 31.34  trustee of comparable skills could properly delegate under the 
 31.35  circumstances.  The trustee shall exercise reasonable care, 
 31.36  skill, and caution in: 
 32.1      (1) selecting an agent; 
 32.2      (2) establishing the scope and terms of the delegation, 
 32.3   consistent with the purposes and terms of the trust; and 
 32.4      (3) periodically reviewing the agent's actions in order to 
 32.5   monitor the agent's performance and compliance with the terms of 
 32.6   the delegation. 
 32.7      (b) In performing a delegated function, an agent owes a 
 32.8   duty to the trust to exercise reasonable care to comply with the 
 32.9   terms of the delegation. 
 32.10     (c) A trustee who complies with paragraph (a) is not liable 
 32.11  to the beneficiaries or to the trust for an action of the agent 
 32.12  to whom the function was delegated. 
 32.13     (d) By accepting a delegation of powers or duties from the 
 32.14  trustee of a trust that is subject to the law of this state, an 
 32.15  agent submits to the jurisdiction of the courts of this state. 
 32.16     Sec. 8.  [518E.8-108] [POWERS TO DIRECT.] 
 32.17     (a) While a trust is revocable, the trustee may follow a 
 32.18  direction of the settlor that is contrary to the terms of the 
 32.19  trust. 
 32.20     (b) If the terms of a trust confer upon a person other than 
 32.21  the settlor of a revocable trust power to direct certain actions 
 32.22  of the trustee, the trustee shall act in accordance with an 
 32.23  exercise of the power unless the attempted exercise is 
 32.24  manifestly contrary to the terms of the trust or the trustee 
 32.25  knows the attempted exercise would constitute a serious breach 
 32.26  of a fiduciary duty that the person holding the power owes to 
 32.27  the beneficiaries of the trust. 
 32.28     (c) The terms of a trust may confer upon a trustee or other 
 32.29  person a power to direct the modification or termination of the 
 32.30  trust. 
 32.31     (d) A person, other than a beneficiary, who holds a power 
 32.32  to direct is presumptively a fiduciary who, as such, is required 
 32.33  to act in good faith with regard to the purposes of the trust 
 32.34  and the interests of the beneficiaries.  The holder of a power 
 32.35  to direct is liable for any loss that results from breach of a 
 32.36  fiduciary duty. 
 33.1      Sec. 9.  [518E.8-109] [CONTROL AND PROTECTION OF TRUST 
 33.2   PROPERTY.] 
 33.3      A trustee shall take reasonable steps to take control of 
 33.4   and protect the trust property. 
 33.5      Sec. 10.  [518E.8-110] [RECORDKEEPING AND IDENTIFICATION OF 
 33.6   TRUST PROPERTY.] 
 33.7      (a) A trustee shall keep adequate records of the 
 33.8   administration of the trust. 
 33.9      (b) A trustee shall keep trust property separate from the 
 33.10  trustee's own property. 
 33.11     (c) Except as otherwise provided in paragraph (d), a 
 33.12  trustee shall cause the trust property to be designated so that 
 33.13  the interest of the trust, to the extent feasible, appears in 
 33.14  records maintained by a party other than a trustee or 
 33.15  beneficiary. 
 33.16     (d) If the trustee maintains records clearly indicating the 
 33.17  respective interests, a trustee may invest as a whole the 
 33.18  property of two or more separate trusts. 
 33.19     Sec. 11.  [518E.8-111] [ENFORCEMENT AND DEFENSE OF CLAIMS.] 
 33.20     A trustee shall take reasonable steps to enforce claims of 
 33.21  the trust and defend claims against the trust. 
 33.22     Sec. 12.  [518E.8-112] [COLLECTING TRUST PROPERTY.] 
 33.23     A trustee shall take reasonable steps to compel a former 
 33.24  trustee or other person to deliver trust property to the 
 33.25  trustee, and to redress a breach of trust known to the trustee 
 33.26  to have been committed by a former trustee. 
 33.27     Sec. 13.  [518E.8-113] [DUTY TO INFORM AND REPORT.] 
 33.28     (a) A trustee shall keep the qualified beneficiaries of the 
 33.29  trust reasonably informed about the administration of the trust 
 33.30  and of the material facts necessary for them to protect their 
 33.31  interests.  Unless unreasonable under the circumstances, a 
 33.32  trustee shall promptly respond to a beneficiary's request for 
 33.33  information related to the administration of the trust. 
