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 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, from 90 years to 500 years, unless a shorter period is specified. The bill also modifies representation rules for beneficiaries, clarifies conditions for modifying or terminating noncharitable irrevocable trusts, and raises the threshold for terminating uneconomic trusts from $50,000 to $150,000.

Additionally, the bill enhances the roles and powers of trustees, investment trust advisors, and trust protectors, allowing for more flexibility in trust governance. It introduces new definitions and stipulations regarding the powers of trustees, including the ability to invade trust principal for current beneficiaries and the conditions under which these powers can be exercised. Notably, the bill removes previous limitations on the effectiveness of powers of appointment based on compliance with trust instruments and clarifies inheritance rights for parents in specific situations. Overall, the bill aims to modernize trust law in Minnesota, improving clarity and functionality in trust administration 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