reglab/statecodes huggingface dataset:
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1009 — Beneficiary's Consent, Release, Or Ratification.

501C.1009 BENEFICIARY'S CONSENT, RELEASE, OR RATIFICATION.
A beneficiary's consent to a trustee's conduct, release of the trustee from liability for the trustee's conduct, or ratification of the trustee's conduct is binding unless:
(1) the consent, release, or ratification of the beneficiary was induced by improper conduct of the trustee; or
(2) at the time of the consent, release, or ratification, the beneficiary did not know of the beneficiary's rights or of the material facts relating to the trustee's conduct and the trustee did know of the material facts relating to the trustee's conduct.
History:
2015 c 5 art 10 s 9
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1010 — Limitation On Personal Liability Of Trustee.

501C.1010 LIMITATION ON PERSONAL LIABILITY OF TRUSTEE.
(a) Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into in the trustee's fiduciary capacity in the course of administering the trust if the trustee in the contract disclosed the fiduciary capacity.
(b) A trustee is not personally liable for torts committed in the course of administering a trust, or for obligations arising from ownership or control of trust property, including liability for violation of environmental law, unless the trustee is personally at fault.
(c) A claim based on a contract entered into by a trustee in the trustee's fiduciary capacity, on an obligation arising from ownership or control of trust property, or on a tort committed in the course of administering a trust, may be asserted in a judicial proceeding against the trustee in the trustee's fiduciary capacity, whether or not the trustee is personally liable for the claim.
History:
2015 c 5 art 10 s 10
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1011 — Interest As General Partner.

501C.1011 INTEREST AS GENERAL PARTNER.
(a) Unless personal liability is imposed in the contract, a trustee who holds an interest as a general partner in a general or limited partnership is not personally liable on a contract entered into by the partnership after the trust's acquisition of the interest if the trustee's fiduciary capacity was disclosed in the contract or, at the time of contracting, the other party to the contract had knowledge of the trustee's fiduciary capacity.
(b) A trustee who holds an interest as a general partner in a general or limited partnership is not personally liable for any obligation of the partnership arising or resulting from a tort or other wrongful act or for any obligation arising from ownership or control of the interest unless the trustee is personally at fault.
(c) Nothing in this section shall limit the protection otherwise existing by reason of the partnership's status as a limited liability partnership or a limited liability limited partnership.
History:
2015 c 5 art 10 s 11
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1012 — Protection Of Person Dealing With Trustee.

501C.1012 PROTECTION OF PERSON DEALING WITH TRUSTEE.
(a) A person other than a beneficiary who in good faith assists a trustee, or who in good faith and for value deals with a trustee, without knowledge that the trustee is exceeding or improperly exercising the trustee's powers is protected from liability as if the trustee properly exercised the power.
(b) A person other than a beneficiary who in good faith deals with a trustee is not required to inquire into the extent of the trustee's powers or the propriety of their exercise.
(c) A person who in good faith delivers assets to a trustee need not ensure their proper application.
(d) A person other than a beneficiary who in good faith assists a former trustee, or who in good faith and for value deals with a former trustee, without knowledge that the trusteeship has terminated is protected from liability as if the former trustee were still a trustee.
(e) Nothing in this section shall limit the protection provided by other laws relating to commercial trust accounts or transfers of securities by fiduciaries.
History:
2015 c 5 art 10 s 12
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1014 — Affidavit Of Trustee In Real Property Transactions.

501C.1014 AFFIDAVIT OF TRUSTEE IN REAL PROPERTY TRANSACTIONS.
Subdivision 1.
Form of affidavit for inter vivos trust.
An affidavit of a trustee or of trustees of an inter vivos trust in support of a real property transaction may be substantially in the following form:
) ss.
.
, Affiant
.
Signature of Notary Public or Other Official
) ss.
.
, Affiant
.
Signature of Notary Public or Other Official
Notary Stamp or Seal
This instrument was drafted by:
.
.
Subd. 3.Effect.
An affidavit by the trustee or trustees under subdivision 1 or 2 is proof that:
(1) the trust described in the affidavit is a valid trust;
(2) either the trust has not terminated or the trust instrument has not been revoked or, if the trust has terminated or the trust instrument has been revoked, the conveyance described in the affidavit is made pursuant to the provisions of the trust;
(3) the powers granted the trustee or trustees extend to the real property described in the affidavit or attachment to the affidavit;
(4) no amendment to the trust has been made limiting the power of the trustee or trustees to sell, convey, pledge, mortgage, lease, or transfer title to the real property described in the affidavit or attachment to the affidavit, if any;
(5) the requisite number of trustees have executed and delivered the instrument of conveyance described in the affidavit; and
(6) any necessary court approval of the transaction has been obtained.
The proof is conclusive as to any party relying on the affidavit, except a party dealing directly with the trustee or trustees who has actual knowledge of facts to the contrary.
Subd. 4.
Recording.
An Affidavit of Trustee or Trustees under subdivisions 1 and 2 may be recorded in the office of the county recorder for any county or in the office of the registrar of titles for any county with respect to registered land described in the affidavit, or in the Certificate of Trust or Trust Instrument referred to in the affidavit, and may be recorded as a separate document or combined with or attached to an original or certified copy of a Certificate of Trust or Trust Instrument, and recorded as one document.
History:
2015 c 5 art 10 s 14
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1101 — Definitions.

