reglab/statecodes huggingface dataset:
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0408 — Trust For Care Of Animal.

501C.0408 TRUST FOR CARE OF ANIMAL.
Subdivision 1.
Creation of an animal trust authorized; termination.
A trust may be created to provide for the care of an animal alive during the settlor's lifetime. The trust terminates upon the death of the animal or, if the trust was created to provide for the care of more than one animal alive during the settlor's lifetime, upon the death of the last surviving animal. Notwithstanding the foregoing, the trust may not be enforced for more than 90 years.
Subd. 2.
Enforcement of trust.
A trust authorized by this section may be enforced by a person appointed in the terms of the trust or, if no person is appointed, by a person appointed by a court. A person having an interest in the welfare of the animal may request the court to appoint a person to enforce the trust or to remove an appointed person.
Subd. 3.
Application of trust property.
Property of a trust authorized by this section may be applied only to the trust's intended use, except to the extent a court determines that the value of the trust property exceeds the amount required for the intended use. Upon termination of the trust, or if the court determines the trust has excess funds, the trustee shall transfer the unexpended or excess trust property pursuant to the terms of the trust instrument or, if there is no provision in the trust instrument, then the trust passes to the settlor's heirs-at-law determined as if the settlor died intestate domiciled in this state at the time of distribution.
Subd. 4.
MS 2020 [Repealed, 2022 c 98 art 2 s 16]
History:
2016 c 135 art 1 s 3
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0409 — Noncharitable Trust Without Ascertainable Beneficiary.

501C.0409 NONCHARITABLE TRUST WITHOUT ASCERTAINABLE BENEFICIARY.
Except as otherwise provided in section 501C.0408 or by another statute, the following rules apply:
(1) A trust may be created for a noncharitable purpose without a definite or definitely ascertainable beneficiary or for a noncharitable but otherwise valid purpose to be selected by the trustee. The trust may not be enforced for more than 21 years.
(2) A trust authorized by this section may be enforced by a person appointed in the terms of the trust or, if no person is so appointed, by a person appointed by the court.
(3) Property of a trust authorized by this section may be applied only to its intended use, except to the extent the court determines that the value of the trust property exceeds the amount required for the intended use. Except as otherwise provided in the terms of the trust, property not required for the intended use must be distributed to the settlor, if then living, otherwise to the settlor's successors in interest.
History:
2015 c 5 art 4 s 7; 2016 c 135 art 1 s 4
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0410 — Modification Or Termination Of Trust; Proceedings For Approval Or Disapproval.

501C.0410 MODIFICATION OR TERMINATION OF TRUST; PROCEEDINGS FOR APPROVAL OR DISAPPROVAL.
(a) In addition to the methods of termination prescribed by sections 501C.0411 to 501C.0414, a trust terminates to the extent the trust is revoked or expires pursuant to its terms, no purpose of the trust remains to be achieved, or the purposes of the trust have become unlawful, contrary to public policy, or impossible to achieve.
(b) A proceeding to approve or disapprove a proposed modification or termination under sections 501C.0411 to 501C.0416, or trust combination or division under section 501C.0417, may be commenced by a trustee or beneficiary, and a proceeding to approve or disapprove a proposed modification or termination under section 501C.0411 may be commenced by the settlor.
History:
2015 c 5 art 4 s 8
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0411 — Modification Or Termination Of Noncharitable Irrevocable Trust By Consent.

501C.0411 MODIFICATION OR TERMINATION OF NONCHARITABLE IRREVOCABLE TRUST BY CONSENT.
(a) A noncharitable irrevocable trust may be modified or terminated upon consent of the settlor and all beneficiaries, even if the modification or termination is inconsistent with a material purpose of the trust. A settlor's power to consent to a trust's modification or termination may be exercised by an agent under a power of attorney only to the extent expressly authorized by the power of attorney or the terms of the trust; by the settlor's conservator with the approval of the court supervising the conservatorship if an agent is not so authorized; or by the settlor's guardian with the approval of the court supervising the guardianship if an agent is not so authorized and a conservator has not been appointed.
(b) A noncharitable irrevocable trust may be terminated upon consent of all of the beneficiaries if the court concludes that continuance of the trust is not necessary to achieve any material purpose of the trust. A noncharitable irrevocable trust may be modified upon consent of all of the beneficiaries if the court concludes that modification is not inconsistent with a material purpose of the trust.
(c) The court is not precluded from modifying or terminating a trust because the trust instrument contains spendthrift provisions.
(d) Upon termination of a trust under paragraph (a) or (b), the trustee shall distribute the trust property as agreed by the beneficiaries.
(e) If not all of the beneficiaries consent to a proposed modification or termination of the trust under paragraph (a) or (b), the modification or termination may be approved by the court if the court is satisfied that:
(1) if all of the beneficiaries had consented, the trust could have been modified or terminated under this section; and
(2) the interests of a beneficiary who does not consent will be adequately protected.
History:
2015 c 5 art 4 s 9
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0412 — Modification Or Termination Because Of Unanticipated Circumstances Or Inability To Administer Trust Effectively.

