SF 2427

1st Unofficial Engrossment - 86th Legislature (2009 - 2010)

Posted on 12/26/2012 11:17 p.m.

1.1A bill for an act 1.2relating to property held in trust; clarifying status of certain distributions; 1.3changing certain relationship and inheritance provisions; changing certain estate 1.4taxation provisions; providing for emergency and temporary conservators; 1.5amending Minnesota Statutes 2008, sections 289A.10, subdivision 1; 291.03, by 1.6adding a subdivision; 501B.64, subdivision 3; 524.1-201; 524.2-114; Minnesota 1.7Statutes 2009 Supplement, sections 291.005, subdivision 1; 524.5-409; proposing 1.8coding for new law in Minnesota Statutes, chapter 524. 1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.10    Section 1. Minnesota Statutes 2008, section 289A.10, subdivision 1, is amended to 1.11read: 1.12    Subdivision 1. Return required. In the case of a decedent who has an interest in 1.13property with a situs in Minnesota, the personal representative must submit a Minnesota 1.14estate tax return to the commissioner, on a form prescribed by the commissioner, if: 1.15(1) a federal estate tax return is required to be filed; or 1.16(2) the federal gross estate exceeds $700,000 for estates of decedents dying after 1.17December 31, 2001, and before January 1, 2004; $850,000 for estates of decedents dying 1.18after December 31, 2003, and before January 1, 2005; $950,000 for estates of decedents 1.19dying after December 31, 2004, and before January 1, 2006; and $1,000,000 for estates of 1.20decedents dying after December 31, 2005. 1.21The return must contain a computation of the Minnesota estate tax due. The return 1.22must be signed by the personal representative. 1.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for estates of decedents dying after new text end 1.24 new text begin December 31, 2005. new text end 2.1    Sec. 2. Minnesota Statutes 2009 Supplement, section 291.005, subdivision 1, is 2.2amended to read: 2.3    Subdivision 1. Scope. Unless the context otherwise clearly requires, the following 2.4terms used in this chapter shall have the following meanings: 2.5    (1) "Commissioner" means the commissioner of revenue or any person to whom the 2.6commissioner has delegated functions under this chapter. 2.7    (2) "Federal gross estate" means the gross estate of a decedent as new text begin required to new text end 2.8 new text begin be new text end valued and otherwise determined for federal estate tax purposes by federal taxing 2.9authorities pursuant to the provisions of new text begin under new text end the Internal Revenue Code. 2.10    (3) "Internal Revenue Code" means the United States Internal Revenue Code of 2.111986, as amended through March 31, 2009 new text begin , but without regard to the provisions of new text end 2.12 new text begin sections 501 and 901 of Public Law 107-16 new text end . 2.13    (4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as 2.14defined by section 2011(b)(3) of the Internal Revenue Code, increased by the amount of 2.15deduction for state death taxes allowed under section 2058 of the Internal Revenue Code. 2.16    (5) "Minnesota gross estate" means the federal gross estate of a decedent after (a) 2.17excluding therefrom any property included therein which has its situs outside Minnesota, 2.18and (b) including therein any property omitted from the federal gross estate which is 2.19includable therein, has its situs in Minnesota, and was not disclosed to federal taxing 2.20authorities. 2.21    (6) "Nonresident decedent" means an individual whose domicile at the time of 2.22death was not in Minnesota. 2.23    (7) "Personal representative" means the executor, administrator or other person 2.24appointed by the court to administer and dispose of the property of the decedent. If there 2.25is no executor, administrator or other person appointed, qualified, and acting within this 2.26state, then any person in actual or constructive possession of any property having a situs in 2.27this state which is included in the federal gross estate of the decedent shall be deemed 2.28to be a personal representative to the extent of the property and the Minnesota estate tax 2.29due with respect to the property. 2.30    (8) "Resident decedent" means an individual whose domicile at the time of death 2.31was in Minnesota. 2.32    (9) "Situs of property" means, with respect to real property, the state or country in 2.33which it is located; with respect to tangible personal property, the state or country in which 2.34it was normally kept or located at the time of the decedent's death; and with respect to 2.35intangible personal property, the state or country in which the decedent was domiciled 2.36at death. 3.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 3.2 new text begin and applies regardless of when the decedent died. new text end 3.3    Sec. 3. Minnesota Statutes 2008, section 291.03, is amended by adding a subdivision 3.4to read: 3.5     new text begin Subd. 1b. new text end new text begin Qualified terminable interest property. new text end new text begin For estates of decedents dying new text end 3.6 new text begin after December 31, 2009, and before January 1, 2011, if no federal estate tax return is new text end 3.7 new text begin filed the executor may make a qualified terminable interest property election, as defined new text end 3.8 new text begin in section 2056(b)(7) of the Internal Revenue Code, for purposes of computing the tax new text end 3.9 new text begin under this chapter. The election may not reduce the taxable estate under this chapter new text end 3.10 new text begin below $3,500,000. The election must be made on the tax return under this chapter and is new text end 3.11 new text begin irrevocable. All tax under this chapter must be determined using the qualified terminable new text end 3.12 new text begin interest property election made on the Minnesota return. For purposes of applying new text end 3.13 new text begin sections 2044 and 2207A of the Internal Revenue Code when computing the tax under new text end 3.14 new text begin this chapter for the estate of the decedent's surviving spouse, regardless of the date of new text end 3.15 new text begin death of the surviving spouse, amounts for which a qualified terminable interest property new text end 3.16 new text begin election has been made under this section must be treated as though a valid federal new text end 3.17 new text begin qualified terminable interest property election under section 2056(b)(7) of the Internal new text end 3.18 new text begin Revenue Code has been made. new text end 3.