501C.1101 DEFINITIONS.
Subdivision 1.
Scope.
The definitions in this section apply to sections 501C.1101 to 501C.1118.
Subd. 2.
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.
Subd. 3.
Income beneficiary.
"Income beneficiary" means the person to whom income is presently payable or for whom it is accumulated for distribution as income.
Subd. 4.
Inventory value.
"Inventory value" means the cost of property purchased by the trustee and the market value of other property at the time it became subject to the trust, but in the case of a testamentary trust the trustee may use any value finally determined for the purposes of an estate or inheritance tax.
Subd. 5.
Remainderperson.
"Remainderperson" means the person entitled to principal, including income accumulated and added to principal.
History:
2015 c 5 art 11 s 1
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1102 — Duty Of Trustee As To Receipts And Expenditure.

501C.1102 DUTY OF TRUSTEE AS TO RECEIPTS AND EXPENDITURE.
Subdivision 1.
General rules of administration.
A trust must be administered with due regard to the respective interests of income beneficiaries and remainderpersons. A trust is so administered with respect to the allocation of receipts and expenditures if a receipt is credited or an expenditure is charged to income or principal or partly to each:
(1) in accordance with the terms of the trust instrument, notwithstanding contrary provisions of sections 501C.1101 to 501C.1118;
(2) in the absence of contrary terms of the trust instrument, in accordance with sections 501C.1101 to 501C.1118;
(3) if neither of the preceding rules of administration is applicable, 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, and in view of the manner in which persons of ordinary prudence, discretion, and judgment would act in the management of their own affairs.
Subd. 2.
Trustee's discretion.
If a trust instrument gives the trustee discretion in crediting a receipt or charging an expenditure to income or principal or partly to each, no inference of imprudence or partiality arises from the fact that the trustee has made an allocation contrary to sections 501C.1101 to 501C.1118.
Subd. 3.
Standards for exercise.
In exercising a power to adjust under section 501C.1112 or a discretionary power of administration regarding a matter within the scope of sections 501C.1101 to 501C.1118, 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 501C.1101 to 501C.1118 is presumed to be fair and reasonable to all of the beneficiaries.
History:
2015 c 5 art 11 s 2
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1103 — Income; Principal; Charges.

501C.1103 INCOME; PRINCIPAL; CHARGES.
Subdivision 1.
Income defined.
"Income" means the return in money or property derived from the use of principal, including return received as:
(1) rent of real or personal property, including sums received for cancellation or renewal of a lease;
(2) interest on money lent, including sums received as consideration for the privilege of prepayment of principal, except as provided in section 501C.1107 on bond premium and bond discount;
(3) income earned during administration of a decedent's estate as provided in section 501C.1105;
(4) corporate distributions as provided in section 501C.1106;
(5) accrued increment on bonds or other obligations issued at discount as provided in section 501C.1107;
(6) receipts from business and farming operations as provided in section 501C.1108;
(7) receipts from disposition of natural resources as provided in sections 501C.1109 and 501C.1110; and
(8) receipts from other principal subject to depletion as provided in section 501C.1111.
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 501C.1106;
(5) receipts from the disposition of corporate securities as provided in section 501C.1107;
(6) royalties and other receipts from disposition of natural resources as provided in sections 501C.1109 and 501C.1110;
(7) receipts from other principal subject to depletion as provided in section 501C.1111;
(8) profit resulting from a change in the form of principal;
(9) allowances for depreciation established under sections 501C.1108 and 501C.1113, subdivision 1, clause (2); and
(10) 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.
Subd. 3.
Charges.
After determining income and principal in accordance with the terms of the trust instrument or of sections 501C.1101 to 501C.1118, the trustee shall charge to income or principal expenses and other charges as provided in section 501C.1113.
History:
2015 c 5 art 11 s 3
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1104 — When Right To Income Arises; Apportionment Of Income.

