Office of the Revisor of Statutes
Minnesota Session Laws - 2001, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 15-S.F.No. 346
An act relating to trusts; making changes to the
Uniform Principal and Income Act; simplifying the
antilapse law; amending Minnesota Statutes 2000,
sections 144.225, subdivision 7; 501B.59, by adding a
subdivision; 501B.60, by adding a subdivision;
501B.61, subdivision 2; 501B.62, subdivision 1;
501B.63, subdivision 2; 501B.64; 501B.68; 501B.69; and
524.6-301; proposing coding for new law in Minnesota
Statutes, chapters 501B; and 524; repealing Minnesota
Statutes 2000, sections 501B.66; 501B.70; and
524.2-603.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 2000, section 144.225,
subdivision 7, is amended to read:
Subd. 7. [CERTIFIED COPY OF BIRTH OR DEATH CERTIFICATE.]
The state or local registrar shall issue a certified copy of a
birth or death certificate or a statement of no record found to
an individual upon the individual's proper completion of an
attestation provided by the commissioner:
(1) to a person who has a tangible interest in the
requested certificate. A person who has a tangible interest is:
(i) the subject of the certificate;
(ii) a child of the subject;
(iii) the spouse of the subject;
(iv) a parent of the subject;
(v) the grandparent or grandchild of the subject;
(vi) the party responsible for filing the certificate;
(vii) the legal custodian or guardian or conservator of the
subject;
(viii) a personal representative of the estate of the
subject or, by sworn affidavit of the fact that the certified
copy is required for administration of the estate;
(ix) a successor of the subject, as defined in section
524.1-201, if the subject is deceased, by sworn affidavit of the
fact that the certified copy is required for administration of
the estate;
(ix) a representative authorized by a person under clauses
(1) to (3) (x) if the requested certificate is a death
certificate, a trustee of a trust by sworn affidavit of the fact
that the certified copy is needed for the proper administration
of the trust; or
(x) (xi) a person or entity who demonstrates that a
certified copy of the certificate is necessary for the
determination or protection of a personal or property right,
pursuant to rules adopted by the commissioner;
(2) to any local, state, or federal governmental agency
upon request if the certified certificate is necessary for the
governmental agency to perform its authorized duties. An
authorized governmental agency includes the department of human
services, the department of revenue, and the United States
Immigration and Naturalization Service; or
(3) to an attorney upon evidence of the attorney's license;
(4) pursuant to a court order issued by a court of
competent jurisdiction. For purposes of this section, a
subpoena does not constitute a court order; or
(5) to a representative authorized by a person under
clauses (1) to (4).
Sec. 2. Minnesota Statutes 2000, section 501B.59, is
amended by adding a subdivision to read:
Subd. 1a. [ACCOUNTING PERIOD.] "Accounting period" means a
calendar year unless another 12-month period is selected by the
trustee. Accounting period includes a portion of a calendar
year or other 12-month period that begins when an income
interest begins or ends when an income interest ends.
Sec. 3. Minnesota Statutes 2000, section 501B.60, is
amended by adding a subdivision to read:
Subd. 3. [STANDARDS FOR EXERCISE.] In exercising a power
to adjust under section 501B.70 or a discretionary power of
administration regarding a matter within the scope of sections
501B.59 to 501B.76, a fiduciary shall administer the trust or
estate impartially, based on what is fair and reasonable to all
of the beneficiaries, except to the extent that the terms of the
trust or the will clearly manifest an intention that the
fiduciary shall or may favor one or more of the beneficiaries.
A determination in accordance with sections 501B.59 to 501B.76
is presumed to be fair and reasonable to all of the
beneficiaries.