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for estates of decedents dying after new text end 3.20 new text begin December 31, 2009. new text end 3.21    Sec. 4. Minnesota Statutes 2008, section 501B.64, subdivision 3, is amended to read: 3.22    Subd. 3. Regulated investment company; real estate investment trust. 3.23Distributions made from ordinary income by a regulated investment company or by a trust 3.24qualifying and electing to be taxed under federal law as a real estate investment trust are 3.25income. All other distributions made by the company or trust, including distributions from 3.26 new text begin short-term or long-term new text end capital gains, depreciation, or depletion, whether in the form of 3.27cash or an option to take new stock or cash or an option to purchase additional shares, 3.28are principal. 3.29    Sec. 5. Minnesota Statutes 2008, section 524.1-201, is amended to read: 3.30524.1-201 GENERAL DEFINITIONS. 4.1Subject to additional definitions contained in the subsequent articles which are 4.2applicable to specific articles or parts, and unless the context otherwise requires, in 4.3chapters 524 and 525: 4.4 new text begin (1) "Adoptee" means an individual who is adopted. new text end 4.5(2) "Application" means a written request to the registrar for an order of informal 4.6probate or appointment under article III, part 3. 4.7(3) new text begin "Assisted reproduction" means a method of causing pregnancy other than sexual new text end 4.8 new text begin intercourse. new text end 4.9 new text begin (4) new text end "Beneficiary," as it relates to trust beneficiaries, includes a person who has any 4.10present or future interest, vested or contingent, and also includes the owner of an interest 4.11by assignment or other transfer and as it relates to a charitable trust, includes any person 4.12entitled to enforce the trust. 4.13(5) new text begin "Birth mother" means a woman who gives birth to a child, including a woman new text end 4.14 new text begin who is the child's genetic mother and including a woman who gives birth to a child of new text end 4.15 new text begin assisted reproduction. "Birth mother" does not include a woman who gives birth pursuant new text end 4.16 new text begin to a gestational agreement. new text end 4.17 new text begin (6) new text end "Child" includes any individual entitled to take as a child under law by intestate 4.18succession from the parent whose relationship is involved and excludes any person who is 4.19only a stepchild, a foster child, a grandchild or any more remote descendant. 4.20(6) new text begin (7) "Child of assisted reproduction" means a child conceived by means of assisted new text end 4.21 new text begin reproduction by a woman other than a child conceived pursuant to a gestational agreement. new text end 4.22 new text begin (8) new text end "Claims" includes liabilities of the decedent whether arising in contract 4.23or otherwise and liabilities of the estate which arise after the death of the decedent 4.24including funeral expenses and expenses of administration. The term does not include 4.25taxes, demands or disputes regarding title of a decedent to specific assets alleged to be 4.26included in the estate, tort claims, foreclosure of mechanic's liens, or to actions pursuant 4.27to section 573.02. 4.28(7) new text begin (9) new text end "Court" means the court or branch having jurisdiction in matters relating to 4.29the affairs of decedents. This court in this state is known as the district court. 4.30(8) new text begin (10) new text end "Conservator" means a person who is appointed by a court to manage the 4.31estate of a protected person. 4.32(9) new text begin (11) new text end "Descendant" of an individual means all of the individual's descendants 4.33of all generations, with the relationship of parent and child at each generation being 4.34determined by the definition of child and parent contained in this section. 5.1(10) new text begin (12) new text end "Devise," when used as a noun, means a testamentary disposition of real 5.2or personal property and when used as a verb, means to dispose of real or personal 5.3property by will. 5.4(11) new text begin (13) new text end "Devisee" means any person designated in a will to receive a devise. In the 5.5case of a devise to an existing trust or trustee, or to a trustee on trust described by will, the 5.6trust or trustee is the devisee and the beneficiaries are not devisees. 5.7(12) new text begin (14) new text end "Disability" means cause for appointment of a conservator as described in 5.8section 524.5-401, or a protective order as described in section 524.5-412. 5.9(13) new text begin (15) new text end "Distributee" means any person who has received or who will receive 5.10property of a decedent from the decedent's personal representative other than as a creditor 5.11or purchaser. A testamentary trustee is a distributee with respect to property which the 5.12trustee has received from a personal representative only to the extent of distributed assets 5.13or their increment remaining in the trustee's hands. A beneficiary of a testamentary trust 5.14to whom the trustee has distributed property received from a personal representative is a 5.15distributee of the personal representative. For purposes of this provision, "testamentary 5.16trustee" includes a trustee to whom assets are transferred by will, to the extent of the 5.17devised assets. 5.18(14) new text begin (16) "Divorce" includes an annulment, dissolution, and declaration of invalidity new text end 5.19 new text begin of marriage. new text end 5.20 new text begin (17) new text end "Estate" includes all of the property of the decedent, trust, or other person 5.21whose affairs are subject to this chapter as originally constituted and as it exists from 5.22time to time during administration. 5.23(16) new text begin (18) new text end "Fiduciary" includes personal representative, guardian, conservator and 5.24trustee. 