 33.34     (b) A trustee: 
 33.35     (1) upon request of a beneficiary, shall promptly furnish 
 33.36  to the beneficiary a copy of the trust instrument; 
 34.1      (2) within 60 days after accepting a trusteeship, shall 
 34.2   notify the qualified beneficiaries of the acceptance and of the 
 34.3   trustee's name, address, and telephone number; 
 34.4      (3) within 60 days after the date the trustee acquires 
 34.5   knowledge of the creation of an irrevocable trust, or the date 
 34.6   the trustee acquires knowledge that a formerly revocable trust 
 34.7   has become irrevocable, whether by the death of the settlor or 
 34.8   otherwise, shall notify the qualified beneficiaries of the 
 34.9   trust's existence, of the identity of the settlor or settlors, 
 34.10  of the right to request a copy of the trust instrument, and of 
 34.11  the right to a trustee's report as provided in paragraph (c); 
 34.12  and 
 34.13     (4) shall notify the qualified beneficiaries in advance of 
 34.14  any change in the method or rate of the trustee's compensation. 
 34.15     (c) A trustee shall send to the distributees or permissible 
 34.16  distributees of trust income or principal, and to other 
 34.17  qualified or nonqualified beneficiaries who request it, at least 
 34.18  annually and at the termination of the trust, a report of the 
 34.19  trust property, liabilities, receipts, and disbursements, 
 34.20  including the source and amount of the trustee's compensation, a 
 34.21  listing of the trust assets, and, if feasible, their respective 
 34.22  market values.  Upon a vacancy in a trusteeship, unless a 
 34.23  cotrustee remains in office, a report must be sent to the 
 34.24  qualified beneficiaries by the former trustee.  A personal 
 34.25  representative, conservator, or guardian may send the qualified 
 34.26  beneficiaries a report on behalf of a deceased or incapacitated 
 34.27  trustee. 
 34.28     (d) A beneficiary may waive the right to a trustee's report 
 34.29  or other information otherwise required to be furnished under 
 34.30  this section.  A beneficiary, with respect to future reports and 
 34.31  other information, may withdraw a waiver previously given. 
 34.32     Sec. 14.  [518E.8-114] [DISCRETIONARY POWERS; TAX SAVINGS.] 
 34.33     (a) Notwithstanding the breadth of discretion granted to a 
 34.34  trustee in the terms of the trust, including the use of such 
 34.35  terms as "absolute," "sole," or "uncontrolled," the trustee 
 34.36  shall exercise a discretionary power in good faith and in 
 35.1   accordance with the terms and purposes of the trust and the 
 35.2   interests of the beneficiaries. 
 35.3      (b) Subject to paragraph (d), and unless the terms of the 
 35.4   trust expressly indicate that a rule in this subsection does not 
 35.5   apply: 
 35.6      (1) a person other than a settlor who is a beneficiary and 
 35.7   trustee of a trust that confers on the trustee a power to make 
 35.8   discretionary distributions to or for the trustee's personal 
 35.9   benefit may exercise the power only in accordance with an 
 35.10  ascertainable standard relating to the trustee's individual 
 35.11  health, education, support, or maintenance within the meaning of 
 35.12  section 2041(b)(1)(A) or 2514(c)(1) of the Internal Revenue Code 
 35.13  of 1986, as in effect on the effective date of this section; and 
 35.14     (2) a trustee may not exercise a power to make 
 35.15  discretionary distributions to satisfy a legal obligation of 
 35.16  support that the trustee personally owes another person. 
 35.17     (c) A power whose exercise is limited or prohibited by 
 35.18  paragraph (b) may be exercised by a majority of the remaining 
 35.19  trustees whose exercise of the power is not so limited or 
 35.20  prohibited.  If the power of all trustees is so limited or 
 35.21  prohibited, the court may appoint a special fiduciary with 
 35.22  authority to exercise the power. 
 35.23     (d) Paragraph (b) does not apply to: 
 35.24     (1) a power held by the settlor's spouse who is the trustee 
 35.25  of a trust for which a marital deduction, as defined in section 
 35.26  2056(b)(5) or 2523(b)(5) of the Internal Revenue Code of 1986, 
 35.27  as in effect on the effective date of this section was 
 35.28  previously allowed; 
 35.29     (2) any trust during any period that the trust may be 
 35.30  revoked or amended by its settlor; or 
 35.31     (3) a trust if contributions to the trust qualify for the 
 35.32  annual exclusion under section 2503(c) of the Internal Revenue 
 35.33  Code of 1986, as in effect on the effective date of this section.
 35.34     Sec. 15.  [518E.8-115] [GENERAL POWERS OF TRUSTEE.] 
 35.35     (a) A trustee, without authorization by the court, may 
 35.36  exercise: 
 36.1      (1) powers conferred by the terms of the trust; or 
 36.2      (2) except as limited by the terms of the trust: 
 36.3      (i) all powers over the trust property which an unmarried 
 36.4   competent owner has over individually owned property; 
 36.5      (ii) any other powers appropriate to achieve the proper 
 36.6   investment, management, and distribution of the trust property; 
 36.7   and 
 36.8      (iii) any other powers conferred by this chapter. 
