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Minnesota Legislature

Office of the Revisor of Statutes

SF 2427

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 05/10/2010 05:48pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 2nd Engrossment

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A bill for an act
relating to property held in trust; clarifying status of certain distributions;
changing certain relationship and inheritance provisions; changing certain estate
taxation provisions; providing for emergency and temporary conservators;
amending Minnesota Statutes 2008, sections 289A.10, subdivision 1; 291.03, by adding a subdivision; 501B.64, subdivision 3; 524.1-201; 524.2-114; Minnesota Statutes 2009 Supplement, sections 291.005, subdivision 1; 524.5-409; proposing coding for new law in Minnesota Statutes, chapter 524.

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

Section 1.

Minnesota Statutes 2008, section 289A.10, subdivision 1, is amended to
read:


Subdivision 1.

Return required.

In the case of a decedent who has an interest in
property with a situs in Minnesota, the personal representative must submit a Minnesota
estate tax return to the commissioner, on a form prescribed by the commissioner, if:

(1) a federal estate tax return is required to be filed; or

(2) the federal gross estate exceeds deleted text begin$700,000 for estates of decedents dying after
December 31, 2001, and before January 1, 2004; $850,000 for estates of decedents dying
after December 31, 2003, and before January 1, 2005; $950,000 for estates of decedents
dying after December 31, 2004, and before January 1, 2006; and
deleted text end $1,000,000 deleted text beginfor estates of
decedents dying after December 31, 2005
deleted text end.

The return must contain a computation of the Minnesota estate tax due. The return
must be signed by the personal representative.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estates of decedents dying after
December 31, 2005.
new text end

Sec. 2.

Minnesota Statutes 2009 Supplement, section 291.005, subdivision 1, is
amended to read:


Subdivision 1.

Scope.

Unless the context otherwise clearly requires, the following
terms used in this chapter shall have the following meanings:

(1) "Commissioner" means the commissioner of revenue or any person to whom the
commissioner has delegated functions under this chapter.

(2) "Federal gross estate" means the gross estate of a decedent as new text beginrequired to
be
new text endvalued and otherwise determined for federal estate tax purposes deleted text beginby federal taxing
authorities pursuant to the provisions of
deleted text endnew text begin undernew text end the Internal Revenue Code.

(3) "Internal Revenue Code" means the United States Internal Revenue Code of
1986, as amended through March 31, 2009new text begin, but without regard to the provisions of
sections 501 and 901 of Public Law 107-16
new text end.

(4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
defined by section 2011(b)(3) of the Internal Revenue Code, increased by the amount of
deduction for state death taxes allowed under section 2058 of the Internal Revenue Code.

(5) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
excluding therefrom any property included therein which has its situs outside Minnesota,
and (b) including therein any property omitted from the federal gross estate which is
includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
authorities.

(6) "Nonresident decedent" means an individual whose domicile at the time of
death was not in Minnesota.

(7) "Personal representative" means the executor, administrator or other person
appointed by the court to administer and dispose of the property of the decedent. If there
is no executor, administrator or other person appointed, qualified, and acting within this
state, then any person in actual or constructive possession of any property having a situs in
this state which is included in the federal gross estate of the decedent shall be deemed
to be a personal representative to the extent of the property and the Minnesota estate tax
due with respect to the property.

(8) "Resident decedent" means an individual whose domicile at the time of death
was in Minnesota.

(9) "Situs of property" means, with respect to real property, the state or country in
which it is located; with respect to tangible personal property, the state or country in which
it was normally kept or located at the time of the decedent's death; and with respect to
intangible personal property, the state or country in which the decedent was domiciled
at death.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies regardless of when the decedent died.
new text end

Sec. 3.

Minnesota Statutes 2008, section 291.03, is amended by adding a subdivision
to read:


new text begin Subd. 1b. new text end

new text begin Qualified terminable interest property. new text end

new text begin For estates of decedents dying
after December 31, 2009, and before January 1, 2011, if no federal estate tax return is
filed the executor may make a qualified terminable interest property election, as defined
in section 2056(b)(7) of the Internal Revenue Code, for purposes of computing the tax
under this chapter. The election may not reduce the taxable estate under this chapter
below $3,500,000. The election must be made on the tax return under this chapter and is
irrevocable. All tax under this chapter must be determined using the qualified terminable
interest property election made on the Minnesota return. For purposes of applying
sections 2044 and 2207A of the Internal Revenue Code when computing the tax under
this chapter for the estate of the decedent's surviving spouse, regardless of the date of
death of the surviving spouse, amounts for which a qualified terminable interest property
election has been made under this section must be treated as though a valid federal
qualified terminable interest property election under section 2056(b)(7) of the Internal
Revenue Code has been made.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estates of decedents dying after
December 31, 2009.
new text end

Sec. 4.