501C.0412 MODIFICATION OR TERMINATION BECAUSE OF UNANTICIPATED CIRCUMSTANCES OR INABILITY TO ADMINISTER TRUST EFFECTIVELY.
(a) The court may modify the administrative or dispositive terms of a trust or terminate the trust if, because of circumstances not anticipated by the settlor, modification or termination will further the purposes of the trust. To the extent practicable, the modification must be made in accordance with the settlor's probable intention.
(b) The court may modify the administrative terms of a trust if continuation of the trust on its existing terms would be impracticable or wasteful or impair the trust's administration.
(c) Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the order of the court.
History:
2015 c 5 art 4 s 10
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0414 — Modification Or Termination Of Uneconomic Trust.

501C.0414 MODIFICATION OR TERMINATION OF UNECONOMIC TRUST.
(a) After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property having a total value less than $50,000 may terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration.
(b) The court may modify or terminate a trust or remove the trustee and appoint a different trustee if it determines that the value of the trust property is insufficient to justify the cost of administration.
(c) Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.
(d) This section does not apply to an easement for conservation or preservation.
History:
2015 c 5 art 4 s 11
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0415 — Reformation To Correct Mistakes.

501C.0415 REFORMATION TO CORRECT MISTAKES.
The court may reform the terms of a trust, even if unambiguous, to conform the terms to the settlor's intention if it is proved by clear and convincing evidence what the settlor's intention was and that the terms of the trust were affected by a mistake of fact or law, whether in expression or inducement.
History:
2015 c 5 art 4 s 12
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0416 — Modification To Achieve Settlor's Tax Objectives.

501C.0416 MODIFICATION TO ACHIEVE SETTLOR'S TAX OBJECTIVES.
To achieve settlor's tax objectives, the court may modify the terms of a trust in a manner that is not contrary to the settlor's probable intention. The court may provide that the modification has retroactive effect.
History:
2015 c 5 art 4 s 13
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0417 — Combination And Division Of Trusts.

501C.0417 COMBINATION AND DIVISION OF TRUSTS.
After notice to the qualified beneficiaries, a trustee may combine two or more trusts into a single trust or divide a trust into two or more separate trusts, if the result does not impair rights of any beneficiary or adversely affect achievement of the purposes of the trust.
History:
2015 c 5 art 4 s 14
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0502 — Spendthrift Provision.

501C.0502 SPENDTHRIFT PROVISION.
(a) A trust has a valid spendthrift provision if:
(1) the trust includes a provision that restricts both voluntary and involuntary transfers of a beneficiary's interest; or
(2) by the terms of the trust instrument, the settlor manifests an intention to impose restrictions on both voluntary and involuntary transfers of a beneficiary's interest.
(b) A term of a trust providing that the interest of a beneficiary is held subject to a "spendthrift trust," or words of similar import, is sufficient to restrict both voluntary and involuntary transfers of the beneficiary's interest.
(c) For the purposes of this section, neither a valid disclaimer nor the exercise of a limited power of appointment is a voluntary transfer.
(d) A beneficiary may not transfer an interest in a trust in violation of a valid spendthrift provision and a creditor or assignee of the beneficiary may not reach the interest or a distribution by the trustee before its receipt by the beneficiary.
History:
2015 c 5 art 5 s 1
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0504 — Right To Compel Distribution.

501C.0504 RIGHT TO COMPEL DISTRIBUTION.
(a) Whether or not a trust contains a spendthrift provision, a creditor of a beneficiary may not compel a distribution that is subject to the trustee's discretion, even if:
(1) the discretion is expressed in the form of a standard of distribution; or
(2) the trustee has abused the discretion.
(b) This section does not limit the right of a beneficiary to maintain a judicial proceeding against a trustee for an abuse of discretion or failure to comply with a standard for distribution.
(c) If the trustee's or cotrustee's discretion to make distributions for the trustee's or cotrustee's own benefit is limited by an ascertainable standard, a creditor may not reach or compel distribution of the beneficial interest except to the extent the interest would be subject to the creditor's claim were the beneficiary not acting as trustee or cotrustee.
History:
2015 c 5 art 5 s 2
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0505 — Creditor's Claim Against Settlor.

