SF 1771

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

  1.1                          A bill for an act 
  1.2             relating to community property; enacting the uniform 
  1.3             disposition of community property rights at death act; 
  1.4             proposing coding for new law as Minnesota Statutes, 
  1.5             chapter 526A. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [526A.01] [APPLICATION.] 
  1.8      This chapter applies to the disposition at death of the 
  1.9   following property acquired by a married person: 
  1.10     (1) all personal property, wherever situated: 
  1.11     (i) which was acquired as or became, and remained, 
  1.12  community property under the laws of another jurisdiction; 
  1.13     (ii) all or the proportionate part of that property 
  1.14  acquired with the rents, issues, or income of, or the proceeds 
  1.15  from, or in exchange for, that community property; or 
  1.16     (iii) traceable to that community property; 
  1.17     (2) all or the proportionate part of any real property 
  1.18  situated in this state which was acquired with the rents, 
  1.19  issues, or income of, the proceeds from, or in exchange for, 
  1.20  property acquired as or which became, and remained, community 
  1.21  property under the laws of another jurisdiction, or property 
  1.22  traceable to that community property. 
  1.23     Sec. 2.  [526A.02] [REBUTTABLE PRESUMPTIONS.] 
  1.24     In determining whether this chapter applies to specific 
  1.25  property the following rebuttable presumptions apply: 
  2.1      (1) property acquired during marriage by a spouse of that 
  2.2   marriage while domiciled in a jurisdiction under whose laws 
  2.3   property could then be acquired as community property is 
  2.4   presumed to have been acquired as or to have become, and 
  2.5   remained, property to which this chapter applies; and 
  2.6      (2) real property situated in this state and personal 
  2.7   property wherever situated acquired by a married person while 
  2.8   domiciled in a jurisdiction under whose laws property could not 
  2.9   then be acquired as community property, title to which was taken 
  2.10  in a form which created rights of survivorship, is presumed not 
  2.11  to be property to which this chapter applies. 
  2.12     Sec. 3.  [526A.03] [DISPOSITION UPON DEATH.] 
  2.13     Upon death of a married person, one-half of the property to 
  2.14  which this chapter applies is the property of the surviving 
  2.15  spouse and is not subject to testamentary disposition by the 
  2.16  decedent or distribution under the laws of succession of this 
  2.17  state.  One-half of that property is the property of the 
  2.18  decedent and is subject to testamentary disposition or 
  2.19  distribution under the laws of succession of this state.  With 
  2.20  respect to property to which this chapter applies, the one-half 
  2.21  of the property which is the property of the decedent is not 
  2.22  subject to the surviving spouse's right to elect against the 
  2.23  will. 
  2.24     Sec. 4.  [526A.04] [PERFECTION OF TITLE OF SURVIVING 
  2.25  SPOUSE.] 
  2.26     If the title to any property to which this chapter applies 
  2.27  was held by the decedent at the time of death, title of the 
  2.28  surviving spouse may be perfected by an order of the court or by 
  2.29  execution of an instrument by the personal representative or the 
  2.30  heirs or devisees of the decedent with the approval of the 
  2.31  court.  Neither the personal representative nor the court in 
  2.32  which the decedent's estate is being administered has a duty to 
  2.33  discover or attempt to discover whether property held by the 
  2.34  decedent is property to which this chapter applies, unless a 
  2.35  written demand is made by the surviving spouse or the spouse's 
  2.36  successor in interest. 
  3.1      Sec. 5.  [526A.05] [PERFECTION OF TITLE OF PERSONAL 
  3.2   REPRESENTATIVE, HEIR, OR DEVISEE.] 
  3.3      If the title to any property to which this chapter applies 
  3.4   is held by the surviving spouse at the time of the decedent's 
  3.5   death, the personal representative or an heir or devisee of the 
  3.6   decedent may institute an action to perfect title to the 
  3.7   property.  The personal representative has no fiduciary duty to 
  3.8   discover or attempt to discover whether any property held by the 
  3.9   surviving spouse is property to which this chapter applies, 
  3.10  unless a written demand is made by an heir, devisee, or creditor 
  3.11  of the decedent. 
  3.12     Sec. 6.  [526A.06] [PURCHASER FOR VALUE OR LENDER.] 
  3.13     (a) If a surviving spouse has apparent title to property to 
  3.14  which this chapter applies, a purchaser for value or a lender 
  3.15  taking a security interest in the property takes interest in the 
  3.16  property free of any rights of the personal representative or an 
  3.17  heir or devisee of the decedent. 
  3.18     (b) If a personal representative or an heir or devisee of 
  3.19  the decedent has apparent title to property to which this 
  3.20  chapter applies, a purchaser for value or a lender taking a 
  3.21  security interest in the property takes interest in the property 
  3.22  free of any rights of the surviving spouse. 
  3.23     (c) A purchaser for value or a lender need not inquire 
  3.24  whether a vendor or borrower acted properly. 
  3.25     (d) The proceeds of a sale or creation of a security 
  3.26  interest shall be treated in the same manner as the property 
  3.27  transferred to the purchaser for value or a lender. 
  3.28     Sec. 7.  [526A.07] [CREDITOR'S RIGHTS.] 
  3.29     This chapter does not affect rights of creditors with 
  3.30  respect to property to which this chapter applies. 
  3.31     Sec. 8.  [526A.08] [ACTS OF MARRIED PERSONS.] 
  3.32     This chapter does not prevent married persons from severing 
  3.33  or altering their interests in property to which this chapter 
  3.34  applies. 
  3.35     Sec. 9.  [526A.09] [LIMITATIONS ON TESTAMENTARY 
  3.36  DISPOSITION.] 
  4.1      This chapter does not authorize a person to dispose of 
  4.2   property by will if it is held under limitations imposed by law 
  4.3   preventing testamentary disposition by that person. 
  4.4      Sec. 10.  [526A.10] [SHORT TITLE.] 
  4.5      This chapter may be cited as the "uniform disposition of 
  4.6   community property rights at death act."