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Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                            CHAPTER 347-S.F.No. 2540 
                  An act relating to property; changing certain probate 
                  and power of appointment provisions; amending 
                  Minnesota Statutes 2000, sections 501A.01; 524.2-804; 
                  525.313; Minnesota Statutes 2001 Supplement, section 
                  524.3-1201. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2000, section 501A.01, is 
        amended to read: 
           501A.01 [WHEN NONVESTED INTEREST, POWERS OF APPOINTMENT ARE 
        INVALID; EXCEPTIONS.] 
           (a) A nonvested property interest is invalid unless: 
           (1) when the interest is created, it is certain to vest or 
        terminate no later than 21 years after the death of an 
        individual then alive; or 
           (2) the interest either vests or terminates within 90 years 
        after its creation. 
           (b) A general power of appointment not presently 
        exercisable because of a condition precedent is invalid unless: 
           (1) when the power is created, the condition precedent is 
        certain to be satisfied or become impossible to satisfy no later 
        than 21 years after the death of an individual then alive; or 
           (2) the condition precedent either is satisfied or becomes 
        impossible to satisfy within 90 years after its creation. 
           (c) A nongeneral power of appointment or a general 
        testamentary power of appointment is invalid unless: 
           (1) when the power is created, it is certain to be 
        irrevocably exercised or otherwise to terminate no later than 21 
        years after the death of an individual then alive; or 
           (2) the power is irrevocably exercised or otherwise 
        terminates within 90 years after its creation. 
           (d) In determining whether a nonvested property interest or 
        a power of appointment is valid under subsection paragraph (a), 
        clause (1), paragraph (b), clause (1), or paragraph (c), 
        clause (1), the possibility that a child will be born to an 
        individual after the individual's death is disregarded. 
           (e) If, in measuring a period from the creation of a trust 
        or other property arrangement, language in a governing 
        instrument seeks to: 
           (1) disallow the vesting or termination of any interest 
        trust beyond; 
           (2) postpone the vesting or termination of any interest or 
        trust until; or 
           (3) operate in effect in any similar fashion upon, 
        the later of the expiration of a period of time not exceeding 21 
        years after the death of the survivor of specified lives in 
        being at the creation of the trust or other property 
        arrangement, or the expiration of a period of time that exceeds 
        or might exceed 21 years after the death of the survivor of 
        lives in being at the creation of the trust or other property 
        arrangement; 
        that language is inoperative to the extent it produces a period 
        of time that exceeds 21 years after the death of the survivor of 
        the specified lives. 
           Sec. 2.  Minnesota Statutes 2000, section 524.2-804, is 
        amended to read: 
           524.2-804 [REVOCATION BY DISSOLUTION OF MARRIAGE; NO 
        REVOCATION BY OTHER CHANGES OF CIRCUMSTANCES.] 
           If after executing a will the testator's marriage is 
        dissolved or annulled, the dissolution or annulment revokes any 
        disposition or appointment of property made by the will to the 
        former spouse, any provision conferring a general or special 
        power of appointment on the former spouse, and any nomination of 
        the former spouse as executor, trustee, conservator, or 
        guardian, unless the will expressly provides otherwise.  
        Property prevented from passing to a former spouse because of 
        revocation by dissolution of marriage or annulment passes as if 
        the former spouse failed to survive the decedent, and other 
        provisions conferring some power or office on the former spouse 
        are interpreted as if the spouse failed to survive the 
        decedent.  If provisions are revoked solely by this section, 
        they are revived by testator's remarriage to the former spouse.  
        For purposes of this chapter and chapter 525, 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 will.  Subdivision 1.  [REVOCATION UPON DISSOLUTION.] Except 
        as provided by the express terms of a governing instrument, 
        other than a trust instrument under section 501B.90, executed 
        prior to the dissolution or annulment of an individual's 
        marriage, a court order, a contract relating to the division of 
        the marital property made between individuals before or after 
        their marriage, dissolution, or annulment, or a plan document 
        governing a qualified or nonqualified retirement plan, the 
        dissolution or annulment of a marriage revokes any revocable: 
           (1) disposition, beneficiary designation, or appointment of 
        property made by an individual to the individual's former spouse 
        in a governing instrument; 
           (2) provision in a governing instrument conferring a 
        general or nongeneral power of appointment on an individual's 
        former spouse; and 
           (3) nomination in a governing instrument, nominating an 
        individual's former spouse to serve in any fiduciary or 
        representative capacity, including a personal representative, 
        executor, trustee, conservator, agent, or guardian. 
           Subd. 2.  [EFFECT OF REVOCATION.] Provisions of a governing 
        instrument are given effect as if the former spouse died 
        immediately before the dissolution or annulment. 
           Subd. 3.  [REVIVAL IF DISSOLUTION NULLIFIED.] Provisions 
        revoked solely by this section are revived by the individual's 
        remarriage to the former spouse or by a nullification of the 
        dissolution or annulment. 