501C.0505 CREDITOR'S CLAIM AGAINST SETTLOR.
Whether or not the terms of a trust contain a spendthrift provision, the following rules apply:
(1) During the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor's creditors.
(2) With respect to an irrevocable trust, a creditor or assignee of the settlor may reach the maximum amount that can be distributed to or for the settlor's benefit. If a trust has more than one settlor, the amount the creditor or assignee of a particular settlor may reach may not exceed the settlor's interest in the portion of the trust attributable to that settlor's contribution.
(3) After the death of a settlor, and subject to the settlor's right to direct the source from which liabilities will be paid, the property of a trust that was revocable at the settlor's death is subject to claims of the settlor's creditors, costs of administration of the settlor's estate, the expenses of the settlor's funeral and disposal of remains, and statutory allowances to a surviving spouse and children to the extent the settlor's probate estate is inadequate to satisfy those claims, costs, expenses, and allowances.
History:
2015 c 5 art 5 s 3
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0506 — Overdue Distribution.

501C.0506 OVERDUE DISTRIBUTION.
(a) In this section, "mandatory distribution" means a distribution of income or principal which the trustee is required to make to a beneficiary under the terms of the trust, including a distribution upon termination of the trust. The term does not include a distribution subject to the exercise of the trustee's discretion even if (1) the discretion is expressed in the form of a standard of distribution, or (2) the terms of the trust authorizing a distribution couple language of discretion with language of direction.
(b) Whether or not a trust contains a spendthrift provision, a creditor or assignee of a beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not made the distribution to the beneficiary within a reasonable time after the designated distribution date.
History:
2015 c 5 art 5 s 4
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0507 — Personal Obligations Of Trustee.

501C.0507 PERSONAL OBLIGATIONS OF TRUSTEE.
Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt.
History:
2015 c 5 art 5 s 5
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0601 — Capacity Of Settlor Of Revocable Trust.

501C.0601 CAPACITY OF SETTLOR OF REVOCABLE TRUST.
The capacity required to create, amend, or revoke a revocable trust, or to direct the actions of the trustee of a revocable trust, is the same as that required to make a will.
History:
2015 c 5 art 6 s 1
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0602 — Revocation Or Amendment Of Revocable Trust.

501C.0602 REVOCATION OR AMENDMENT OF REVOCABLE TRUST.
(a) Unless the terms of a trust expressly provide that the trust is revocable, the settlor may not revoke or amend the trust.
(b) If a revocable trust is created or funded by more than one settlor:
(1) to the extent the trust consists of community property, the trust may be revoked by either spouse acting alone but may be amended only by joint action of both spouses;
(2) to the extent the trust consists of property other than community property, each settlor may revoke or amend the trust with regard to the portion of the trust property attributable to that settlor's contribution; and
(3) upon the revocation or amendment of the trust by fewer than all of the settlors, the trustee shall promptly notify the other settlors of the revocation or amendment.
(c) The settlor may revoke or amend a revocable trust:
(1) by substantial compliance with a method provided in the terms of the trust; or
(2) if the terms of the trust do not provide a method or the method provided in the terms is not expressly made exclusive, by:
(i) if the trust is created pursuant to a writing, by another writing manifesting clear and convincing evidence of the settlor's intent to revoke or amend the trust; or
(ii) if the trust is an oral trust, by any other method manifesting clear and convincing evidence of the settlor's intent.
(d) Upon revocation of a revocable trust, the trustee shall deliver the trust property as the settlor directs.
(e) A settlor's powers with respect to revocation, amendment, or distribution of trust property may be exercised by an agent under a power of attorney only to the extent expressly authorized by the terms of the trust or the power.
(f) A conservator of the settlor may exercise a settlor's powers with respect to revocation, amendment, or distribution of trust property only with the approval of the court supervising the conservatorship.
(g) A trustee who does not know that a trust has been revoked or amended is not liable to the settlor or settlor's successors in interest for distributions made and other actions taken on the assumption that the trust had not been amended or revoked.
History:
2015 c 5 art 6 s 2
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0603 — Written Statement Regarding Tangible Personal Property.