501C.1104 WHEN RIGHT TO INCOME ARISES; APPORTIONMENT OF INCOME.
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 the death of any person, it becomes subject to the trust as of the date of the death of the person or, 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 an estate or trust during which the beneficiary may have no right to a distribution of the income.
Subd. 2.
Receipts due but not paid; periodic payments.
In the administration of a decedent's estate or an asset that becomes subject to a trust by reason of a will:
(1) receipts due but not paid at the date of death of the testator are principal;
(2) receipts in the form of periodic payments, other than corporate distributions to stockholders, including rent, interest, or annuities, not due at the date of the death of the testator must be treated as accruing from day to day. That portion of the receipt that accrues before the date of death is principal, and the balance is income.
Subd. 3.
Other receipts.
In all other cases, any receipt from an income-producing asset is income even though the receipt was earned or accrued in whole or in part before the date when the asset became subject to the trust.
Subd. 4.
Termination of income interest.
On termination of an income interest, the income beneficiary whose interest is terminated, or the income beneficiary's estate, is entitled to:
(1) income undistributed on the date of termination;
(2) income due but not paid to the trustee on the date of termination; and
(3) income in the form of periodic payments, other than corporate distributions to stockholders, including rent, interest, or annuities, not due on the date of termination, accrued from day to day.
Subd. 5.
Corporate distributions to stockholders.
Corporate distributions to stockholders must be treated as due on the day fixed by the corporation for determination of stockholders of record entitled to distribution or, if no date is fixed, on the date of declaration of the distribution by the corporation.
Subd. 6.
Income payable to spouse.
If a gift or bequest is made in trust that is intended to qualify for the federal estate tax deduction for transfers under section 2056 of the Internal Revenue Code of 1986, as amended, or the federal gift tax deduction under section 2523 of the Internal Revenue Code of 1986, as amended, all distributions of income to the transferor's spouse shall not be made less frequently than annually.
History:
2015 c 5 art 11 s 4
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1107 — Bond Premium And Discount.

501C.1107 BOND PREMIUM AND DISCOUNT.
Subdivision 1.
Principal.
Bonds or other obligations for the payment of money are principal at their inventory value, except as provided in subdivision 2 for discount bonds. No provision may be made for amortization of bond premiums or for accumulation for discount. The proceeds of sale, redemption, or other disposition of the bonds or obligations are principal.
Subd. 2.
Income.
The increment in value realized upon sale, redemption, or other disposition of a bond or other obligation for the payment of money bearing no stated interest but payable or redeemable at maturity or at a future time at an amount in excess of the amount in consideration of which it was issued or in accordance with a fixed schedule of appreciation, is distributable as income. The increment in value is distributable to the beneficiary who was the income beneficiary at the time of increment from the first principal cash available or, if none is available, when realized by sale, redemption, or other disposition. Whenever unrealized increment is distributed as income but out of principal, the principal must be reimbursed for the increment when realized.
History:
2015 c 5 art 11 s 7
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1108 — Sole Proprietorships.

501C.1108 SOLE PROPRIETORSHIPS.
Subdivision 1.
Separate account.
(a) 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.
(b) 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.
(c) A trustee may not account separately for a traditional securities portfolio to avoid the provisions of sections 501C.1101 to 501C.1118 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:
2015 c 5 art 11 s 8
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1109 — Disposition Of Natural Resources.