5.25(17) new text begin (19) new text end "Foreign personal representative" means a personal representative of 5.26another jurisdiction. 5.27(18) new text begin (20) new text end "Formal proceedings" means those conducted before a judge with notice to 5.28interested persons. 5.29(20) new text begin (21) "Functioned as a parent of the child" means behaving toward a child in new text end 5.30 new text begin a manner consistent with being the child's parent and performing functions that are new text end 5.31 new text begin customarily performed by a parent, including fulfilling parental responsibilities toward the new text end 5.32 new text begin child, recognizing or holding out the child as the individual's child, materially participating new text end 5.33 new text begin in the child's upbringing, and residing with the child in the same household as a regular new text end 5.34 new text begin member of that household. new text end 5.35 new text begin (22) "Genetic father" means the man whose sperm fertilized the egg of a child's new text end 5.36 new text begin genetic mother. If the father-child relationship is established under the presumption new text end 6.1 new text begin of paternity under chapter 257, "genetic father" means only the man for whom that new text end 6.2 new text begin relationship is established. new text end 6.3 new text begin (23) "Genetic mother" means the woman whose egg was fertilized by the sperm new text end 6.4 new text begin of a child's genetic father. new text end 6.5 new text begin (24) "Genetic parent" means a child's genetic father or genetic mother. new text end 6.6 new text begin (25) "Gestational agreement" means an agreement for assisted reproduction in which new text end 6.7 new text begin a woman agrees to carry a child to birth for an intended parent or intended parents. new text end 6.8 new text begin (26) new text end "Guardian" means a person who has qualified as a guardian of a minor or 6.9incapacitated person pursuant to testamentary or court appointment, but excludes one 6.10who is merely a guardian ad litem. 6.11(21) new text begin (27) new text end "Heirs" means those persons, including the surviving spouse, who are 6.12entitled under the statutes of intestate succession to the property of a decedent. 6.13(22) new text begin (28) new text end "Incapacitated person" is as described in section 524.5-102, subdivision 6, 6.14other than a minor. 6.15(23) new text begin (29) "Incapacity" when used in sections 524.2-114 to 524.2-120 means the new text end 6.16 new text begin inability of an individual to function as a parent of a child because of the individual's new text end 6.17 new text begin physical or mental condition. new text end 6.18 new text begin (30) new text end "Informal proceedings" means those conducted by the judge, the registrar, or 6.19the person or persons designated by the judge for probate of a will or appointment of a 6.20personal representative in accordance with sections 524.3-301 to 524.3-311. 6.21(24) new text begin (31) "Intended parent" means an individual who entered into a gestational new text end 6.22 new text begin agreement providing that the individual will be the parent of a child born to a woman by new text end 6.23 new text begin means of assisted reproduction, including an individual who has a genetic relationship new text end 6.24 new text begin with the child. new text end 6.25 new text begin (32) new text end "Interested person" includes heirs, devisees, children, spouses, creditors, 6.26beneficiaries and any others having a property right in or claim against the estate of a 6.27decedent, ward or protected person which may be affected by the proceeding. It also 6.28includes persons having priority for appointment as personal representative, and other 6.29fiduciaries representing interested persons. The meaning as it relates to particular persons 6.30may vary from time to time and must be determined according to the particular purposes 6.31of, and matter involved in, any proceeding. 6.32(27) new text begin (33) new text end "Lease" includes an oil, gas, or other mineral lease. 6.33(28) new text begin (34) new text end "Letters" includes letters testamentary, letters of guardianship, letters of 6.34administration, and letters of conservatorship. 6.35(30) new text begin (35) new text end "Mortgage" means any conveyance, agreement or arrangement in which 6.36property is used as security. 7.1(31) new text begin (36) new text end "Nonresident decedent" means a decedent who was domiciled in another 7.2jurisdiction at the time of death. 7.3(32) new text begin (37) new text end "Organization" includes a corporation, government or governmental 7.4subdivision or agency, business trust, estate, trust, partnership or association, two or more 7.5persons having a joint or common interest, or any other legal entity. 7.6(35) new text begin (38) new text end "Person" means an individual, a corporation, an organization, or other 7.7legal entity. 7.8(36) new text begin (39) new text end "Personal representative" includes executor, administrator, successor 7.9personal representative, special administrator, and persons who perform substantially the 7.10same function under the law governing their status. "General personal representative" 7.11excludes special administrator. 7.12(37) new text begin (40) new text end "Petition" means a written request to the court for an order after notice. 7.13(38) new text begin (41) new text end "Proceeding" includes action at law and suit in equity. 7.14(39) new text begin (42) new text end "Property" includes both real and personal property or any interest therein 7.15and means anything that may be the subject of ownership. 7.16(40) new text begin (43) new text end "Protected person" is as described in section 524.5-102, subdivision 14. 7.17(42) new text begin (44) new text end "Registrar" refers to the judge of the court or the person designated by the 7.18court to perform the functions of registrar as provided in section 524.1-307. 