This bill proposes amendments to the Uniform Trust Code, Powers of Appointment, and the Uniform Probate Code in Minnesota, introducing significant changes to enhance the clarity and efficiency of trust management. A notable change is the extension of the vesting period for nonvested property interests or powers of appointment in trusts created on or after August 1, 2025, allowing them to vest or terminate within 500 years instead of the previous 90 years, unless a shorter period is specified. The bill also clarifies the roles and powers of trustees, beneficiaries, and representatives, particularly regarding the modification or termination of 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 focus on the governance of trusts, detailing the powers of investment and distribution trust advisors, as well as trust protectors. The bill allows governing instruments to specify the authority of these advisors to direct or veto trustee actions and outlines their responsibilities, aligning them with trustee obligations. It also introduces a "savings provision" to ensure the effective exercise of powers related to trust principal, even if the trust instrument does not fully comply with statutory requirements. Moreover, the bill addresses the rights of beneficiaries, particularly concerning parental inheritance rights, and emphasizes compliance with the Internal Revenue Code to protect tax benefits associated with trusts. Overall, these amendments aim to modernize trust law in Minnesota, ensuring it meets contemporary needs while safeguarding beneficiary rights.

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