Sec. 4. Minnesota Statutes 2000, section 501B.61,
subdivision 2, is amended to read:
Subd. 2. [PRINCIPAL DEFINED.] "Principal" means the
property set aside by the owner or the person legally empowered
so that it is held in trust eventually to be delivered to a
remainderperson while the return or use of the principal is in
the meantime taken or received by or held for accumulation for
an income beneficiary. Principal includes:
(1) consideration received by the trustee on the sale or
other transfer of principal, on repayment of a loan, or as a
refund, replacement, or change in the form of principal;
(2) proceeds of property taken on eminent domain
proceedings;
(3) proceeds of insurance on property forming part of the
principal, except proceeds of insurance on a separate interest
of an income beneficiary;
(4) stock dividends, receipts on liquidation of a
corporation, and other corporate distributions as provided in
section 501B.64;
(5) receipts from the disposition of corporate securities
as provided in section 501B.65;
(6) royalties and other receipts from disposition of
natural resources as provided in sections 501B.67 and 501B.68;
(7) receipts from other principal subject to depletion as
provided in section 501B.69;
(8) profit resulting from a change in the form of
principal, except as provided in section 501B.70 on
underproductive property;
(9) receipts from disposition of underproductive property
as provided in section 501B.70; and
(10) allowances for depreciation established under sections
501B.66 and 501B.71, subdivision 1, clause (2); and
(11) gain or loss, including the purchase premium, if any,
from the grant of an option to buy or sell property of the
trust, whether or not the trust owns the property when the
option is granted.
Sec. 5. Minnesota Statutes 2000, section 501B.62,
subdivision 1, is amended to read:
Subdivision 1. [GENERAL RULE.] An income beneficiary is
entitled to income from the date specified in the trust
instrument or, if none is specified, from the date an asset
becomes subject to the trust. In the case of an asset that
becomes subject to a trust because of a will the death of any
person, it becomes subject to the trust as of the date of the
death of the testator the person or date of receipt in the
estate, if later, the date the estate or trust becomes entitled
to the asset if acquired after the death of the person, even
though there is an intervening period of administration of the
testator's an estate or trust during which the beneficiary may
have no right to a distribution of the income.
Sec. 6. Minnesota Statutes 2000, section 501B.63,
subdivision 2, is amended to read:
Subd. 2. [INCOME.] Unless the will or trust instrument
provides otherwise, income from the assets of a decedent's
estate after the death of the testator and before
distribution and income from the assets of a trust after an
income interest in a trust terminates, including income from
property used to discharge liabilities, must be determined in
accordance with the rules applicable to a trustee and
distributed as follows:
(1) to specific devisees or to any beneficiary who is to
receive specific property from a trust, the income from the
property devised or distributed to them respectively, less
property taxes, ordinary repairs, interest, and other expenses
of management and operation of the property, and less an
appropriate portion of taxes imposed on income, excluding taxes
on capital gains, that accrue during the period of
administration or after an income interest in a trust
terminates;
(2) to a devisee or to any beneficiary who receives a
pecuniary amount outright, the interest or any other amount
provided by the will, the terms of the trust instrument or
applicable law from income determined in accordance with the
rules applicable to a trustee or, to the extent income is
insufficient, from principal. If a beneficiary is to receive a
pecuniary amount outright from a trust after an income interest
ends and no interest or other amount is provided for by the
terms of the trust instrument or applicable law, the trustee
shall distribute the interest or other amount to which the
beneficiary would be entitled under applicable law if the
pecuniary amount were required to be paid under a will;
(3) to all other devisees or beneficiaries, except devisees
of pecuniary devises not in trust, the balance of the
income determined in accordance with the rules applicable to a
trustee, less the balance of property taxes, ordinary repairs,
interest, and other expenses of management and operation of all
property from which the estate or trust is entitled to income,
and taxes imposed on income, excluding taxes on capital gains,
that accrue during the period of administration or after an
income interest terminates, in proportion to their respective
interests in the undistributed assets of the estate or trust
computed at times of distribution on the basis of inventory
value.
For purposes of this subdivision, an income interest in a trust
terminates upon the occurrence of any event which causes the
right of a person to receive mandatory or discretionary
distributions of income from the trust to end.
Sec. 7. Minnesota Statutes 2000, section 501B.64, is
amended to read:
501B.64 [CORPORATE ENTITY DISTRIBUTIONS.]
Subdivision 1. [DISTRIBUTION OF OWNERSHIP INTERESTS;
SHARES; STOCK SPLITS; STOCK DIVIDENDS; SUBSCRIPTION RIGHTS.]