501C.0603 WRITTEN STATEMENT REGARDING TANGIBLE PERSONAL PROPERTY.
A revocable trust may be amended by a written statement disposing of items of tangible personal property not otherwise specifically disposed of by the settlor's will or the trust instrument, other than money, coin collections, and property used in a trade or business. To be effective as an amendment, the writing must be referred to in the trust instrument, must either be in the handwriting of the settlor or signed by the settlor, and must describe the items and the beneficiaries with reasonable certainty. The writing may be referred to as one to be in existence at the time of the settlor's death; it may be prepared before or after the execution of the trust instrument; it may be altered by the settlor after its preparation; and it may be a writing which has no significance apart from its effect upon the dispositions made by the trust instrument. A writing may include multiple writings and if an item of tangible personal property is disposed of to different persons by different writings, the most recent writing controls the disposition of the item.
History:
2015 c 5 art 6 s 3
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0604 — Settlor's Powers.

501C.0604 SETTLOR'S POWERS.
While a trust is revocable, rights of the beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the settlor.
History:
2015 c 5 art 6 s 4
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0605 — Limitation On Action Contesting Validity Of Revocable Trust; Distribution Of Trust Property.

501C.0605 LIMITATION ON ACTION CONTESTING VALIDITY OF REVOCABLE TRUST; DISTRIBUTION OF TRUST PROPERTY.
(a) A person may commence a judicial proceeding to contest the validity of a trust that was revocable immediately prior to the settlor's death within the earlier of:
(1) three years after the settlor's death; or
(2) 120 days after the trustee sent the person a copy of the trust instrument and a notice informing the person of the trust's existence, of the trustee's name and address, and of the time allowed for commencing a proceeding.
(b) Upon the death of the settlor of a trust that was revocable at the settlor's death, the trustee may proceed to distribute the trust property in accordance with the terms of the trust. The trustee is not subject to liability for doing so unless:
(1) the trustee knows of a pending judicial proceeding contesting the validity of the trust; or
(2) a potential contestant has notified the trustee of a possible judicial proceeding to contest the trust and a judicial proceeding is commenced within 60 days after the contestant sent the notification.
(c) A beneficiary of a trust that is determined to have been invalid, in whole or in part, is liable to return any distribution received, to the extent the invalidity applies to the distribution.
History:
2015 c 5 art 6 s 5
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0701 — Accepting Or Declining Trusteeship.

501C.0701 ACCEPTING OR DECLINING TRUSTEESHIP.
(a) Except as otherwise provided in paragraph (c), a person designated as trustee accepts the trusteeship:
(1) by substantially complying with a method of acceptance provided in the terms of the trust; or
(2) if the terms of the trust do not provide a method, or the method provided in the terms is not expressly made exclusive, by accepting delivery of the trust property, exercising powers or performing duties as trustee, or otherwise indicating acceptance of the trusteeship.
(b) A person designated as trustee who has not yet accepted the trusteeship may reject the trusteeship. A designated trustee who does not accept the trusteeship within a reasonable time after knowing of the designation is deemed to have rejected the trusteeship.
(c) A person designated as trustee, without accepting the trusteeship, may:
(1) act to preserve the trust property if, within a reasonable time after acting, the person sends a rejection of the trusteeship to the settlor or, if the settlor is dead or lacks capacity, to a qualified beneficiary; and
(2) inspect or investigate trust property to determine potential liability or for any other purpose.
History:
2015 c 5 art 7 s 1
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0702 — Trustee's Bond.

501C.0702 TRUSTEE'S BOND.
(a) A trustee shall give bond to secure performance of the trustee's duties only if the court finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust and the court has not dispensed with the requirement.
(b) The court may specify the amount of a bond, its liabilities, and whether sureties are necessary. The court may modify or terminate a bond at any time.
(c) A regulated financial-service institution qualified to do trust business in this state need not give bond, even if required by the terms of the trust.
History:
2015 c 5 art 7 s 2
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0703 — Cotrustees.

501C.0703 COTRUSTEES.
(a) Cotrustees who are unable to reach a unanimous decision may act by majority decision.
(b) If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the trust.
(c) A cotrustee must participate in the performance of a trustee's duties and powers unless the cotrustee is unavailable to perform the duties or exercise the powers because of absence, illness, disqualification under other law, or other temporary incapacity or the cotrustee has properly delegated the performance of the function to another trustee.
(d) If a cotrustee is unavailable to perform duties or exercise the powers because of absence, illness, disqualification under other law, or other temporary incapacity, and prompt action is necessary to achieve the purposes of the trust or to avoid injury to the trust property, the remaining cotrustee or a majority of the remaining cotrustees may act for the trust.
(e) A trustee may delegate to a cotrustee the performance of any duties or powers as prudent under the circumstances. Unless a delegation was irrevocable, a trustee may revoke a delegation previously made.
(f) Except as otherwise provided in paragraph (g), a trustee who does not join in an action of another trustee is not liable for the action.
(g) Each trustee shall exercise reasonable care to:
(1) prevent a cotrustee from committing a serious breach of trust; and
(2) compel a cotrustee to redress a serious breach of trust.
(h) A dissenting trustee who joins in an action at the direction of the majority of the trustees and who notified any cotrustee of the dissent at or before the time of the action is not liable for the action unless the action is a serious breach of trust.
History:
2015 c 5 art 7 s 3
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0704 — Vacancy In Trusteeship; Appointment Of Successor.