7.19(43) new text begin (45) "Relative" means a grandparent or a descendant of a grandparent. new text end 7.20 new text begin (46) new text end "Security" includes any note, stock, treasury stock, bond, debenture, evidence 7.21of indebtedness, certificate of interest or participation in an oil, gas or mining title 7.22or lease or in payments out of production under such a title or lease, collateral trust 7.23certificate, transferable share, voting trust certificate or, in general, any interest or 7.24instrument commonly known as a security, or any certificate of interest or participation, 7.25any temporary or interim certificate, receipt or certificate of deposit for, or any warrant 7.26or right to subscribe to or purchase, any of the foregoing. 7.27(44) new text begin (47) new text end "Settlement," in reference to a decedent's estate, includes the full process 7.28of administration, distribution and closing. 7.29(45) new text begin (48) new text end "Special administrator" means a personal representative as described by 7.30sections 524.3-614 to 524.3-618. 7.31(46) new text begin (49) new text end "State" includes any state of the United States, the District of Columbia, the 7.32Commonwealth of Puerto Rico, and any territory or possession subject to the legislative 7.33authority of the United States. 7.34(47) new text begin (50) new text end "Successor personal representative" means a personal representative, 7.35other than a special administrator, who is appointed to succeed a previously appointed 7.36personal representative. 8.1(48) new text begin (51) new text end "Successors" means those persons, other than creditors, who are entitled to 8.2property of a decedent under the decedent's will, this chapter or chapter 525. "Successors" 8.3also means a funeral director or county government that provides the funeral and burial of 8.4the decedent, or a state or county agency with a claim authorized under section 256B.15. 8.5(49) new text begin (52) new text end "Supervised administration" refers to the proceedings described in sections 8.6524.3-501 to 524.3-505. 8.7(51) new text begin (53) new text end "Testacy proceeding" means a proceeding to establish a will or determine 8.8intestacy. 8.9(53) new text begin (54) "Third-party donor" means an individual who produces eggs or sperm used new text end 8.10 new text begin for assisted reproduction, whether or not for consideration. The term does not include: new text end 8.11 new text begin (i) a husband who provides sperm, or a wife who provides eggs, that are used for new text end 8.12 new text begin assisted reproduction by the wife; new text end 8.13 new text begin (ii) the birth mother of a child of assisted reproduction; or new text end 8.14 new text begin (iii) a man who has been determined under section 524.2-120, subdivision 4 or 5, to new text end 8.15 new text begin have a parent-child relationship with a child of assisted reproduction. new text end 8.16 new text begin (55) new text end "Trust" includes any express trust, private or charitable, with additions 8.17thereto, wherever and however created. It also includes a trust created or determined 8.18by judgment or decree under which the trust is to be administered in the manner of 8.19an express trust. "Trust" excludes other constructive trusts, and it excludes resulting 8.20trusts, conservatorships, personal representatives, trust accounts as defined in chapter 8.21528, custodial arrangements pursuant to sections 149A.97, 318.01 to 318.06, 527.21 to 8.22527.44 , business trusts providing for certificates to be issued to beneficiaries, common 8.23trust funds, voting trusts, security arrangements, liquidation trusts, and trusts for the 8.24primary purpose of paying debts, dividends, interest, salaries, wages, profits, pensions, or 8.25employee benefits of any kind, and any arrangement under which a person is nominee 8.26or escrowee for another. 8.27(54) new text begin (56) new text end "Trustee" includes an original, additional, or successor trustee, whether 8.28or not appointed or confirmed by court. 8.29(55) new text begin (57) new text end "Ward" is as described in section 524.5-102, subdivision 17. 8.30(56) new text begin (58) new text end "Will" includes codicil and any testamentary instrument which merely 8.31appoints an executor or revokes or revises another will. 8.32    Sec. 6. Minnesota Statutes 2008, section 524.2-114, is amended to read: 8.33524.2-114 MEANING OF CHILD AND RELATED TERMS new text begin PARENT new text end 8.34 new text begin BARRED FROM INHERITING IN CERTAIN CIRCUMSTANCES new text end . 9.1    If, for purposes of intestate succession, a relationship of parent and child must be 9.2established to determine succession by, through, or from a person: 9.3    (1) An adopted child is the child of an adopting parent and not of the birth parents 9.4except that adoption of a child by the spouse of a birth parent has no effect on the 9.5relationship between the child and that birth parent. If a parent dies and a child is 9.6subsequently adopted by a stepparent who is the spouse of a surviving parent, any rights 9.7of inheritance of the child or the child's descendant from or through the deceased parent 9.8of the child which exist at the time of the death of that parent shall not be affected by 9.9the adoption. 9.10    (2) In cases not covered by clause (1), a person is the child of the person's parents 9.11regardless of the marital status of the parents and the parent and child relationship may be 9.12established under the Parentage Act, sections to . 