Distributions of shares of a distributing corporation, including
distributions in the form of a stock split or stock dividend,
are principal. A shareholder's right to subscribe to shares or
other securities of the distributing corporation and the
proceeds of any sale of that right are principal or similar
equity ownership interests in noncorporate entities, including
distributions in the form of or equivalent to a stock split or
stock dividend, are principal. An entity owner's right to
subscribe to shares, ownership interests, or other securities of
the distributing entity and the proceeds of any sale of that
right are principal.
Subd. 2. [CALL OF SHARES; MERGER; LIQUIDATION REDEMPTION;
MERGER; REORGANIZATION; LIQUIDATION.] Subject to subdivisions 3
and 4, and except to the extent that the corporation entity
indicates that some part of a corporate an entity distribution
is a settlement of preferred or guaranteed corporate dividends
or distribution preferences based upon a return on invested
capital accrued under the governing instrument since the trustee
became a stockholder acquired the related ownership interest or
is in lieu of an ordinary cash dividend, a corporate or similar
distribution from current earnings of the entity, an entity
distribution is principal if the distribution is pursuant to:
(1) redemption of the ownership interest or a call of
shares;
(2) a merger, consolidation, reorganization, or other plan
by which assets of the corporation entity are acquired by
another corporation entity; or
(3) a total or partial liquidation of the corporation
entity, including a distribution the corporation entity
indicates is a distribution in total or partial liquidation or
distribution of assets, other than cash, pursuant to a court
decree or final administrative order by a government agency
ordering distribution of the particular assets.
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 capital
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.
Subd. 4. [DISTRIBUTIONS FROM PASS-THROUGH ENTITIES.]
Distributions from pass-through entities must be allocated
between income and principal as reasonably and equitably
determined by the trustee. This subdivision applies for any
accounting period during which an entity is a pass-through
entity for any portion of the accounting period. In making its
determination, the trustee may consider the following:
(1) characterization of income, distributions, and
transactions in financial or other information received from the
entity, including financial statements and tax information;
(2) whether the entity completed a significant capital
transaction outside of the ordinary course of business that the
trustee believes has resulted in a distribution to the owners of
the entity in the nature of a partial liquidating distribution;
(3) the extent to which the burden for income tax with
respect to the income of the entity is to be paid by the trustee
out of trust assets or by the beneficiaries of the trust;
(4) the net amount of distributions from the entity
available to the trustee after estimating or accounting for tax
payments by the trustee or distributions to beneficiaries for
the purpose of paying taxes on income earned by the entity;
(5) whether distributions appear to be made out of or
contributed to by income earned by the entity and subjected to
income taxes in a prior accounting period which may include
accounting periods prior to the date the trustee acquired the
related ownership interest;
(6) whether the entity is consistently a pass-through
entity during multiple accounting periods or a change to or from
being a pass-through entity has or will occur in accounting
periods preceding or subsequent to the current accounting
period;
(7) if the trust owns a controlling interest or total
interest in an entity, the trustee may reasonably allocate
distributions between income and principal and not necessarily
as if that business interest were owned by the trust as a
proprietorship; and
(8) other facts and circumstances as the trustee reasonably
considers relevant to its determination.
Subd. 5. [OTHER DISTRIBUTIONS.] Except as provided in
subdivisions 1, 2, and 3, and 4, all corporate distributions
from entities are income. "Corporate Entity distributions"
includes cash dividends, distributions of or rights to subscribe
to shares or securities or obligations of corporations entities
other than the distributing corporation entity, and the proceeds
of the rights or property distributions. Except as provided in
subdivisions 1, 2 and, 3, and 4, if the
distributing corporation entity gives a stockholder the owner of
an ownership interest an option to receive a distribution either
in cash or in its own shares an ownership interest in the
entity, the distribution chosen is income.
Subd. 5 6. [RELIANCE ON STATEMENTS.] The trustee may rely
on a statement of the distributing corporation entity as to a
fact relevant under a provision of sections 501B.59 to 501B.76
concerning the source or character of dividends or distributions
of corporate assets.
Subd. 7. [DEFINITIONS.] The definitions in this
subdivision apply to this section.
