This bill amends Minnesota Statutes 2024, section 290.01, subdivision 7b, to modify the definition of a "resident trust." The new language specifies that a trust that became irrevocable on or before December 31, 1995, or was first administered in Minnesota by that date, qualifies as a resident trust only if two or more specified conditions are met. These conditions include the majority of discretionary decisions regarding trust assets and distributions being made in Minnesota, or the official books and records of the trust being located in Minnesota. For trusts that became irrevocable after December 31, 1995, or were first administered in Minnesota after that date, the bill outlines similar criteria for determining residency.

Additionally, the bill introduces a definition for "grantor type trust," which refers to trusts where the income or gains are taxable to the grantor or others treated as substantial owners under the Internal Revenue Code. The amendments also clarify that actions taken by an agent or custodian do not count towards determining whether a trust is administered in Minnesota, provided certain conditions are met. The effective date of these changes is set for the day following final enactment.

Statutes affected:
Introduction: 290.01