501C.0704 VACANCY IN TRUSTEESHIP; APPOINTMENT OF SUCCESSOR.
(a) A vacancy in the trusteeship occurs if:
(1) a person designated as trustee rejects the trusteeship;
(2) a person designated as trustee cannot be identified or does not exist;
(3) a trustee resigns;
(4) a trustee is disqualified or removed;
(5) a trustee dies; or
(6) a guardian or conservator is appointed for an individual serving as trustee.
(b) If one or more cotrustees remain in office, a vacancy in trusteeship need not be filled. A vacancy in a trusteeship must be filled if the trust has no remaining trustee.
(c) A vacancy in a trusteeship of a noncharitable trust that is required to be filled must be filled in the following order of priority:
(1) by a person designated in the terms of the trust to act as successor trustee;
(2) by a person appointed by unanimous agreement of the qualified beneficiaries;
(3) by a person appointed pursuant to a nonjudicial settlement agreement as defined in section 501C.0111; or
(4) by a person appointed by the court.
(d) A vacancy in a trusteeship of a charitable trust that is required to be filled must be filled in the following order of priority:
(1) by a person designated in the terms of the trust to act as successor trustee;
(2) by a person selected by the charitable organizations expressly designated to receive distributions under the terms of the trust if the attorney general concurs in the selection; or
(3) by a person appointed by the court.
(e) Whether or not a vacancy in a trusteeship exists or is required to be filled, the court may appoint an additional trustee or special fiduciary whenever the court considers the appointment necessary for the administration of the trust.
History:
2015 c 5 art 7 s 4
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0705 — Resignation Of Trustee.

501C.0705 RESIGNATION OF TRUSTEE.
(a) A trustee may resign:
(1) upon notice to the qualified beneficiaries, the settlor, if living, and all cotrustees; or
(2) with the approval of the court.
(b) In approving a resignation, the court may issue orders and impose conditions reasonably necessary for the protection of the trust property.
(c) Any liability of a resigning trustee or of any sureties on the trustee's bond for acts or omissions of the trustee is not discharged or affected by the trustee's resignation.
History:
2015 c 5 art 7 s 5
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0706 — Removal Of Trustee.

501C.0706 REMOVAL OF TRUSTEE.
(a) The settlor, a cotrustee, or a beneficiary may petition the court to remove a trustee, or a trustee may be removed by the court on its own initiative.
(b) The court may remove a trustee if:
(1) the trustee has committed a serious breach of trust;
(2) lack of cooperation among cotrustees substantially impairs the administration of the trust;
(3) the court determines that removal of the trustee best serves the interests of the beneficiaries because of unfitness, unwillingness, or persistent failure of the trustee to administer the trust effectively; or
(4) there has been a substantial change in circumstances or removal is requested by all of the qualified beneficiaries, the court finds that removal of the trustee best serves the interests of all of the beneficiaries and is not inconsistent with a material purpose of the trust, and a suitable cotrustee or successor trustee is available.
(c) Pending a final decision on a petition to remove a trustee, or in lieu of or in addition to removing a trustee, the court may order such appropriate relief under section 501C.1001, paragraph (b), as may be necessary to protect the trust property or the interests of the beneficiaries.
History:
2015 c 5 art 7 s 6
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0707 — Delivery Of Property By Former Trustee.

501C.0707 DELIVERY OF PROPERTY BY FORMER TRUSTEE.
(a) Unless a cotrustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee or other person entitled to it, a trustee who has resigned or been removed has the duties of a trustee and the powers necessary to protect the trust property.
(b) A trustee who has resigned or been removed shall proceed expeditiously to deliver the trust property within the trustee's possession to the cotrustee, successor trustee, or other person entitled to it.
(c) Title to all trust property shall be owned by and vested in any successor trustee without any conveyance, transfer, or assignment by the prior trustee.
History:
2015 c 5 art 7 s 7
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0708 — Compensation Of Trustee.