 36.9      (b) The exercise of a power is subject to the fiduciary 
 36.10  duties prescribed by this article. 
 36.11     Sec. 16.  [518E.8-116] [SPECIFIC POWERS OF TRUSTEE.] 
 36.12     Without limiting the authority conferred by section 
 36.13  518E.8-115, a trustee may: 
 36.14     (1) collect trust property and accept or reject additions 
 36.15  to the trust property from a settlor or any other person; 
 36.16     (2) acquire or sell property, for cash or on credit, at 
 36.17  public or private sale; 
 36.18     (3) exchange, partition, or otherwise change the character 
 36.19  of trust property; 
 36.20     (4) deposit trust money in an account in a regulated 
 36.21  financial service institution; 
 36.22     (5) borrow money, with or without security, and mortgage or 
 36.23  pledge trust property for a period within or extending beyond 
 36.24  the duration of the trust; 
 36.25     (6) with respect to an interest in a proprietorship, 
 36.26  partnership, limited liability company, business trust, 
 36.27  corporation, or other form of business or enterprise, continue 
 36.28  the business or other enterprise and take any action that may be 
 36.29  taken by shareholders, members, or property owners, including 
 36.30  merging, dissolving, or otherwise changing the form of business 
 36.31  organization or contributing additional capital; 
 36.32     (7) with respect to stocks or other securities, exercise 
 36.33  the rights of an absolute owner, including the right to: 
 36.34     (i) vote, or give proxies to vote, with or without power of 
 36.35  substitution, or enter into or continue a voting trust 
 36.36  agreement; 
 37.1      (ii) hold a security in the name of a nominee or in other 
 37.2   form without disclosure of the trust so that title may pass by 
 37.3   delivery; 
 37.4      (iii) pay calls, assessments, and other sums chargeable or 
 37.5   accruing against the securities, and sell or exercise stock 
 37.6   subscription or conversion rights; and 
 37.7      (iv) deposit the securities with a depositary or other 
 37.8   regulated financial service institution; 
 37.9      (8) with respect to an interest in real property, 
 37.10  construct, or make ordinary or extraordinary repairs to, 
 37.11  alterations to, or improvements in, buildings or other 
 37.12  structures, demolish improvements, raze existing or erect new 
 37.13  party walls or buildings, subdivide or develop land, dedicate 
 37.14  land to public use or grant public or private easements, and 
 37.15  make or vacate plats and adjust boundaries; 
 37.16     (9) enter into a lease for any purpose as lessor or lessee, 
 37.17  including a lease or other arrangement for exploration and 
 37.18  removal of natural resources, with or without the option to 
 37.19  purchase or renew, for a period within or extending beyond the 
 37.20  duration of the trust; 
 37.21     (10) grant an option involving a sale, lease, or other 
 37.22  disposition of trust property or acquire an option for the 
 37.23  acquisition of property, including an option exercisable beyond 
 37.24  the duration of the trust, and exercise an option so acquired; 
 37.25     (11) insure the property of the trust against damage or 
 37.26  loss and insure the trustee, the trustee's agents, and 
 37.27  beneficiaries against liability arising from the administration 
 37.28  of the trust; 
 37.29     (12) abandon or decline to administer property of no value 
 37.30  or of insufficient value to justify its collection or continued 
 37.31  administration; 
 37.32     (13) with respect to possible liability for violation of 
 37.33  environmental law: 
 37.34     (i) inspect or investigate property the trustee holds or 
 37.35  has been asked to hold, or property owned or operated by an 
 37.36  organization in which the trustee holds or has been asked to 
 38.1   hold an interest, for the purpose of determining the application 
 38.2   of environmental law with respect to the property; 
 38.3      (ii) take action to prevent, abate, or otherwise remedy any 
 38.4   actual or potential violation of any environmental law affecting 
 38.5   property held directly or indirectly by the trustee, whether 
 38.6   taken before or after the assertion of a claim or the initiation 
 38.7   of governmental enforcement; 
 38.8      (iii) decline to accept property into trust or disclaim any 
 38.9   power with respect to property that is or may be burdened with 
 38.10  liability for violation of environmental law; 
 38.11     (iv) compromise claims against the trust which may be 