(a) [ENTITY.] "Entity" means a corporation, partnership,
limited liability company, regulated investment company, real
estate investment trust, common or collective trust fund, or any
other organization in which a trustee has an interest other than
a trust or estate governed by any other provision of sections
501B.59 to 501B.76.
(b) [PASS-THROUGH ENTITY.] "Pass-through entity" means any
entity that passes through income, loss, deductions, credits,
and other tax attributes to the owners of an interest in the
entity under the Internal Revenue Code in such manner that the
owner is directly subject to income taxation on all or any part
of the income of the entity (whether or not the pass through of
the tax attributes are related to distributions from the
entity), including, but not limited to, S corporations,
partnerships, limited liability companies or limited liability
partnerships.
Sec. 8. [501B.665] [SOLE PROPRIETORSHIPS.]
Subdivision 1. [SEPARATE ACCOUNT.] A trustee who conducts
a business or other activity as a sole proprietor may establish
and maintain a separate account for the transactions of the
business or other activity, whether or not its assets are
segregated from other trust assets, if the trustee determines
that it is in the best interest of all the beneficiaries to
establish a separate account instead of accounting for the
business or other activity as part of the trust's general
accounting records.
(a) A trustee who establishes a separate account for a
business or other activity shall determine the extent to which
its net cash receipts will be retained in the separate account
for working capital, the acquisition or replacement of fixed
assets, and other reasonably foreseeable needs of the business
or activity or will be transferred out of the separate account
and accounted for as principal or income in the trust's general
accounting records as the trustee reasonably and equitably
determines. If a trustee sells assets of the business or other
activity, other than in the ordinary course of the business or
activity, and determines that any portion of the amount received
is no longer required in the conduct of the business the trustee
shall transfer that portion out of the separate account and
shall account for that portion as principal in the trust's
general accounting records.
(b) A trustee may not account separately for a traditional
securities portfolio to avoid the provisions of sections 501B.59
to 501B.76 that otherwise apply to securities.
Subd. 2. [OTHER INCOME OR LOSSES.] If a trustee does not
maintain a separate account for a business or other activity
conducted as a sole proprietorship, the net profits of the sole
proprietorship in any fiscal or calendar year, as reasonably and
equitably determined by the trustee, must be allocated to income
while any net loss in that year must be charged to principal and
must not be carried into any other fiscal or calendar year for
purposes of calculating net income.
Sec. 9. Minnesota Statutes 2000, section 501B.68, is
amended to read:
501B.68 [TIMBER.]
Subdivision 1. [NET RECEIPTS.] If a part of the principal
consists of land from which merchantable timber may be removed,
the net receipts from taking the timber from the land must be
allocated in accordance with what is reasonable and equitable in
view of the interests of those entitled to income as well as of
those entitled to principal. The amount allocated to principal
must be presumed to be reasonable and equitable if it is neither
substantially more nor less than the amount allowable as a
deduction for depletion, amortization, depreciation, or similar
costs under the Internal Revenue Code of 1986. as follows:
(1) to income to the extent that the amount of timber
removed from the land during the accounting period does not
exceed the rate of growth of the timber;
(2) to principal to the extent that the amount of timber
removed from the land during the accounting period exceeds the
rate of growth of the timber or the net receipts are from the
sale of standing timber;
(3) to or between income and principal if the net receipts
are from the lease of timberland or from a contract to cut
timber from land owned by a trust, by determining the amount of
timber removed from the land under the lease or contract and
applying the rules in paragraphs (1) or (2); or
(4) to principal to the extent that advance payments,
bonuses, and other payments are not allocated pursuant to
paragraphs (1), (2), or (3).
Subd. 2. [DEPLETION.] In determining net receipts to be
allocated pursuant to subdivision 1, a trustee shall deduct and
transfer to principal a reasonable amount for depletion.
Subd. 3. [SCOPE.] This section applies whether or not
timber was harvested from the property before it became subject
to the trust.
Sec. 10. Minnesota Statutes 2000, section 501B.69, is
amended to read:
501B.69 [ANNUITIES, QUALIFIED AND NONQUALIFIED EMPLOYEE
COMPENSATION, RETIREMENT PLANS AND OTHER PROPERTY SUBJECT TO
DEPLETION.]