501C.0708 COMPENSATION OF TRUSTEE.
(a) If the terms of a trust do not specify the trustee's compensation, a trustee is entitled to compensation that is reasonable under the circumstances.
(b) If the terms of a trust specify the trustee's compensation, the trustee is entitled to be compensated as specified, but the court may allow more or less compensation if:
(1) the duties of the trustee are substantially different from those contemplated when the trust was created; or
(2) the compensation specified by the terms of the trust would be unreasonably low or high.
History:
2015 c 5 art 7 s 8
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0709 — Reimbursement Of Expenses.

501C.0709 REIMBURSEMENT OF EXPENSES.
(a) A trustee is entitled to be reimbursed out of the trust property, with interest as appropriate, for:
(1) expenses that were properly incurred in the administration of the trust; and
(2) expenses that were not properly incurred in the administration of the trust, to the extent necessary to prevent unjust enrichment of the trust.
(b) An advance by the trustee of money for the protection of the trust gives rise to a lien against trust property to secure reimbursement with reasonable interest.
History:
2015 c 5 art 7 s 9
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0801 — Duty To Administer Trust.

501C.0801 DUTY TO ADMINISTER TRUST.
Upon acceptance of a trusteeship, the trustee shall administer the trust in good faith, in accordance with its terms and purposes and the interests of the beneficiaries, and in accordance with this chapter and all other applicable law.
History:
2015 c 5 art 8 s 1
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0802 — Duty Of Loyalty.

501C.0802 DUTY OF LOYALTY.
(a) A trustee owes a duty of loyalty to the beneficiaries. A trustee shall not place the trustee's own interests above those of the beneficiaries.
(b) Subject to the rights of persons dealing with or assisting the trustee as provided in section 501C.1012, a sale, encumbrance, or other transaction involving the investment or management of trust property entered into by the trustee for the trustee's own personal account or which is otherwise affected by a conflict between the trustee's fiduciary and personal interests is voidable by a beneficiary affected by the transaction unless:
(1) the transaction was authorized by the terms of the trust;
(2) the transaction was approved by the court;
(3) the beneficiary did not commence a judicial proceeding within the time allowed by section 501C.1005;
(4) the beneficiary consented to the trustee's conduct, ratified the transaction, or released the trustee in compliance with section 501C.1009; or
(5) the transaction involves a contract entered into or claim acquired by the trustee before the person became a trustee.
(c) A sale, encumbrance, or other transaction involving the investment or management of trust property is presumed to be affected by a conflict between personal and fiduciary interests if it is entered into by the trustee with:
(1) the trustee's spouse;
(2) the trustee's descendants, siblings, parents, or their spouses;
(3) an agent or an attorney of the trustee; or
(4) a corporation or other person or enterprise in which the trustee, or a person who owns a significant interest in the trustee, has an interest that might affect the trustee's best judgment.
(d) This section does not preclude the following transactions, if fair to the beneficiaries:
(1) an agreement between a trustee and a beneficiary relating to the appointment or compensation of the trustee;
(2) payment of reasonable compensation to the trustee;
(3) a transaction between a trust and another trust, decedent's estate, or conservatorship of which the trustee is a fiduciary or in which a beneficiary has an interest;
(4) a deposit of trust money in a regulated financial service institution operated by the trustee; or
(5) an advance by the trustee of money for the protection of the trust.
(e) The court may appoint a special fiduciary to make a decision with respect to any proposed transaction that might violate this section if entered into by the trustee.
History:
2015 c 5 art 8 s 2
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0803 — Impartiality.

501C.0803 IMPARTIALITY.
If a trust has two or more beneficiaries, the trustee shall administer the trust impartially, giving due regard to the beneficiaries' respective interests.
History:
2015 c 5 art 8 s 3
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0804 — Prudent Administration.

501C.0804 PRUDENT ADMINISTRATION.
A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, and distribution requirements of the trust and all relevant circumstances. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution.
History:
2015 c 5 art 8 s 4
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0807 — Delegation By Trustee.

501C.0807 DELEGATION BY TRUSTEE.
(a) A trustee may delegate to any person, even if the person is associated with the trustee, duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in:
(1) selecting an agent;
(2) establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and
(3) periodically reviewing the agent's actions in order to monitor the agent's performance and that the agent is acting in compliance with the terms of the delegation.
(b) In performing a delegated function, an agent owes a duty to the trustee to exercise reasonable care to comply with the terms of the delegation. This duty shall be enforced by the trustee.
(c) A trustee who complies with paragraphs (a) and (b) is not liable to the beneficiaries or to the trust for an action of the agent to whom the function was delegated.
(d) By accepting a delegation of powers or duties from the trustee of a trust that is subject to the laws of this state, an agent submits to the jurisdiction of the courts of this state.
History:
2015 c 5 art 8 s 5
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0809 — Control, Protection, And Delivery Of Trust Property.

