SF 2427

1st Unofficial Engrossment - 86th Legislature (2009 - 2010) Posted on 12/26/2012 11:17pm

1.1A bill for an act

1.2relating to property held in trust; clarifying status of certain distributions;
1.3changing certain relationship and inheritance provisions; changing certain estate
1.4taxation provisions; providing for emergency and temporary conservators;
1.5amending Minnesota Statutes 2008, sections 289A.10, subdivision 1; 291.03, by
1.6adding a subdivision; 501B.64, subdivision 3; 524.1-201; 524.2-114; Minnesota
1.7Statutes 2009 Supplement, sections 291.005, subdivision 1; 524.5-409; proposing
1.8coding for new law in Minnesota Statutes, chapter 524.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10    Section 1. Minnesota Statutes 2008, section 289A.10, subdivision 1, is amended to
1.11read:
1.12    Subdivision 1. Return required. In the case of a decedent who has an interest in
1.13property with a situs in Minnesota, the personal representative must submit a Minnesota
1.14estate tax return to the commissioner, on a form prescribed by the commissioner, if:
1.15(1) a federal estate tax return is required to be filed; or
1.16(2) the federal gross estate exceeds $700,000 for estates of decedents dying after
1.17December 31, 2001, and before January 1, 2004; $850,000 for estates of decedents dying
1.18after December 31, 2003, and before January 1, 2005; $950,000 for estates of decedents
1.19dying after December 31, 2004, and before January 1, 2006; and $1,000,000 for estates of
1.20decedents dying after December 31, 2005.
1.21The return must contain a computation of the Minnesota estate tax due. The return
1.22must be signed by the personal representative.
1.23EFFECTIVE DATE.This section is effective for estates of decedents dying after
1.24December 31, 2005.

2.1    Sec. 2. Minnesota Statutes 2009 Supplement, section 291.005, subdivision 1, is
2.2amended to read:
2.3    Subdivision 1. Scope. Unless the context otherwise clearly requires, the following
2.4terms used in this chapter shall have the following meanings:
2.5    (1) "Commissioner" means the commissioner of revenue or any person to whom the
2.6commissioner has delegated functions under this chapter.
2.7    (2) "Federal gross estate" means the gross estate of a decedent as required to
2.8be valued and otherwise determined for federal estate tax purposes by federal taxing
2.9authorities pursuant to the provisions of under the Internal Revenue Code.
2.10    (3) "Internal Revenue Code" means the United States Internal Revenue Code of
2.111986, as amended through March 31, 2009, but without regard to the provisions of
2.12sections 501 and 901 of Public Law 107-16.
2.13    (4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
2.14defined by section 2011(b)(3) of the Internal Revenue Code, increased by the amount of
2.15deduction for state death taxes allowed under section 2058 of the Internal Revenue Code.
2.16    (5) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
2.17excluding therefrom any property included therein which has its situs outside Minnesota,
2.18and (b) including therein any property omitted from the federal gross estate which is
2.19includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
2.20authorities.
2.21    (6) "Nonresident decedent" means an individual whose domicile at the time of
2.22death was not in Minnesota.
2.23    (7) "Personal representative" means the executor, administrator or other person
2.24appointed by the court to administer and dispose of the property of the decedent. If there
2.25is no executor, administrator or other person appointed, qualified, and acting within this
2.26state, then any person in actual or constructive possession of any property having a situs in
2.27this state which is included in the federal gross estate of the decedent shall be deemed
2.28to be a personal representative to the extent of the property and the Minnesota estate tax
2.29due with respect to the property.
2.30    (8) "Resident decedent" means an individual whose domicile at the time of death
2.31was in Minnesota.
2.32    (9) "Situs of property" means, with respect to real property, the state or country in
2.33which it is located; with respect to tangible personal property, the state or country in which
2.34it was normally kept or located at the time of the decedent's death; and with respect to
2.35intangible personal property, the state or country in which the decedent was domiciled
2.36at death.
3.1EFFECTIVE DATE.This section is effective the day following final enactment
3.2and applies regardless of when the decedent died.