 38.12  asserted for an alleged violation of environmental law; and 
 38.13     (v) pay the expense of any inspection, review, abatement, 
 38.14  or remedial action to comply with environmental law; 
 38.15     (14) pay or contest any claim, settle a claim by or against 
 38.16  the trust, and release, in whole or in part, a claim belonging 
 38.17  to the trust; 
 38.18     (15) pay taxes, assessments, compensation of the trustee 
 38.19  and of employees and agents of the trust, and other expenses 
 38.20  incurred in the administration of the trust; 
 38.21     (16) exercise elections with respect to federal, state, and 
 38.22  local taxes; 
 38.23     (17) select a mode of payment under any employee benefit or 
 38.24  retirement plan, annuity, or life insurance payable to the 
 38.25  trustee, exercise rights thereunder, including exercise of the 
 38.26  right to idemnification for expenses and against liabilities, 
 38.27  and take appropriate action to collect the proceeds; 
 38.28     (18) make loans out of trust property, including loans to a 
 38.29  beneficiary on terms and conditions the trustee considers to be 
 38.30  fair and reasonable under the circumstances, and the trustee has 
 38.31  a lien on future distributions for repayment of those loans; 
 38.32     (19) pledge trust property to guarantee loans made by 
 38.33  others to the beneficiary; 
 38.34     (20) appoint a trustee to act in another jurisdiction with 
 38.35  respect to trust property located in the other jurisdiction, 
 38.36  confer upon the appointed trustee all of the powers and duties 
 39.1   of the appointing trustee, require that the appointed trustee 
 39.2   furnish security, and remove any trustee so appointed; 
 39.3      (21) pay an amount distributable to a beneficiary who is 
 39.4   under a legal disability or who the trustee reasonably believes 
 39.5   is incapacitated, by paying it directly to the beneficiary or 
 39.6   applying it for the beneficiary's benefit, or by: 
 39.7      (i) paying it to the beneficiary's conservator or, if the 
 39.8   beneficiary does not have a conservator, the beneficiary's 
 39.9   guardian; 
 39.10     (ii) paying it to the beneficiary's custodian under the 
 39.11  Uniform Transfers to Minors Act or custodial trustee under the 
 39.12  Uniform Custodial Trust Act, and, for that purpose, creating a 
 39.13  custodianship or custodial trust; 
 39.14     (iii) if the trustee does not know of a conservator, 
 39.15  guardian, custodian, or custodial trustee, paying it to an adult 
 39.16  relative or other person having legal or physical care or 
 39.17  custody of the beneficiary, to be expended on the beneficiary's 
 39.18  behalf; or 
 39.19     (iv) managing it as a separate fund on the beneficiary's 
 39.20  behalf, subject to the beneficiary's continuing right to 
 39.21  withdraw the distribution; 
 39.22     (22) on distribution of trust property or the division or 
 39.23  termination of a trust, make distributions in divided or 
 39.24  undivided interests, allocate particular assets in proportionate 
 39.25  or disproportionate shares, value the trust property for those 
 39.26  purposes, and adjust for resulting differences in valuation; 
 39.27     (23) resolve a dispute concerning the interpretation of the 
 39.28  trust or its administration by mediation, arbitration, or other 
 39.29  procedure for alternative dispute resolution; 
 39.30     (24) prosecute or defend an action, claim, or judicial 
 39.31  proceeding in any jurisdiction to protect trust property and the 
 39.32  trustee in the performance of the trustee's duties; 
 39.33     (25) sign and deliver contracts and other instruments that 
 39.34  are useful to achieve or facilitate the exercise of the 
 39.35  trustee's powers; and 
 39.36     (26) on termination of the trust, exercise the powers 
 40.1   appropriate to wind up the administration of the trust and 
 40.2   distribute the trust property to the persons entitled to it. 
 40.3      Sec. 17.  [518E.8-117] [DISTRIBUTION UPON TERMINATION.] 
 40.4      (a) Upon termination or partial termination of a trust, the 
 40.5   trustee may send to the beneficiaries a proposal for 
 40.6   distribution.  The right of any beneficiary to object to the 
 40.7   proposed distribution terminates if the beneficiary does not 
 40.8   notify the trustee of an objection within 30 days after the 
 40.9   proposal was sent, but only if the proposal informed the 
 40.10  beneficiary of the right to object and of the time allowed for 
 40.11  objection. 
