The bill SF571 proposes amendments to various provisions of the Minnesota Uniform Trust Code, Powers of Appointment, and the Uniform Probate Code. It updates and clarifies laws related to trusts, trustee powers, modifications, terminations, and fiduciary duties. Here are the key provisions:

Key Changes and Provisions

1. Trust Vesting and Duration:

   • Clarifies when nonvested property interests and powers of appointment are considered valid.
   • Extends the maximum duration of nonvested property interests from 90 years to 500 years for trusts created after August 1, 2025.

2. Trustee Powers & Duties:

   • Defines and updates fiduciary roles, including "investment trust advisors," "distribution trust advisors," and "trust protectors."
   • Outlines their responsibilities, liabilities, and interaction with excluded fiduciaries (trustees).
   • Limits the duty and liability of excluded fiduciaries.

3. Trust Modification & Termination:

   • Allows a noncharitable irrevocable trust to be modified or terminated if all beneficiaries consent and the modification does not violate the trust’s material purpose.
   • Increases the trust value threshold for a trustee to terminate an uneconomic trust from $50,000 to $150,000.

4. Trustee Appointment & Succession:

   • Establishes clearer rules for accepting or declining trusteeship.
   • Specifies how trustees can resign or be removed.

5. Revocable Trusts:

   • Clarifies procedures for the revocation or amendment of trusts, including who can act on behalf of an incapacitated settlor.
   • Limits the period for contesting a revocable trust’s validity to three years after the settlor’s death or 120 days after the trustee provides notice.

6. Decanting of Trusts:

   • Allows trustees with unlimited discretion to transfer trust assets to a new or modified trust.
   • Sets requirements for notice to beneficiaries and courts before transferring assets.
   • Prohibits trust modifications that reduce mandatory distributions, extend a trust beyond the rule against perpetuities, or affect certain tax benefits.

7. Parental Inheritance Restrictions:

   • Bars parents from inheriting from a child if:
     1. Their parental rights were terminated.
     2. The parent abandoned, abused, or neglected the child before death.
     3. The child was estranged from the parent in the year preceding their death.

Summary of Impact

• The updates modernize Minnesota’s trust laws, making them more flexible for estate planning.
• They increase protections for beneficiaries and clarifications for fiduciary responsibilities.
• The new rules around decanting trusts allow for greater trust adaptability.
• The new inheritance restriction on unfit parents enhances protections for children’s estates.

Would you like a more detailed breakdown of any specific provision?