3.3    Sec. 3. Minnesota Statutes 2008, section 291.03, is amended by adding a subdivision
3.4to read:
3.5    Subd. 1b. Qualified terminable interest property. For estates of decedents dying
3.6after December 31, 2009, and before January 1, 2011, if no federal estate tax return is
3.7filed the executor may make a qualified terminable interest property election, as defined
3.8in section 2056(b)(7) of the Internal Revenue Code, for purposes of computing the tax
3.9under this chapter. The election may not reduce the taxable estate under this chapter
3.10below $3,500,000. The election must be made on the tax return under this chapter and is
3.11irrevocable. All tax under this chapter must be determined using the qualified terminable
3.12interest property election made on the Minnesota return. For purposes of applying
3.13sections 2044 and 2207A of the Internal Revenue Code when computing the tax under
3.14this chapter for the estate of the decedent's surviving spouse, regardless of the date of
3.15death of the surviving spouse, amounts for which a qualified terminable interest property
3.16election has been made under this section must be treated as though a valid federal
3.17qualified terminable interest property election under section 2056(b)(7) of the Internal
3.18Revenue Code has been made.
3.19EFFECTIVE DATE.This section is effective for estates of decedents dying after
3.20December 31, 2009.

3.21    Sec. 4. Minnesota Statutes 2008, section 501B.64, subdivision 3, is amended to read:
3.22    Subd. 3. Regulated investment company; real estate investment trust.
3.23Distributions made from ordinary income by a regulated investment company or by a trust
3.24qualifying and electing to be taxed under federal law as a real estate investment trust are
3.25income. All other distributions made by the company or trust, including distributions from
3.26short-term or long-term capital gains, depreciation, or depletion, whether in the form of
3.27cash or an option to take new stock or cash or an option to purchase additional shares,
3.28are principal.