501C.1109 DISPOSITION OF NATURAL RESOURCES.
Subdivision 1.
Allocation of receipts.
(a) If a part of the principal consists of a right to receive royalties, overriding or limited royalties, working interests, production payments, net profit interests, or other interests in minerals or other natural resources in, on, or under land, the receipts from taking the natural resources from the land must be allocated under paragraphs (b) to (d).
(b) If received as rent on a lease or extension payments on a lease, the receipts are income.
(c) If received from a production payment carved out of a mineral property, the receipts are income to the extent of a factor for interest or its equivalent provided in the governing instrument or a greater amount determined by the trustee to be reasonable and equitable in view of the interests of those entitled to income as well as those entitled to principal. The receipts not allocated to income are principal.
(d) If received as a royalty, overriding or limited royalty, or bonus or from a working, net profit, or other interest in minerals or other natural resources, receipts not provided for in paragraph (b) or (c) must be apportioned on a yearly basis in accordance with this paragraph whether or not any natural resource was being taken from the land at the time the trust was established. The receipts from these properties 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. Any allocated amount must be added to principal as an allowance for depletion of the asset. The balance of the gross receipts, after payment from the receipts of all direct and indirect expenses, is income.
Subd. 2.
Timber excepted.
This section does not apply to timber.
History:
2015 c 5 art 11 s 9
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1110 — Timber.

501C.1110 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 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 clause (1) or (2); or
(4) to principal to the extent that advance payments, bonuses, and other payments are not allocated pursuant to clause (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.
History:
2015 c 5 art 11 s 10
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1111 — Annuities, Qualified And Nonqualified Employee Compensation, Retirement Plans And Other Property Subject To Depletion.

501C.1111 ANNUITIES, QUALIFIED AND NONQUALIFIED EMPLOYEE COMPENSATION, RETIREMENT PLANS AND OTHER PROPERTY SUBJECT TO DEPLETION.
Except as provided in sections 501C.1109 and 501C.1110, if part of the principal consists of property subject to depletion, including leaseholds, patents, copyrights, royalty rights, 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 501C.1101 to 501C.1118 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.
History:
2015 c 5 art 11 s 11
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1114 — Nontrust Estates.

501C.1114 NONTRUST ESTATES.
Subdivision 1.
Limitations.
Sections 501C.1101 to 501C.1118 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 501C.1101 to 501C.1118 to trusts and trustees must be read as applying to nontrust estates and to tenants and remainderpersons as the context requires.
Subd. 2.
Application.
(a) In applying sections 501C.1101 to 501C.1118 to nontrust estates, the rules in paragraphs (b) to (e) must be followed.
(b) 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.
(c) 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.
(d) 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.
(e) 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:
2015 c 5 art 11 s 14
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1115 — Application.

501C.1115 APPLICATION.
Except as specifically provided in the governing instrument, Minnesota Statutes 1988, sections 501.48 to 501.63, apply to a receipt or expense received or incurred after January 1, 1970, and before January 1, 1990, by any trust or decedent's estate whether established before or after January 1, 1970, and whether the asset involved was acquired by the trustee before or after January 1, 1970.
Except as specifically provided in the governing instrument, sections 501C.1101 to 501C.1118 apply to a receipt or expense received or incurred after December 31, 1989, by a trust or decedent's estate whether established before, on, or after January 1, 1990, and whether the asset involved or legal estate was acquired by the trustee, personal representative, legal life tenant, or remainderperson before, on, or after January 1, 1990.
History:
2015 c 5 art 11 s 15
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1116 — Ascertainment Of Income Or Principal.

501C.1116 ASCERTAINMENT OF INCOME OR PRINCIPAL.
Sections 501C.1101 to 501C.1118 do not govern the ascertainment of what constitutes the receipt of income or principal by the estate or trust for income tax purposes.
History:
2015 c 5 art 11 s 16
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1117 — Uniformity Of Interpretation.

501C.1117 UNIFORMITY OF INTERPRETATION.
Sections 501C.1101 to 501C.1118 must be so construed as to effectuate their general purpose to make uniform the law of those states that enact them.
History:
2015 c 5 art 11 s 17
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1118 — Short Title.

501C.1118 SHORT TITLE.
Sections 501C.1101 to 501C.1117 may be cited as the Uniform Principal and Income Act.
History:
2015 c 5 art 11 s 18
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1201 — Memorial Fund.