9.13 new text begin (a) A parent is barred from inheriting from or through a child of the parent if: new text end 9.14 new text begin (1) the parent's parental rights were terminated and the parent-child relationship new text end 9.15 new text begin was not judicially reestablished; or new text end 9.16 new text begin (2) the child died before reaching 18 years of age and there is clear and convincing new text end 9.17 new text begin evidence that immediately before the child's death the parental rights of the parent new text end 9.18 new text begin could have been terminated under law of this state other than this chapter on the basis new text end 9.19 new text begin of nonsupport, abandonment, abuse, neglect, or other actions or inactions of the parent new text end 9.20 new text begin toward the child. new text end 9.21 new text begin (b) For the purpose of intestate succession from or through the deceased child, new text end 9.22 new text begin a parent who is barred from inheriting under this section is treated as if the parent new text end 9.23 new text begin predeceased the child. new text end 9.24    Sec. 7. new text begin [524.2-116] EFFECT OF PARENT-CHILD RELATIONSHIP. new text end 9.25 new text begin Except as otherwise provided in section 524.2-119, subdivisions 2 to 5, if a new text end 9.26 new text begin parent-child relationship exists or is established under this part, the parent is a parent of new text end 9.27 new text begin the child and the child is a child of the parent for the purpose of intestate succession. new text end 9.28    Sec. 8. new text begin [524.2-117] PARENT-CHILD RELATIONSHIP WITH GENETIC new text end 9.29 new text begin PARENTS. new text end 9.30 new text begin Except as otherwise provided in section 524.2-114, 524.2-119, or 524.2-120, a new text end 9.31 new text begin parent-child relationship exists between a child and the child's genetic parents, regardless new text end 9.32 new text begin of the parents' marital status. new text end 10.1    Sec. 9. new text begin [524.2-118] ADOPTEE AND ADOPTEE'S ADOPTIVE PARENT OR new text end 10.2 new text begin PARENTS. new text end 10.3     new text begin Subdivision 1. new text end new text begin Parent-child relationship between adoptee and adoptive parent new text end 10.4 new text begin or parents. new text end new text begin A parent-child relationship exists between an adoptee and the adoptee's new text end 10.5 new text begin adoptive parent or parents. new text end 10.6     new text begin Subd. 2. new text end new text begin Individual in process of being adopted by married couple; stepchild in new text end 10.7 new text begin process of being adopted by stepparent. new text end new text begin For purposes of subdivision 1: new text end 10.8 new text begin (1) an individual who is in the process of being adopted by a married couple when new text end 10.9 new text begin one of the spouses dies is treated as adopted by the deceased spouse if the adoption is new text end 10.10 new text begin subsequently granted to the decedent's surviving spouse; and new text end 10.11 new text begin (2) a child of a genetic parent who is in the process of being adopted by a genetic new text end 10.12 new text begin parent's spouse when the spouse dies is treated as adopted by the deceased spouse if the new text end 10.13 new text begin genetic parent survives the deceased spouse by 120 hours. new text end 10.14     new text begin Subd. 3. new text end new text begin Child of assisted reproduction in process of being adopted. new text end new text begin If, after new text end 10.15 new text begin a parent-child relationship is established between a child of assisted reproduction and a new text end 10.16 new text begin parent under section 524.2-120, the child is in the process of being adopted by the parent's new text end 10.17 new text begin spouse when that spouse dies, the child is treated as adopted by the deceased spouse for new text end 10.18 new text begin the purpose of subdivision 2, clause (2). new text end 10.19     new text begin Subd. 4. new text end new text begin In the process of adoption. new text end new text begin An individual is "in the process of being new text end 10.20 new text begin adopted" if there exists clear and convincing evidence of the intention of the deceased new text end 10.21 new text begin spouse to adopt that individual. new text end 10.22    Sec. 10. new text begin [524.2-119] ADOPTEE AND ADOPTEE'S GENETIC PARENTS. new text end 10.23     new text begin Subdivision 1. new text end new text begin Parent-child relationship between adoptee and genetic parents. new text end 10.24 new text begin Except as otherwise provided in subdivisions 2 to 5, unless otherwise decreed, a new text end 10.25 new text begin parent-child relationship does not exist between an adoptee and the adoptee's genetic new text end 10.26 new text begin parents. new text end 10.27     new text begin Subd. 2. new text end new text begin Stepchild adopted by stepparent. new text end new text begin A parent-child relationship exists new text end 10.28 new text begin between an individual who is adopted by the spouse of either genetic parent and the new text end 10.29 new text begin genetic parent whose spouse adopted the individual. No parent-child relationship exists new text end 10.30 new text begin between an individual and the other genetic parent unless the other genetic parent was new text end 10.31 new text begin deceased at the time of the child's adoption and then only for the purpose of the right of the new text end 10.32 new text begin adoptee or a descendant of the adoptee to inherit from or through that other genetic parent. new text end 10.33     new text begin Subd. 3. new text end new text begin Individual adopted by relative of genetic parent. new text end new text begin A parent-child new text end 10.34 new text begin relationship exists between both genetic parents and an individual who is adopted by a new text end 10.35 new text begin relative of a genetic parent, or by the spouse or surviving spouse of a relative of a genetic new text end 11.1 new text begin parent, but only for the purpose of the right of the adoptee or a descendant of the adoptee new text end 11.2 new text begin to inherit from or through either genetic parent. new text end 11.3     new text begin Subd. 4. new text end new text begin Individual adopted after death of both genetic parents. new text end new text begin A parent-child new text end 11.4 new text begin relationship exists between both genetic parents and an individual who is adopted after new text end 11.5 new text begin the death of both genetic parents, but only for the purpose of the right of the adoptee or a new text end 11.6 new text begin descendant of the adoptee to inherit through either genetic parent. new text end 11.7     new text begin Subd. 5. new text end new text begin Child of assisted reproduction who is subsequently adopted. new text end new text begin If, after new text end 11.8 new text begin a parent-child relationship is established between a child of assisted reproduction and a new text end 11.9 new text begin parent or parents under section 524.2-120, the child