SF 695

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to trusts; limiting liability for hazardous 
  1.3             waste to the extent of trust assets; providing for 
  1.4             payment of trustee compensation; amending Minnesota 
  1.5             Statutes 1994, sections 115B.03, by adding a 
  1.6             subdivision; and 501B.71, by adding a subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1994, section 115B.03, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 8.  [TRUSTEE LIABILITY.] A trustee is liable under 
  1.11  this section only to the extent of assets in the trust. 
  1.12     Sec. 2.  Minnesota Statutes 1994, section 501B.71, is 
  1.13  amended by adding a subdivision to read: 
  1.14     Subd. 5.  [EXCEPTIONS.] Paragraphs (a) to (c) are 
  1.15  exceptions to the requirements of subdivisions 1 to 4. 
  1.16     (a) With respect to a revocable living trust, during the 
  1.17  lifetime of the grantor, all of the trustee's regular 
  1.18  compensation for services performed must be charged against 
  1.19  income, unless directed otherwise by the grantor. 
  1.20     (b) If charging a part or all of the trustee's regular 
  1.21  compensation to principal, in the judgment of the trustee, is 
  1.22  impracticable, because of the lack of sufficient cash and 
  1.23  readily marketable assets, or inadvisable, because of the nature 
  1.24  of the principal assets, the trustee may determine to pay part 
  1.25  or all of the compensation out of income.  The decision of the 
  1.26  trustee to pay a larger portion or all of the trustee's regular 
  2.1   compensation out of income is conclusive, and the income of the 
  2.2   trust is not entitled to reimbursement from principal at any 
  2.3   subsequent time or times. 
  2.4      (c) If charging a part or all of the trustee's regular 
  2.5   compensation to income, in the judgment of the trustee, is 
  2.6   impracticable, because of the lack of sufficient income, or 
  2.7   inadvisable, because of a desire to provide maximum income to 
  2.8   the beneficiary, the trustee may determine to pay part or all of 
  2.9   such compensation out of principal.  The decision of the trustee 
  2.10  to pay a larger portion or all of the trustee's regular 
  2.11  compensation out of the principal is conclusive.