501C.1201 MEMORIAL FUND.
Subdivision 1.
Establishment.
A trust may be created for the purpose of establishing a fund for the benefit of one or more individuals with a single transfer under the Minnesota Uniform Custodial Trust Act in the manner and form provided by section 529.17. A trust authorized under this section must be created and administered and is subject to the Minnesota Uniform Custodial Trust Act.
Subd. 2.
Additional funds.
Notwithstanding subdivision 1, after a fund has been created, additional funds may be transferred to the fund without the formalities required by chapter 529 if the transferor manifests a reasonable expression of intent to make the transfer, together with a reasonable form of delivery of the property including, but not limited to, the following:
(1) a check payable to the name of the fund and delivered to the trustee or the trustee's custodial agent;
(2) delivery of cash or tangible personal property to the trustee or to the trustee's custodial agent;
(3) delivery and recording of title of stock or other registered security in the name of the fund;
(4) delivery of a deed and acceptance of the deed by the trustee of the fund, or the recording of a deed in the name of the trustee of the fund with the applicable county recorder or registrar of titles for real property; and
(5) any other means of transfer and delivery so that a reasonable person would conclude that the transferor intended the property be titled in the name of, and used for the benefit of the beneficiaries of, the fund.
History:
2015 c 5 art 12 s 1
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1202 — Suspension Of The Power Of Alienation.

501C.1202 SUSPENSION OF THE POWER OF ALIENATION.
Subdivision 1.
Suspension; exceptions.
(a) The power of alienation is suspended if there are no persons in being who, alone or in conjunction with others, can convey an absolute fee in possession or absolute ownership of real property or absolute ownership of personal property.
(b) There is no suspension of the power of alienation by the terms of a trust or by interests in property held in trust if there is an unlimited power in one or more persons then in being to terminate the trust, by revocation or otherwise, and to acquire an absolute fee in possession or absolute ownership of the trust property.
(c) There is no suspension of the power of alienation by the terms of a trust or by interests in property held in trust if the trustee has power to sell an absolute fee in possession or absolute ownership of the trust property.
Subd. 2.
Suspension for 21 years.
The power of alienation of property held in trust may be suspended, by the terms of the trust, for a period of not more than 21 years. During any period of suspension of the power of alienation of real property, sections 501C.0201 to 501C.0208 apply. Notwithstanding any contrary term of a trust, suspension of the power of alienation by the terms of a trust ceases after a period of 21 years, after which the trustee has the power to convey an absolute fee in possession or absolute ownership of the trust property, and to mortgage, pledge, and lease the same. A provision in the terms of a trust for forfeiture of the interest of a trustee or beneficiary if the trustee or beneficiary participates in or seeks to convey, mortgage, pledge, or lease trust property after the expiration of a 21-year period of suspension is void.
Subd. 3.
Inapplicable to certain trusts.
Subdivision 2 does not apply to a trust if the beneficial interests in the trust are evidenced by or constitute securities within the meaning of section 2(1) of the Securities Act of 1933, title 15, United States Code, section 77(b)(1).
Subd. 4.
Void future interests.
Every future interest in real or personal property not held in trust is void in its creation if it might suspend the power of alienation for a period longer than a life or lives in being plus 21 years.
History:
2015 c 5 art 12 s 2
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1203 — Trusts Forming Part Of Retirement Plans For Participating Members.

501C.1203 TRUSTS FORMING PART OF RETIREMENT PLANS FOR PARTICIPATING MEMBERS.
If a trust forms part of a retirement plan created by and for the benefit of self-employed persons for the purpose of receiving their contributions and investing, accumulating, and distributing to the persons or their beneficiaries the corpus, profits, and earnings of the trust in accordance with the plan, the power of a person beneficially interested in the trust to sell, assign, or transfer that beneficial interest, to anticipate payments under the plan, or to terminate the trust, may be limited or withheld in accordance with the provisions of the plan, whether or not the person furnished consideration for the creation of the trust.
History:
2015 c 5 art 12 s 3
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1204 — Trusts Not Affected.

501C.1204 TRUSTS NOT AFFECTED.
Notwithstanding other law to the contrary, a trust created before June 1, 1973, relating to one's "minority" or "majority" or other related terms is governed by the definitions of those terms existing at the time of the creation of the trust.
History:
2015 c 5 art 12 s 4
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1207 — Effect Of Dissolution Of Marriage.

501C.1207 EFFECT OF DISSOLUTION OF MARRIAGE.
Subdivision 1.
Revocation of certain trust provisions.
If after execution of a trust instrument in which a sole settlor reserves a power to alter, amend, revoke, or terminate the provisions of the trust, the settlor'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 settlor'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 settlor'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 settlor's marriage.
Subd. 3.
Revival of revoked provisions.
If provisions are revoked solely by this section, they are revived by the settlor'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.
History:
2015 c 5 art 12 s 7
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1208 — Settlor And Agents Of Settlor.

