HF 274

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to probate; providing for rights of specific 
  1.3             devisees when transfers are made by an 
  1.4             attorney-in-fact for an incapacitated principal; 
  1.5             amending Minnesota Statutes 1996, section 524.2-606. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 524.2-606, is 
  1.8   amended to read: 
  1.9      524.2-606 [NONADEMPTION OF SPECIFIC DEVISES; UNPAID 
  1.10  PROCEEDS OF SALE, CONDEMNATION, OR INSURANCE; SALE BY 
  1.11  CONSERVATOR OR GUARDIAN OR ATTORNEY-IN-FACT.] 
  1.12     (a) A specific devisee has a right to the specifically 
  1.13  devised property in the testator's estate at death and: 
  1.14     (1) any balance of the purchase price, together with any 
  1.15  security agreement, owing from a purchaser to the testator at 
  1.16  death by reason of sale of the property; 
  1.17     (2) any amount of a condemnation award for the taking of 
  1.18  the property unpaid at death; 
  1.19     (3) any proceeds unpaid at death on fire or casualty 
  1.20  insurance on or other recovery for injury to the property; and 
  1.21     (4) property owned by the testator at death and acquired as 
  1.22  a result of foreclosure, or obtained in lieu of foreclosure, of 
  1.23  the security interest for a specifically devised obligation. 
  1.24     (b) If specifically devised property is sold or mortgaged 
  1.25  by a conservator or guardian or by an agent acting within the 
  2.1   authority of a durable power of attorney for an incapacitated 
  2.2   principal, or if a condemnation award, insurance proceeds, or 
  2.3   recovery for injury to the property are paid to a conservator or 
  2.4   guardian or to an agent acting within the authority of a durable 
  2.5   power of attorney for an incapacitated principal, the specific 
  2.6   devisee has the right to a general pecuniary devise equal to the 
  2.7   net sale price, the amount of the unpaid loan, the condemnation 
  2.8   award, the insurance proceeds, or the recovery. 
  2.9      (c) The right of a specific devisee under paragraph (b) is 
  2.10  reduced by any right the devisee has under paragraph (a). 
  2.11     (d) For the purposes of the references in paragraph (b) to 
  2.12  a conservator or guardian or to an agent acting within the 
  2.13  authority of a durable power of attorney, paragraph (b) does not 
  2.14  apply if after the sale, mortgage, condemnation, casualty, or 
  2.15  recovery,: 
  2.16     (1) in the case of a conservator or guardian, it was 
  2.17  adjudicated that the testator's incapacity ceased and the 
  2.18  testator survived the adjudication by one year.; or 
  2.19     (2) in the case of an agent acting within the authority of 
  2.20  a durable power of attorney, the testator's incapacity ceased 
  2.21  and the testator survived for at least one year after the 
  2.22  incapacity ceased. 
  2.23     (e) For purposes of the references in paragraph (b) to an 
  2.24  agent acting within the authority of a durable power of attorney 
  2.25  for an incapacitated principal: 
  2.26     (1) "incapacitated principal" means a principal who is an 
  2.27  incapacitated person as defined in section 525.54, subdivision 
  2.28  3; and 
  2.29     (2) the adjudication of the principal's incapacity need not 
  2.30  occur during the principal's life.