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 statutes. 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, a substantial increase from the previous 90-year limit, unless a shorter period is specified in the trust. The bill also updates definitions and roles of trustees, beneficiaries, and trust advisors, enhancing the powers of investment trust advisors and clarifying the conditions under which noncharitable irrevocable trusts can be modified or terminated. Additionally, it raises the threshold for a trust to be considered uneconomic from $50,000 to $150,000 and specifies that a settlor's powers regarding trust management can only be exercised by an agent if expressly authorized.

Further amendments clarify the roles and powers of investment trust advisors, distribution trust advisors, and trust protectors, allowing them to direct or veto actions related to trust management. The bill establishes clearer guidelines for the responsibilities of these advisors and protectors, emphasizing the importance of communication between directing parties and excluded fiduciaries. It introduces new definitions related to the invasion of trust principal and the appointment of trustees, while also outlining the requirements for exercising powers related to trust principal, including written notice to interested parties. The bill aims to enhance trust management and distribution processes while safeguarding the rights of beneficiaries, including addressing issues related to parental rights termination and the revocation of designations upon marriage dissolution.

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
2nd 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
1st Unofficial 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