3.29    Sec. 5. Minnesota Statutes 2008, section 524.1-201, is amended to read:
3.30524.1-201 GENERAL DEFINITIONS.
4.1Subject to additional definitions contained in the subsequent articles which are
4.2applicable to specific articles or parts, and unless the context otherwise requires, in
4.3chapters 524 and 525:
4.4(1) "Adoptee" means an individual who is adopted.
4.5(2) "Application" means a written request to the registrar for an order of informal
4.6probate or appointment under article III, part 3.
4.7(3) "Assisted reproduction" means a method of causing pregnancy other than sexual
4.8intercourse.
4.9(4) "Beneficiary," as it relates to trust beneficiaries, includes a person who has any
4.10present or future interest, vested or contingent, and also includes the owner of an interest
4.11by assignment or other transfer and as it relates to a charitable trust, includes any person
4.12entitled to enforce the trust.
4.13(5) "Birth mother" means a woman who gives birth to a child, including a woman
4.14who is the child's genetic mother and including a woman who gives birth to a child of
4.15assisted reproduction. "Birth mother" does not include a woman who gives birth pursuant
4.16to a gestational agreement.
4.17(6) "Child" includes any individual entitled to take as a child under law by intestate
4.18succession from the parent whose relationship is involved and excludes any person who is
4.19only a stepchild, a foster child, a grandchild or any more remote descendant.
4.20(6) (7) "Child of assisted reproduction" means a child conceived by means of assisted
4.21reproduction by a woman other than a child conceived pursuant to a gestational agreement.
4.22(8) "Claims" includes liabilities of the decedent whether arising in contract
4.23or otherwise and liabilities of the estate which arise after the death of the decedent
4.24including funeral expenses and expenses of administration. The term does not include
4.25taxes, demands or disputes regarding title of a decedent to specific assets alleged to be
4.26included in the estate, tort claims, foreclosure of mechanic's liens, or to actions pursuant
4.27to section 573.02.
4.28(7) (9) "Court" means the court or branch having jurisdiction in matters relating to
4.29the affairs of decedents. This court in this state is known as the district court.
4.30(8) (10) "Conservator" means a person who is appointed by a court to manage the
4.31estate of a protected person.
4.32(9) (11) "Descendant" of an individual means all of the individual's descendants
4.33of all generations, with the relationship of parent and child at each generation being
4.34determined by the definition of child and parent contained in this section.
5.1(10) (12) "Devise," when used as a noun, means a testamentary disposition of real
5.2or personal property and when used as a verb, means to dispose of real or personal
5.3property by will.
5.4(11) (13) "Devisee" means any person designated in a will to receive a devise. In the
5.5case of a devise to an existing trust or trustee, or to a trustee on trust described by will, the
5.6trust or trustee is the devisee and the beneficiaries are not devisees.
5.7(12) (14) "Disability" means cause for appointment of a conservator as described in
5.8section 524.5-401, or a protective order as described in section 524.5-412.
5.9(13) (15) "Distributee" means any person who has received or who will receive
5.10property of a decedent from the decedent's personal representative other than as a creditor
5.11or purchaser. A testamentary trustee is a distributee with respect to property which the
5.12trustee has received from a personal representative only to the extent of distributed assets
5.13or their increment remaining in the trustee's hands. A beneficiary of a testamentary trust
5.14to whom the trustee has distributed property received from a personal representative is a
5.15distributee of the personal representative. For purposes of this provision, "testamentary
5.16trustee" includes a trustee to whom assets are transferred by will, to the extent of the
5.17devised assets.
5.18(14) (16) "Divorce" includes an annulment, dissolution, and declaration of invalidity
5.19of marriage.
5.20(17) "Estate" includes all of the property of the decedent, trust, or other person
5.21whose affairs are subject to this chapter as originally constituted and as it exists from
5.22time to time during administration.
5.23(16) (18) "Fiduciary" includes personal representative, guardian, conservator and
5.24trustee.
5.25(17) (19) "Foreign personal representative" means a personal representative of
5.26another jurisdiction.
5.27(18) (20) "Formal proceedings" means those conducted before a judge with notice to
5.28interested persons.
5.29(20) (21) "Functioned as a parent of the child" means behaving toward a child in
5.30a manner consistent with being the child's parent and performing functions that are
5.31customarily performed by a parent, including fulfilling parental responsibilities toward the
5.32child, recognizing or holding out the child as the individual's child, materially participating
5.33in the child's upbringing, and residing with the child in the same household as a regular
5.34member of that household.
5.35(22) "Genetic father" means the man whose sperm fertilized the egg of a child's
5.36genetic mother. If the father-child relationship is established under the presumption
6.1of paternity under chapter 257, "genetic father" means only the man for whom that
6.2relationship is established.
6.3(23) "Genetic mother" means the woman whose egg was fertilized by the sperm
6.4of a child's genetic father.
6.5(24) "Genetic parent" means a child's genetic father or genetic mother.
6.6(25) "Gestational agreement" means an agreement for assisted reproduction in which
6.7a woman agrees to carry a child to birth for an intended parent or intended parents.
6.8(26) "Guardian" means a person who has qualified as a guardian of a minor or
6.9incapacitated person pursuant to testamentary or court appointment, but excludes one
6.10who is merely a guardian ad litem.
6.11(21) (27) "Heirs" means those persons, including the surviving spouse, who are
6.12entitled under the statutes of intestate succession to the property of a decedent.
6.13(22) (28) "Incapacitated person" is as described in section 524.5-102, subdivision 6,
6.14other than a minor.
6.15(23) (29) "Incapacity" when used in sections 524.2-114 to 524.2-120 means the
6.16inability of an individual to function as a parent of a child because of the individual's
6.17physical or mental condition.
6.18(30) "Informal proceedings" means those conducted by the judge, the registrar, or
6.19the person or persons designated by the judge for probate of a will or appointment of a
6.20personal representative in accordance with sections 524.3-301 to 524.3-311.
6.21(24) (31) "Intended parent" means an individual who entered into a gestational
6.22agreement providing that the individual will be the parent of a child born to a woman by
6.23means of assisted reproduction, including an individual who has a genetic relationship
6.24with the child.
6.25(32) "Interested person" includes heirs, devisees, children, spouses, creditors,
6.26beneficiaries and any others having a property right in or claim against the estate of a
6.27decedent, ward or protected person which may be affected by the proceeding. It also
6.28includes persons having priority for appointment as personal representative, and other
6.29fiduciaries representing interested persons. The meaning as it relates to particular persons
6.30may vary from time to time and must be determined according to the particular purposes
6.31of, and matter involved in, any proceeding.
6.32(27) (33) "Lease" includes an oil, gas, or other mineral lease.
6.33(28) (34) "Letters" includes letters testamentary, letters of guardianship, letters of
6.34administration, and letters of conservatorship.
6.35(30) (35) "Mortgage" means any conveyance, agreement or arrangement in which
6.36property is used as security.
7.1(31) (36) "Nonresident decedent" means a decedent who was domiciled in another
7.2jurisdiction at the time of death.
7.3(32) (37) "Organization" includes a corporation, government or governmental
7.4subdivision or agency, business trust, estate, trust, partnership or association, two or more
7.5persons having a joint or common interest, or any other legal entity.
7.6(35) (38) "Person" means an individual, a corporation, an organization, or other
7.7legal entity.
7.8(36) (39) "Personal representative" includes executor, administrator, successor
7.9personal representative, special administrator, and persons who perform substantially the
7.10same function under the law governing their status. "General personal representative"
7.11excludes special administrator.
7.12(37) (40) "Petition" means a written request to the court for an order after notice.
7.13(38) (41) "Proceeding" includes action at law and suit in equity.
7.14(39) (42) "Property" includes both real and personal property or any interest therein
7.15and means anything that may be the subject of ownership.
7.16(40) (43) "Protected person" is as described in section 524.5-102, subdivision 14.
7.17(42) (44) "Registrar" refers to the judge of the court or the person designated by the
7.18court to perform the functions of registrar as provided in section 524.1-307.
7.19(43) (45) "Relative" means a grandparent or a descendant of a grandparent.
7.20(46) "Security" includes any note, stock, treasury stock, bond, debenture, evidence
7.21of indebtedness, certificate of interest or participation in an oil, gas or mining title
7.22or lease or in payments out of production under such a title or lease, collateral trust
7.23certificate, transferable share, voting trust certificate or, in general, any interest or
7.24instrument commonly known as a security, or any certificate of interest or participation,
7.25any temporary or interim certificate, receipt or certificate of deposit for, or any warrant
7.26or right to subscribe to or purchase, any of the foregoing.
7.27(44) (47) "Settlement," in reference to a decedent's estate, includes the full process
7.28of administration, distribution and closing.
7.29(45) (48) "Special administrator" means a personal representative as described by
7.30sections 524.3-614 to 524.3-618.
7.31(46) (49) "State" includes any state of the United States, the District of Columbia, the
7.32Commonwealth of Puerto Rico, and any territory or possession subject to the legislative
7.33authority of the United States.
7.34(47) (50) "Successor personal representative" means a personal representative,
7.35other than a special administrator, who is appointed to succeed a previously appointed
7.36personal representative.
8.1(48) (51) "Successors" means those persons, other than creditors, who are entitled to
8.2property of a decedent under the decedent's will, this chapter or chapter 525. "Successors"
8.3also means a funeral director or county government that provides the funeral and burial of
8.4the decedent, or a state or county agency with a claim authorized under section 256B.15.
8.5(49) (52) "Supervised administration" refers to the proceedings described in sections
8.6524.3-501 to 524.3-505.
8.7(51) (53) "Testacy proceeding" means a proceeding to establish a will or determine
8.8intestacy.
8.9(53) (54) "Third-party donor" means an individual who produces eggs or sperm used
8.10for assisted reproduction, whether or not for consideration. The term does not include:
8.11(i) a husband who provides sperm, or a wife who provides eggs, that are used for
8.12assisted reproduction by the wife;
8.13(ii) the birth mother of a child of assisted reproduction; or
8.14(iii) a man who has been determined under section 524.2-120, subdivision 4 or 5, to
8.15have a parent-child relationship with a child of assisted reproduction.
8.16(55) "Trust" includes any express trust, private or charitable, with additions
8.17thereto, wherever and however created. It also includes a trust created or determined
8.18by judgment or decree under which the trust is to be administered in the manner of
8.19an express trust. "Trust" excludes other constructive trusts, and it excludes resulting
8.20trusts, conservatorships, personal representatives, trust accounts as defined in chapter
8.21528, custodial arrangements pursuant to sections 149A.97, 318.01 to 318.06, 527.21 to
8.22527.44 , business trusts providing for certificates to be issued to beneficiaries, common
8.23trust funds, voting trusts, security arrangements, liquidation trusts, and trusts for the
8.24primary purpose of paying debts, dividends, interest, salaries, wages, profits, pensions, or
8.25employee benefits of any kind, and any arrangement under which a person is nominee
8.26or escrowee for another.
8.27(54) (56) "Trustee" includes an original, additional, or successor trustee, whether
8.28or not appointed or confirmed by court.
8.29(55) (57) "Ward" is as described in section 524.5-102, subdivision 17.
8.30(56) (58) "Will" includes codicil and any testamentary instrument which merely
8.31appoints an executor or revokes or revises another will.