501C.1208 SETTLOR AND AGENTS OF SETTLOR.
If a trust instrument reserves to the settlor, in a nonfiduciary capacity, the control over any or all investment decisions, the trustee is not responsible for the investment decisions made by the settlor or an agent of the settlor.
History:
2015 c 5 art 12 s 8
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1301 — Uniformity Of Application And Construction.

501C.1301 UNIFORMITY OF APPLICATION AND CONSTRUCTION.
In applying and construing sections 501C.0101 to 501C.1014, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
History:
2015 c 5 art 13 s 1
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1302 — Electronic Records And Signatures.

501C.1302 ELECTRONIC RECORDS AND SIGNATURES.
The provisions of sections 501C.0101 to 501C.1208 governing the legal effect, validity, or enforceability of electronic records or electronic signatures, and of contracts formed or performed with the use of such records or signatures, conform to the requirements of section 102 of the Electronic Signatures in Global and National Commerce Act, United States Code, title 15, section 7002, and supersede, modify, and limit the requirements of the Electronic Signatures in Global and National Commerce Act.
History:
2015 c 5 art 13 s 2
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1303 — Severability.

501C.1303 SEVERABILITY.
If any provision located in sections 501C.0101 to 501C.1208 or their application to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of any provision located in sections 501C.0101 to 501C.1208 which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable.
History:
2015 c 5 art 13 s 3
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1304 — Application To Existing Relationships.

501C.1304 APPLICATION TO EXISTING RELATIONSHIPS.
(a) Except as otherwise provided in sections 501C.0101 to 501C.1208:
(1) sections 501C.0101 to 501C.1208 apply to all trusts created before, on, or after January 1, 2016;
(2) sections 501C.0101 to 501C.1208 apply to all judicial proceedings concerning trusts commenced on or after January 1, 2016;
(3) sections 501C.0101 to 501C.1208 apply to judicial proceedings concerning trusts commenced before January 1, 2016, unless the court finds that application of a particular provision of this chapter would substantially interfere with the effective conduct of the judicial proceedings or unfairly prejudice the rights of the parties;
(4) any rule of construction or presumption provided in sections 501C.0101 to 501C.1208 apply to trust instruments executed before January 1, 2016, unless there is a clear indication of a contrary intent in the terms of the trust; and
(5) an act or omission that occurs before January 1, 2016, is not affected by sections 501C.0101 to 501C.1208.
(b) If a right is acquired, extinguished, or barred upon the expiration of a prescribed period that has commenced to run under any other statute before January 1, 2016, that statute continues to apply to the right even if it has been repealed or superseded.
History:
2015 c 5 art 13 s 4
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 502 — Powers Of Appointment › Section 502.80 — Common Law Of Powers Retained, Except As Modified By This Chapter.

502.80 COMMON LAW OF POWERS RETAINED, EXCEPT AS MODIFIED BY THIS CHAPTER.
(a) The common law of powers remains in full force and effect and supplements the provisions of this chapter, unless explicitly modified or displaced by this chapter.
(b) If any provision of this chapter differs or is inconsistent with any provision in chapter 523 relating to powers of attorney, the provisions of chapter 523 shall prevail to the extent the provisions are different or inconsistent.
History:
2015 c 5 art 14 s 1
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 502 — Powers Of Appointment › Section 502.81 — Definitions.

502.81 DEFINITIONS.
Subdivision 1.
Application.
The terms defined in this section apply to this chapter.
Subd. 2.
Appointee.
"Appointee" means the person in whose favor a power of appointment is exercisable.
Subd. 3.
Appointive property.
"Appointive property" means property which is the subject of a power of appointment.
Subd. 4.
Donee.
"Donee" means the person to whom a power is given or in whose favor a power is reserved.
Subd. 5.
Donor.
"Donor" means the person who creates or reserves a power.
Subd. 6.
Power.
"Power" means an authority to do any act in relation to property, including the creation or revocation of an estate therein or a charge thereon, that the donor of the power might do, except that the term, as used in this chapter, does not apply to a power of attorney to convey property in the name of the owner.
History:
2015 c 5 art 14 s 2
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 502 — Powers Of Appointment › Section 502.82 — Varieties Of Power.