 40.12     (b) Upon the occurrence of an event terminating or 
 40.13  partially terminating a trust, the trustee shall proceed 
 40.14  expeditiously to distribute the trust property to the persons 
 40.15  entitled to it, subject to the right of the trustee to retain a 
 40.16  reasonable reserve for the payment of debts, expenses, and taxes.
 40.17     (c) A release by a beneficiary of a trustee from liability 
 40.18  for breach of trust is invalid to the extent: 
 40.19     (1) it was induced by improper conduct of the trustee; or 
 40.20     (2) the beneficiary, at the time of the release, did not 
 40.21  know of the beneficiary's rights or of the material facts 
 40.22  relating to the breach. 
 40.23                             ARTICLE 10
 40.24                  LIABILITY OF TRUSTEES AND RIGHTS 
 40.25                  OF PERSONS DEALING WITH TRUSTEE
 40.26     Section 1.  [518E.10-101] [REMEDIES FOR BREACH OF TRUST.] 
 40.27     (a) A violation by a trustee of a duty the trustee owes to 
 40.28  a beneficiary is a breach of trust. 
 40.29     (b) To remedy a breach of trust that has occurred or may 
 40.30  occur, the court may: 
 40.31     (1) compel the trustee to perform the trustee's duties; 
 40.32     (2) enjoin the trustee from committing a breach of trust; 
 40.33     (3) compel the trustee to redress a breach of trust by 
 40.34  paying money, restoring property, or other means; 
 40.35     (4) order a trustee to account; 
 40.36     (5) appoint a special fiduciary to take possession of the 
 41.1   trust property and administer the trust; 
 41.2      (6) suspend the trustee; 
 41.3      (7) remove the trustee as provided in section 518E.7-106; 
 41.4      (8) reduce or deny compensation to the trustee; 
 41.5      (9) subject to section 518E.10-112, void an act of the 
 41.6   trustee, impose a lien or a constructive trust on trust 
 41.7   property, or trace trust property wrongfully disposed of and 
 41.8   recover the property or its proceeds; or 
 41.9      (10) order any other appropriate relief. 
 41.10     Sec. 2.  [518E.10-102] [DAMAGES FOR BREACH OF TRUST.] 
 41.11     (a) A trustee who commits a breach of trust is liable to 
 41.12  the beneficiaries affected for the greater of: 
 41.13     (1) the amount required to restore the value of the trust 
 41.14  property and trust distributions to what they would have been 
 41.15  had the breach not occurred; or 
 41.16     (2) the profit the trustee made by reason of the breach. 
 41.17     (b) Except as otherwise provided in this paragraph, if more 
 41.18  than one trustee is liable to the beneficiaries for a breach of 
 41.19  trust, a trustee is entitled to contribution from the other 
 41.20  trustee or trustees.  A trustee is not entitled to contribution 
 41.21  if the trustee was substantially more at fault than another 
 41.22  trustee or if the trustee committed the breech of trust in bad 
 41.23  faith or with reckless indifference to the purposes of the trust 
 41.24  or the interests of the beneficiaries.  A trustee who received a 
 41.25  benefit from the breach of trust is not entitled to contribution 
 41.26  from another trustee to the extent of the benefit received. 
 41.27     Sec. 3.  [518E.10-103] [DAMAGES IN ABSENCE OF BREACH.] 
 41.28     (a) A trustee is accountable to an affected beneficiary for 
 41.29  any profit made by the trustee arising from the administration 
 41.30  of the trust, even absent a breach of trust. 
 41.31     (b) Absent a breach of trust, a trustee is not liable to a 
 41.32  beneficiary for a loss or depreciation in the value of trust 
 41.33  property or for not having made a profit. 
 41.34     Sec. 4.  [518E.10-104] [ATTORNEY'S FEES AND COSTS.] 
 41.35     In a judicial proceeding involving the administration of a 
 41.36  trust, the court, as justice and equity may require, may award 
 42.1   costs and expenses, including reasonable attorney's fees, to any 
 42.2   party, to be paid by another party or from the trust that is the 
 42.3   subject of the controversy. 
 42.4      Sec. 5.  [518E.10-105] [LIMITATION OF ACTION AGAINST 
 42.5   TRUSTEE.] 
 42.6      (a) A beneficiary may not commence a proceeding against a 
 42.7   trustee for breach of trust more than one year after the date 
 42.8   the beneficiary or a representative of the beneficiary was sent 
 42.9   a report that adequately disclosed the existence of a potential 
 42.10  claim for breach of trust and informed the beneficiary of the 
 42.11  time allowed for commencing a proceeding. 
