HF 239

2nd Engrossment - 89th Legislature (2015 - 2016) Posted on 06/02/2016 11:33am

A bill for an act
relating to conservatorships; providing an exception for conservators to post
bond for the assets of a protected person; amending Minnesota Statutes 2014,
sections 524.5-413; 524.5-416.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 524.5-413, is amended to read:

524.5-413 WHO MAY BE CONSERVATOR; PRIORITIES.

(a) Except as otherwise provided in paragraph (d), the court, in appointing a
conservator, shall consider persons otherwise qualified in the following order of priority:

(1) a conservator, guardian of the estate, or other like fiduciary appointed or
recognized by an appropriate court of any other jurisdiction in which the protected person
resides;

(2) a person nominated as conservator by the respondent, including the respondent's
most recent nomination made in a durable power of attorney, if the respondent has attained
14 years of age and at the time of the nomination had sufficient capacity to express
a preference;

(3) an agent appointed by the respondent to manage the respondent's property under
a durable power of attorney;

(4) the spouse of the respondent;

(5) an adult child of the respondent;

(6) a parent of the respondent;

(7) an adult with whom the respondent has resided for more than six months before
the filing of the petition;

(8) an adult who is related to the respondent by blood, adoption, or marriage; and

(9) any other adult or a professional conservator.

(b) A person having priority under paragraph (a), clause (1), (4), (5), or (6), may
designate in writing a substitute to serve instead and thereby transfer the priority to the
substitute.

(c) The court, acting in the best interest of the protected person, may decline to
appoint a person having priority and appoint a person having a lower priority or no
priority. With respect to persons having equal priority, the court shall select the one it
considers best qualified.

deleted text begin (d) In any proceeding where the value of the personal property of the estate of the
proposed protected person in the initial inventory of the estate filed by the conservator
under section 524.5-419 is expected to be at least $10,000, the court shall require the
conservator to post a bond. The bond requirement under this paragraph does not apply to
conservators appointed before August 1, 2009, but shall apply as current conservatorships
are reviewed by the court after August 1, 2009.
deleted text end

deleted text begin (e) deleted text end new text begin (d) new text end Any individual or agency which provides residence, custodial care, medical
care, employment training, or other care or services for which they receive a fee may not be
appointed as conservator unless related to the respondent by blood, marriage, or adoption.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2014, section 524.5-416, is amended to read:

524.5-416 TERMS AND REQUIREMENTS OF BOND.

(a) The following rules apply to any bond required:

(1) Except as otherwise provided by the terms of the bond, sureties and the
conservator are jointly and severally liable.

(2) By executing the bond of a conservator, a surety submits to the jurisdiction of the
court that issued letters to the primary obligor in any proceeding pertaining to the fiduciary
duties of the conservator in which the surety is named as a party. Notice of any proceeding
must be sent or delivered to the surety at the address shown in the court records at the
place where the bond is filed and to any other address then known to the petitioner.

(3) On petition of a successor conservator or any interested person, a proceeding
may be brought against a surety for breach of the obligation of the bond of the conservator.

(4) The bond of the conservator may be proceeded against until liability under the
bond is exhausted.

new text begin (5) Except as otherwise provided in this section, in any proceeding where the value
of the personal property of the estate of the proposed protected person in the initial
inventory of the estate filed by the conservator under section 524.5-419 is expected to be
at least $10,000, the court shall require the conservator to furnish a bond in an amount that
the court determines is necessary to reasonably protect the protected person's assets. Joint
conservators may unite in a bond or each may give a separate bond.
new text end

(b) new text begin In lieu of executing and filing a bond, the conservator may request that access
to certain assets of the protected person be blocked. The court may grant the request if
sufficient evidence is filed with the court to establish that those assets are being held in a
manner that prevents the conservator from accessing the assets without a specific court
order or the court finds that the manner in which the assets are held is sufficient to protect
the assets. To the extent that assets not placed in blocked accounts are expected to be at
least $10,000, the bond requirement under paragraph (a) applies.
new text end

new text begin (c) new text end A proceeding may not be brought against a surety on any matter as to which an
action or proceeding against the primary obligor is barred.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to conservators appointed, or conservatorships reviewed by the court, on or
after that date.
new text end