Title Minnesota Statutes, Minnesota Statutes

501C.0705 RESIGNATION OF TRUSTEE. (a) A trustee may resign: (1) upon notice to the qualified beneficiaries, the settlor, if living, and all cotrustees; or (2) with the approval of the court. (b) In approving a resignation, the court may issue orders and impose conditions reasonab…

501C.0706 REMOVAL OF TRUSTEE. (a) The settlor, a cotrustee, or a beneficiary may petition the court to remove a trustee, or a trustee may be removed by the court on its own initiative. (b) The court may remove a trustee if: (1) the trustee has committed a serious breach of trust;…

501C.0707 DELIVERY OF PROPERTY BY FORMER TRUSTEE. (a) Unless a cotrustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee or other person entitled to it, a trustee who has resigned or been removed has the duties of …

501C.0708 COMPENSATION OF TRUSTEE. (a) If the terms of a trust do not specify the trustee's compensation, a trustee is entitled to compensation that is reasonable under the circumstances. (b) If the terms of a trust specify the trustee's compensation, the trustee is entitled to b…

501C.0709 REIMBURSEMENT OF EXPENSES. (a) A trustee is entitled to be reimbursed out of the trust property, with interest as appropriate, for: (1) expenses that were properly incurred in the administration of the trust; and (2) expenses that were not properly incurred in the admin…

501C.0801 DUTY TO ADMINISTER TRUST. Upon acceptance of a trusteeship, the trustee shall administer the trust in good faith, in accordance with its terms and purposes and the interests of the beneficiaries, and in accordance with this chapter and all other applicable law. History:…

501C.0802 DUTY OF LOYALTY. (a) A trustee owes a duty of loyalty to the beneficiaries. A trustee shall not place the trustee's own interests above those of the beneficiaries. (b) Subject to the rights of persons dealing with or assisting the trustee as provided in section 501C.101…

501C.0803 IMPARTIALITY. If a trust has two or more beneficiaries, the trustee shall administer the trust impartially, giving due regard to the beneficiaries' respective interests. History: 2015 c 5 art 8 s 3

501C.0804 PRUDENT ADMINISTRATION. A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, and distribution requirements of the trust and all relevant circumstances. In satisfying this standard, the trustee shall exercise reasonable care…

501C.0807 DELEGATION BY TRUSTEE. (a) A trustee may delegate to any person, even if the person is associated with the trustee, duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care,…

501C.0808 DIRECTED TRUSTS. § Subdivision 1.Definitions. (a) The definitions in this section apply to this section. (b) "Directing party" means one or more persons acting as investment trust advisor, distribution trust advisor, or trust protector as provided in this section. (c) "…

501C.0809 CONTROL, PROTECTION, AND DELIVERY OF TRUST PROPERTY. (a) A trustee shall take reasonable steps to compel a former trustee or other person to deliver the trust's tangible personal property and evidence of ownership of other trust property to the trustee. (b) A trustee sh…

501C.0810 RECORD KEEPING AND IDENTIFICATION OF TRUST PROPERTY. (a) A trustee shall keep adequate records of the administration of the trust. (b) A trustee shall keep trust property separate from the trustee's own property. (c) If the trustee maintains records clearly indicating t…

501C.0811 ENFORCEMENT AND DEFENSE OF CLAIMS. (a) A trustee shall take reasonable steps to redress a breach of trust known to the trustee to have been committed by a former trustee. (b) A trustee shall take reasonable steps to enforce claims of the trust known to the trustee and t…

501C.0813 DUTY TO INFORM AND REPORT. (a) A trustee shall keep the qualified beneficiaries of an irrevocable trust reasonably informed about the administration of the trust and of the material facts necessary to protect their interests. Unless unreasonable under the circumstances,…

501C.0814 DISCRETIONARY POWERS; TAX SAVINGS. (a) Notwithstanding the breadth of discretion granted to a trustee in the terms of the trust, including the use of such terms as "absolute," "sole," or "uncontrolled," the trustee must exercise a discretionary power in good faith, in a…