Minnesota Statutes 2008, section 501B.64, subdivision 3, is amended to read:


Subd. 3.

Regulated investment company; real estate investment trust.

Distributions made from ordinary income by a regulated investment company or by a trust
qualifying and electing to be taxed under federal law as a real estate investment trust are
income. All other distributions made by the company or trust, including distributions from
new text begin short-term or long-term new text endcapital gains, depreciation, or depletion, whether in the form of
cash or an option to take new stock or cash or an option to purchase additional shares,
are principal.

Sec. 5.

Minnesota Statutes 2008, section 524.1-201, is amended to read:


524.1-201 GENERAL DEFINITIONS.

Subject to additional definitions contained in the subsequent articles which are
applicable to specific articles or parts, and unless the context otherwise requires, in
chapters 524 and 525:

new text begin (1) "Adoptee" means an individual who is adopted.
new text end

(2) "Application" means a written request to the registrar for an order of informal
probate or appointment under article III, part 3.

(3) new text begin"Assisted reproduction" means a method of causing pregnancy other than sexual
intercourse.
new text end

new text begin (4) new text end"Beneficiary," as it relates to trust beneficiaries, includes a person who has any
present or future interest, vested or contingent, and also includes the owner of an interest
by assignment or other transfer and as it relates to a charitable trust, includes any person
entitled to enforce the trust.

(5) new text begin"Birth mother" means a woman who gives birth to a child, including a woman
who is the child's genetic mother and including a woman who gives birth to a child of
assisted reproduction. "Birth mother" does not include a woman who gives birth pursuant
to a gestational agreement.
new text end

new text begin (6) new text end"Child" includes any individual entitled to take as a child under law by intestate
succession from the parent whose relationship is involved and excludes any person who is
only a stepchild, a foster child, a grandchild or any more remote descendant.

deleted text begin (6)deleted text end new text begin(7) "Child of assisted reproduction" means a child conceived by means of assisted
reproduction by a woman other than a child conceived pursuant to a gestational agreement.
new text end

new text begin (8) new text end"Claims" includes liabilities of the decedent whether arising in contract
or otherwise and liabilities of the estate which arise after the death of the decedent
including funeral expenses and expenses of administration. The term does not include
taxes, demands or disputes regarding title of a decedent to specific assets alleged to be
included in the estate, tort claims, foreclosure of mechanic's liens, or to actions pursuant
to section 573.02.

deleted text begin (7)deleted text end new text begin(9) new text end"Court" means the court or branch having jurisdiction in matters relating to
the affairs of decedents. This court in this state is known as the district court.

deleted text begin (8)deleted text end new text begin(10) new text end"Conservator" means a person who is appointed by a court to manage the
estate of a protected person.

deleted text begin (9)deleted text end new text begin(11) new text end"Descendant" of an individual means all of the individual's descendants
of all generations, with the relationship of parent and child at each generation being
determined by the definition of child and parent contained in this section.

deleted text begin (10)deleted text end new text begin(12) new text end"Devise," when used as a noun, means a testamentary disposition of real
or personal property and when used as a verb, means to dispose of real or personal
property by will.

deleted text begin (11)deleted text end new text begin(13) new text end"Devisee" means any person designated in a will to receive a devise. In the
case of a devise to an existing trust or trustee, or to a trustee on trust described by will, the
trust or trustee is the devisee and the beneficiaries are not devisees.

deleted text begin (12)deleted text end new text begin(14) new text end"Disability" means cause for appointment of a conservator as described in
section 524.5-401, or a protective order as described in section 524.5-412.

deleted text begin (13)deleted text end new text begin(15) new text end"Distributee" means any person who has received or who will receive
property of a decedent from the decedent's personal representative other than as a creditor
or purchaser. A testamentary trustee is a distributee with respect to property which the
trustee has received from a personal representative only to the extent of distributed assets
or their increment remaining in the trustee's hands. A beneficiary of a testamentary trust
to whom the trustee has distributed property received from a personal representative is a
distributee of the personal representative. For purposes of this provision, "testamentary
trustee" includes a trustee to whom assets are transferred by will, to the extent of the
devised assets.