8.32    Sec. 6. Minnesota Statutes 2008, section 524.2-114, is amended to read:
8.33524.2-114 MEANING OF CHILD AND RELATED TERMS PARENT
8.34BARRED FROM INHERITING IN CERTAIN CIRCUMSTANCES.
9.1    If, for purposes of intestate succession, a relationship of parent and child must be
9.2established to determine succession by, through, or from a person:
9.3    (1) An adopted child is the child of an adopting parent and not of the birth parents
9.4except that adoption of a child by the spouse of a birth parent has no effect on the
9.5relationship between the child and that birth parent. If a parent dies and a child is
9.6subsequently adopted by a stepparent who is the spouse of a surviving parent, any rights
9.7of inheritance of the child or the child's descendant from or through the deceased parent
9.8of the child which exist at the time of the death of that parent shall not be affected by
9.9the adoption.
9.10    (2) In cases not covered by clause (1), a person is the child of the person's parents
9.11regardless of the marital status of the parents and the parent and child relationship may be
9.12established under the Parentage Act, sections 257.51 to 257.74.
9.13(a) A parent is barred from inheriting from or through a child of the parent if:
9.14(1) the parent's parental rights were terminated and the parent-child relationship
9.15was not judicially reestablished; or
9.16(2) the child died before reaching 18 years of age and there is clear and convincing
9.17evidence that immediately before the child's death the parental rights of the parent
9.18could have been terminated under law of this state other than this chapter on the basis
9.19of nonsupport, abandonment, abuse, neglect, or other actions or inactions of the parent
9.20toward the child.
9.21(b) For the purpose of intestate succession from or through the deceased child,
9.22a parent who is barred from inheriting under this section is treated as if the parent
9.23predeceased the child.