501C.0809 CONTROL, PROTECTION, AND DELIVERY OF TRUST PROPERTY.
(a) A trustee shall take reasonable steps to compel a former trustee or other person to deliver the trust's tangible personal property and evidence of ownership of other trust property to the trustee.
(b) A trustee shall take reasonable steps to take control of and protect the trust property, except that this duty does not apply to, and the trustee is not responsible for, items of tangible personal property that are property of a trust revocable by the settlor and that are not in the possession or control of the trustee.
History:
2015 c 5 art 8 s 7
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0810 — Record Keeping And Identification Of Trust Property.

501C.0810 RECORD KEEPING AND IDENTIFICATION OF TRUST PROPERTY.
(a) A trustee shall keep adequate records of the administration of the trust.
(b) A trustee shall keep trust property separate from the trustee's own property.
(c) If the trustee maintains records clearly indicating the respective interests, a trustee may invest as a whole the property of two or more separate trusts.
History:
2015 c 5 art 8 s 8
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0811 — Enforcement And Defense Of Claims.

501C.0811 ENFORCEMENT AND DEFENSE OF CLAIMS.
(a) A trustee shall take reasonable steps to redress a breach of trust known to the trustee to have been committed by a former trustee.
(b) A trustee shall take reasonable steps to enforce claims of the trust known to the trustee and to defend claims against the trust.
History:
2015 c 5 art 8 s 9
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0813 — Duty To Inform And Report.

501C.0813 DUTY TO INFORM AND REPORT.
(a) A trustee shall keep the qualified beneficiaries of an irrevocable trust reasonably informed about the administration of the trust and of the material facts necessary to protect their interests. Unless unreasonable under the circumstances, a trustee shall promptly respond to a beneficiary's request for information related to the administration of an irrevocable trust.
(b) A settlor may provide, by an express provision in the trust instrument, that paragraph (a) shall not apply to the administration of a trust during any period when the trustee is required by the terms of the trust to keep the settlor or another person, including one or more beneficiaries of the trust or a representative of a beneficiary, reasonably informed about the administration of the trust and of the material facts necessary to protect the beneficiaries' interests. A trustee shall promptly respond to such person's requests for information related to the administration of the trust. Unless the terms of the trust provide otherwise, any person to whom trust administration information is furnished shall have standing to enforce the trust but acts in a nonfiduciary capacity and has no duty or responsibility to enforce the trust or to take any other action with respect to the information furnished. If a settlor has, by an express provision in the trust instrument, prohibited a trustee from sharing information with beneficiaries, including but not limited to accountings, a trustee shall have the right to seek judicial approval by filing a petition with the court. Such petition shall comply with the notice provisions of section 501C.0203.
(c) A beneficiary may waive the right to information otherwise required to be furnished under paragraph (a). A beneficiary may withdraw any such waiver previously given. Any waiver or withdrawal of a waiver must be made by notice delivered to the trustee.
History:
2015 c 5 art 8 s 10
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0815 — General Powers Of Trustee.

501C.0815 GENERAL POWERS OF TRUSTEE.
(a) A trustee, without authorization by the court, may exercise:
(1) powers conferred by the terms of the trust; and
(2) except as limited by the terms of the trust:
(i) all powers over the trust property which an unmarried competent owner has over individually owned property;
(ii) any other powers appropriate to achieve the proper investment, management, and distribution of the trust property; and
(iii) any other powers conferred by this chapter.
(b) The exercise of a power is subject to the fiduciary duties prescribed by this chapter.
History:
2015 c 5 art 8 s 12
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.0817 — Distribution Upon Termination.

501C.0817 DISTRIBUTION UPON TERMINATION.
(a) Upon termination or partial termination of a trust, the trustee may send to the beneficiaries a proposal for distribution. The right of any beneficiary to object to the proposed distribution terminates if the beneficiary does not notify the trustee of an objection within 30 days after the proposal was sent but only if the proposal informed the beneficiary of the right to object and of the time allowed for objection.
(b) Upon the occurrence of an event terminating or partially terminating a trust, the trustee shall proceed expeditiously to distribute the trust property to the persons entitled to it, subject to the right of the trustee to retain a reasonable reserve for the payment of debts, expenses, and taxes and to secure a right of reimbursement if the reserve is inadequate.
(c) A release by a beneficiary of a trustee from liability for breach of trust is invalid to the extent it was induced by improper conduct of the trustee.
History:
2015 c 5 art 8 s 14
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1001 — Remedies For Breach Of Trust.

