2007 Minnesota Statutes

501B.72 NONTRUST ESTATES.
    Subdivision 1. Limitations. Sections 501B.59 to 501B.76 apply to nontrust estates, subject
to:
(1) agreement of the parties;
(2) specific direction in the instrument creating the nontrust estates;
(3) subdivision 2; and
(4) other applicable statutes.
References in sections 501B.59 to 501B.76 to trusts and trustees must be read as applying to
nontrust estates and to tenants and remainderpersons as the context requires.
    Subd. 2. Application. In applying sections 501B.59 to 501B.76 to nontrust estates, the
rules in paragraphs (a) to (d) must be followed.
(a) A legal life tenant or a remainderperson who has incurred a charge for the tenant's or
remainderperson's benefit without the consent or agreement of the other, shall pay the charge
in full.
(b) Costs of an improvement, including special taxes or assessments representing an addition
to value of property forming part of the principal that cannot reasonably be expected to outlast the
legal life estate, must be paid by the legal life tenant.
(c) If the improvement can reasonably be expected to outlast the legal life estate, only a
portion of the costs must be paid by the legal life tenant and the balance by the remainderperson.
(1) The portion payable by the legal life tenant is that fraction of the total found by dividing
the present value of the legal life estate by the present value of an estate of the same form as that
of the legal life estate but limited to a period corresponding to the reasonably expected duration
of the improvement.
(2) The present value of the legal life estate must be computed by applying the federal estate
tax regulations for the calculation of the value of life estates under section 2031 of the Internal
Revenue Code of 1986. The federal estate tax regulations applied must be those in force on the
date when the costs of the improvement are initially determined by assessment, agreement, or
otherwise. No other evidence of duration or expectancy may be considered.
(d) No allowance may be made for depreciation of property held by a legal life tenant on
January 1, 1990, if the life tenant was not making the allowance with respect to the property prior
to January 1, 1990.
History: 1989 c 340 art 1 s 61; 1990 c 581 s 8