Minnesota Session Laws - 1997, Regular Session

                             CHAPTER 9-S.F.No. 202 
                  An act relating to property; validating certain 
                  conveyances by religious corporations; regulating 
                  adverse claims by a government agency; clarifying the 
                  manner of service of certain notices regarding 
                  mechanics liens; requiring published notice of 
                  dispositions of certain real property in a marriage 
                  dissolution action; regulating property held in 
                  revocable trusts upon the dissolution of marriage; 
                  regulating specific devises and distributions of 
                  property under the uniform probate code; amending 
                  Minnesota Statutes 1996, sections 315.121; 508.70, by 
                  adding a subdivision; 514.06; 518.11; 524.2-402; 
                  524.2-403; and 524.2-606; proposing coding for new law 
                  in Minnesota Statutes, chapters 501B; and 524. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1996, section 315.121, is 
        amended to read: 
           315.121 [RELIGIOUS CORPORATIONS, CERTAIN CONVEYANCES 
        VALIDATED.] 
           All conveyances executed by any religious corporation 
        organized under this chapter, conveying real property within 
        this state that were recorded prior to July 1, 1984, have been 
        of record for more than six years in the office of the county 
        recorder or registrar of titles of the county in which the real 
        estate conveyed is located, and the record of the conveyance, 
        are legalized, validated, and confirmed, even though the 
        corporate records do not disclose that the execution of the 
        conveyance was authorized by the congregation of the religious 
        corporation in the manner provided by law, or the record of the 
        authorization has not been recorded in the office of the county 
        recorder or registrar of titles of the county in which the real 
        estate conveyed is located. 
           Sec. 2.  [501B.90] [EFFECT OF DISSOLUTION OF MARRIAGE.] 
           Subdivision 1.  [REVOCATION OF CERTAIN TRUST 
        PROVISIONS.] If after execution of a trust instrument in which a 
        sole grantor reserves a power to alter, amend, revoke, or 
        terminate the provisions of the trust, the grantor's marriage is 
        dissolved or annulled, the dissolution or annulment revokes any 
        disposition, provision for beneficial enjoyment or appointment 
        of property made by the trust instrument to a grantor's former 
        spouse, any provisions conferring a general or special power of 
        appointment on the former spouse and any appointment of the 
        former spouse as trustee, unless the trust instrument expressly 
        provides otherwise. 
           Subd. 2.  [PASSING OF PROPERTY.] Property prevented from 
        passing to a former spouse because of revocation by dissolution 
        or annulment of marriage passes as if the former spouse died on 
        the date of the entry of the judgment and decree dissolving or 
        annulling the grantor's marriage and other provisions conferring 
        some power or office on the former spouse are interpreted as if 
        the former spouse died on the date of the entry of the judgment 
        and decree dissolving or annulling the grantor's marriage.  
           Subd. 3.  [REVIVAL OF REVOKED PROVISIONS.] If provisions 
        are revoked solely by this section, they are revived by the 
        grantor's remarriage to the former spouse.  For purposes of this 
        chapter, dissolution of marriage includes divorce.  A decree of 
        separation which does not terminate the status of husband and 
        wife is not a dissolution of marriage for purposes of this 
        section.  No change of circumstances other than as described in 
        this section revokes a trust instrument.  
           Sec. 3.  Minnesota Statutes 1996, section 508.70, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [EXCEPTION TO TEN-YEAR LIMIT; ADVERSE CLAIM 
        STATEMENT BY GOVERNMENT AGENCY.] The provisions of subdivision 2 
        do not apply to an adverse claim statement made by the United 
        States of America, this state, or any political subdivision, 
        agency, or instrumentality of the United States of America or 
        this state, which statement was filed prior to August 1, 1997, 
        and was a recital or memorial on the certificate of title for 
        the affected real property on July 31, 1997. 
           Sec. 4.  Minnesota Statutes 1996, section 514.06, is 
        amended to read: 
           514.06 [TITLE OF VENDOR OR CONSENTING OWNER, SUBJECT TO.] 
           When land is sold under an executory contract requiring the 
        vendee to improve the same, and such contract is forfeited or 
        surrendered after liens have attached by reason of such 
        improvements, the title of the vendor shall be subject thereto; 
        but the vendor shall not be personally liable if the contract 
        was made in good faith.  When improvements are made by one 
        person upon the land of another, all persons interested therein 
        otherwise than as bona fide prior encumbrancers or lienors shall 
        be deemed to have authorized such improvements, in so far as to 
        subject their interests to liens therefor.  Any person who has 
        not authorized the same may protect that person's interest from 
        such liens by serving upon the persons doing work or otherwise 
        contributing to such improvement within five days after 
        knowledge thereof, written notice that the improvement is not 
        being made at that person's instance, or by posting like notice, 
        and keeping the same posted, in a conspicuous place on the 
        premises.  The service may be made by personal service or by 
        certified mail to the last known address of the person doing 
        work or otherwise contributing to the improvement.  Mailed 
        service is effective when mailed.  As against a lessor no lien 
        is given for repairs made by or at the instance of the lessee. 