deleted text begin (14)deleted text end new text begin(16) "Divorce" includes an annulment, dissolution, and declaration of invalidity
of marriage.
new text end

new text begin (17) new text end"Estate" includes all of the property of the decedent, trust, or other person
whose affairs are subject to this chapter as originally constituted and as it exists from
time to time during administration.

deleted text begin (16)deleted text end new text begin(18) new text end"Fiduciary" includes personal representative, guardian, conservator and
trustee.

deleted text begin (17)deleted text end new text begin(19) new text end"Foreign personal representative" means a personal representative of
another jurisdiction.

deleted text begin (18)deleted text end new text begin(20) new text end"Formal proceedings" means those conducted before a judge with notice to
interested persons.

deleted text begin (20)deleted text end new text begin(21) "Functioned as a parent of the child" means behaving toward a child in
a manner consistent with being the child's parent and performing functions that are
customarily performed by a parent, including fulfilling parental responsibilities toward the
child, recognizing or holding out the child as the individual's child, materially participating
in the child's upbringing, and residing with the child in the same household as a regular
member of that household.
new text end

new text begin (22) "Genetic father" means the man whose sperm fertilized the egg of a child's
genetic mother. If the father-child relationship is established under the presumption
of paternity under chapter 257, "genetic father" means only the man for whom that
relationship is established.
new text end

new text begin (23) "Genetic mother" means the woman whose egg was fertilized by the sperm
of a child's genetic father.
new text end

new text begin (24) "Genetic parent" means a child's genetic father or genetic mother.
new text end

new text begin (25) "Gestational agreement" means an agreement for assisted reproduction in which
a woman agrees to carry a child to birth for an intended parent or intended parents.
new text end

new text begin (26) new text end"Guardian" means a person who has qualified as a guardian of a minor or
incapacitated person pursuant to testamentary or court appointment, but excludes one
who is merely a guardian ad litem.

deleted text begin (21)deleted text end new text begin(27) new text end"Heirs" means those persons, including the surviving spouse, who are
entitled under the statutes of intestate succession to the property of a decedent.

deleted text begin (22)deleted text end new text begin(28) new text end"Incapacitated person" is as described in section 524.5-102, subdivision 6,
other than a minor.

deleted text begin (23)deleted text end new text begin(29) "Incapacity" when used in sections 524.2-114 to 524.2-120 means the
inability of an individual to function as a parent of a child because of the individual's
physical or mental condition.
new text end

new text begin (30) new text end"Informal proceedings" means those conducted by the judge, the registrar, or
the person or persons designated by the judge for probate of a will or appointment of a
personal representative in accordance with sections 524.3-301 to 524.3-311.

deleted text begin (24)deleted text end new text begin(31) "Intended parent" means an individual who entered into a gestational
agreement providing that the individual will be the parent of a child born to a woman by
means of assisted reproduction, including an individual who has a genetic relationship
with the child.
new text end

new text begin (32) new text end"Interested person" includes heirs, devisees, children, spouses, creditors,
beneficiaries and any others having a property right in or claim against the estate of a
decedent, ward or protected person which may be affected by the proceeding. It also
includes persons having priority for appointment as personal representative, and other
fiduciaries representing interested persons. The meaning as it relates to particular persons
may vary from time to time and must be determined according to the particular purposes
of, and matter involved in, any proceeding.

deleted text begin (27)deleted text end new text begin(33) new text end"Lease" includes an oil, gas, or other mineral lease.

deleted text begin (28)deleted text end new text begin(34) new text end"Letters" includes letters testamentary, letters of guardianship, letters of
administration, and letters of conservatorship.

deleted text begin (30)deleted text end new text begin(35) new text end"Mortgage" means any conveyance, agreement or arrangement in which
property is used as security.

deleted text begin (31)deleted text end new text begin(36) new text end"Nonresident decedent" means a decedent who was domiciled in another
jurisdiction at the time of death.

deleted text begin (32)deleted text end new text begin(37) new text end"Organization" includes a corporation, government or governmental
subdivision or agency, business trust, estate, trust, partnership or association, two or more
persons having a joint or common interest, or any other legal entity.

deleted text begin (35)deleted text end new text begin(38) new text end"Person" means an individual, a corporation, an organization, or other
legal entity.

deleted text begin (36)deleted text end new text begin(39) new text end"Personal representative" includes executor, administrator, successor
personal representative, special administrator, and persons who perform substantially the
same function under the law governing their status. "General personal representative"
excludes special administrator.