Except as provided in sections 501B.67 and 501B.68, if part
of the principal consists of property subject to depletion,
including leaseholds, patents, copyrights, royalty rights, and
rights to receive payments on a contract for deferred
compensation qualified and nonqualified employer retirement
plans, individual retirement accounts, and annuities, the
receipts from the property must be allocated in accordance with
what is reasonable and equitable in view of the interests of
those entitled to income as well as of those entitled to
principal. The trustee may determine the allocation based on a
fixed percentage of each payment, an amortization of the
inventory value of the series of payments, or, if the individual
retirement account, pension, profit-sharing, stock-bonus, or
stock-ownership plan consists of segregated and identifiable
assets, the trustee may apply the provisions of sections 501B.59
to 501B.76 to the receipts in the account or plan in order to
characterize the payments received during a trust accounting
period. To the extent that a payment is characterized by the
payer as interest or a dividend or a payment made in lieu of
interest or a dividend, a trustee shall allocate it to income.
The amount allocated to principal is presumed to be reasonable
and equitable if it is neither substantially more nor less than
the amount allowable as a deduction for depletion, amortization,
depreciation, or similar costs under the Internal Revenue Code
of 1986.
Sec. 11. [501B.705] [TRUSTEE'S POWER TO ADJUST.]
Subdivision 1. [POWER TO ADJUST.] A trustee may adjust
between principal and income to the extent the trustee considers
necessary to comply with section 501B.60, subdivision 3, after
applying section 501B.60, subdivisions 1 and 2, if the trustee
invests and manages the trust assets as a prudent investor and
the terms of the trust describe the amount that may or must be
distributed to a beneficiary by referring to the trust's income.
Subd. 2. [FACTORS TO CONSIDER.] In deciding whether and to
what extent to exercise the power conferred by subdivision 1, a
trustee shall consider all factors relevant to the trust and its
beneficiaries, including, but not limited to, the following
factors:
(1) the nature, purpose, and expected duration of the
trust;
(2) the intent of the settlor;
(3) the identity and circumstances of the beneficiaries;
(4) the needs for liquidity, regularity of income, and
preservation and appreciation of capital;
(5) the assets held in the trust; the extent to which they
consist of financial assets, interests in closely held
enterprises, tangible and intangible personal property, or real
property; the extent to which an asset is used by a beneficiary;
and whether an asset was purchased by the trustee or received
from the settlor;
(6) the net amount allocated to income under the other
provisions of sections 501B.59 to 501B.76 and the increase or
decrease in the value of the principal assets, which the trustee
may estimate as to assets for which market values are not
readily available;
(7) whether and to what extent the terms of the trust give
the trustee the power to invade principal or accumulate income
or prohibit the trustee from invading principal or accumulating
income, and the extent to which the trustee has exercised a
power from time to time to invade principal or accumulate
income;
(8) the actual and anticipated effect of economic
conditions on principal and income and effects of inflation and
deflation;
(9) the anticipated tax consequences of an adjustment;
(10) the income return (determined without regard to
adjustments under this section) during the accounting period
from other trusts with similar purposes.
Subd. 3. [LIMITATION ON TRUSTEE'S POWER.] A trustee may
not make an adjustment:
(1) that diminishes the income interest in a trust that
requires all of the income to be paid at least annually to a
spouse and for which an estate tax or gift tax marital deduction
would be allowed or allowable, in whole or in part, if the
trustee did not have the power to make the adjustment;
(2) that reduces the actuarial value of the income interest
in a trust to which a person transfers property with the intent
to qualify for a gift tax exclusion;
(3) that changes the amount payable to a beneficiary as
fixed annuity or a fixed fraction of the value of the trust
assets;
(4) from any amount that is permanently set aside for
charitable purposes under a will or the terms of a trust unless
both income and principal are so set aside; provided, however,
that this limitation does not apply to any trust created prior
to the effective date of this section to the extent the trustee
receives amounts during the accounting period which would, under
the provisions of Minnesota Statutes 2000, section 501B.70, in
effect prior to the effective date of this section, have been
allocated to income;
(5) if possessing or exercising the power to make an
adjustment causes an individual to be treated as owner of all or
part of the trust for income tax purposes and the individual
would not be treated as the owner if the trustee did not possess
the power to make adjustment;
(6) if possessing or exercising the power to make an
adjustment causes all or part of the trust assets to be included
for estate tax purposes in the estate of an individual who has
the power to remove or appoint the trustee, or both, and the
assets would not be included in the estate of the individual if
the trustee did not possess the power to make an adjustment;
(7) if the trustee is a beneficiary of the trust; or
(8) if the trustee is not a beneficiary, but the adjustment
would benefit the trustee directly or indirectly.