           Sec. 5.  Minnesota Statutes 1996, section 518.11, is 
        amended to read: 
           518.11 [SERVICE; ALTERNATE SERVICE; PUBLICATION.] 
           (a) Unless a proceeding is brought by both parties, copies 
        of the summons and petition shall be served on the respondent 
        personally.  
           (b) When service is made out of this state and within the 
        United States, it may be proved by the affidavit of the person 
        making the same.  When service is made without the United States 
        it may be proved by the affidavit of the person making the same, 
        taken before and certified by any United States minister, charge 
        d'affaires, commissioner, consul or commercial agent, or other 
        consular or diplomatic officer of the United States appointed to 
        reside in such country, including all deputies or other 
        representatives of such officer authorized to perform their 
        duties; or before an officer authorized to administer an oath 
        with the certificate of an officer of a court of record of the 
        country wherein such affidavit is taken as to the identity and 
        authority of the officer taking the same.  
           (c) If personal service cannot be made, the court may order 
        service of the summons by alternate means.  The application for 
        alternate service must include the last known location of the 
        respondent; the petitioner's most recent contacts with the 
        respondent; the last known location of the respondent's 
        employment; the names and locations of the respondent's parents, 
        siblings, children, and other close relatives; the names and 
        locations of other persons who are likely to know the 
        respondent's whereabouts; and a description of efforts to locate 
        those persons.  
           The court shall consider the length of time the 
        respondent's location has been unknown, the likelihood that the 
        respondent's location will become known, the nature of the 
        relief sought, and the nature of efforts made to locate the 
        respondent.  The court shall order service by first class mail, 
        forwarding address requested, to any addresses where there is a 
        reasonable possibility that mail or information will be 
        forwarded or communicated to the respondent or, if no address so 
        qualifies, then to the respondent's last known address.  
           If the petitioner seeks disposition of real estate located 
        within the state of Minnesota, the court shall order that the 
        summons, which shall contain the legal description of the real 
        estate, be published in the county where the real estate is 
        located.  The court may also order publication, within or 
        without the state, but only if it might reasonably succeed in 
        notifying the respondent of the proceeding.  Also, the court may 
        require the petitioner to make efforts to locate the respondent 
        by telephone calls to appropriate persons.  Service shall be 
        deemed complete 21 days after mailing or 21 days after 
        court-ordered publication. 
           Sec. 6.  Minnesota Statutes 1996, section 524.2-402, is 
        amended to read: 
           524.2-402 [DESCENT OF HOMESTEAD.] 
           (a) If there is a surviving spouse, the homestead, 
        including a manufactured home which is the family residence, 
        descends free from any testamentary or other disposition of it 
        to which the spouse has not consented in writing or as provided 
        by law, as follows: 
           (1) if there is no surviving descendant of decedent, to the 
        spouse; or 
           (2) if there are surviving descendants of decedent, then to 
        the spouse for the term of the spouse's natural life and the 
        remainder in equal shares to the decedent's descendants by 
        representation. 
           (b) If there is no surviving spouse and the homestead has 
        not been disposed of by will it descends as other real estate. 
           (c) If the homestead passes by descent or will to the 
        spouse or decedent's descendants, it is exempt from all debts 
        which were not valid charges on it at the time of decedent's 
        death except that the homestead is subject to a claim filed 
        pursuant to section 246.53 for state hospital care or 256B.15 
        for medical assistance benefits.  If the homestead passes to a 
        person other than a spouse or decedent's descendants, it is 
        subject to the payment of the items mentioned in section 
        524.2-101.  No lien or other charge against a homestead so 
        exempted is enforceable in the probate court, but expenses of 
        administration, funeral expenses, expenses of last illness, 
        taxes, and debts.  The claimant may seek to enforce the a lien 
        or other charge against a homestead so exempted by an 
        appropriate action in the district court. 
           (d) For purposes of this section, except as provided in 
        section 524.2-301, the surviving spouse is deemed to consent to 
        any testamentary or other disposition of the homestead to which 
        the spouse has not previously consented in writing unless the 
        spouse files in the manner provided in section 524.2-211, 
        paragraph (f), a petition that asserts the homestead rights 
        provided to the spouse by this section. 
           Sec. 7.  Minnesota Statutes 1996, section 524.2-403, is 
        amended to read: 
           524.2-403 [EXEMPT PROPERTY.] 
           (a) If there is a surviving spouse, then, in addition to 
        the homestead and family allowance, the surviving spouse is 
        entitled from the estate to: 
           (1) property not exceeding $10,000 in value in excess of 
        any security interests therein, in household furniture, 
        furnishings, appliances, and personal effects, subject to an 
        award of sentimental value property under section 525.152; and 
           (2) one automobile, if any, without regard to value. 
           (b) If there is no surviving spouse, the decedent's 
        children are entitled jointly to the same property as provided 
        in paragraph (a). 
           (c) If encumbered chattels are selected and the value in 
        excess of security interests, plus that of other exempt 
        property, is less than $10,000, or if there is not $10,000 worth 
        of exempt property in the estate, the surviving spouse or 
        children are entitled to other personal property of the estate, 
        if any, to the extent necessary to make up the $10,000 value. 