deleted text begin (37)deleted text end new text begin(40) new text end"Petition" means a written request to the court for an order after notice.

deleted text begin (38)deleted text end new text begin(41) new text end"Proceeding" includes action at law and suit in equity.

deleted text begin (39)deleted text end new text begin(42) new text end"Property" includes both real and personal property or any interest therein
and means anything that may be the subject of ownership.

deleted text begin (40)deleted text end new text begin(43) new text end"Protected person" is as described in section 524.5-102, subdivision 14.

deleted text begin (42)deleted text end new text begin(44) new text end"Registrar" refers to the judge of the court or the person designated by the
court to perform the functions of registrar as provided in section 524.1-307.

deleted text begin (43)deleted text end new text begin(45) "Relative" means a grandparent or a descendant of a grandparent.
new text end

new text begin (46) new text end"Security" includes any note, stock, treasury stock, bond, debenture, evidence
of indebtedness, certificate of interest or participation in an oil, gas or mining title
or lease or in payments out of production under such a title or lease, collateral trust
certificate, transferable share, voting trust certificate or, in general, any interest or
instrument commonly known as a security, or any certificate of interest or participation,
any temporary or interim certificate, receipt or certificate of deposit for, or any warrant
or right to subscribe to or purchase, any of the foregoing.

deleted text begin (44)deleted text end new text begin(47) new text end"Settlement," in reference to a decedent's estate, includes the full process
of administration, distribution and closing.

deleted text begin (45)deleted text end new text begin(48) new text end"Special administrator" means a personal representative as described by
sections 524.3-614 to 524.3-618.

deleted text begin (46)deleted text end new text begin(49) new text end"State" includes any state of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, and any territory or possession subject to the legislative
authority of the United States.

deleted text begin (47)deleted text end new text begin(50) new text end"Successor personal representative" means a personal representative,
other than a special administrator, who is appointed to succeed a previously appointed
personal representative.

deleted text begin (48)deleted text end new text begin(51) new text end"Successors" means those persons, other than creditors, who are entitled to
property of a decedent under the decedent's will, this chapter or chapter 525. "Successors"
also means a funeral director or county government that provides the funeral and burial of
the decedent, or a state or county agency with a claim authorized under section 256B.15.

deleted text begin (49)deleted text end new text begin(52) new text end"Supervised administration" refers to the proceedings described in sections
524.3-501 to 524.3-505.

deleted text begin (51)deleted text end new text begin(53) new text end"Testacy proceeding" means a proceeding to establish a will or determine
intestacy.

deleted text begin (53)deleted text end new text begin(54) "Third-party donor" means an individual who produces eggs or sperm used
for assisted reproduction, whether or not for consideration. The term does not include:
new text end

new text begin (i) a husband who provides sperm, or a wife who provides eggs, that are used for
assisted reproduction by the wife;
new text end

new text begin (ii) the birth mother of a child of assisted reproduction; or
new text end

new text begin (iii) a man who has been determined under section 524.2-120, subdivision 4 or 5, to
have a parent-child relationship with a child of assisted reproduction.
new text end

new text begin (55) new text end"Trust" includes any express trust, private or charitable, with additions
thereto, wherever and however created. It also includes a trust created or determined
by judgment or decree under which the trust is to be administered in the manner of
an express trust. "Trust" excludes other constructive trusts, and it excludes resulting
trusts, conservatorships, personal representatives, trust accounts as defined in chapter
528, custodial arrangements pursuant to sections 149A.97, 318.01 to 318.06, 527.21 to
527.44, business trusts providing for certificates to be issued to beneficiaries, common
trust funds, voting trusts, security arrangements, liquidation trusts, and trusts for the
primary purpose of paying debts, dividends, interest, salaries, wages, profits, pensions, or
employee benefits of any kind, and any arrangement under which a person is nominee
or escrowee for another.

deleted text begin (54)deleted text end new text begin(56) new text end"Trustee" includes an original, additional, or successor trustee, whether
or not appointed or confirmed by court.

deleted text begin (55)deleted text end new text begin(57) new text end"Ward" is as described in section 524.5-102, subdivision 17.

deleted text begin (56)deleted text end new text begin(58) new text end"Will" includes codicil and any testamentary instrument which merely
appoints an executor or revokes or revises another will.

Sec. 6.

