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2007 Minnesota Statutes
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Chapter 501B
Section 501B.665
Topics
Recent History
- 2015 501B.665 Repealed 2015 c 5 art 16 s 2
- 2001 501B.665 New 2001 c 15 s 8
This is an historical version of this statute chapter. Also view the most recent published version.
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.
History: 2001 c 15 s 8
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.
History: 2001 c 15 s 8
Official Publication of the State of Minnesota
Revisor of Statutes