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Minnesota Living Trust Form (Revocable)

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Minnesota Living Trust Form (Revocable)

Updated April 30, 2024

A Minnesota living trust is a document allowing a grantor to place their property and income into a revocable trust and provide instructions on how their assets should be divided upon their death. Creating a living trust enables the grantor to act as their own trustee and also allows beneficiaries to avoid probation.

Requirements (4)

  1. Competent: The grantor must have the capacity to create, amend, or revoke a trust.
  2. Intent: The grantor must indicate an intention to create a trust.
  3. Definite Beneficiary: Unless it is a trust for the care of an animal or a charitable trust, the trust must have a definite beneficiary.
  4. Trustee’s Duties: The trustee must have duties to perform.[1]

Laws

Amending/Revoking – The grantor may only amend or revoke the trust if the terms of the trust expressly state that it is revocable.[4]

Bond Requirement – The trustee only needs to provide a bond if they have been ordered to do so by a court or if this is a requirement set out by the terms of the trust.[5]

Certification of Trust – The grantor or trustee may execute a certificate of trust at any time. The certificate must include specific information, including the name of the trustee, the date of the trust instrument, and the number of trustees required to act.[6]

Co-Trustees – If co-trustees are unable to reach a unanimous decision, they may instead act by a majority decision.[7]

Contesting a Trust – An action contesting the validity of the trust must begin within 120 days of the trustee having sent notice of the trust’s existence or within three years of the grantor’s death, whichever is earlier.[8]

Costs Related to the Trust – The trustee must prudently invest and manage trust assets, incurring only those costs that are appropriate and reasonable given the assets and the purposes of the trust.[9]

Jurisdiction – A trust created in an out-of-state jurisdiction is valid in Minnesota if it was created in compliance with the laws of that jurisdiction.[10]

Oral Trusts – The valid creation of an oral trust must be established by evidence that is clear and convincing.[11]

Pet Trusts – A trust created to provide for the care of one or more animals alive during the grantor’s lifetime is valid. The trust terminates upon the last surviving animal’s death. This end date notwithstanding, the trust cannot be enforced for more than 90 years.[12]

Signing Requirements – A living trust is not required to be signed under Minnesota state law.

Spendthrift Provision – A spendthrift provision is valid if it restricts both the voluntary and involuntary transfer of a beneficiary’s interest, or if the intent to impose this restriction is manifested in the terms of the trust.[13]

Trustee’s Compensation – If the trustee’s compensation is not specified in the terms of the trust, they are otherwise entitled to compensation that is considered reasonable under the circumstances.[14]

Trustee’s Duties – The trustee is dutybound to administer the trust in good faith, in the impartial interest of the beneficiaries, and in accordance with the trust’s terms and purposes.[15]

Trustee’s Powers – In addition to any powers granted by the terms of the trust, the trustee has the power to collect, acquire, sell, exchange, or otherwise alter the character of trust property.[16]

Sources

  1. § 501C.0402(a)
  2. § 501B.36
  3. Minnesota eLicensing – Charitable Trusts
  4. § 501C.0602(a)
  5. § 501C.0702(a)
  6. § 501C.1013 Subdivision 1
  7. § 501C.0703(a)
  8. § 501C.0605(a)
  9. § 501C.0901 Subdivision 5
  10. § 501C.0403
  11. § 501C.0407
  12. § 501C.0408 Subdivision 1
  13. § 501C.0502(a)
  14. § 501C.0708(a)
  15. § 501C.0801
  16. § 501C.0816