is adopted by another or others, the new text end 11.10 new text begin child's parent or parents under section 524.2-120 are treated as the child's genetic parent new text end 11.11 new text begin or parents for the purpose of this section. new text end 11.12    Sec. 11. new text begin [524.2-120] CHILD CONCEIVED BY ASSISTED REPRODUCTION. new text end 11.13     new text begin Subdivision 1. new text end new text begin Third-party donor. new text end new text begin A parent-child relationship does not exist new text end 11.14 new text begin between a child of assisted reproduction and a third-party donor. new text end 11.15     new text begin Subd. 2. new text end new text begin Parent-child relationship with birth mother. new text end new text begin A parent-child relationship new text end 11.16 new text begin exists between a child of assisted reproduction and the child's birth mother. new text end 11.17     new text begin Subd. 3. new text end new text begin Parent-child relationship with husband whose sperm were used during new text end 11.18 new text begin his lifetime by his wife for assisted reproduction. new text end new text begin Except as otherwise provided in new text end 11.19 new text begin subdivision 9, a parent-child relationship exists between a child of assisted reproduction new text end 11.20 new text begin and the husband of the child's birth mother if the husband provided the sperm that the birth new text end 11.21 new text begin mother used during his lifetime for assisted reproduction. new text end 11.22     new text begin Subd. 4. new text end new text begin Official birth record; presumptive effect. new text end new text begin An official birth record new text end 11.23 new text begin identifying a man as the other parent of a child of assisted reproduction presumptively new text end 11.24 new text begin establishes a parent-child relationship between the child and that man. new text end 11.25     new text begin Subd. 5. new text end new text begin Parent-child relationship with another. new text end new text begin Except as otherwise provided new text end 11.26 new text begin in subdivisions 6, 8, and 9, and unless a parent-child relationship is established under new text end 11.27 new text begin subdivision 4, a parent-child relationship is presumed to exist between a child of assisted new text end 11.28 new text begin reproduction and a man who consented to assisted reproduction by the birth mother with new text end 11.29 new text begin intent to be treated as the other parent of the child. Consent to assisted reproduction by new text end 11.30 new text begin the birth mother with intent to be treated as the other parent of the child is established if new text end 11.31 new text begin the man: new text end 11.32 new text begin (1) before or after the child's birth, signed a record that, considering all the facts and new text end 11.33 new text begin circumstances, evidences the man's consent; or new text end 11.34 new text begin (2) in the absence of a signed record under clause (1): new text end 12.1 new text begin (i) functioned as the other parent of the child no later than two years after the child's new text end 12.2 new text begin birth; or new text end 12.3 new text begin (ii) intended to function as the other parent of the child no later than two years after new text end 12.4 new text begin the child's birth but was prevented from carrying out that intent by death, incapacity, or new text end 12.5 new text begin other circumstances, if that intent is established by clear and convincing evidence. new text end 12.6     new text begin Subd. 6. new text end new text begin Record signed more than two years after the birth of the child: effect. new text end 12.7 new text begin For the purpose of subdivision 5, clause (1), neither a man who signed a record more than new text end 12.8 new text begin two years after the birth of the child, nor a relative of that man who is not also a relative of new text end 12.9 new text begin the birth mother, inherits from or through the child unless the man functioned as a parent new text end 12.10 new text begin of the child before the child reached 18 years of age. new text end 12.11     new text begin Subd. 7. new text end new text begin Presumption; birth mother is married or surviving spouse. new text end new text begin (a) new text end 12.12 new text begin Paragraphs (b) and (c) apply to subdivision 5, clause (2). new text end 12.13 new text begin (b) If the birth mother is married and no divorce proceeding is pending, in the new text end 12.14 new text begin absence of clear and convincing evidence to the contrary, her spouse satisfies subdivision new text end 12.15 new text begin 5, clause (2), item (i) or (ii). new text end 12.16 new text begin (c) If the birth mother is a surviving spouse and at her deceased spouse's death no new text end 12.17 new text begin divorce proceeding was pending, in the absence of clear and convincing evidence to the new text end 12.18 new text begin contrary, her deceased spouse satisfies subdivision 5, clause (2), item (ii). new text end 12.19     new text begin Subd. 8. new text end new text begin Divorce before placement of eggs, sperm, or embryos. new text end new text begin If a married new text end 12.20 new text begin couple is divorced before placement of eggs, sperm, or embryos, a child resulting from new text end 12.21 new text begin the assisted reproduction is not a child of the birth mother's former spouse, unless the new text end 12.22 new text begin former spouse consented in a record or such consent is established by clear and convincing new text end 12.23 new text begin evidence that if assisted reproduction were to occur after divorce, the child would be new text end 12.24 new text begin treated as the former spouse's child. new text end 12.25     new text begin Subd. 9. new text end new text begin Withdrawal of consent before placement of eggs, sperm, or embryos. new text end 12.26 new text begin If, in a record or through clear and convincing evidence, a man withdraws consent to new text end 12.27 new text begin assisted reproduction before placement of eggs, sperm, or embryos, a child resulting from new text end 12.28 new text begin the assisted reproduction is