This bill amends Minnesota Statutes 2024, section 290.01, subdivision 7b, to modify the definition of a "resident trust." The revised definition specifies that a trust is considered a resident trust if it became irrevocable on or before December 31, 1995, or was first administered in Minnesota by that date, provided that two or more specified conditions are met. These conditions include the majority of discretionary decisions regarding trust assets and distributions being made in Minnesota, or the official books and records of the trust being located in Minnesota. For trusts that became irrevocable or were first administered after December 31, 1995, the bill outlines similar criteria for determining residency.

Additionally, the bill clarifies the treatment of grantor type trusts, which are defined as trusts where the income or gains are taxable to the grantor or others treated as substantial owners under the Internal Revenue Code. The new language specifies that the actions of an agent or custodian in administering the trust will not be considered in determining whether the trust is administered in Minnesota, provided certain conditions regarding delegation and oversight are met. The changes take effect the day following final enactment.

Statutes affected:
Introduction: 290.01