           (d) Rights to exempt property and assets needed to make up 
        a deficiency of exempt property have priority over all claims 
        against the estate, but the right to any assets to make up a 
        deficiency of exempt property abates as necessary to permit 
        earlier payment of the family allowance. 
           (e) The rights granted by this section are in addition to 
        any benefit or share passing to the surviving spouse or children 
        by the decedent's will, unless otherwise provided, by intestate 
        succession or by way of elective share.  
           (f) A claim under section 246.53, 256B.15, 256D.16, or 
        261.04 takes precedence over any rights granted to a decedent's 
        adult children under this section.  No rights granted to a 
        decedent's adult children under this section shall have 
        precedence over a claim under section 246.53, 256B.15, 256D.16, 
        261.04, or 524.3-805, paragraph (a), clause (1), (2), or (3). 
           Sec. 8.  Minnesota Statutes 1996, section 524.2-606, is 
        amended to read: 
           524.2-606 [NONADEMPTION OF SPECIFIC DEVISES; UNPAID 
        PROCEEDS OF SALE, CONDEMNATION, OR INSURANCE; SALE BY 
        CONSERVATOR OR GUARDIAN.] 
           (a) A specific devisee has a right to the specifically 
        devised property in the testator's estate at death and: 
           (1) any balance of the purchase price, together with any 
        security agreement, owing from a purchaser to the testator at 
        death by reason of sale of the property; 
           (2) any amount of a condemnation award for the taking of 
        the property unpaid at death; 
           (3) any proceeds unpaid at death on fire or casualty 
        insurance on or other recovery for injury to the property; and 
           (4) property owned by the testator at death and acquired as 
        a result of foreclosure, or obtained in lieu of foreclosure, of 
        the security interest for a specifically devised obligation. 
           (b) If specifically devised property is sold or mortgaged 
        by a conservator or guardian or by an agent acting within the 
        authority of a durable power of attorney for an incapacitated 
        principal, or if a condemnation award, insurance proceeds, or 
        recovery for injury to the property are paid to a conservator or 
        guardian or to an agent acting within the authority of a durable 
        power of attorney for an incapacitated principal, the specific 
        devisee has the right to a general pecuniary devise equal to the 
        net sale price, the amount of the unpaid loan, the condemnation 
        award, the insurance proceeds, or the recovery. 
           (c) The right of a specific devisee under paragraph (b) is 
        reduced by any right the devisee has under paragraph (a). 
           (d) For the purposes of the references in paragraph (b) to 
        a conservator or guardian or an agent acting within the 
        authority of a durable power of attorney, paragraph (b) does not 
        apply if after the sale, mortgage, condemnation, casualty, or 
        recovery; 
           (1) in the case of a conservator or guardian, it was 
        adjudicated that the testator's incapacity ceased and the 
        testator survived the adjudication by one year.; or 
           (2) in the case of an agent acting within the authority of 
        a durable power of attorney, the testator's incapacity ceased 
        and the testator survived for one year after the incapacity 
        ceased.  
           (e) For the purposes of the references in paragraph (b) to 
        an agent acting within the authority of a durable power of 
        attorney for an incapacitated principal, (i) "incapacitated 
        principal" means a principal who is an incapacitated person as 
        defined in section 525.54, subdivision 3, and (ii) a finding of 
        the principal's incapacity need not occur during the principal's 
        life.  
           Sec. 9.  [524.2-711] [FUTURE INTERESTS IN "HEIRS," "HEIRS 
        AT LAW," OR "NEXT OF KIN."] 
           If a governing instrument calls for a future distribution 
        to or creates a future interest in a designated individual's 
        "heirs," "heirs at law," or "next of kin," the property passes 
        to those persons, including the state of Minnesota under section 
        524.2-105, and in such shares as would succeed to the designated 
        individual's intestate estate under the laws of intestate 
        succession of the state of Minnesota if the designated 
        individual died when the disposition is to take effect in 
        possession or enjoyment.  If the designated individual's 
        surviving spouse is living at the time the disposition is to 
        take effect in possession or enjoyment, the surviving spouse is 
        an heir of the designated individual for the purposes of this 
        section, whether or not the surviving spouse is remarried. 
           Sec. 10.  [TRANSITION PROVISION.] 
           Section 1 does not affect any action or proceeding pending 
        on its effective date or that is commenced before February 1, 
        1998, involving the validity of a conveyance recorded or filed 
        after June 30, 1984, if a notice of the pendency of the action 
        or proceeding is recorded or filed before February 1, 1998, in 
        the office of the county recorder or registrar of titles in 
        which the real property affected by the action or proceeding is 
        located.  
           Sec. 11.  [APPLICATION.] 
           Section 2 applies to all trusts, whenever created, in which 
        a sole grantor has a power to alter, amend, revoke, or terminate 
        the provisions of the trust on the later of (1) the effective 
        date of this section, and (2) the date of the entry of the 
        judgment and decree dissolving or annulling the grantor's 
        marriage. 
           Presented to the governor March 13, 1997 
           Signed by the governor March 13, 1997, 10:45 a.m.