Minnesota Statutes 2008, section 524.2-114, is amended to read:


524.2-114 deleted text beginMEANING OF CHILD AND RELATED TERMSdeleted text endnew text begin PARENT
BARRED FROM INHERITING IN CERTAIN CIRCUMSTANCES
new text end.

deleted text begin If, for purposes of intestate succession, a relationship of parent and child must be
established to determine succession by, through, or from a person:
deleted text end

deleted text begin (1) An adopted child is the child of an adopting parent and not of the birth parents
except that adoption of a child by the spouse of a birth parent has no effect on the
relationship between the child and that birth parent. If a parent dies and a child is
subsequently adopted by a stepparent who is the spouse of a surviving parent, any rights
of inheritance of the child or the child's descendant from or through the deceased parent
of the child which exist at the time of the death of that parent shall not be affected by
the adoption.
deleted text end

deleted text begin (2) In cases not covered by clause (1), a person is the child of the person's parents
regardless of the marital status of the parents and the parent and child relationship may be
established under the Parentage Act, sections 257.51 to 257.74.
deleted text end

new text begin (a) A parent is barred from inheriting from or through a child of the parent if:
new text end

new text begin (1) the parent's parental rights were terminated and the parent-child relationship
was not judicially reestablished; or
new text end

new text begin (2) the child died before reaching 18 years of age and there is clear and convincing
evidence that immediately before the child's death the parental rights of the parent
could have been terminated under law of this state other than this chapter on the basis
of nonsupport, abandonment, abuse, neglect, or other actions or inactions of the parent
toward the child.
new text end

new text begin (b) For the purpose of intestate succession from or through the deceased child,
a parent who is barred from inheriting under this section is treated as if the parent
predeceased the child.
new text end

Sec. 7.

new text begin [524.2-116] EFFECT OF PARENT-CHILD RELATIONSHIP.
new text end

new text begin Except as otherwise provided in section 524.2-119, subdivisions 2 to 5, if a
parent-child relationship exists or is established under this part, the parent is a parent of
the child and the child is a child of the parent for the purpose of intestate succession.
new text end

Sec. 8.

new text begin [524.2-117] PARENT-CHILD RELATIONSHIP WITH GENETIC
PARENTS.
new text end

new text begin Except as otherwise provided in section 524.2-114, 524.2-119, or 524.2-120, a
parent-child relationship exists between a child and the child's genetic parents, regardless
of the parents' marital status.
new text end

Sec. 9.

new text begin [524.2-118] ADOPTEE AND ADOPTEE'S ADOPTIVE PARENT OR
PARENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Parent-child relationship between adoptee and adoptive parent
or parents.
new text end

new text begin A parent-child relationship exists between an adoptee and the adoptee's
adoptive parent or parents.
new text end

new text begin Subd. 2. new text end

new text begin Individual in process of being adopted by married couple; stepchild in
process of being adopted by stepparent.
new text end

new text begin For purposes of subdivision 1:
new text end

new text begin (1) an individual who is in the process of being adopted by a married couple when
one of the spouses dies is treated as adopted by the deceased spouse if the adoption is
subsequently granted to the decedent's surviving spouse; and
new text end

new text begin (2) a child of a genetic parent who is in the process of being adopted by a genetic
parent's spouse when the spouse dies is treated as adopted by the deceased spouse if the
genetic parent survives the deceased spouse by 120 hours.
new text end

new text begin Subd. 3. new text end

new text begin Child of assisted reproduction in process of being adopted. new text end

new text begin If, after
a parent-child relationship is established between a child of assisted reproduction and a
parent under section 524.2-120, the child is in the process of being adopted by the parent's
spouse when that spouse dies, the child is treated as adopted by the deceased spouse for
the purpose of subdivision 2, clause (2).
new text end

new text begin Subd. 4. new text end

new text begin In the process of adoption. new text end

new text begin An individual is "in the process of being
adopted" if there exists clear and convincing evidence of the intention of the deceased
spouse to adopt that individual.
new text end

Sec. 10.

