The bill amends Minnesota Statutes 2024, section 290.01, subdivision 7b, to modify the definition of a "resident trust." It specifies that a resident trust is one that became irrevocable on or before December 31, 1995, or was first administered in Minnesota by that date, provided that two or more conditions are met, such as a majority of discretionary decisions regarding investments or distributions being made in Minnesota, or the official books and records being located in the state. For trusts that became irrevocable or were first administered after December 31, 1995, the bill outlines similar conditions for classification as a resident trust.

Additionally, the bill clarifies that a "grantor type trust" is defined as a trust where the income or gains are taxable to the grantor or others treated as substantial owners under specific sections of the Internal Revenue Code. It also includes provisions regarding the delegation of actions to an agent or custodian, stating that such actions will not be considered in determining whether the trust is administered in Minnesota, provided certain conditions are met. The changes take effect the day following final enactment.

Statutes affected:
Introduction: 290.01