SF 3070

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to trust property; authorizing the use of debit or credit cards to draw
funds from custodial trust accounts; amending Minnesota Statutes 2006, section
529.08.

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

Section 1.

Minnesota Statutes 2006, section 529.08, is amended to read:

529.08 USE OF CUSTODIAL TRUST PROPERTY.

(a) A custodial trustee shall pay to the beneficiary or expend for the beneficiary's
use and benefit so much or all of the custodial trust property as the beneficiary while not
incapacitated may direct from time to time.

(b) If the beneficiary is incapacitated, the custodial trustee shall expend so much
or all of the custodial trust property as the custodial trustee considers advisable for the
use and benefit of the beneficiary and individuals who were supported by the beneficiary
when the beneficiary became incapacitated, or who are legally entitled to support by the
beneficiary. Expenditures may be made in the manner, when, and to the extent that the
custodial trustee determines suitable and proper, without court order and without regard
to other support, income, or property of the beneficiary.

(c) A custodial trustee may establish checking, savings, or other similar accounts
of reasonable amounts under which either the custodial trustee or the beneficiary may
withdraw funds from, deleted text begin or deleted text end draw checks against, new text begin or use a debit or credit card to make
payments from new text end the accounts. Funds withdrawn from, deleted text begin or deleted text end checks written against, new text begin or
payments made from new text end the account by the beneficiary are distributions of custodial trust
property by the custodial trustee to the beneficiary.