502.82 VARIETIES OF POWER.
Subdivision 1.
Powers of appointment and other powers.
This chapter applies to powers of appointment. A power of appointment, as the term is used in this chapter, is an authority created or reserved by a donor having property subject to the donor's disposition, enabling the donee to designate, within the limits that may be prescribed by the donor, the appointees of the property, the shares, or the manner in which the property shall be received.
Subd. 2.
Classification of powers of appointment as to kind; general and special; exclusive and nonexclusive.
(a) A power of appointment is:
(1) general or special; and
(2) exclusive or nonexclusive.
(b) A power of appointment is general to the extent that it is exercisable wholly in favor of the donee, the donee's estate, the donee's creditors, or the creditors of the donee's estate.
(c) All other powers of appointment are special.
(d) A special power of appointment is exclusive if it may be exercised in favor of one or more of the appointees to the exclusion of the others.
(e) A special power of appointment is nonexclusive if it must be exercised in favor of all the appointees.
Subd. 3.
Classification of powers of appointment as to time of exercise; presently exercisable, testamentary, and postponed.
(a) A power of appointment, as to the time of its exercise, may be presently exercisable, testamentary, or postponed.
(b) A power of appointment is presently exercisable if it may be exercised by the donee, during the donee's lifetime or by the donee's written will, at any time after its creation, and does not include a postponed power as described in paragraph (d).
(c) A power of appointment is testamentary if it is exercisable only by a written will of the donee.
(d) A power of appointment is postponed if it is exercisable by the donee only after the expiration of a stated time or after the occurrence or nonoccurrence of a specified event.
Subd. 4.
Classification of powers of appointment as to duty to exercise; imperative and discretionary.
(a) A power of appointment is either imperative or discretionary.
(b) A power of appointment is imperative if the instrument creating the power imposes on the donee a duty to exercise it, and the power may be imperative even though it is exclusive.
(c) A power of appointment is discretionary if the donee is authorized to exercise or not to exercise it.
History:
2015 c 5 art 14 s 3
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 502 — Powers Of Appointment › Section 502.83 — Rules For Creation Of A Power Of Appointment.

502.83 RULES FOR CREATION OF A POWER OF APPOINTMENT.
The donor of a power of appointment:
(1) must be a person capable of transferring the appointive property;
(2) must have created or reserved the power by a written instrument executed by the donor in the manner required by law;
(3) must manifest the donor's intention to confer the power on a person capable of holding the appointive property; and
(4) must not nullify or alter the rights of creditors of the donee, as defined in this chapter, by any language in the instrument creating or reserving the power purporting to give the interest of the donee a spendthrift character.
History:
2015 c 5 art 14 s 4
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 502 — Powers Of Appointment › Section 502.84 — Extent Of Donee's Authority To Appoint Or Contract To Appoint An Estate In Appointive Property.

502.84 EXTENT OF DONEE'S AUTHORITY TO APPOINT OR CONTRACT TO APPOINT AN ESTATE IN APPOINTIVE PROPERTY.
Subdivision 1.
Scope of the authority of the donee.
The scope of the donee's authority as to appointees and as to the time and manner of the appointment is unlimited except as the donor manifests a contrary intention.
Subd. 2.
Contract to appoint; power presently exercisable.
The donee of a power of appointment which is presently exercisable, or of a postponed power which has become exercisable, can contract to make an appointment to the extent that the contract or the promised appointment does not confer a benefit upon a person who is not a permissible appointee under the power.
Subd. 3.
Contract to appoint; power not presently exercisable.
(a) The donee of a power of appointment which is not presently exercisable, or of a postponed power which has not become exercisable, must not contract to make an appointment, except that this prohibition shall not apply if the donor and donee are the same person. A prohibited contract under this subdivision, if made, must not be the basis of an action for specific performance or damages, but the promisee may obtain restitution of the value given by the promisee for the promise unless the donee has exercised the power pursuant to the contract.
(b) The provisions of this section do not abridge the ability of the donee of a power of appointment, which is not presently exercisable, to release the power pursuant to section 502.87, subdivision 2, except that where the donor designated persons or a class to take in default of the donee's exercise of the power, a release with respect to appointive property must serve to benefit all those so designated as provided by the donor.
Subd. 4.
Priority.
With respect to real property subject to a power of appointment, the interest of a donee and any appointee has priority as against creditors, purchasers, or encumbrancers of the real property, or as against a person having an estate in the real property, only from the time at which the instrument creating the power is duly recorded, but only if the creditors, purchasers, encumbrancers, and estate holders act in good faith or without notice. As against all other persons, this interest has priority from the time at which the instrument creating the power takes effect.
History:
2015 c 5 art 14 s 5