new text begin [524.2-119] ADOPTEE AND ADOPTEE'S GENETIC PARENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Parent-child relationship between adoptee and genetic parents.
new text end

new text begin Except as otherwise provided in subdivisions 2 to 5, unless otherwise decreed, a
parent-child relationship does not exist between an adoptee and the adoptee's genetic
parents.
new text end

new text begin Subd. 2. new text end

new text begin Stepchild adopted by stepparent. new text end

new text begin A parent-child relationship exists
between an individual who is adopted by the spouse of either genetic parent and the
genetic parent whose spouse adopted the individual. No parent-child relationship exists
between an individual and the other genetic parent unless the other genetic parent was
deceased at the time of the child's adoption and then only for the purpose of the right of the
adoptee or a descendant of the adoptee to inherit from or through that other genetic parent.
new text end

new text begin Subd. 3. new text end

new text begin Individual adopted by relative of genetic parent. new text end

new text begin A parent-child
relationship exists between both genetic parents and an individual who is adopted by a
relative of a genetic parent, or by the spouse or surviving spouse of a relative of a genetic
parent, but only for the purpose of the right of the adoptee or a descendant of the adoptee
to inherit from or through either genetic parent.
new text end

new text begin Subd. 4. new text end

new text begin Individual adopted after death of both genetic parents. new text end

new text begin A parent-child
relationship exists between both genetic parents and an individual who is adopted after
the death of both genetic parents, but only for the purpose of the right of the adoptee or a
descendant of the adoptee to inherit through either genetic parent.
new text end

new text begin Subd. 5. new text end

new text begin Child of assisted reproduction who is subsequently adopted. new text end

new text begin If, after
a parent-child relationship is established between a child of assisted reproduction and a
parent or parents under section 524.2-120, the child is adopted by another or others, the
child's parent or parents under section 524.2-120 are treated as the child's genetic parent
or parents for the purpose of this section.
new text end

Sec. 11.

new text begin [524.2-120] CHILD CONCEIVED BY ASSISTED REPRODUCTION.
new text end

new text begin Subdivision 1. new text end

new text begin Third-party donor. new text end

new text begin A parent-child relationship does not exist
between a child of assisted reproduction and a third-party donor.
new text end

new text begin Subd. 2. new text end

new text begin Parent-child relationship with birth mother. new text end

new text begin A parent-child relationship
exists between a child of assisted reproduction and the child's birth mother.
new text end

new text begin Subd. 3. new text end

new text begin Parent-child relationship with husband whose sperm were used during
his lifetime by his wife for assisted reproduction.
new text end

new text begin Except as otherwise provided in
subdivision 9, a parent-child relationship exists between a child of assisted reproduction
and the husband of the child's birth mother if the husband provided the sperm that the birth
mother used during his lifetime for assisted reproduction.
new text end

new text begin Subd. 4. new text end

new text begin Official birth record; presumptive effect. new text end

new text begin An official birth record
identifying a man as the other parent of a child of assisted reproduction presumptively
establishes a parent-child relationship between the child and that man.
new text end

new text begin Subd. 5. new text end

new text begin Parent-child relationship with another. new text end

new text begin Except as otherwise provided
in subdivisions 6, 8, and 9, and unless a parent-child relationship is established under
subdivision 4, a parent-child relationship is presumed to exist between a child of assisted
reproduction and a man who consented to assisted reproduction by the birth mother with
intent to be treated as the other parent of the child. Consent to assisted reproduction by
the birth mother with intent to be treated as the other parent of the child is established if
the man:
new text end

new text begin (1) before or after the child's birth, signed a record that, considering all the facts and
circumstances, evidences the man's consent; or
new text end

new text begin (2) in the absence of a signed record under clause (1):
new text end

new text begin (i) functioned as the other parent of the child no later than two years after the child's
birth; or
new text end

new text begin (ii) intended to function as the other parent of the child no later than two years after
the child's birth but was prevented from carrying out that intent by death, incapacity, or
other circumstances, if that intent is established by clear and convincing evidence.
new text end

new text begin Subd. 6. new text end

new text begin Record signed more than two years after the birth of the child: effect.
new text end

new text begin For the purpose of subdivision 5, clause (1), neither a man who signed a record more than
two years after the birth of the child, nor a relative of that man who is not also a relative of
the birth mother, inherits from or through the child unless the man functioned as a parent
of the child before the child reached 18 years of age.
new text end

new text begin Subd. 7. new text end

new text begin Presumption; birth mother is married or surviving spouse. new text end

new text begin (a)
Paragraphs (b) and (c) apply to subdivision 5, clause (2).
new text end

new text begin (b) If the birth mother is married and no divorce proceeding is pending, in the
absence of clear and convincing evidence to the contrary, her spouse satisfies subdivision
5, clause (2), item (i) or (ii).
new text end

new text begin (c) If the birth mother is a surviving spouse and at her deceased spouse's death no
divorce proceeding was pending, in the absence of clear and convincing evidence to the
contrary, her deceased spouse satisfies subdivision 5, clause (2), item (ii).
new text end