 42.12     (b) A report adequately discloses the existence of a 
 42.13  potential claim for breach of trust if it provides sufficient 
 42.14  information so that the beneficiary or representative knows of 
 42.15  the potential claim or should have inquired into its existence. 
 42.16     (c) If paragraph (a) does not apply, a judicial proceeding 
 42.17  by a beneficiary against a trustee for breach of trust must be 
 42.18  commenced within five years after the first to occur of: 
 42.19     (1) the removal, resignation, or death of the trustee; 
 42.20     (2) the termination of the beneficiary's interest in the 
 42.21  trust; or 
 42.22     (3) the termination of the trust. 
 42.23     Sec. 6.  [518E.10-106] [RELIANCE ON TRUST INSTRUMENT.] 
 42.24     A trustee who acts in reasonable reliance on the terms of 
 42.25  the trust as expressed in the trust instrument is not liable to 
 42.26  a beneficiary for a breach of trust to the extent the breach 
 42.27  resulted from the reliance. 
 42.28     Sec. 7.  [518E.10-107] [EVENT AFFECTING ADMINISTRATION OR 
 42.29  DISTRIBUTION.] 
 42.30     If the happening of an event, including marriage, divorce, 
 42.31  performance of educational requirements, or death, affects the 
 42.32  administration or distribution of a trust, a trustee who has 
 42.33  exercised reasonable care to ascertain the happening of the 
 42.34  event is not liable for a loss resulting from the trustee's lack 
 42.35  of knowledge. 
 42.36     Sec. 8.  [518E.10-108] [EXCULPATION OF TRUSTEE.] 
 43.1      (a) A term of a trust relieving a trustee of liability for 
 43.2   breach of trust is unenforceable to the extent that it: 
 43.3      (1) relieves the trustee of liability for breach of trust 
 43.4   committed in bad faith or with reckless indifference to the 
 43.5   purposes of the trust or the interests of the beneficiaries; or 
 43.6      (2) was inserted as the result of an abuse by the trustee 
 43.7   of a fiduciary or confidential relationship to the settlor. 
 43.8      (b) An exculpatory term drafted or caused to be drafted by 
 43.9   the trustee is invalid as an abuse of a fiduciary or 
 43.10  confidential relationship unless the trustee proves that the 
 43.11  exculpatory term is fair under the circumstances and that its 
 43.12  existence and contents were adequately communicated to the 
 43.13  settlor. 
 43.14     Sec. 9.  [518E.10-109] [BENEFICIARY'S CONSENT, RELEASE, OR 
 43.15  RATIFICATION.] 
 43.16     A trustee is not liable to a beneficiary for breach of 
 43.17  trust if the beneficiary, while having capacity, consented to 
 43.18  the conduct constituting the breach, released the trustee from 
 43.19  liability for the breach, or ratified the transaction 
 43.20  constituting the breach, unless: 
 43.21     (1) the consent, release, or ratification of the 
 43.22  beneficiary was induced by improper conduct of the trustee; or 
 43.23     (2) at the time of the consent, release, or ratification, 
 43.24  the beneficiary did not know of the beneficiary's rights or of 
 43.25  the material facts relating to the breach. 
 43.26     Sec. 10.  [518E.10-110] [LIMITATION ON PERSONAL LIABILITY 
 43.27  OF TRUSTEE.] 
 43.28     (a) Except as otherwise provided in the contract, a trustee 
 43.29  is not personally liable on a contract properly entered into in 
 43.30  the trustee's fiduciary capacity in the course of administering 
 43.31  the trust if the trustee in the contract disclosed the fiduciary 
 43.32  capacity. 
 43.33     (b) A trustee is personally liable for torts committed in 
 43.34  the course of administering a trust, or for obligations arising 
 43.35  from ownership or control of trust property, including liability 
 43.36  for violation of environmental law, only if the trustee is 
 44.1   personally at fault. 
 44.2      (c) A claim based on a contract entered into by a trustee 
 44.3   in the trustee's fiduciary capacity, on an obligation arising 
 44.4   from ownership or control of trust property, or on a tort 
 44.5   committed in the course of administering a trust, may be 
 44.6   asserted in a judicial proceeding against the trustee in the 
 44.7   trustee's fiduciary capacity, whether or not the trustee is 
 44.8   personally liable for the claim. 