9.24    Sec. 7. [524.2-116] EFFECT OF PARENT-CHILD RELATIONSHIP.
9.25Except as otherwise provided in section 524.2-119, subdivisions 2 to 5, if a
9.26parent-child relationship exists or is established under this part, the parent is a parent of
9.27the child and the child is a child of the parent for the purpose of intestate succession.

9.28    Sec. 8. [524.2-117] PARENT-CHILD RELATIONSHIP WITH GENETIC
9.29PARENTS.
9.30Except as otherwise provided in section 524.2-114, 524.2-119, or 524.2-120, a
9.31parent-child relationship exists between a child and the child's genetic parents, regardless
9.32of the parents' marital status.

10.1    Sec. 9. [524.2-118] ADOPTEE AND ADOPTEE'S ADOPTIVE PARENT OR
10.2PARENTS.
10.3    Subdivision 1. Parent-child relationship between adoptee and adoptive parent
10.4or parents. A parent-child relationship exists between an adoptee and the adoptee's
10.5adoptive parent or parents.
10.6    Subd. 2. Individual in process of being adopted by married couple; stepchild in
10.7process of being adopted by stepparent. For purposes of subdivision 1:
10.8(1) an individual who is in the process of being adopted by a married couple when
10.9one of the spouses dies is treated as adopted by the deceased spouse if the adoption is
10.10subsequently granted to the decedent's surviving spouse; and
10.11(2) a child of a genetic parent who is in the process of being adopted by a genetic
10.12parent's spouse when the spouse dies is treated as adopted by the deceased spouse if the
10.13genetic parent survives the deceased spouse by 120 hours.
10.14    Subd. 3. Child of assisted reproduction in process of being adopted. If, after
10.15a parent-child relationship is established between a child of assisted reproduction and a
10.16parent under section 524.2-120, the child is in the process of being adopted by the parent's
10.17spouse when that spouse dies, the child is treated as adopted by the deceased spouse for
10.18the purpose of subdivision 2, clause (2).
10.19    Subd. 4. In the process of adoption. An individual is "in the process of being
10.20adopted" if there exists clear and convincing evidence of the intention of the deceased
10.21spouse to adopt that individual.