new text begin Subd. 8. new text end

new text begin Divorce before placement of eggs, sperm, or embryos. new text end

new text begin If a married
couple is divorced before placement of eggs, sperm, or embryos, a child resulting from
the assisted reproduction is not a child of the birth mother's former spouse, unless the
former spouse consented in a record or such consent is established by clear and convincing
evidence that if assisted reproduction were to occur after divorce, the child would be
treated as the former spouse's child.
new text end

new text begin Subd. 9. new text end

new text begin Withdrawal of consent before placement of eggs, sperm, or embryos.
new text end

new text begin If, in a record or through clear and convincing evidence, a man withdraws consent to
assisted reproduction before placement of eggs, sperm, or embryos, a child resulting from
the assisted reproduction is not a child of that man, unless the man subsequently satisfies
subdivision 4 or 5.
new text end

new text begin Subd. 10. new text end

new text begin Exclusion of posthumously conceived children. new text end

new text begin Notwithstanding any
other provision of this section and subject to section 524.2-108, a parent-child relationship
does not exist between a child of assisted reproduction and another person unless the child
of assisted reproduction is in gestation prior to the death of such person.
new text end

Sec. 12.

new text begin [524.2-121] NO EFFECT ON GESTATIONAL AGREEMENTS.
new text end

new text begin This chapter does not affect law of this state regarding gestational agreements.
new text end

Sec. 13.

new text begin [524.2-122] NO EFFECT ON EQUITABLE ADOPTION.
new text end

new text begin This chapter does not affect the doctrine of equitable adoption.
new text end

Sec. 14.

new text begin [524.2-712] DECEDENTS DYING AFTER DECEMBER 31, 2009, AND
BEFORE JANUARY 1, 2011; FORMULA CLAUSES TO BE CONSTRUED TO
REFER TO FEDERAL ESTATE TAX AND FEDERAL GENERATION-SKIPPING
TRANSFER TAX LAWS.
new text end

new text begin (a) A governing instrument, including a will or trust agreement, of a decedent who
dies after December 31, 2009, and before January 1, 2011, that contains a formula or
provision referring to the "unified credit," "estate tax exemption," "applicable exemption
amount," "applicable credit amount," "applicable exclusion amount," "generation-skipping
transfer tax exemption," "GST exemption," "marital deduction," "maximum marital
deduction," "unlimited marital deduction," "inclusion ratio," "applicable fraction," or
any section of the Internal Revenue Code relating to the federal estate tax or federal
generation-skipping transfer tax, or that measures a share of an estate or trust by reference
to federal estate taxes or federal generation-skipping transfer taxes, is deemed to refer to
the federal estate tax and federal generation-skipping transfer tax laws as they applied with
respect to the estates of decedents dying on December 31, 2009. This paragraph does not
apply to a governing instrument, including a will or trust agreement, that manifests an
intent that a contrary rule will apply if the decedent dies on a date on which there is no
then-applicable federal estate or federal generation-skipping transfer tax.
new text end

new text begin (b) If the federal estate or federal generation-skipping transfer tax becomes effective
before January 1, 2011, then the reference to January 1, 2011, in paragraph (a) is deemed
to refer to the first date on which this tax becomes legally effective, instead of January 1,
2011.
new text end

new text begin (c) The personal representative, trustee, or any interested person under the governing
instrument, including a will or trust agreement, may bring a proceeding to determine
whether the decedent intended that a formula or provision described in paragraph (a) be
construed with respect to the law as it existed after December 31, 2009. This proceeding
must be commenced by December 31, 2011.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactive to January 1, 2010.
new text end

Sec. 15.

Minnesota Statutes 2009 Supplement, section 524.5-409, is amended to read:


524.5-409 FINDINGS; ORDER OF APPOINTMENT.

new text begin Subdivision 1. new text end

new text begin Limited or unlimited conservator. new text end

(a) The court may appoint a
limited or unlimited conservator for a respondent only if it finds that:

(1) by clear and convincing evidence, the individual is unable to manage property
and business affairs because of an impairment in the ability to receive and evaluate
information or make decisions, even with the use of appropriate technological assistance,
or because the individual is missing, detained, or unable to return to the United States;

(2) by a preponderance of evidence, the individual has property that will be wasted
or dissipated unless management is provided or money is needed for the support, care,
education, health, and welfare of the individual or of individuals who are entitled to the
individual's support and that protection is necessary or desirable to obtain or provide
money; and

(3) the respondent's identified needs cannot be met by less restrictive means,
including use of appropriate technological assistance.