501C.1001 REMEDIES FOR BREACH OF TRUST.
(a) A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust.
(b) To remedy a breach of trust that has occurred or may occur, the court may:
(1) compel the trustee to perform the trustee's duties;
(2) enjoin the trustee from committing a breach of trust;
(3) compel the trustee to redress a breach of trust by paying money, restoring property, or other means;
(4) order a trustee to account;
(5) appoint a special fiduciary to take possession of the trust property and administer the trust;
(6) suspend the trustee;
(7) remove the trustee as provided in section 501C.0706;
(8) reduce or deny compensation to the trustee;
(9) subject to section 501C.1012, void an act of the trustee, impose a lien or a constructive trust on trust property, or trace trust property wrongfully disposed of and recover the property or its proceeds; or
(10) order any other appropriate relief.
History:
2015 c 5 art 10 s 1
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1002 — Damages For Breach Of Trust.

501C.1002 DAMAGES FOR BREACH OF TRUST.
(a) A trustee who commits a breach of trust is liable for the greater of:
(1) the amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred; or
(2) the profit the trustee made by reason of the breach.
(b) If more than one trustee is liable for a breach of trust, a trustee is entitled to contribution or indemnity from the other trustee or trustees as the court may determine.
History:
2015 c 5 art 10 s 2
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1003 — Remedies In Absence Of Breach.

501C.1003 REMEDIES IN ABSENCE OF BREACH.
(a) A trustee is chargeable for any profit made by the trustee arising from the administration of the trust, even absent a breach of trust.
(b) Absent a breach of trust, a trustee is not liable for a loss or depreciation in the value of trust property or for not having made a profit.
(c) This section does not limit a trustee's right to payments that are permitted under section 501C.0802.
History:
2015 c 5 art 10 s 3
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1004 — Attorney Fees And Costs.

501C.1004 ATTORNEY FEES AND COSTS.
In a judicial proceeding involving the administration of a trust, the court, as justice and equity may require, may award costs and expenses, including reasonable attorney fees, to any party from the trust that is the subject of the judicial proceeding.
History:
2015 c 5 art 10 s 4
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1005 — Limitation Of Action Against Trustee.

501C.1005 LIMITATION OF ACTION AGAINST TRUSTEE.
(a) A beneficiary may not commence a judicial proceeding against a trustee more than three years after the date the beneficiary or a representative of the beneficiary was sent a report that adequately disclosed the existence of a potential claim. If a report is sent after January 1, 2016, the report may cover a period before January 1, 2016.
(b) A report adequately discloses the existence of a potential claim if it provides sufficient information so that the beneficiary or representative knows of the potential claim or should have inquired into its existence.
(c) If paragraph (a) does not apply, a judicial proceeding by a beneficiary against a trustee must be commenced within six years after the first to occur of:
(1) the removal, resignation, or death of the trustee;
(2) the termination of the beneficiary's interest in the trust; or
(3) the termination of the trust.
History:
2015 c 5 art 10 s 5
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1006 — Reliance On Trust Instrument.

501C.1006 RELIANCE ON TRUST INSTRUMENT.
A trustee who acts in reasonable reliance on the terms of the trust as expressed in the trust instrument is not liable for a breach of trust to the extent the breach resulted from the reliance.
History:
2015 c 5 art 10 s 6
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1007 — Event Affecting Administration Or Distribution.

501C.1007 EVENT AFFECTING ADMINISTRATION OR DISTRIBUTION.
If the occurrence of an event, including marriage, divorce, performance of educational requirements, or death, affects the administration or distribution of a trust, a trustee who has exercised reasonable care to ascertain the occurrence of the event is not liable for a loss resulting from the trustee's lack of knowledge.
History:
2015 c 5 art 10 s 7
2023 Minnesota Statutes › Chapters 500 - 515B — Property And Property Interests › Chapter 501C — Trusts › Section 501C.1008 — Exculpation Of Trustee.

501C.1008 EXCULPATION OF TRUSTEE.
(a) The terms of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it:
(1) relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries; or
(2) was inserted as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor.
(b) An exculpatory term drafted or caused to be drafted by the trustee is invalid as an abuse of a fiduciary or confidential relationship unless:
(1) the settlor is represented by independent counsel with respect to the trust instrument containing the term; or
(2) the trustee proves that the exculpatory term is fair under the circumstances and that its existence and contents were adequately communicated to the settlor.
History:
2015 c 5 art 10 s 8