Subd. 4. [COTRUSTEE MAY EXERCISE POWER.] If the provisions
of subdivision 3, clause (5), (6), (7), or (8), apply to a
trustee and there is more than one trustee, a cotrustee to whom
the provision does not apply may make the adjustment unless the
exercise of the power by the remaining trustee or trustees is
not permitted by the terms of the trust.
Subd. 5. [RELEASE OF POWER.] A trustee may release the
entire power conferred by subdivision 1 or may release only the
power to adjust from income to principal or to adjust from
principal to income if the trustee is uncertain about whether
possessing or exercising the power will cause a result described
in subdivision 3, clause (1), (2), (3), (4), (5), (6), or (8),
or if the trustee determines that possessing or exercising the
power will or may deprive the trust of a tax benefit or impose a
tax burden not described in subdivision 3. The release may be
permanent or for a specified period, including a period measured
by the life of an individual.
Subd. 6. [POWER MAY BE NEGATED BY SPECIFIC
REFERENCE.] Terms of a trust that limit the power of a trustee
to make an adjustment between principal and income do not affect
the application of this section unless it is clear from the
terms of the trust that the terms are intended to deny the
trustee the power of adjustment conferred by subdivision 1.
Subd. 7. [NO DUTY TO ADJUST; REMEDY.] Nothing in this
section is intended to create or imply a duty to make an
adjustment, and a trustee is not liable for not considering
whether to make an adjustment or for choosing not to make an
adjustment. In a proceeding with respect to the trustee's
nonexercise of the power to make an adjustment from principal to
income (or with respect to the trustee's failure to make a
greater adjustment from principal to income), the sole remedy is
to direct or deny an adjustment (or greater adjustment) from
principal to income.
Subd. 8. [NOTICE OF DETERMINATION.] A trustee may give
notice of a proposed action regarding a matter governed by this
section as provided in this subdivision. For purposes of this
subdivision, a proposed action includes a course of action and a
determination not to take action.
(a) The trustee shall mail notice of the proposed action to
all adult beneficiaries who are receiving, or are entitled to
receive, income under the trust or to receive a distribution of
principal if the trust were terminated at the time the notice is
given. Notice may be given to any other beneficiary.
(b) The notice of proposed action must state that it is
given pursuant to this subdivision and must state the following:
(1) the name and mailing address of the trustee;
(2) the name and telephone number of a person who may be
contacted for additional information;
(3) a description of the action proposed to be taken and an
explanation of the reasons for the action;
(4) the time within which objections to the proposed action
can be made, which must be at least 30 days from the mailing of
the notice of proposed action; and
(5) the date on or after which the proposed action may be
taken or is effective.
(c) A beneficiary may object to the proposed action by
mailing a written objection to the trustee at the address stated
in the notice of proposed action within the time period
specified in the notice of proposed action.
(d) If a trustee does not receive a written objection to
the proposed action from the beneficiary within the applicable
period, the trustee is not liable for an action regarding a
matter governed by this chapter to a beneficiary if:
(1) the beneficiary is an adult (or is a minor with a duly
appointed conservator of the estate) and the notice is mailed to
the adult beneficiary or conservator at the address determined
by the trustee after reasonable diligence;
(2) the beneficiary is an adult (or is a minor with a duly
appointed conservator of the estate) and the adult beneficiary
or conservator receives actual notice;
(3) the beneficiary is not an adult and has no duly
appointed conservator of the estate and an adult having a
substantially identical interest and having no conflicting
interest receives actual notice;
(4) the beneficiary (or the conservator of the estate of a
minor beneficiary) consents in writing to the proposed action
either before or after the action is taken; or
(5) the beneficiary is not an adult and has no duly
appointed conservator of the estate and an adult having a
substantially identical interest and having no conflicting
interest consents in writing to the proposed action either
before or after the action is taken.