 44.9      Sec. 11.  [518E.10-111] [INTEREST AS GENERAL PARTNER.] 
 44.10     (a) Except as otherwise provided in paragraph (c), or 
 44.11  unless personal liability is imposed in the contract, a trustee 
 44.12  who holds an interest as a general partner in a general or 
 44.13  limited partnership is not personally liable on a contract 
 44.14  entered into by the partnership after the trust's acquisition of 
 44.15  the interest if the fiduciary capacity was disclosed in the 
 44.16  contract or in a statement previously filed pursuant to the 
 44.17  Uniform Partnership Act or Uniform Limited Partnership Act. 
 44.18     (b) Except as otherwise provided in paragraph (c), a 
 44.19  trustee who holds an interest as a general partner is not 
 44.20  personally liable for torts committed by the partnership or for 
 44.21  obligations arising from ownership or control of the interest 
 44.22  unless the trustee is personally at fault. 
 44.23     (c) The immunity provided by this section does not apply if 
 44.24  an interest in the partnership is held by the trustee in a 
 44.25  capacity other than that of trustee or is held by the trustee's 
 44.26  spouse or one or more of the trustee's descendants, siblings, or 
 44.27  parents, or the spouse of any of them. 
 44.28     (d) If the trustee of a revocable trust holds an interest 
 44.29  as a general partner, the settlor is personally liable for 
 44.30  contracts and other obligations of the partnership as if the 
 44.31  settlor were a general partner. 
 44.32     Sec. 12.  [518E.10-112] [PROTECTION OF PERSON DEALING WITH 
 44.33  TRUSTEE.] 
 44.34     (a) A person other than a beneficiary who in good faith 
 44.35  assists a trustee, or who in good faith and for value deals with 
 44.36  a trustee, without knowledge that the trustee is exceeding or 
 45.1   improperly exercising the trustee's powers is protected from 
 45.2   liability as if the trustee properly exercised the power. 
 45.3      (b) A person other than a beneficiary who in good faith 
 45.4   deals with a trustee is not required to inquire into the extent 
 45.5   of the trustee's powers or the propriety of their exercise. 
 45.6      (c) A person who in good faith delivers assets to a trustee 
 45.7   need not ensure their proper application. 
 45.8      (d) A person other than a beneficiary who in good faith 
 45.9   assists a former trustee, or who in good faith and for value 
 45.10  deals with a former trustee, without knowledge that the 
 45.11  trusteeship has terminated, is protected from liability as if 
 45.12  the former trustee were still a trustee. 
 45.13     (e) Comparable protective provisions of other laws relating 
 45.14  to commercial transactions or transfer of securities by 
 45.15  fiduciaries prevail over the protection provided by this section.
 45.16     Sec. 13.  [518E.10-113] [CERTIFICATION OF TRUST.] 
 45.17     (a) Instead of furnishing a copy of the trust instrument to 
 45.18  a person other than a beneficiary, the trustee may furnish to 
 45.19  the person a certification of trust containing the following 
 45.20  information: 
 45.21     (1) that the trust exists and the date the trust instrument 
 45.22  was executed; 
 45.23     (2) the identity of the settlor; 
 45.24     (3) the identity and address of the currently acting 
 45.25  trustee; 
 45.26     (4) the powers of the trustee; 
 45.27     (5) the revocability or irrevocability of the trust and the 
 45.28  identity of any person holding a power to revoke the trust; 
 45.29     (6) the authority of cotrustees to sign or otherwise 
 45.30  authenticate and whether all or less than all are required in 
 45.31  order to exercise powers of the trustee; 
 45.32     (7) the trust's taxpayer identification number; and 
 45.33     (8) the manner of taking title to trust property. 
 45.34     (b) A certification of trust may be signed or otherwise 
 45.35  authenticated by any trustee. 
 45.36     (c) A certification of trust must state that the trust has 
 46.1   not been revoked, modified, or amended in any manner that would 
 46.2   cause the representations contained in the certification of 
 46.3   trust to be incorrect. 
 46.4      (d) A certification of trust need not contain the 
 46.5   dispositive terms of a trust. 
 46.6      (e) A recipient of a certification of trust may require the 
 46.7   trustee to furnish copies of those excerpts from the original 
 46.8   trust instrument and later amendments which designate the 
 46.9   trustee and confer upon the trustee the power to act in the 
 46.10  pending transaction. 