not a child of that man, unless the man subsequently satisfies new text end 12.29 new text begin subdivision 4 or 5. new text end 12.30     new text begin Subd. 10. new text end new text begin Exclusion of posthumously conceived children. new text end new text begin Notwithstanding any new text end 12.31 new text begin other provision of this section and subject to section 524.2-108, a parent-child relationship new text end 12.32 new text begin does not exist between a child of assisted reproduction and another person unless the child new text end 12.33 new text begin of assisted reproduction is in gestation prior to the death of such person. new text end 12.34    Sec. 12. new text begin [524.2-121] NO EFFECT ON GESTATIONAL AGREEMENTS. new text end 12.35 new text begin This chapter does not affect law of this state regarding gestational agreements. new text end 13.1    Sec. 13. new text begin [524.2-122] NO EFFECT ON EQUITABLE ADOPTION. new text end 13.2 new text begin This chapter does not affect the doctrine of equitable adoption. new text end 13.3    Sec. 14. new text begin [524.2-712] DECEDENTS DYING AFTER DECEMBER 31, 2009, AND new text end 13.4 new text begin BEFORE JANUARY 1, 2011; FORMULA CLAUSES TO BE CONSTRUED TO new text end 13.5 new text begin REFER TO FEDERAL ESTATE TAX AND FEDERAL GENERATION-SKIPPING new text end 13.6 new text begin TRANSFER TAX LAWS. new text end 13.7 new text begin (a) A governing instrument, including a will or trust agreement, of a decedent who new text end 13.8 new text begin dies after December 31, 2009, and before January 1, 2011, that contains a formula or new text end 13.9 new text begin provision referring to the "unified credit," "estate tax exemption," "applicable exemption new text end 13.10 new text begin amount," "applicable credit amount," "applicable exclusion amount," "generation-skipping new text end 13.11 new text begin transfer tax exemption," "GST exemption," "marital deduction," "maximum marital new text end 13.12 new text begin deduction," "unlimited marital deduction," "inclusion ratio," "applicable fraction," or new text end 13.13 new text begin any section of the Internal Revenue Code relating to the federal estate tax or federal new text end 13.14 new text begin generation-skipping transfer tax, or that measures a share of an estate or trust by reference new text end 13.15 new text begin to federal estate taxes or federal generation-skipping transfer taxes, is deemed to refer to new text end 13.16 new text begin the federal estate tax and federal generation-skipping transfer tax laws as they applied with new text end 13.17 new text begin respect to the estates of decedents dying on December 31, 2009. This paragraph does not new text end 13.18 new text begin apply to a governing instrument, including a will or trust agreement, that manifests an new text end 13.19 new text begin intent that a contrary rule will apply if the decedent dies on a date on which there is no new text end 13.20 new text begin then-applicable federal estate or federal generation-skipping transfer tax. new text end 13.21 new text begin (b) If the federal estate or federal generation-skipping transfer tax becomes effective new text end 13.22 new text begin before January 1, 2011, then the reference to January 1, 2011, in paragraph (a) is deemed new text end 13.23 new text begin to refer to the first date on which this tax becomes legally effective, instead of January 1, new text end 13.24 new text begin 2011. new text end 13.25 new text begin (c) The personal representative, trustee, or any interested person under the governing new text end 13.26 new text begin instrument, including a will or trust agreement, may bring a proceeding to determine new text end 13.27 new text begin whether the decedent intended that a formula or provision described in paragraph (a) be new text end 13.28 new text begin construed with respect to the law as it existed after December 31, 2009. This proceeding new text end 13.29 new text begin must be commenced by December 31, 2011. new text end 13.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactive to January 1, 2010. new text end 13.31    Sec. 15. Minnesota Statutes 2009 Supplement, section 524.5-409, is amended to read: 13.32524.5-409 FINDINGS; ORDER OF APPOINTMENT. 14.1     new text begin Subdivision 1. new text end new text begin Limited or unlimited conservator. new text end (a) The court may appoint a 14.2limited or unlimited conservator for a respondent only if it finds that: 14.3(1) by clear and convincing evidence, the individual is unable to manage property 14.4and business affairs because of an impairment in the ability to receive and evaluate 14.5information or make decisions, even with the use of appropriate technological assistance, 14.6or because the individual is missing, detained, or unable to return to the United States; 14.7(2) by a preponderance of evidence, the individual has property that will be wasted 14.8or dissipated unless management is provided or money is needed for the support, care, 14.9education, health, and welfare of the individual or of individuals who are entitled to the 14.10individual's support and that protection is necessary or desirable to obtain or provide 14.11money; and 14.12(3) the respondent's identified needs cannot be met by less restrictive means, 14.13including use of appropriate technological assistance. 14.14(b) Alternatively, the court, with appropriate findings, may enter any other 14.15appropriate order, or dismiss the proceeding. 14.16(c) The court, whenever feasible, shall grant to a conservator only those powers 14.17necessitated by the protected person's limitations and demonstrated needs and make 14.18appointive and other orders that will encourage the development of the protected person's 14.19maximum self-reliance and independence. 14.20(d) Within 14 days after an appointment, the conservator shall send or deliver to the 14.21protected person, if the protected person has attained 14 years of age and is not missing, 14.22detained, or unable to return to the United States, and counsel if represented at the hearing, 14.23a copy of the order of appointment accompanied by a notice which advises the protected 14.24person of the right to appeal the conservatorship appointment in the time and manner 14.25provided by the Rules of Appellate Procedure. 