           Subd. 4.  [NO REVOCATION FOR OTHER CHANGE OF 
        CIRCUMSTANCES.] No change of circumstances other than as 
        described in this section and in section 524.2-803 effects a 
        revocation. 
           Subd. 5.  [PROTECTION OF PAYORS AND OTHER THIRD 
        PARTIES.] (a) A payor or other third party is not liable for 
        having made a payment or transferred an item of property or any 
        other benefit to a beneficiary designated in a governing 
        instrument affected by a dissolution, annulment, or remarriage, 
        or for having taken any other action in good faith reliance on 
        the validity of the governing instrument, before the payor or 
        other third party received written notice of the dissolution, 
        annulment, or remarriage.  A payor or other third party is 
        liable for a payment made or other action taken after the payor 
        or other third party received written notice of a claimed 
        forfeiture or revocation under this section. 
           (b) Written notice of the dissolution, annulment, or 
        remarriage under paragraph (a) must be delivered to the payor's 
        or other third party's main office or home.  Upon receipt of 
        written notice of the dissolution, annulment, or remarriage, a 
        payor or other third party may pay any amount owed or transfer 
        or deposit any item of property held by it to or with the court 
        having jurisdiction of the probate proceedings relating to the 
        decedent's estate or, if no proceedings have been commenced, to 
        or with the court having jurisdiction of probate proceedings 
        relating to decedents' estates located in the county of the 
        decedent's residence.  The court shall hold the funds or item of 
        property and, upon its determination under this section, shall 
        order disbursement or transfer in accordance with the 
        determination.  Payments, transfers, or deposits made to or with 
        the court discharge the payor or other third party from all 
        claims for the value of amounts paid to or items of property 
        transferred to or deposited with the court. 
           Sec. 3.  Minnesota Statutes 2001 Supplement, section 
        524.3-1201, is amended to read: 
           524.3-1201 [COLLECTION OF PERSONAL PROPERTY BY AFFIDAVIT.] 
           (a) Thirty days after the death of a decedent, (i) any 
        person indebted to the decedent, (ii) any person having 
        possession of tangible personal property or an instrument 
        evidencing a debt, obligation, stock, or chose in action 
        belonging to the decedent, or (iii) any safe deposit company, as 
        defined in section 55.01, controlling the right of access to 
        decedent's safe deposit box shall make payment of the 
        indebtedness or deliver the tangible personal property or an 
        instrument evidencing a debt, obligation, stock, or chose in 
        action or deliver the entire contents of the safe deposit box to 
        a person claiming to be the successor of the decedent, or a 
        state or county agency with a claim authorized by section 
        256B.15, upon being presented a certified death record of the 
        decedent and an affidavit, in duplicate, made by or on behalf of 
        the successor stating that: 
           (1) the value of the entire probate estate, determined as 
        of the date of death, wherever located, including specifically 
        any contents of a safe deposit box, less liens and encumbrances, 
        does not exceed $20,000; 
           (2) 30 days have elapsed since the death of the decedent 
        or, in the event the property to be delivered is the contents of 
        a safe deposit box, 30 days have elapsed since the filing of an 
        inventory of the contents of the box pursuant to section 55.10, 
        paragraph (h); 
           (3) no application or petition for the appointment of a 
        personal representative is pending or has been granted in any 
        jurisdiction; 
           (4) if presented, by a state or county agency with a claim 
        authorized by section 256B.15, to a financial institution with a 
        multiple-party account in which the decedent had an interest at 
        the time of death, the amount of the affiant's claim and a good 
        faith estimate of the extent to which the decedent was the 
        source of funds or beneficial owner of the account; and 
           (5) the claiming successor is entitled to payment or 
        delivery of the property. 
           (b) A transfer agent of any security shall change the 
        registered ownership on the books of a corporation from the 
        decedent to the successor or successors upon the presentation of 
        an affidavit as provided in subsection (a). 
           (c) The claiming successor or state or county agency shall 
        disburse the proceeds collected under this section to any person 
        with a superior claim under section 524.2-403 or 524.3-805. 
           (d) A motor vehicle registrar shall issue a new certificate 
        of title in the name of the successor upon the presentation of 
        an affidavit as provided in subsection (a). 
           (e) The person controlling access to decedent's safe 
        deposit box need not open the box or deliver the contents of the 
        box if: 
           (1) the person has received notice of a written or oral 
        objection from any person or has reason to believe that there 
        would be an objection; or 
           (2) the lessee's key or combination is not available. 
           Sec. 4.  Minnesota Statutes 2000, section 525.313, is 
        amended to read: 
           525.313 [CLEARANCE FOR MEDICAL ASSISTANCE CLAIMS.] 
           (a) The court shall not enter a decree of descent until the 
        petitioner has filed a clearance for medical assistance claims 
        under this section, and until any medical assistance claims 
        filed under this section have been paid, settled, or otherwise 
        finally disposed of. 
