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 the threshold for terminating uneconomic trusts from $50,000 to $150,000, modifies representation rules for beneficiaries, and clarifies the conditions under which noncharitable irrevocable trusts can be modified or terminated.

Additionally, the bill enhances the roles and powers of investment trust advisors, distribution trust advisors, and trust protectors, allowing them to direct or veto trustee actions regarding investments and distributions. It establishes duties and liabilities for directing parties and excluded fiduciaries, ensuring they are held to similar standards as trustees. New definitions related to trust principal invasion and trustee appointment are introduced, along with a savings provision for effective exercise of powers even if the trust instrument does not fully comply with statutory requirements. The bill aims to modernize trust law in Minnesota, improving clarity and functionality in trust management and administration.

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