10.22    Sec. 10. [524.2-119] ADOPTEE AND ADOPTEE'S GENETIC PARENTS.
10.23    Subdivision 1. Parent-child relationship between adoptee and genetic parents.
10.24Except as otherwise provided in subdivisions 2 to 5, unless otherwise decreed, a
10.25parent-child relationship does not exist between an adoptee and the adoptee's genetic
10.26parents.
10.27    Subd. 2. Stepchild adopted by stepparent. A parent-child relationship exists
10.28between an individual who is adopted by the spouse of either genetic parent and the
10.29genetic parent whose spouse adopted the individual. No parent-child relationship exists
10.30between an individual and the other genetic parent unless the other genetic parent was
10.31deceased at the time of the child's adoption and then only for the purpose of the right of the
10.32adoptee or a descendant of the adoptee to inherit from or through that other genetic parent.
10.33    Subd. 3. Individual adopted by relative of genetic parent. A parent-child
10.34relationship exists between both genetic parents and an individual who is adopted by a
10.35relative of a genetic parent, or by the spouse or surviving spouse of a relative of a genetic
11.1parent, but only for the purpose of the right of the adoptee or a descendant of the adoptee
11.2to inherit from or through either genetic parent.
11.3    Subd. 4. Individual adopted after death of both genetic parents. A parent-child
11.4relationship exists between both genetic parents and an individual who is adopted after
11.5the death of both genetic parents, but only for the purpose of the right of the adoptee or a
11.6descendant of the adoptee to inherit through either genetic parent.
11.7    Subd. 5. Child of assisted reproduction who is subsequently adopted. If, after
11.8a parent-child relationship is established between a child of assisted reproduction and a
11.9parent or parents under section 524.2-120, the child is adopted by another or others, the
11.10child's parent or parents under section 524.2-120 are treated as the child's genetic parent
11.11or parents for the purpose of this section.

11.12    Sec. 11. [524.2-120] CHILD CONCEIVED BY ASSISTED REPRODUCTION.
11.13    Subdivision 1. Third-party donor. A parent-child relationship does not exist
11.14between a child of assisted reproduction and a third-party donor.
11.15    Subd. 2. Parent-child relationship with birth mother. A parent-child relationship
11.16exists between a child of assisted reproduction and the child's birth mother.
11.17    Subd. 3. Parent-child relationship with husband whose sperm were used during
11.18his lifetime by his wife for assisted reproduction. Except as otherwise provided in
11.19subdivision 9, a parent-child relationship exists between a child of assisted reproduction
11.20and the husband of the child's birth mother if the husband provided the sperm that the birth
11.21mother used during his lifetime for assisted reproduction.
11.22    Subd. 4. Official birth record; presumptive effect. An official birth record
11.23identifying a man as the other parent of a child of assisted reproduction presumptively
11.24establishes a parent-child relationship between the child and that man.
11.25    Subd. 5. Parent-child relationship with another. Except as otherwise provided
11.26in subdivisions 6, 8, and 9, and unless a parent-child relationship is established under
11.27subdivision 4, a parent-child relationship is presumed to exist between a child of assisted
11.28reproduction and a man who consented to assisted reproduction by the birth mother with
11.29intent to be treated as the other parent of the child. Consent to assisted reproduction by
11.30the birth mother with intent to be treated as the other parent of the child is established if
11.31the man:
11.32(1) before or after the child's birth, signed a record that, considering all the facts and
11.33circumstances, evidences the man's consent; or
11.34(2) in the absence of a signed record under clause (1):
12.1(i) functioned as the other parent of the child no later than two years after the child's
12.2birth; or
12.3(ii) intended to function as the other parent of the child no later than two years after
12.4the child's birth but was prevented from carrying out that intent by death, incapacity, or
12.5other circumstances, if that intent is established by clear and convincing evidence.
12.6    Subd. 6. Record signed more than two years after the birth of the child: effect.
12.7For the purpose of subdivision 5, clause (1), neither a man who signed a record more than
12.8two years after the birth of the child, nor a relative of that man who is not also a relative of
12.9the birth mother, inherits from or through the child unless the man functioned as a parent
12.10of the child before the child reached 18 years of age.
12.11    Subd. 7. Presumption; birth mother is married or surviving spouse. (a)
12.12Paragraphs (b) and (c) apply to subdivision 5, clause (2).
12.13(b) If the birth mother is married and no divorce proceeding is pending, in the
12.14absence of clear and convincing evidence to the contrary, her spouse satisfies subdivision
12.155, clause (2), item (i) or (ii).
12.16(c) If the birth mother is a surviving spouse and at her deceased spouse's death no
12.17divorce proceeding was pending, in the absence of clear and convincing evidence to the
12.18contrary, her deceased spouse satisfies subdivision 5, clause (2), item (ii).
12.19    Subd. 8. Divorce before placement of eggs, sperm, or embryos. If a married
12.20couple is divorced before placement of eggs, sperm, or embryos, a child resulting from
12.21the assisted reproduction is not a child of the birth mother's former spouse, unless the
12.22former spouse consented in a record or such consent is established by clear and convincing
12.23evidence that if assisted reproduction were to occur after divorce, the child would be
12.24treated as the former spouse's child.
12.25    Subd. 9. Withdrawal of consent before placement of eggs, sperm, or embryos.
12.26If, in a record or through clear and convincing evidence, a man withdraws consent to
12.27assisted reproduction before placement of eggs, sperm, or embryos, a child resulting from
12.28the assisted reproduction is not a child of that man, unless the man subsequently satisfies
12.29subdivision 4 or 5.
12.30    Subd. 10. Exclusion of posthumously conceived children. Notwithstanding any
12.31other provision of this section and subject to section 524.2-108, a parent-child relationship
12.32does not exist between a child of assisted reproduction and another person unless the child
12.33of assisted reproduction is in gestation prior to the death of such person.

