This bill proposes amendments to various provisions of the Uniform Trust Code, Powers of Appointment, and the Uniform Probate Code in Minnesota, focusing on technical, clarifying, and conforming changes to existing statutes. A significant change is the extension of the vesting or termination period for nonvested property interests or powers of appointment in trusts created on or after August 1, 2025, from 90 years to 500 years, 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 modifications can be delegated to an agent under a power of attorney if allowed by the trust instrument.

Further amendments clarify the roles and powers of investment trust advisors, distribution trust advisors, and trust protectors, allowing these advisors to direct, consent to, or veto trustee actions regarding investments and distributions. The bill also outlines the duties and liabilities of these directing parties, ensuring they are held to the same standards as trustees unless otherwise specified. Notably, it removes the ability of trust protectors to terminate trusts while allowing them to modify governing instruments. The bill introduces new definitions to clarify trustee and beneficiary roles, establishes requirements for exercising powers related to trust principal, and addresses inheritance rights in cases of estrangement or termination of parental rights. Overall, the bill aims to modernize and enhance the clarity and functionality of trust management in Minnesota.

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