SF 1306

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 09:47am

A bill for an act
relating to probate; authorizing courts to modify certain provisions; amending
Minnesota Statutes 2010, section 524.2-712.

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

Section 1.

Minnesota Statutes 2010, section 524.2-712, is amended to read:

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.

(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.

deleted 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.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end 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 deleted text begin . deleted text end new text begin , and the court may consider
extrinsic evidence that contradicts the plain meaning of the will, trust, or other governing
instrument. The court may modify a provision of a will, trust, or other governing
instrument that refers to the federal estate tax or generation-skipping transfer tax laws as
described in paragraph (a) to conform the terms to the decedent's intention, or achieve
the decedent's tax objectives in a manner that is not contrary to the decedent's probable
intention. The court may provide that its decision, including any decision to modify
a provision of a will, trust, or other governing instrument, is effective as of the date of
the decedent's death.
new text end