12.34    Sec. 12. [524.2-121] NO EFFECT ON GESTATIONAL AGREEMENTS.
12.35This chapter does not affect law of this state regarding gestational agreements.

13.1    Sec. 13. [524.2-122] NO EFFECT ON EQUITABLE ADOPTION.
13.2This chapter does not affect the doctrine of equitable adoption.

13.3    Sec. 14. [524.2-712] DECEDENTS DYING AFTER DECEMBER 31, 2009, AND
13.4BEFORE JANUARY 1, 2011; FORMULA CLAUSES TO BE CONSTRUED TO
13.5REFER TO FEDERAL ESTATE TAX AND FEDERAL GENERATION-SKIPPING
13.6TRANSFER TAX LAWS.
13.7(a) A governing instrument, including a will or trust agreement, of a decedent who
13.8dies after December 31, 2009, and before January 1, 2011, that contains a formula or
13.9provision referring to the "unified credit," "estate tax exemption," "applicable exemption
13.10amount," "applicable credit amount," "applicable exclusion amount," "generation-skipping
13.11transfer tax exemption," "GST exemption," "marital deduction," "maximum marital
13.12deduction," "unlimited marital deduction," "inclusion ratio," "applicable fraction," or
13.13any section of the Internal Revenue Code relating to the federal estate tax or federal
13.14generation-skipping transfer tax, or that measures a share of an estate or trust by reference
13.15to federal estate taxes or federal generation-skipping transfer taxes, is deemed to refer to
13.16the federal estate tax and federal generation-skipping transfer tax laws as they applied with
13.17respect to the estates of decedents dying on December 31, 2009. This paragraph does not
13.18apply to a governing instrument, including a will or trust agreement, that manifests an
13.19intent that a contrary rule will apply if the decedent dies on a date on which there is no
13.20then-applicable federal estate or federal generation-skipping transfer tax.
13.21(b) If the federal estate or federal generation-skipping transfer tax becomes effective
13.22before January 1, 2011, then the reference to January 1, 2011, in paragraph (a) is deemed
13.23to refer to the first date on which this tax becomes legally effective, instead of January 1,
13.242011.
13.25(c) The personal representative, trustee, or any interested person under the governing
13.26instrument, including a will or trust agreement, may bring a proceeding to determine
13.27whether the decedent intended that a formula or provision described in paragraph (a) be
13.28construed with respect to the law as it existed after December 31, 2009. This proceeding
13.29must be commenced by December 31, 2011.
13.30EFFECTIVE DATE.This section is effective retroactive to January 1, 2010.

