This bill proposes amendments to the Uniform Trust Code, Powers of Appointment, and the Uniform Probate Code in Minnesota, focusing on technical and clarifying changes to existing laws. A significant modification allows nonvested property interests or powers of appointment in trusts created on or after August 1, 2025, to vest or terminate within 500 years, an increase from the previous limit of 90 years, unless a shorter period is specified in the trust. The bill also clarifies the roles and powers of trustees, beneficiaries, and representatives in trust administration, including conditions for modifying or terminating noncharitable irrevocable trusts. Additionally, it raises the threshold for a trust to be considered uneconomic from $50,000 to $150,000, facilitating the termination of trusts that are no longer cost-effective to administer.

Further amendments clarify the powers and responsibilities of investment trust advisors, distribution trust advisors, and trust protectors, allowing them to direct or veto trustee actions and manage beneficiary interests. The bill establishes duties and liabilities for these directing parties and clarifies that excluded fiduciaries have no monitoring duty unless specified otherwise. It introduces new definitions to enhance understanding of trustee and beneficiary roles and outlines requirements for exercising powers related to trust principal and appointments. Provisions are also included to protect beneficiaries' rights, such as barring a parent from inheriting under certain circumstances. The changes are set to take effect the day following final enactment, applying to actions commenced thereafter.

Statutes affected:
Introduction: 501A.01, 501C.0301, 501C.0302, 501C.0407, 501C.0411, 501C.0414, 501C.0602, 501C.0605, 501C.0701, 501C.0808, 501C.1013, 501C.1014, 501C.1105, 502.851, 524.2
1st Engrossment: 501A.01, 501C.0301, 501C.0302, 501C.0407, 501C.0411, 501C.0414, 501C.0602, 501C.0605, 501C.0701, 501C.0808, 501C.1013, 501C.1014, 501C.1105, 502.851, 524.2