501C.0815 GENERAL POWERS OF TRUSTEE. (a) A trustee, without authorization by the court, may exercise: (1) powers conferred by the terms of the trust; and (2) except as limited by the terms of the trust: (i) all powers over the trust property which an unmarried competent owner has…

501C.0816 SPECIFIC POWERS OF TRUSTEE. Without limiting the authority conferred by section 501C.0815, a trustee may: (1) collect trust property and accept or reject additions to the trust property from a settlor or another person; (2) acquire or sell property, for cash or on credi…

501C.0817 DISTRIBUTION UPON TERMINATION. (a) Upon termination or partial termination of a trust, the trustee may send to the beneficiaries a proposal for distribution. The right of any beneficiary to object to the proposed distribution terminates if the beneficiary does not notif…

501C.0901 INVESTMENT AND MANAGEMENT OF TRUST ASSETS. § Subdivision 1.Prudent investor rule. (a) Except as otherwise provided in paragraph (b), a trustee who invests and manages trust assets shall comply with the prudent investor rule set forth in this section. (b) The prudent inv…

501C.1001 REMEDIES FOR BREACH OF TRUST. (a) A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust. (b) To remedy a breach of trust that has occurred or may occur, the court may: (1) compel the trustee to perform the trustee's duties; (2) enjoin…

501C.1002 DAMAGES FOR BREACH OF TRUST. (a) A trustee who commits a breach of trust is liable for the greater of: (1) the amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred; or (2) the profit …

501C.1003 REMEDIES IN ABSENCE OF BREACH. (a) A trustee is chargeable for any profit made by the trustee arising from the administration of the trust, even absent a breach of trust. (b) Absent a breach of trust, a trustee is not liable for a loss or depreciation in the value of tr…

501C.1004 ATTORNEY FEES AND COSTS. In a judicial proceeding involving the administration of a trust, the court, as justice and equity may require, may award costs and expenses, including reasonable attorney fees, to any party from the trust that is the subject of the judicial pro…

501C.1005 LIMITATION OF ACTION AGAINST TRUSTEE. (a) A beneficiary may not commence a judicial proceeding against a trustee more than three years after the date the beneficiary or a representative of the beneficiary was sent a report that adequately disclosed the existence of a po…

501C.1006 RELIANCE ON TRUST INSTRUMENT. A trustee who acts in reasonable reliance on the terms of the trust as expressed in the trust instrument is not liable for a breach of trust to the extent the breach resulted from the reliance. History: 2015 c 5 art 10 s 6

501C.1007 EVENT AFFECTING ADMINISTRATION OR DISTRIBUTION. If the occurrence of an event, including marriage, divorce, performance of educational requirements, or death, affects the administration or distribution of a trust, a trustee who has exercised reasonable care to ascertain…

501C.1008 EXCULPATION OF TRUSTEE. (a) The terms of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it: (1) relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes o…

501C.1009 BENEFICIARY'S CONSENT, RELEASE, OR RATIFICATION. A beneficiary's consent to a trustee's conduct, release of the trustee from liability for the trustee's conduct, or ratification of the trustee's conduct is binding unless: (1) the consent, release, or ratification of the…

501C.1010 LIMITATION ON PERSONAL LIABILITY OF TRUSTEE. (a) Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into in the trustee's fiduciary capacity in the course of administering the trust if the trustee in the contr…

501C.1011 INTEREST AS GENERAL PARTNER. (a) Unless personal liability is imposed in the contract, a trustee who holds an interest as a general partner in a general or limited partnership is not personally liable on a contract entered into by the partnership after the trust's acqui…

501C.1012 PROTECTION OF PERSON DEALING WITH TRUSTEE. (a) A person other than a beneficiary who in good faith assists a trustee, or who in good faith and for value deals with a trustee, without knowledge that the trustee is exceeding or improperly exercising the trustee's powers i…