 46.11     (f) A person who acts in reliance upon a certification of 
 46.12  trust without knowledge that the representations contained 
 46.13  therein are incorrect is not liable to any person for so acting 
 46.14  and may assume without inquiry the existence of the facts 
 46.15  contained in the certification.  Knowledge of the terms of the 
 46.16  trust may not be inferred solely from the fact that a copy of 
 46.17  all or part of the trust instrument is held by the person 
 46.18  relying upon the certification. 
 46.19     (g) A person who in good faith enters into a transaction in 
 46.20  reliance upon a certification of trust may enforce the 
 46.21  transaction against the trust property as if the representations 
 46.22  contained in the certification were correct. 
 46.23     (h) A person making a demand for the trust instrument in 
 46.24  addition to a certification of trust or excerpts is liable for 
 46.25  damages if the court determines that the person did not act in 
 46.26  good faith in demanding the trust instrument. 
 46.27     (i) This section does not limit the right of a person to 
 46.28  obtain a copy of the trust instrument in a judicial proceeding 
 46.29  concerning the trust. 
 46.30                             ARTICLE 11
 46.31                      MISCELLANEOUS PROVISIONS
 46.32     Section 1.  [518E.11-101] [UNIFORMITY OF APPLICATION AND 
 46.33  CONSTRUCTION.] 
 46.34     In applying and construing this chapter, consideration must 
 46.35  be given to the need to promote uniformity of the law with 
 46.36  respect to its subject matter among states that enact it. 
 47.1      Sec. 2.  [518E.11-102] [ELECTRONIC RECORDS AND SIGNATURES.] 
 47.2      The provisions of this chapter governing the legal effect, 
 47.3   validity, or enforceability of electronic records or electronic 
 47.4   signatures, and of contracts formed or performed with the use of 
 47.5   such records or signatures, conform to the requirements of 
 47.6   section 102 of the Electronic Signatures in Global and National 
 47.7   Commerce Act, United States Code, title 15, section 7002, and 
 47.8   supersede, modify, and limit the requirements of the Electronic 
 47.9   Signatures in Global and National Commerce Act. 
 47.10     Sec. 3.  [518E.11-106] [APPLICATION TO EXISTING 
 47.11  RELATIONSHIPS.] 
 47.12     (a) Except as otherwise provided in this chapter, on the 
 47.13  effective date of this chapter: 
 47.14     (1) this chapter applies to all trusts created before, on, 
 47.15  or after its effective date; 
 47.16     (2) this chapter applies to all judicial proceedings 
 47.17  concerning trusts commenced on or after its effective date; 
 47.18     (3) this chapter applies to judicial proceedings concerning 
 47.19  trusts commenced before its effective date unless the court 
 47.20  finds that application of a particular provision of this chapter 
 47.21  would substantially interfere with the effective conduct of the 
 47.22  judicial proceedings or prejudice the rights of the parties, in 
 47.23  which case the particular provision of this chapter does not 
 47.24  apply and the superseded law applies; 
 47.25     (4) any rule of construction or presumption provided in 
 47.26  this chapter applies to trust instruments executed before the 
 47.27  effective date of this chapter unless there is a clear 
 47.28  indication of a contrary intent in the terms of the trust; and 
 47.29     (5) an act done before the effective date of this chapter 
 47.30  is not affected by this chapter. 
 47.31     (b) If a right is acquired, extinguished, or barred upon 
 47.32  the expiration of a prescribed period that has commenced to run 
 47.33  under any other statute before the effective date of the 
 47.34  chapter, that statute continues to apply to the right even if it 
 47.35  has been repealed or superseded. 
 47.36                             ARTICLE 12
 48.1                         TECHNICAL PROVISIONS
 48.2      Section 1.  [REPEALER.] 
 48.3      Minnesota Statutes 2000, sections 501B.01; 501B.02; 
 48.4   501B.03; 501B.04; 501B.05; 501B.06; 501B.07; 501B.08; 501B.09; 
 48.5   501B.12; 501B.13; 501B.14; 501B.15; 501B.152; 501B.31; 501B.32; 
 48.6   501B.46; 501B.47; 501B.48; 501B.49; 501B.50; 501B.51; 501B.52; 
 48.7   501B.53; 501B.54; 501B.55; 501B.56; 501B.57; 501B.79; 501B.80; 
 48.8   501B.81; 501B.82; 501B.86; 501B.87; 501B.88; 501B.89; and 
 48.9   501B.90, are repealed. 
 48.10     Sec. 2.  [EFFECTIVE DATE.] 
 48.11     This act is effective January 1, 2003.