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, allowing them to vest or terminate within 500 years instead of the previous 90 years, unless a shorter period is specified. The bill also updates definitions and roles of trustees, beneficiaries, and trust advisors, enhancing the powers of investment trust advisors and clarifying the 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 and clarifies the settlor's ability to revoke or amend a revocable trust.

Further amendments include the introduction of new provisions that define the roles and powers of investment trust advisors, distribution trust advisors, and trust protectors, allowing them to direct or veto trustee actions. The bill establishes duties and liabilities for directing parties and excluded fiduciaries, ensuring they adhere to standards similar to trustees unless specified otherwise. It also clarifies the definition of a decedent's estate to include revocable trusts at the time of death and introduces new definitions related to trust principal invasion. The bill outlines requirements for exercising appointment powers and expands the criteria under which a parent may be barred from inheriting from a child, ultimately aiming to modernize and streamline trust management and inheritance laws 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