501C.1013 CERTIFICATE OF TRUST. § Subdivision 1.Contents of certificate. The settlor or a trustee of a trust, at any time after execution or creation of a trust, may execute a certificate of trust that sets forth fewer than all of the provisions of a trust instrument and any amen…

501C.1014 AFFIDAVIT OF TRUSTEE IN REAL PROPERTY TRANSACTIONS. § Subdivision 1.Form of affidavit for inter vivos trust. An affidavit of a trustee or of trustees of an inter vivos trust in support of a real property transaction may be substantially in the following form: STATE OF M…

501C.1101 DEFINITIONS. § Subdivision 1.Scope. The definitions in this section apply to sections 501C.1101 to 501C.1118. § Subd. 2.Accounting period. "Accounting period" means a calendar year unless another 12-month period is selected by the trustee. Accounting period includes a p…

501C.1102 DUTY OF TRUSTEE AS TO RECEIPTS AND EXPENDITURE. § Subdivision 1.General rules of administration. A trust must be administered with due regard to the respective interests of income beneficiaries and remainderpersons. A trust is so administered with respect to the allocat…

501C.1103 INCOME; PRINCIPAL; CHARGES. § Subdivision 1.Income defined. "Income" means the return in money or property derived from the use of principal, including return received as: (1) rent of real or personal property, including sums received for cancellation or renewal of a le…

501C.1104 WHEN RIGHT TO INCOME ARISES; APPORTIONMENT OF INCOME. § Subdivision 1.General rule. An income beneficiary is entitled to income from the date specified in the trust instrument or, if none is specified, from the date an asset becomes subject to the trust. In the case of …

501C.1105 INCOME EARNED DURING ADMINISTRATION OF A DECEDENT'S ESTATE. § Subdivision 1.Expenses. Unless a will or trust instrument provides otherwise and subject to subdivision 2, all expenses incurred in connection with the settlement of a decedent's estate, including debts, fune…

501C.1106 ENTITY DISTRIBUTIONS. § Subdivision 1.Distribution of ownership interests; shares; stock splits; stock dividends; subscription rights. Distributions of shares of a distributing corporation or similar equity ownership interests in noncorporate entities, including distrib…

501C.1107 BOND PREMIUM AND DISCOUNT. § Subdivision 1.Principal. Bonds or other obligations for the payment of money are principal at their inventory value, except as provided in subdivision 2 for discount bonds. No provision may be made for amortization of bond premiums or for ac…

501C.1108 SOLE PROPRIETORSHIPS. § Subdivision 1.Separate account. (a) A trustee who conducts a business or other activity as a sole proprietor may establish and maintain a separate account for the transactions of the business or other activity, whether or not its assets are segre…

501C.1109 DISPOSITION OF NATURAL RESOURCES. § Subdivision 1.Allocation of receipts. (a) If a part of the principal consists of a right to receive royalties, overriding or limited royalties, working interests, production payments, net profit interests, or other interests in minera…

501C.1110 TIMBER. § Subdivision 1.Net receipts. If a part of the principal consists of land from which merchantable timber may be removed, the net receipts from taking the timber from the land must be allocated as follows: (1) to income to the extent that the amount of timber rem…

501C.1111 ANNUITIES, QUALIFIED AND NONQUALIFIED EMPLOYEE COMPENSATION, RETIREMENT PLANS AND OTHER PROPERTY SUBJECT TO DEPLETION. Except as provided in sections 501C.1109 and 501C.1110, if part of the principal consists of property subject to depletion, including leaseholds, paten…

501C.1112 TRUSTEE'S POWER TO ADJUST. § Subdivision 1.Power to adjust. A trustee may adjust between principal and income to the extent the trustee considers necessary to comply with section 501C.1102, subdivision 3, after applying section 501C.1102, subdivisions 1 and 2, if the tr…