(b) Alternatively, the court, with appropriate findings, may enter any other
appropriate order, or dismiss the proceeding.

(c) The court, whenever feasible, shall grant to a conservator only those powers
necessitated by the protected person's limitations and demonstrated needs and make
appointive and other orders that will encourage the development of the protected person's
maximum self-reliance and independence.

(d) Within 14 days after an appointment, the conservator shall send or deliver to the
protected person, if the protected person has attained 14 years of age and is not missing,
detained, or unable to return to the United States, and counsel if represented at the hearing,
a copy of the order of appointment accompanied by a notice which advises the protected
person of the right to appeal the conservatorship appointment in the time and manner
provided by the Rules of Appellate Procedure.

(e) Each year, within 30 days after the anniversary date of an appointment, a
conservator shall send or deliver to the protected person and to interested persons of
record with the court a notice of the right to request termination or modification of the
conservatorship or for any order that is in the best interests of the protected person or for
other appropriate relief.

(f) The appointment of a conservator or the entry of another protective order is not a
determination of incapacity of the protected person.

new text begin Subd. 2. new text end

new text begin Emergency and temporary conservator. new text end

new text begin (a) If the court finds that
compliance with the procedures of this article will likely result in the immediate loss,
waste, or dissipation of the individual's assets or income unless management is provided,
or money is needed for the support, care, education, health, and welfare of the individual or
of individuals who are entitled to the individual's support and that protection is necessary
or desirable to obtain or provide money, and that no other person appears to have authority
and willingness to act in the circumstances, the court, on petition by a person interested in
the respondent's welfare, may appoint an emergency conservator whose authority may not
exceed 60 days and who may exercise only the powers specified in the order. A county
that is acting under section 626.557, subdivision 10, by petitioning for appointment of
an emergency conservator on behalf of a vulnerable adult may be granted authority to
act for a period not to exceed 90 days. Immediately upon receipt of the petition for an
emergency conservatorship, the court shall appoint a lawyer to represent the respondent
in the proceeding. Except as otherwise provided in paragraph (b), reasonable notice of
the time and place of a hearing on the petition must be given to the respondent and any
other persons as the court directs.
new text end

new text begin (b) An emergency conservator may be appointed without notice to the respondent
and the respondent's lawyer only if the court finds from affidavit or other sworn testimony
that the respondent will be substantially harmed before a hearing on the appointment
can be held. If the court appoints an emergency conservator without notice to the
respondent, the respondent must be given notice of the appointment within 48 hours after
the appointment. The court shall hold a hearing on the appropriateness of the appointment
within five days after the appointment.
new text end

new text begin (c) Appointment of an emergency conservator, with or without notice, is not a
determination of the respondent's incapacity.
new text end

new text begin (d) The court may remove an emergency conservator at any time. An emergency
conservator shall make any report the court requires. In other respects, the provisions of
this article concerning conservators apply to an emergency conservator.
new text end

new text begin (e) If the court finds that a conservator is not effectively performing the conservator's
duties and that the security and preservation of the protected person's assets requires
immediate action, the court may appoint a temporary substitute conservator for the
protected person for a specified period not exceeding six months. Except as otherwise
ordered by the court, a temporary substitute conservator so appointed has the powers set
forth in the previous order of appointment. The authority of any unlimited or limited
conservator previously appointed by the court is suspended as long as a temporary
substitute conservator has authority. If an appointment is made without previous notice to
the protected person or the affected conservator within five days after the appointment, the
court shall inform the protected person or conservator of the appointment.
new text end

new text begin (f) The court may remove a temporary substitute conservator at any time. A
temporary substitute conservator shall make any report the court requires. In other
respects, the provisions of this article concerning conservators apply to a temporary
substitute conservator.
new text end

Sec. 16. new text begin[RENUMBERING INSTRUCTION.]
new text end

new text begin The revisor of statutes shall renumber section 524.2-115 as 524.2-123 in the next
and subsequent editions of Minnesota Statutes.
new text end

Sec. 17. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 4 and 15 are effective the day following final enactment. Sections 5 to 13
are effective August 1, 2010, and apply to the rights of successors of decedents dying on
or after August 1, 2010, and to any instruments executed before August 1, 2010, unless
there is a clear indication of contrary intent in the instrument.
new text end