13.31    Sec. 15. Minnesota Statutes 2009 Supplement, section 524.5-409, is amended to read:
13.32524.5-409 FINDINGS; ORDER OF APPOINTMENT.
14.1    Subdivision 1. Limited or unlimited conservator. (a) The court may appoint a
14.2limited or unlimited conservator for a respondent only if it finds that:
14.3(1) by clear and convincing evidence, the individual is unable to manage property
14.4and business affairs because of an impairment in the ability to receive and evaluate
14.5information or make decisions, even with the use of appropriate technological assistance,
14.6or because the individual is missing, detained, or unable to return to the United States;
14.7(2) by a preponderance of evidence, the individual has property that will be wasted
14.8or dissipated unless management is provided or money is needed for the support, care,
14.9education, health, and welfare of the individual or of individuals who are entitled to the
14.10individual's support and that protection is necessary or desirable to obtain or provide
14.11money; and
14.12(3) the respondent's identified needs cannot be met by less restrictive means,
14.13including use of appropriate technological assistance.
14.14(b) Alternatively, the court, with appropriate findings, may enter any other
14.15appropriate order, or dismiss the proceeding.
14.16(c) The court, whenever feasible, shall grant to a conservator only those powers
14.17necessitated by the protected person's limitations and demonstrated needs and make
14.18appointive and other orders that will encourage the development of the protected person's
14.19maximum self-reliance and independence.
14.20(d) Within 14 days after an appointment, the conservator shall send or deliver to the
14.21protected person, if the protected person has attained 14 years of age and is not missing,
14.22detained, or unable to return to the United States, and counsel if represented at the hearing,
14.23a copy of the order of appointment accompanied by a notice which advises the protected
14.24person of the right to appeal the conservatorship appointment in the time and manner
14.25provided by the Rules of Appellate Procedure.
14.26(e) Each year, within 30 days after the anniversary date of an appointment, a
14.27conservator shall send or deliver to the protected person and to interested persons of
14.28record with the court a notice of the right to request termination or modification of the
14.29conservatorship or for any order that is in the best interests of the protected person or for
14.30other appropriate relief.
14.31(f) The appointment of a conservator or the entry of another protective order is not a
14.32determination of incapacity of the protected person.
14.33    Subd. 2. Emergency and temporary conservator. (a) If the court finds that
14.34compliance with the procedures of this article will likely result in the immediate loss,
14.35waste, or dissipation of the individual's assets or income unless management is provided,
14.36or money is needed for the support, care, education, health, and welfare of the individual or
15.1of individuals who are entitled to the individual's support and that protection is necessary
15.2or desirable to obtain or provide money, and that no other person appears to have authority
15.3and willingness to act in the circumstances, the court, on petition by a person interested in
15.4the respondent's welfare, may appoint an emergency conservator whose authority may not
15.5exceed 60 days and who may exercise only the powers specified in the order. A county
15.6that is acting under section 626.557, subdivision 10, by petitioning for appointment of
15.7an emergency conservator on behalf of a vulnerable adult may be granted authority to
15.8act for a period not to exceed 90 days. Immediately upon receipt of the petition for an
15.9emergency conservatorship, the court shall appoint a lawyer to represent the respondent
15.10in the proceeding. Except as otherwise provided in paragraph (b), reasonable notice of
15.11the time and place of a hearing on the petition must be given to the respondent and any
15.12other persons as the court directs.
15.13(b) An emergency conservator may be appointed without notice to the respondent
15.14and the respondent's lawyer only if the court finds from affidavit or other sworn testimony
15.15that the respondent will be substantially harmed before a hearing on the appointment
15.16can be held. If the court appoints an emergency conservator without notice to the
15.17respondent, the respondent must be given notice of the appointment within 48 hours after
15.18the appointment. The court shall hold a hearing on the appropriateness of the appointment
15.19within five days after the appointment.
15.20(c) Appointment of an emergency conservator, with or without notice, is not a
15.21determination of the respondent's incapacity.
15.22(d) The court may remove an emergency conservator at any time. An emergency
15.23conservator shall make any report the court requires. In other respects, the provisions of
15.24this article concerning conservators apply to an emergency conservator.
15.25(e) If the court finds that a conservator is not effectively performing the conservator's
15.26duties and that the security and preservation of the protected person's assets requires
15.27immediate action, the court may appoint a temporary substitute conservator for the
15.28protected person for a specified period not exceeding six months. Except as otherwise
15.29ordered by the court, a temporary substitute conservator so appointed has the powers set
15.30forth in the previous order of appointment. The authority of any unlimited or limited
15.31conservator previously appointed by the court is suspended as long as a temporary
15.32substitute conservator has authority. If an appointment is made without previous notice to
15.33the protected person or the affected conservator within five days after the appointment, the
15.34court shall inform the protected person or conservator of the appointment.
15.35(f) The court may remove a temporary substitute conservator at any time. A
15.36temporary substitute conservator shall make any report the court requires. In other
16.1respects, the provisions of this article concerning conservators apply to a temporary
16.2substitute conservator.

16.3    Sec. 16. [RENUMBERING INSTRUCTION.]
16.4The revisor of statutes shall renumber section 524.2-115 as 524.2-123 in the next
16.5and subsequent editions of Minnesota Statutes.

16.6    Sec. 17. EFFECTIVE DATE.
16.7Sections 4 and 15 are effective the day following final enactment. Sections 5 to 13
16.8are effective August 1, 2010, and apply to the rights of successors of decedents dying on
16.9or after August 1, 2010, and to any instruments executed before August 1, 2010, unless
16.10there is a clear indication of contrary intent in the instrument.