           (b) After filing the petition, the petitioner or the 
        petitioner's attorney shall apply to the county agency in the 
        county in which the petition is pending for a clearance of 
        medical assistance claims.  The application must state the 
        decedent's name, date of birth, and social security number; the 
        name, date of birth, and social security number of any 
        predeceased spouse of the decedent; the names and addresses of 
        the devisees and heirs; and the name, address, and telephone 
        number of the petitioner or the attorney making the application 
        on behalf of the petitioner, and include a copy of the notice of 
        hearing.  
           (c) The county agency shall determine whether the decedent 
        or any of the decedent's predeceased spouses received medical 
        assistance under chapter 256B or general assistance medical care 
        under chapter 256D giving rise to a claim under section 
        256B.15.  If there are no claims, the county agency shall issue 
        the petitioner a clearance for medical assistance claims stating 
        no medical assistance claims exist.  If there is a claim, the 
        county agency shall issue the petitioner a clearance for medical 
        assistance claims stating that a claim exists and the total 
        amount of the claim.  The county agency shall mail the completed 
        clearance for medical assistance claims to the applicant within 
        15 working days after receiving the application without cost to 
        the applicant or others. 
           (d) The petitioner or attorney shall file the certificate 
        in the proceedings for the decree of descent as soon as 
        practicable after it is received.  Notwithstanding any rule or 
        law to the contrary, if a medical assistance claim appears in a 
        clearance for medical assistance claims, then: 
           (1) the claim shall be a claim against the decedent's 
        property which is the subject of the petition.  The county 
        agency issuing the certificate shall be the claimant.  The 
        filing of the clearance for medical assistance claims in the 
        proceeding for a decree of descent constitutes presentation of 
        the claim; 
           (2) the claim shall be an unbarred and undischarged claim 
        and shall be payable, in whole or in part, from the decedent's 
        property which is the subject of the petition, including the net 
        sale proceeds from any sale of property free and clear of the 
        claim under this section; 
           (3) the claim may be allowed, denied, appealed, and bear 
        interest as provided for claims in estates under chapter 524; 
        and 
           (4) the county agency may collect, compromise, or otherwise 
        settle the claim with the estate, the petitioner, or the 
        assignees of the property on whatever terms and conditions are 
        deemed appropriate. 
           (e) Any of the decedent's devisees, heirs, successors, 
        assigns, or their successors and assigns, may apply for a 
        partial decree of descent to facilitate the good faith sale of 
        their interest in any real or personal property described in the 
        petition free and clear of any medical assistance claim any time 
        before the entry of a decree of descent under section 525.312.  
        The applicant must prove an interest in the property as provided 
        under section 525.312.  The court may enter a partial decree of 
        descent any time after it could hear and decide the petition for 
        a decree of descent.  A partial decree of descent shall assign 
        the interests in the real and personal property described in the 
        application to the parties entitled to the property free and 
        clear of any and all medical assistance claims.  The net sale 
        proceeds from the sale shall be: 
           (1) substituted in the estate according to this section for 
        the property sold; 
           (2) paid over to and held by the petitioner pending the 
        entry of a decree of descent; 
           (3) used for payment of medical assistance claims; and 
           (4) distributed according to the decree of descent after 
        any medical assistance claims are paid. 
           (f) The clearance for medical assistance claims must: 
           (1) include the case name, case number, and district court 
        in which the proceeding for a decree of descent is pending; 
           (2) include the name, date of birth, and social security 
        number of the decedent and any of the decedent's predeceased 
        spouses; 
           (3) state whether there are medical assistance claims 
        against the decedent, or a predeceased spouse, and the total 
        amount of each claim; and 
           (4) include the name, address, and telephone number of the 
        county agency giving the clearance for medical assistance 
        claims.  The certificate shall be signed by the director of the 
        county agency or the director's designee.  The signature of the 
        director or the director's designee does not require an 
        acknowledgment. 
           (g) All recoveries under this section are recoveries under 
        section 256B.15. 
           (h) For purposes of this section and chapter 256B, all 
        property identified in the petition and all subsequent 
        amendments to the petition shall constitute an estate. 
           (i) No clearance for medical assistance claims is required 
        under this section and section 525.312 in an action for a decree 
        of descent proceeding in which all of the following apply to the 
        decedent whose property is the subject of the proceeding: 
           (1) the decedent's estate was previously probated in this 
        state; 
           (2) the previous probate was not a special administration 
        or summary proceeding; and 
           (3) the decedent's property, which is the subject of the 
        petition for a decree of descent, was omitted from the previous 
        probate. 
           Sec. 5.  [EFFECTIVE DATE.] 
           Section 4 applies to proceedings for a decree of descent 
        commenced after July 31, 2002. 
           Presented to the governor April 18, 2002 
           Signed by the governor April 19, 2002, 9:46 a.m.