S.F. No. 116 - Trust Law
Author:	Senator David Knutson
Prepared by:	Kathleen Pontius, Senate Counsel (651/296-4394)
Date:	February 11, 2003

Section 1 authorizes the creation of a trust to provide exclusively for the care of an animal. Provisions are included with respect to when the trust would terminate; enforcement of the trust; and application of trust property during the existence of the trust and upon termination.

Section 2 authorizes the creation of a trust for purposes of establishing a memorial fund for the benefit of one or more individuals with a single transfer under the Minnesota Uniform Custodial Trust Act. It is intended to provide a legal structure that facilitates the creation of trust funds upon the occurrence of some unexpected or tragic event for which a community wants to create a memorial fund to benefit those persons who are affected by the tragedy. The fund would be used only to benefit specific and identifiable beneficiaries as opposed to a fund that benefits a group or a community. Provisions are included for establishment of the fund and the use of additional funds.

Section 3 amends the statute dealing with prohibition against the exercise of certain powers by trustees to eliminate a special provision dealing with trusts created on or before May 14, 1993.

Section 4 adds a new provision in the trust law dealing with nonjudicial settlement agreements. It establishes a framework under which the trustee and all beneficiaries may enter into agreements that would otherwise require court approval. Only specified matters may be the subject of an agreement. A trust with a spendthrift clause could be terminated if its fair market value was less than $50,000, provided that the trustee and beneficiaries believe that continuing administration costs will defeat or substantially impair the accomplishment of the trust purposes.

Section 5 contains special new notice and pleading requirements in judicial proceedings involving trusts and in nonjudicial settlement agreements as authorized under section 4. The binding effect of orders and agreements is specified based on the persons involved and the relationships of the parties.

Section 6 adds an effective date for a provision relating to revocation of a trust by dissolution of marriage to specify that it applied to decedents dying after July 31, 2002, when the Act originally took effect.

KP:cs

Check on the status of this bill

Back to Senate Counsel & Research Bill Summaries page

If you see any errors on this page, please e-mail us at webmaster@senate.leg.state.mn.us.