SF 350

as introduced - 88th Legislature (2013 - 2014) Posted on 04/19/2013 08:32am

A bill for an act
relating to community property; adopting the Uniform Community Property
Rights at Death Act; proposing coding for new law as Minnesota Statutes,
chapter 519A.

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

Section 1.

new text begin [519A.01] APPLICATION.
new text end

new text begin This chapter applies to the disposition at death of the following property acquired
by a married person:
new text end

new text begin (1) all personal property, wherever situated:
new text end

new text begin (i) which was acquired as or became, and remained, community property under the
laws of another jurisdiction; or
new text end

new text begin (ii) all or the proportionate part of that property acquired with the rents, issues, or
income of, or the proceeds from, or in exchange for, or traceable to, that community
property; and
new text end

new text begin (2) all or the proportionate part of any real property situated in Minnesota which
was acquired with the rents, issues, or income of, the proceeds from, or in exchange for,
property acquired as or which became, and remained, community property under the laws
of another jurisdiction, or property traceable to that community property.
new text end

Sec. 2.

new text begin [519A.02] REBUTTABLE PRESUMPTIONS.
new text end

new text begin In determining whether this chapter applies to specific property, the following
rebuttable presumptions apply:
new text end

new text begin (1) property acquired during marriage by a spouse of that marriage while domiciled
in a jurisdiction under whose laws property could then be acquired as community property
is presumed to have been acquired as or to have become, and remained, property to which
this chapter applies; and
new text end

new text begin (2) real property situated in Minnesota and personal property wherever situated
acquired by a married person while domiciled in a jurisdiction under whose laws property
could not then be acquired as community property, title to which was taken in a form
which created rights of survivorship, are presumed to be property to which this chapter
does not apply.
new text end

Sec. 3.

new text begin [519A.03] DISPOSITION UPON DEATH.
new text end

new text begin Upon the death of a married person, one-half of the property to which this chapter
applies is the property of the surviving spouse and is not subject to testamentary
disposition by the decedent or distribution under the laws of succession of Minnesota.
The other one-half of that property is the property of the decedent and is subject to
testamentary disposition or distribution under the laws of succession of Minnesota. With
respect to property to which this chapter applies, the one-half of the property which is the
property of the decedent is not subject to the surviving spouse's right to elect against the
will and is not included in the decedent's net estate which is subject to the elective share
of the surviving spouse.
new text end

Sec. 4.

new text begin [519A.04] PERFECTION OF TITLE OF SURVIVING SPOUSE.
new text end

new text begin If the title to any property to which this chapter applies was held by the decedent
at the time of death or by a trustee of an inter vivos trust created by the decedent or the
decedent and the decedent's spouse, title of the surviving spouse may be perfected by
an order of the court or by execution of an instrument, with the approval of the court
by the personal representative, the trustee, the heirs or devisees of the decedent, or the
testamentary beneficiaries. None of the personal representative, the trustee of any trust
described in this section, or the court having jurisdiction over the decedent's estate or trust
has a duty to discover or attempt to discover whether property held by the decedent is
property to which this chapter applies, unless a written demand is made by the surviving
spouse or the spouse's successor in interest as follows:
new text end

new text begin (1) within four months after the date of the first publication of notice to creditors, if
the property was held by the decedent's estate at the time of death;
new text end

new text begin (2) within 60 days after the decedent's date of death, if the property was held by a
trustee of an inter vivos trust at the time of death and no written notice is provided to the
surviving spouse or the spouse's successor in interest by the trustee; or
new text end

new text begin (3) within 20 days after written notice is given by certified or registered mail or
personally delivered to the surviving spouse or the spouse's successor in interest, if the
property was held by a trustee of an inter vivos trust at the time of death and written notice
is provided to the surviving spouse by the trustee.
new text end

Sec. 5.

new text begin [519A.05] PERFECTION OF TITLE OF PERSONAL
REPRESENTATIVE, TRUSTEE, HEIR OR DEVISEE, OR TESTAMENTARY
BENEFICIARY.
new text end

new text begin If the title to any property to which this chapter applies is held by the surviving
spouse at the time of the decedent's death or by a trustee of an inter vivos trust created by
the decedent or the decedent and the decedent's spouse, the personal representative, the
trustee, an heir or devisee of the decedent, or a testamentary beneficiary may institute an
action to perfect title to the property. Neither the personal representative nor the trustee
of a trust described in this section has a fiduciary duty to discover or attempt to discover
whether any property held by the surviving spouse or by a trustee of any trust described in
this section is property to which this chapter applies, unless a written demand is made by
an heir, devisee, testamentary beneficiary, or creditor of the decedent as follows:
new text end

new text begin (1) within four months after the date of the first publication of notice to creditors, if
the property was held by the surviving spouse at the time of the decedent's death; or
new text end

new text begin (2) within 60 days after the decedent's date of death, if the property was held by a
trustee of an inter vivos trust at the time of death.
new text end

Sec. 6.

new text begin [519A.06] PURCHASER FOR VALUE OR LENDER.
new text end

new text begin (a) If a surviving spouse has apparent title to property to which this chapter
applies, a purchaser for value or a lender taking a security interest in the property takes
the purchaser's or lender's interest in the property free of any rights of the personal
representative, trustee, heir, devisee, beneficiary, or distributee of the decedent.
new text end

new text begin (b) If a personal representative, trustee, heir, devisee, beneficiary, or distributee of
the decedent has apparent title to property to which this chapter applies, a purchaser for
value or a lender taking a security interest in the property takes an interest in the property
free of any rights of the surviving spouse.
new text end

new text begin (c) A purchaser for value or a lender need not inquire whether a lender or borrower
acted properly.
new text end

new text begin (d) The proceeds of a sale or creation of a security interest must be treated in the
same manner as the property transferred to the purchaser for value or a lender.
new text end

new text begin (e) For purposes of this section, any reference to the term "apparent title" with
respect to real property means "record title" to the property.
new text end

Sec. 7.

new text begin [519A.07] CREDITOR'S RIGHTS.
new text end

new text begin This chapter does not affect rights of creditors with respect to property to which
this chapter applies.
new text end

Sec. 8.

new text begin [519A.08] ACTS OF MARRIED PERSONS.
new text end

new text begin This chapter does not prevent married persons from severing or altering their
interests in property to which this chapter applies.
new text end

Sec. 9.

new text begin [519A.09] LIMITATIONS ON TESTAMENTARY DISPOSITION.
new text end

new text begin This chapter does not authorize a person to dispose of property by will or by trust
disposition if the property is held under the limitations imposed by law preventing
disposition by that person.
new text end

Sec. 10.

new text begin [519A.10] UNIFORMITY OF APPLICATION AND CONSTRUCTION.
new text end

new text begin The chapter shall be so applied and construed as to effectuate its general purpose
to make uniform the law with respect to the subject of this chapter among those states
which enact it.
new text end

Sec. 11.

new text begin [519A.11] SHORT TITLE.
new text end

new text begin This chapter may be cited as the "Uniform Disposition of Community Property
Rights at Death Act."
new text end