14.26(e) Each year, within 30 days after the anniversary date of an appointment, a 14.27conservator shall send or deliver to the protected person and to interested persons of 14.28record with the court a notice of the right to request termination or modification of the 14.29conservatorship or for any order that is in the best interests of the protected person or for 14.30other appropriate relief. 14.31(f) The appointment of a conservator or the entry of another protective order is not a 14.32determination of incapacity of the protected person. 14.33     new text begin Subd. 2. new text end new text begin Emergency and temporary conservator. new text end new text begin (a) If the court finds that new text end 14.34 new text begin compliance with the procedures of this article will likely result in the immediate loss, new text end 14.35 new text begin waste, or dissipation of the individual's assets or income unless management is provided, new text end 14.36 new text begin or money is needed for the support, care, education, health, and welfare of the individual or new text end 15.1 new text begin of individuals who are entitled to the individual's support and that protection is necessary new text end 15.2 new text begin or desirable to obtain or provide money, and that no other person appears to have authority new text end 15.3 new text begin and willingness to act in the circumstances, the court, on petition by a person interested in new text end 15.4 new text begin the respondent's welfare, may appoint an emergency conservator whose authority may not new text end 15.5 new text begin exceed 60 days and who may exercise only the powers specified in the order. A county new text end 15.6 new text begin that is acting under section 626.557, subdivision 10, by petitioning for appointment of new text end 15.7 new text begin an emergency conservator on behalf of a vulnerable adult may be granted authority to new text end 15.8 new text begin act for a period not to exceed 90 days. Immediately upon receipt of the petition for an new text end 15.9 new text begin emergency conservatorship, the court shall appoint a lawyer to represent the respondent new text end 15.10 new text begin in the proceeding. Except as otherwise provided in paragraph (b), reasonable notice of new text end 15.11 new text begin the time and place of a hearing on the petition must be given to the respondent and any new text end 15.12 new text begin other persons as the court directs. new text end 15.13 new text begin (b) An emergency conservator may be appointed without notice to the respondent new text end 15.14 new text begin and the respondent's lawyer only if the court finds from affidavit or other sworn testimony new text end 15.15 new text begin that the respondent will be substantially harmed before a hearing on the appointment new text end 15.16 new text begin can be held. If the court appoints an emergency conservator without notice to the new text end 15.17 new text begin respondent, the respondent must be given notice of the appointment within 48 hours after new text end 15.18 new text begin the appointment. The court shall hold a hearing on the appropriateness of the appointment new text end 15.19 new text begin within five days after the appointment. new text end 15.20 new text begin (c) Appointment of an emergency conservator, with or without notice, is not a new text end 15.21 new text begin determination of the respondent's incapacity. new text end 15.22 new text begin (d) The court may remove an emergency conservator at any time. An emergency new text end 15.23 new text begin conservator shall make any report the court requires. In other respects, the provisions of new text end 15.24 new text begin this article concerning conservators apply to an emergency conservator. new text end 15.25 new text begin (e) If the court finds that a conservator is not effectively performing the conservator's new text end 15.26 new text begin duties and that the security and preservation of the protected person's assets requires new text end 15.27 new text begin immediate action, the court may appoint a temporary substitute conservator for the new text end 15.28 new text begin protected person for a specified period not exceeding six months. Except as otherwise new text end 15.29 new text begin ordered by the court, a temporary substitute conservator so appointed has the powers set new text end 15.30 new text begin forth in the previous order of appointment. The authority of any unlimited or limited new text end 15.31 new text begin conservator previously appointed by the court is suspended as long as a temporary new text end 15.32 new text begin substitute conservator has authority. If an appointment is made without previous notice to new text end 15.33 new text begin the protected person or the affected conservator within five days after the appointment, the new text end 15.34 new text begin court shall inform the protected person or conservator of the appointment. new text end 15.35 new text begin (f) The court may remove a temporary substitute conservator at any time. A new text end 15.36 new text begin temporary substitute conservator shall make any report the court requires. In other new text end 16.1 new text begin respects, the provisions of this article concerning conservators apply to a temporary new text end 16.2 new text begin substitute conservator. new text end 16.3    Sec. 16. new text begin [RENUMBERING INSTRUCTION.] new text end 16.4 new text begin The revisor of statutes shall renumber section 524.2-115 as 524.2-123 in the next new text end 16.5 new text begin and subsequent editions of Minnesota Statutes. new text end 16.6    Sec. 17. new text begin EFFECTIVE DATE. new text end 16.7 new text begin Sections 4 and 15 are effective the day following final enactment. Sections 5 to 13 new text end 16.8 new text begin are effective August 1, 2010, and apply to the rights of successors of decedents dying on new text end 16.9 new text begin or after August 1, 2010, and to any instruments executed before August 1, 2010, unless new text end 16.10 new text begin there is a clear indication of contrary intent in the instrument. new text end