(e) If the trustee receives a written objection within the
applicable time period, either the trustee or a beneficiary may
petition the court to have the proposed action performed as
proposed, performed with modifications, or denied. In the
proceeding, a beneficiary objecting to the proposed action has
the burden of proof as to whether the trustee's proposed action
should not be performed. A beneficiary who has not objected is
not estopped from opposing the proposed action in the
proceeding. If the trustee decides not to implement the
proposed action, the trustee shall notify the beneficiaries of
the decision not to take the action and the reasons for the
decision, and the trustee's decision not to implement the
proposed action does not itself give rise to liability to any
current or future beneficiary. A beneficiary may petition the
court to have the action performed, and has the burden of proof
as to whether it should be performed.
(f) Nothing in this subdivision limits the right of a
trustee or beneficiary to petition the court pursuant to section
501B.16 for instructions as to any action, failure to act, or
determination not to act regarding a matter governed by this
section in the absence of notice as provided in this
subdivision. In any such proceeding, any beneficiary filing
such a petition or objecting to a petition of the trustee has
the burden of proof as to any action taken, any failure to act,
or determination not to act, by the trustee.
Sec. 12. Minnesota Statutes 2000, section 524.6-301, is
amended to read:
524.6-301 [DEFINITIONS.]
In sections 524.6-301 to 524.6-311:
(1) "Beneficiary form" means a registration of a security
which indicates the present owner of the security and the
intention of the owner regarding the person who will become the
owner of the security upon the death of the owner.
(2) "Register," including its derivatives, means to issue a
certificate showing the ownership of a certificated security or,
in the case of an uncertificated security, to initiate or
transfer an account showing ownership of securities.
(3) "Registering entity" means a person who originates or
transfers a security title by registration, and includes a
broker maintaining security accounts for customers and a
transfer agent or other person acting for or as an issuer of
securities.
(4) "Security" means a share, participation, or other
interest in property, in a business, or in an obligation of an
enterprise or other issuer, and includes a certificated
security, an uncertificated security, and a security account.
(5) "Security account" means (i) a reinvestment account
associated with a security, a securities account with a broker,
a cash balance in a brokerage account, cash, cash equivalents,
interest, earnings, or dividends earned or declared on a
security in an account, a reinvestment account, or a brokerage
account, whether or not credited to the account before the
owner's death, or (ii) an investment management or custody
account with a trust company or a trust division of a bank with
trust powers, including the securities in the account, a cash
balance in the account, and cash, cash equivalents, interest,
earnings, or dividends earned or declared on a security in the
account, whether or not credited to the account before the
owner's death, or (iii) a cash balance or other property held
for or due to the owner of a security as a replacement for or
product of an account security, whether or not credited to the
account before the owner's death.
Sec. 13. [524.2-6031] [ANTILAPSE; DECEASED DEVISEE; CLASS
GIFTS; WORDS OF SURVIVORSHIP.]
Subdivision 1. [DECEASED DEVISEE.] If a devisee who is a
grandparent or a lineal descendant of a grandparent of the
testator is dead at the time of execution of the will, fails to
survive the testator, or is treated as if the devisee
predeceased the testator, the issue of the deceased devisee who
survive the testator by 120 hours take in place of the deceased
devisee. If they are all of the same degree of kinship to the
devisee, they take equally. If they are of unequal degree,
those of more remote degree take by representation. A person
who would have been a devisee under a class gift if the person
had survived the testator is treated as a devisee for purposes
of this section, whether the death occurred before or after the
execution of the will.
Subd. 2. [DEFINITION.] For the purposes of section
524.2-601, words of survivorship, such as, in a devise to an
individual, "if he or she survives me," or, in a class gift, to
"my surviving children," are a sufficient indication of an
intent contrary to the application of this section.
Sec. 14. [REPEALER.]
Minnesota Statutes 2000, sections 501B.66; 501B.70; and
524.2-603 are repealed.
Presented to the governor April 4, 2001
Signed by the governor April 6, 2001, 10:15 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes