Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1995, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 130-H.F.No. 651
An act relating to probate; clarifying and correcting
provisions of the uniform probate code; expanding
authority for safe deposit box searches, division and
merger of trusts, and granting of power-of-attorney to
spouses in certain cases; amending Minnesota Statutes
1994, sections 55.10, subdivision 4; 501B.16; 501B.71,
by adding a subdivision; 507.02; 519.06; 519.07;
519.11, subdivision 2; 523.23, subdivision 1; 523.24,
subdivision 1; 524.1-201; 524.2-508; 524.3-914;
524.3-916; 524.3-1001; 524.3-1008; 524.3-1201;
524.3-1202; and 524.3-1203; proposing coding for new
law in Minnesota Statutes, chapters 501B; and 524;
repealing Minnesota Statutes 1994, sections 525.145;
and 525.51.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1994, section 55.10,
subdivision 4, is amended to read:
Subd. 4. [WILL SEARCHES, BURIAL DOCUMENTS PROCUREMENT, AND
INVENTORY OF CONTENTS.] (a) Upon being furnished with
satisfactory proof of death of a sole lessee or the last
surviving co-lessee of a safe deposit box, the safe deposit
company shall open the box and examine the contents in the
presence of an employee of the safe deposit company and an
individual who appears in person and furnishes an affidavit
stating that the individual believes:
(1) the box may contain the will or deed to a burial lot or
a document containing instructions for the burial of the lessee;
and
(2) the individual is an interested person as defined in
this section and wishes to open the box for any one or more of
the following purposes:
(i) to conduct a will search;
(ii) to obtain a document required to facilitate the
lessee's wishes regarding body, funeral, or burial arrangements;
or
(iii) to obtain an inventory of the contents of the box.
(b) The safe deposit company may not open the box under
this section if it has received a copy of letters of office of
the representative of the deceased lessee's estate or other
applicable court order.
(b) (c) The safe deposit company need not open the box if:
(1) the box has previously been opened under this
section for the same purpose;
(2) the safe deposit company has received notice of a
written or oral objection from any person or has reason to
believe that there would be an objection; or
(3) the lessee's key or combination is not available.
(c) (d) For purposes of this section, the term "interested
person" means any of the following:
(1) a person named as personal representative in a
purported will of the lessee;
(2) a person who immediately prior to the death of the
lessee had the right of access to the box as a deputy;
(3) the surviving spouse of the lessee;
(4) a devisee of the lessee;
(5) an heir of the lessee; or
(6) a person designated by the lessee in a writing
acceptable to the safe deposit company which is filed with the
safe deposit company before death.
(d) (e) For purposes of this section, the term "will"
includes a will or a codicil.
(e) (f) If the box is opened for the purpose of conducting
a will search, the safe deposit company shall remove any
document that appears to be a will and make a true and correct
machine copy thereof, replace the copy in the box, and then
deliver the original thereof to the clerk of court for the
county in which the lessee resided immediately before the
lessee's death, if known to the safe deposit company, otherwise
to the clerk of the court for the county in which the safe
deposit box is located. The will may must be personally
delivered or sent by registered mail. If the interested person
so requests, any deed to burial lot or document containing
instructions for the burial of the lessee may be copied by the
safe deposit box company and the copy or copies thereof
delivered to the interested person. No other contents may be
removed pursuant to this subdivision.
(g) If the box is opened for the purpose of obtaining a
document required to facilitate the lessee's wishes regarding
the body, funeral, or burial arrangements, any such document may
be removed from the box and delivered to the interested person
with a true and correct machine copy retained in the box. If
the safe deposit box company discovers a document that appears
to be a will, the safe deposit company shall act in accordance
with paragraph (f).
(h) If the box is opened for the purpose of obtaining an
inventory of the contents of the box, the employee of the safe
deposit company shall make, or cause to be made, an inventory of
the contents of the box, to which the employee and the
interested person shall attest under penalty of perjury to be
correct and complete. Within ten days of opening the box
pursuant to this subdivision, the safe deposit company shall
deliver the original inventory of the contents to the clerk of
court for the county in which the lessee resided immediately
before the lessee's death, if known to the safe deposit company,
otherwise to the clerk of court for the county in which the safe
deposit box is located. The inventory must be personally
delivered or sent by registered mail. If the interested person
so requests, the safe deposit company shall make a true and
correct copy of any document in the box and deliver that copy to
the interested person. If the contents of the box include a
document that appears to be a will, the safe deposit company
shall act in accordance with paragraph (f).
(f) (i) The safe deposit company need not ascertain the
truth of any statement in the affidavit required to be furnished
under this subdivision and when acting in reliance upon an
affidavit, it is discharged as if it dealt with the personal
representative of the lessee. The safe deposit company is not
responsible for the adequacy of the description of any property
included in an inventory of the contents of a safe deposit box.
If the safe deposit company is not satisfied that the
requirements of this subdivision have been met, it may decline
to open the box.
(j) No contents of a box other than a will and a document
required to facilitate the lessee's wishes regarding body,
funeral, or burial arrangements may be removed pursuant to this
subdivision. The entire contents of the box, however, may be
removed pursuant to section 524.3-1201.
Sec. 2. [501B.15] [DIVISION AND MERGER OF TRUSTS.]
Subdivision 1. [DIVISION.] A trustee may, without the
approval of any court, divide a trust, before or after it is
funded, into two or more separate trusts if the trustee
determines that dividing the trust is in the best interests of
all persons interested in the trust and will not substantially
impair the accomplishment of the purposes of the trust.
Subd. 2. [MERGER.] A trustee may, without the approval of
any court, merge two or more trusts having substantially similar
terms and identical beneficiaries into a single trust if the
trustee determines that merging the trusts is in the best
interests of all persons interested in the trusts and will not
substantially impair the accomplishment of the purposes of the
trusts.
Subd. 3. [APPLICATION.] Subdivisions 1 and 2 apply to all
trusts whenever executed or created.
Sec. 3. Minnesota Statutes 1994, section 501B.16, is
amended to read:
501B.16 [PETITION FOR COURT ORDER.]
A trustee of an express trust by will or other written
instrument or a person interested in the trust may petition the
district court for an order:
(1) to confirm an action taken by a trustee;
(2) upon filing of an account, to settle and allow the
account;
(3) to determine the persons having an interest in the
income or principal of the trust and the nature and extent of
their interests;
(4) to construe, interpret, or reform the terms of a trust,
or authorize a deviation from the terms of a trust, including a
proceeding involving section 501B.31;
(5) to approve payment of the trustee's fees, attorneys'
fees, accountants' fees, or any other fees to be charged against
the trust;
(6) to confirm the appointment of a trustee;
(7) to accept a trustee's resignation and discharge the
trustee from the trust;
(8) to require a trustee to account;
(9) to remove a trustee for cause;
(10) to appoint a successor trustee when required by the
terms of the trust instrument or when by reason of death,
resignation, removal, or other cause there is no acting trustee;
(11) to confirm an act performed in execution of the trust
by a person while there was no acting trustee;
(12) to subject a trust to continuing court supervision
under section 501B.23;
(13) to remove a trust from continuing court supervision
under section 501B.23;
(14) to mortgage, lease, sell, or otherwise dispose of real
property held by the trustee notwithstanding any contrary
provision of the trust instrument;
(15) to suspend the powers and duties of a trustee in
military service or war service in accordance with section
525.95 and to order further action authorized in that section;
(16) to secure compliance with the provisions of sections
501B.33 to 501B.45, in accordance with section 501B.41;
(17) to determine the validity of a disclaimer filed under
section 501B.86;
(18) to change the situs of a trust;
(19) to redress a breach of trust;
(20) to terminate a trust; or
(21) to divide a trust under section 501B.15;
(22) to merge two or more trusts under section 501B.15; or
(23) to instruct the trustee, beneficiaries, and any other
interested parties in any matter relating to the administration
of the trust and the discharge of the trustee's duties.
Sec. 4. Minnesota Statutes 1994, section 501B.71, is
amended by adding a subdivision to read:
Subd. 5. [EXCEPTIONS.] Paragraphs (a) to (c) are
exceptions to the requirements of subdivisions 1 to 4.
(a) With respect to a revocable living trust, during the
lifetime of the grantor, all of the trustee's regular
compensation for services performed must be charged against
income, unless directed otherwise by the grantor.
(b) If charging a part or all of the trustee's regular
compensation to principal, in the judgment of the trustee, is
impracticable, because of the lack of sufficient cash and
readily marketable assets, or inadvisable, because of the nature
of the principal assets, the trustee may determine to pay part
or all of the compensation out of income. The decision of the
trustee to pay a larger portion or all of the trustee's regular
compensation out of income is conclusive, and the income of the
trust is not entitled to reimbursement from principal at any
subsequent time or times.
(c) If charging a part or all of the trustee's regular
compensation to income, in the judgment of the trustee, is
impracticable, because of the lack of sufficient income, or
inadvisable, because of a desire to provide maximum income to
the beneficiary, the trustee may determine to pay part or all of
such compensation out of principal. The decision of the trustee
to pay a larger portion or all of the trustee's regular
compensation out of the principal is conclusive.
Sec. 5. Minnesota Statutes 1994, section 507.02, is
amended to read:
507.02 [CONVEYANCES BY SPOUSES; POWERS OF ATTORNEY.]
If the owner is married, no conveyance of the homestead,
except a mortgage for purchase money unpaid thereon, a
conveyance between spouses pursuant to section 500.19,
subdivision 4, or a severance of a joint tenancy pursuant to
section 500.19, subdivision 5, shall be valid without the
signatures of both spouses. A spouse's signature may be made by
the spouse's duly appointed attorney-in-fact.
A husband and wife, by their joint deed, may convey the
real estate of either. A spouse, by separate deed, may convey
any real estate owned by that spouse, except the homestead,
subject to the rights of the other spouse therein; and either
spouse may, by separate conveyance, relinquish all rights in the
real estate so conveyed by the other spouse. Subject to the
foregoing provisions, either spouse may separately appoint an
attorney attorney-in-fact to sell or convey any real estate
owned by that spouse, or join in any conveyance made by or for
the other spouse. Use of a power of attorney is subject to
section 518.58, subdivision 1a. A minor spouse has legal
capacity to join in a conveyance of real estate owned by the
other spouse, so long as the minor spouse is not incapacitated
because of some reason other than that spouse's minor age.
Sec. 6. Minnesota Statutes 1994, section 519.06, is
amended to read:
519.06 [CONTRACTS BETWEEN HUSBAND AND WIFE.]
No contract between husband and wife relative to the real
estate of either, or any interest therein, nor any power of
attorney or other authority from the one to the other to convey
real estate, or any interest therein, shall be valid, except as
provided in section 500.19, subdivisions 4 and 5; but, in
relation to all other subjects, either may be constituted the
agent of the other, or contract with the other. A husband or
wife may appoint the other as an attorney-in-fact with respect
to all property of the principal, or any interest in the
property, whether real, personal, or mixed. Use of a power of
attorney is subject to section 518.58, subdivision 1a. In all
cases where the rights of creditors or purchasers in good faith
come in question, each spouse shall be held to have notice of
the contracts and debts of the other as fully as if a party
thereto.
Sec. 7. Minnesota Statutes 1994, section 519.07, is
amended to read:
519.07 [BARRING INTEREST OF SPOUSE; RIGHTS RECIPROCAL.]
When a person shall be deserted by a spouse, for the space
of one year, or when the person would, for any cause, be
entitled to a divorce from the spouse under the laws of this
state, or when the person has a spouse that has been insane for
ten years immediately prior to the time of bringing the action
hereinafter named, and upon the hearing thereof shall be found
to be incurably insane, the person may bring an action in the
district court of the proper county, asking for a decree which
shall debar the spouse from any right or estate by the curtesy
or in dower, or otherwise, as the case may be, in or to the
person's lands, and which will give the person full authority to
alien, sell, and convey, and dispose of the lands, without the
interference of or signature of the spouse; and the court may
grant such decree when it shall appear just or expedient; and
thereupon the person shall have full control of the real estate,
with power to convey the same without the spouse joining in the
conveyance, and as fully as if the person were unmarried; or the
court may, by such decree, make such limitations on the power to
convey such real estate as may seem meet and proper in the
premises. A person who has an interest in real estate may bring
an action in any county in which all or a part of the real
estate is located, seeking a decree that will bar any inchoate
interest of the person's spouse in the real estate. The court
may grant such a petition if the court finds by clear and
convincing evidence that the person's spouse is an incapacitated
person as defined in section 525.54, that the person has been
deserted by the spouse for a period of at least one year, or
that other similar circumstances warrant. The decree may grant
the person full control of all the person's real estate located
in Minnesota, with power to sell, convey, mortgage, lease, or
transfer title to it, subject to any limitations the court
considers proper in the circumstances. The decree may not be
granted or must be vacated if the petitioner caused or
contributed to the incapacity or disappearance of the
petitioner's spouse. A certified copy of such decree may be
recorded in the deed records in the office of the county
recorder or filed in the office of registrar of titles in any
county wherever such lands real estate, or any part thereof, may
be situated.
Sec. 8. Minnesota Statutes 1994, section 519.11,
subdivision 2, is amended to read:
Subd. 2. [WRITING; EXECUTION.] Antenuptial or postnuptial
contracts or settlements shall be in writing, executed in the
presence of two witnesses and acknowledged by the parties,
executing the same before any officer or person authorized to
administer an oath under the laws of this state. An antenuptial
contract must be entered into and executed prior to the day of
solemnization of marriage. A power of attorney may not be used
to accomplish the purposes of this section.
Sec. 9. Minnesota Statutes 1994, section 523.23,
subdivision 1, is amended to read:
Subdivision 1. [FORM.] The following form may be used to
create a power of attorney, and, when used, it must be construed
in accordance with sections 523.23 and 523.24:
STATUTORY SHORT FORM POWER OF ATTORNEY
MINNESOTA STATUTES, SECTION 523.23
IMPORTANT NOTICE: The powers granted by this document are
broad and sweeping. They are defined in Minnesota Statutes,
section 523.24. If you have any questions about these powers,
obtain competent advice. This power of attorney may be revoked
by you if you wish to do so. This power of attorney is
automatically terminated if it is to your spouse and proceedings
are commenced for dissolution, legal separation, or annulment of
your marriage. This power of attorney authorizes, but does not
require, the attorney-in-fact to act for you.
PRINCIPAL (Name and Address of Person Granting the Power)
.....................................
.....................................
.....................................
ATTORNEYS(S)-IN-FACT SUCCESSOR ATTORNEY(S)-IN-FACT
(Name and Address) (Optional) To act if any named
attorney-in-fact dies, resigns,
or is otherwise unable to serve.
(Name and Address)
......................... First Successor...............
......................... ..............................
......................... ..............................
......................... Second Successor..............
......................... ..............................
......................... ..............................
NOTICE: If more than one
attorney-in-fact is designated,
make a check or "x" on the
line in front of one of the
following statements:
... Each attorney-in-fact EXPIRATION DATE (Optional)
may independently exercise ................... ..., .........
the powers granted. Use Specific Month Day Year Only
... All attorneys-in-fact
must jointly exercise the
powers granted.
I, (the above-named Principal) hereby appoint the above named
Attorney(s)-in-Fact to act as my attorney(s)-in-fact:
FIRST: To act for me in any way that I could act with
respect to the following matters, as each of them is defined in
Minnesota Statutes, section 523.24:
(To grant to the attorney-in-fact any of the following
powers, make a check or "x" on the line in front of each power
being granted. You may, but need not, cross out each power not
granted. Failure to make a check or "x" on the line in front of
the power will have the effect of deleting the power unless the
line in front of the power of (N) is checked or x-ed.)
Check or "x"
..... (A) real property transactions;
I choose to limit this power to real property in
............ County, Minnesota, described as follows:
(Use legal description. Do not use street address.)
(NOTE: A person may not grant powers relating to real
property transactions in Minnesota to his
or her spouse.)
......................................................
......................................................
......................................................
......................................................
(If more space is needed, continue on the back or on an
attachment.)
..... (B) tangible personal property transactions;
..... (C) bond, share, and commodity transactions;
..... (D) banking transactions;
..... (E) business operating transactions;
..... (F) insurance transactions;
..... (G) beneficiary transactions;
..... (H) gift transactions;
..... (I) fiduciary transactions;
..... (J) claims and litigation;
..... (K) family maintenance;
..... (L) benefits from military service;
..... (M) records, reports, and statements;
..... (N) all of the powers listed in (A) through (M) above
and all other matters.
SECOND: (You must indicate below whether or not this power
of attorney will be effective if you become incapacitated or
incompetent. Make a check or "x" on the line in front of the
statement that expresses your intent.)
... This power of attorney shall continue to be effective
if I become incapacitated or incompetent.
... This power of attorney shall not be effective if I
become incapacitated or incompetent.
THIRD: (You must indicate below whether or not this power
of attorney authorizes the attorney-in-fact to transfer your
property to the attorney-in-fact. Make a check or "x" on the
line in front of the statement that expresses your intent.)
... This power of attorney authorizes the attorney-in-fact to
transfer my property to the attorney-in-fact.
... This power of attorney does not authorize the
attorney-in-fact to transfer my property to the
attorney-in-fact.
FOURTH: (You may indicate below whether or not the
attorney-in-fact is required to make an accounting. Make a
check or "x" on the line in front of the statement that
expresses your intent.)
... My attorney-in-fact need not render an accounting unless I
request it or the accounting is otherwise required by
Minnesota Statutes, section 523.21.
... My attorney-in-fact must render ............................
(Monthly, Quarterly, Annual)
accountings to me or .......................................
(Name and Address)
during my lifetime, and a final accounting to the personal
representative of my estate, if any is appointed, after my
death.
In Witness Whereof I have hereunto signed my name this .... day
of .........., 19....
..............................
(Signature of Principal)
(Acknowledgment of Principal)
STATE OF MINNESOTA )
)ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this
.... day of .........., 19..., by ..........................
(Insert Name of Principal)
..............................
(Signature of Notary Public
or other Official)
This instrument was Specimen Signature of
drafted by: Attorney(s)-in-Fact
(Notarization not required)
............................. ..............................
............................. ..............................
............................. ..............................
..............................
Sec. 10. Minnesota Statutes 1994, section 523.24,
subdivision 1, is amended to read:
Subdivision 1. [REAL PROPERTY TRANSACTIONS.] In a
statutory short form power of attorney, the language conferring
general authority with respect to real estate transactions,
means that the principal authorizes the attorney-in-fact:
(1) to accept as a gift, or as security for a loan, to
reject, to demand, to buy, to lease, to receive, or otherwise to
acquire either ownership or possession of any estate or interest
in real property;
(2) to sell, exchange, convey either with or without
covenants, quitclaim, release, surrender, mortgage, encumber,
partition or consent the partitioning, plat or consent platting,
grant options concerning, lease or sublet, or otherwise to
dispose of, any estate or interest in real property;
(3) to release in whole or in part, assign the whole or a
part of, satisfy in whole or in part, and enforce by action,
proceeding or otherwise, any mortgage, encumbrance, lien, or
other claim to real property which exists, or is claimed to
exist, in favor of the principal;
(4) to do any act of management or of conservation with
respect to any estate or interest in real property owned, or
claimed to be owned, by the principal, including by way of
illustration, but not of restriction, power to insure against
any casualty, liability, or loss, to obtain or regain possession
or protect such estate or interest by action, proceeding or
otherwise, to pay, compromise or contest taxes or assessments,
to apply for and receive refunds in connection therewith, to
purchase supplies, hire assistance or labor, and make repairs or
alterations in the structures or lands;
(5) to use in any way, develop, modify, alter, replace,
remove, erect, or install structures or other improvements upon
any real property in which the principal has, or claims to have,
any estate or interest;
(6) to demand, receive, obtain by action, proceeding, or
otherwise, any money, or other thing of value to which the
principal is, or may become, or may claim to be entitled as the
proceeds of an interest in real property or of one or more of
the transactions enumerated in this subdivision, to conserve,
invest, disburse, or utilize anything so received for purposes
enumerated in this subdivision, and to reimburse the
attorney-in-fact for any expenditures properly made by the
attorney-in-fact in the execution of the powers conferred on the
attorney-in-fact by the statutory short form power of attorney;
(7) to participate in any reorganization with respect to
real property and receive and hold any shares of stock or
instrument of similar character received in accordance with a
plan of reorganization, and to act with respect to the shares,
including, by way of illustration but not of restriction, power
to sell or otherwise to dispose of the shares, or any of them,
to exercise or sell any option, conversion or similar right with
respect to the shares, and to vote on the shares in person or by
the granting of a proxy;
(8) to agree and contract, in any manner, and with any
person and on any terms, which the attorney-in-fact may select,
for the accomplishment of any of the purposes enumerated in this
subdivision, and to perform, rescind, reform, release, or modify
such an agreement or contract or any other similar agreement or
contract made by or on behalf of the principal;
(9) to execute, acknowledge, seal, and deliver any deed,
revocation, mortgage, lease, notice, check, or other instrument
which the attorney-in-fact deems useful for the accomplishment
of any of the purposes enumerated in this subdivision;
(10) to prosecute, defend, submit to arbitration, settle,
and propose or accept a compromise with respect to, any claim
existing in favor of, or against, the principal based on or
involving any real estate transaction or to intervene in any
action or proceeding relating to the claim;
(11) to hire, discharge, and compensate any attorney,
accountant, expert witness, or other assistant or assistants
when the attorney-in-fact deems that action to be desirable for
the proper execution of any of the powers described in this
subdivision, and for the keeping of needed records; and
(12) in general, and in addition to all the specific acts
in this subdivision, to do any other act with respect to any
estate or interest in real property.
All powers described in this subdivision are exercisable
equally with respect to any estate or interest in real property
owned by the principal at the giving of the power of attorney or
acquired after that time, and whether located in the state of
Minnesota or elsewhere except when a legal description of
certain real property is included in the statutory short form
power of attorney, in which case the powers described in this
subdivision are exercisable only with respect to the estate or
interest owned by the principal in the property described in the
form. In the case of real property located in the state of
Minnesota, the powers described in this subdivision are limited
by the provisions of section 519.06.
Sec. 11. Minnesota Statutes 1994, section 524.1-201, is
amended to read:
524.1-201 [GENERAL DEFINITIONS.]
Subject to additional definitions contained in the
subsequent articles which are applicable to specific articles or
parts, and unless the context otherwise requires, in chapters
524 and 525:
(2) "Application" means a written request to the registrar
for an order of informal probate or appointment under article
III, part 3.
(3) "Beneficiary," as it relates to trust beneficiaries,
includes a person who has any present or future interest, vested
or contingent, and also includes the owner of an interest by
assignment or other transfer and as it relates to a charitable
trust, includes any person entitled to enforce the trust.
(5) "Child" includes any individual entitled to take as a
child under law by intestate succession from the parent whose
relationship is involved and excludes any person who is only a
stepchild, a foster child, a grandchild or any more remote
descendant.
(6) "Claims" includes liabilities of the decedent whether
arising in contract or otherwise and liabilities of the estate
which arise after the death of the decedent including funeral
expenses and expenses of administration. The term does not
include taxes, demands or disputes regarding title of a decedent
to specific assets alleged to be included in the estate, tort
claims, foreclosure of mechanic's liens, or to actions pursuant
to section 573.02.
(7) "Court" means the court or branch having jurisdiction
in matters relating to the affairs of decedents. This court in
this state is known as the probate court or county court.
(8) "Conservator" means a person who is appointed by a
court to manage the estate of a protected person.
(9) "Descendant" of an individual means all of the
individual's descendants of all generations, with the
relationship of parent and child at each generation being
determined by the definition of child and parent contained in
this section.
(10) "Devise," when used as a noun, means a testamentary
disposition of real or personal property and when used as a
verb, means to dispose of real or personal property by will.
(11) "Devisee" means any person designated in a will to
receive a devise. In the case of a devise to an existing trust
or trustee, or to a trustee on trust described by will, the
trust or trustee is the devisee and the beneficiaries are not
devisees.
(12) "Disability" means cause for a protective order as
described by section 525.54.
(13) "Distributee" means any person who has received or who
will receive property of a decedent from the decedent's personal
representative other than as a creditor or purchaser. A
testamentary trustee is a distributee with respect to property
which the trustee has received from a personal representative
only to the extent of distributed assets or their increment
thereto remaining in the trustee's hands. A beneficiary of a
testamentary trust to whom the trustee has distributed property
received from a personal representative is a distributee of the
personal representative. For purposes of this provision,
"testamentary trustee" includes a trustee to whom assets are
transferred by will, to the extent of the devised assets.
(14) "Estate" includes all of the property of the decedent,
trust, or other person whose affairs are subject to this chapter
as originally constituted and as it exists from time to time
during administration.
(16) "Fiduciary" includes personal representative,
guardian, conservator and trustee.
(17) "Foreign personal representative" means a personal
representative of another jurisdiction.
(18) "Formal proceedings" means those conducted before a
judge with notice to interested persons.
(20) "Guardian" means a person who has qualified as a
guardian of a minor or incapacitated person pursuant to
testamentary or court appointment, but excludes one who is
merely a guardian ad litem.
(21) "Heirs" means those persons, including the surviving
spouse, who are entitled under the statutes of intestate
succession to the property of a decedent.
(22) "Incapacitated person" is as described in section
525.54, other than a minor.
(23) "Informal proceedings" means those conducted by the
judge, the registrar, or the person or persons designated by the
judge for probate of a will or appointment of a personal
representative in accordance with sections 524.3-301 to
524.3-311.
(24) "Interested person" includes heirs, devisees,
children, spouses, creditors, beneficiaries and any others
having a property right in or claim against the estate of a
decedent, ward or protected person which may be affected by the
proceeding. It also includes persons having priority for
appointment as personal representative, and other fiduciaries
representing interested persons. The meaning as it relates to
particular persons may vary from time to time and must be
determined according to the particular purposes of, and matter
involved in, any proceeding.
(27) "Lease" includes an oil, gas, or other mineral lease.
(28) "Letters" includes letters testamentary, letters of
guardianship, letters of administration, and letters of
conservatorship.
(30) "Mortgage" means any conveyance, agreement or
arrangement in which property is used as security.
(31) "Nonresident decedent" means a decedent who was
domiciled in another jurisdiction at the time of death.
(32) "Organization" includes a corporation, government or
governmental subdivision or agency, business trust, estate,
trust, partnership or association, two or more persons having a
joint or common interest, or any other legal entity.
(35) "Person" means an individual, a corporation, an
organization, or other legal entity.
(36) "Personal representative" includes executor,
administrator, successor personal representative, special
administrator, and persons who perform substantially the same
function under the law governing their status. "General
personal representative" excludes special administrator.
(37) "Petition" means a written request to the court for an
order after notice.
(38) "Proceeding" includes action at law and suit in equity.
(39) "Property" includes both real and personal property or
any interest therein and means anything that may be the subject
of ownership.
(40) "Protected person" is as described in section 525.54,
subdivision 1.
(42) "Registrar" refers to the judge of the court or the
person designated by the court to perform the functions of
registrar as provided in section 524.1-307.
(43) "Security" includes any note, stock, treasury stock,
bond, debenture, evidence of indebtedness, certificate of
interest or participation in an oil, gas or mining title or
lease or in payments out of production under such a title or
lease, collateral trust certificate, transferable share, voting
trust certificate or, in general, any interest or instrument
commonly known as a security, or any certificate of interest or
participation, any temporary or interim certificate, receipt or
certificate of deposit for, or any warrant or right to subscribe
to or purchase, any of the foregoing.
(44) "Settlement," in reference to a decedent's estate,
includes the full process of administration, distribution and
closing.
(45) "Special administrator" means a personal
representative as described by sections 524.3-614 to 524.3-618.
(46) "State" includes any state of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, and any
territory or possession subject to the legislative authority of
the United States.
(47) "Successor personal representative" means a personal
representative, other than a special administrator, who is
appointed to succeed a previously appointed personal
representative.
(48) "Successors" means those persons, other than
creditors, who are entitled to property of a decedent under the
decedent's will, this chapter or chapter 525. "Successors" also
means a funeral director or county government that provides the
funeral and burial of the decedent.
(49) "Supervised administration" refers to the proceedings
described in sections 524.3-501 to 524.3-505.
(51) "Testacy proceeding" means a proceeding to establish a
will or determine intestacy.
(53) "Trust" includes any express trust, private or
charitable, with additions thereto, wherever and however
created. It also includes a trust created or determined by
judgment or decree under which the trust is to be administered
in the manner of an express trust. "Trust" excludes other
constructive trusts, and it excludes resulting trusts,
conservatorships, personal representatives, trust accounts as
defined in chapter 528, custodial arrangements pursuant to
sections 149.11 to 149.14, 318.01 to 318.06, 527.01 to 527.44,
business trusts providing for certificates to be issued to
beneficiaries, common trust funds, voting trusts, security
arrangements, liquidation trusts, and trusts for the primary
purpose of paying debts, dividends, interest, salaries, wages,
profits, pensions, or employee benefits of any kind, and any
arrangement under which a person is nominee or escrowee for
another.
(54) "Trustee" includes an original, additional, or
successor trustee, whether or not appointed or confirmed by
court.
(55) "Ward" is as described in section 525.54, subdivision
1.
(56) "Will" includes codicil and any testamentary
instrument which merely appoints an executor or revokes or
revises another will.
Sec. 12. Minnesota Statutes 1994, section 524.2-508, is
amended to read:
524.2-508 [REVOCATION BY CHANGES OF CIRCUMSTANCES.]
Except as provided in sections 524.2-802 and 524.2-803 and
524.2-804, a change of circumstances does not revoke a will or
any part of it.
Sec. 13. [524.2-804] [REVOCATION BY DISSOLUTION OF
MARRIAGE; NO REVOCATION BY OTHER CHANGES OF CIRCUMSTANCES.]
If after executing a will the testator's marriage is
dissolved or annulled, the dissolution or annulment revokes any
disposition or appointment of property made by the will to the
former spouse, any provision conferring a general or special
power of appointment on the former spouse, and any nomination of
the former spouse as executor, trustee, conservator, or
guardian, unless the will expressly provides otherwise.
Property prevented from passing to a former spouse because of
revocation by dissolution of marriage or annulment passes as if
the former spouse failed to survive the decedent, and other
provisions conferring some power or office on the former spouse
are interpreted as if the spouse failed to survive the
decedent. If provisions are revoked solely by this section,
they are revived by testator's remarriage to the former spouse.
For purposes of chapters 524 and 525, dissolution of marriage
includes divorce. A decree of separation which does not
terminate the status of husband and wife is not a dissolution of
marriage for purposes of this section. No change of
circumstances other than as described in this section revokes a
will.
Sec. 14. Minnesota Statutes 1994, section 524.3-914, is
amended to read:
524.3-914 [UNCLAIMED ASSETS.]
If any asset of the estate has not been distributed because
the person entitled thereto cannot be found or refuses to accept
the same, or for any other good and sufficient reason the same
has not been paid over, the court may direct the personal
representative to deposit the same with the county treasurer,
taking duplicate receipts therefor, one of which the personal
representative shall file with the county auditor and the other
in the court. If the money on hand exceeds the sum of
$2,000 $5,000, the court may direct the personal representative
to purchase with the money bearer bonds of the United States
government or of the state of Minnesota, or any of its political
subdivisions, which bonds shall be deposited with the county
treasurer, taking duplicate receipts therefor, one of which the
personal representative shall file with the county auditor and
the other in the court county treasurer to invest the funds, and
the county treasurer shall collect the interest on these bonds
investments as it becomes due, and the money so collected or
deposited shall be credited to the county revenue fund. Upon
application to the court within 21 years after such deposit, and
upon notice to the county attorney and county treasurer, the
court may direct the county auditor to issue to the person
entitled thereto a the county auditor's warrant for the amount
of the money so on deposit including the interest collected on
bonds and, in the case of bonds, the county auditor shall issue
to the person entitled thereto an order upon the county
treasurer to deliver the bonds. No interest shall be allowed or
paid thereon, except as herein provided, and if not claimed
within such time no recovery thereof shall be had. The county
treasurer, with the approval of the court, may make necessary
sales, exchanges, substitutions, and transfers of bonds
deposited, as aforesaid, investments and may present the same
for redemption and invest the proceeds in other bonds of like
character.
Sec. 15. Minnesota Statutes 1994, section 524.3-916, is
amended to read:
524.3-916 [APPORTIONMENT OF ESTATE TAXES AND
GENERATION-SKIPPING TAX.]
(a) For purposes of this section:
(1) "estate" means the gross estate of a decedent as
determined for the purpose of federal estate tax and or the
estate tax payable to this state;
(2) "decedent's generation-skipping transfers" means all
generation-skipping transfers as determined for purposes of the
federal generation-skipping tax which occur by reason of the
decedent's death which relate to property which is included in
the decedent's estate;
(3) "person" means any individual, partnership,
association, joint stock company, corporation, limited liability
company, government, political subdivision, governmental agency,
or local governmental agency;
(3) (4) "person interested in the estate" means any person
entitled to receive, or who has received, from a decedent or by
reason of the death of a decedent any property or interest
therein included in the decedent's estate. It includes a
personal representative, guardian, conservator, and trustee, and
custodian;
(4) (5) "state" means any state, territory, or possession
of the United States, the District of Columbia, and the
Commonwealth of Puerto Rico;
(5) (6) "estate tax" means the federal estate tax and the
state estate tax determined by the commissioner of revenue
pursuant to chapter 291 and interest and penalties imposed in
addition to the tax;
(7) "decedent's generation-skipping tax" means the federal
generation-skipping tax imposed on the decedent's
generation-skipping transfers and interest and penalties imposed
in addition to the tax;
(6) (8) "fiduciary" means personal representative or
trustee.
(b) Unless the will or other written governing instrument
otherwise provides,:
(1) the estate tax shall be apportioned among all persons
interested in the estate. The apportionment is to be made in
the proportion that the value of the interest of each person
interested in the estate bears to the total value of the
interests of all persons interested in the estate. The values
used in determining the tax are to be used for that purpose.;
and
(2) the decedent's generation-skipping tax shall be
apportioned as provided by federal law. To the extent not
provided by federal law, the decedent's generation-skipping tax
shall be apportioned among all persons receiving the decedent's
generation-skipping transfers whose tax apportionment is not
provided by federal law in the proportion that the value of the
transfer to each person bears to the total value of all such
transfers.
If the decedent's will or other written instrument directs
a method of apportionment of estate tax or of the decedent's
generation-skipping tax different from the method described in
this code, the method described in the will or other written
instrument controls.
(c)(1) The court in which venue lies for the administration
of the estate of a decedent, on petition for the purpose may
determine the apportionment of the estate tax or of the
decedent's generation-skipping tax.
(2) If the court finds that it is inequitable to apportion
interest and penalties in the manner provided in subsection (b),
because of special circumstances, it may direct apportionment
thereof in the manner it finds equitable.
(3) If the court finds that the assessment of penalties and
interest assessed in relation to the estate tax or the
decedent's generation-skipping tax is due to delay caused by the
negligence of the fiduciary, the court may charge the fiduciary
with the amount of the assessed penalties and interest.
(4) In any action to recover from any person interested in
the estate the amount of the estate tax or of the decedent's
generation-skipping tax apportioned to the person in accordance
with this code the determination of the court in respect thereto
shall be prima facie correct.
(d)(1) The personal representative or other person in
possession of the property of the decedent required to pay the
estate tax or the decedent's generation-skipping tax may
withhold from any property distributable to any person
interested in the estate, upon its distribution, the amount of
tax any taxes attributable to the person's interest. If the
property in possession of the personal representative or other
person required to pay the tax any taxes and distributable to
any person interested in the estate is insufficient to satisfy
the proportionate amount of the tax taxes determined to be due
from the person, the personal representative or other person
required to pay the tax any taxes may recover the deficiency
from the person interested in the estate. If the property is
not in the possession of the personal representative or the
other person required to pay the tax any taxes, the personal
representative or the other person required to pay the tax any
taxes may recover from any person interested in the estate the
amount of the tax any taxes apportioned to the person in
accordance with Laws 1975, Chapter 347 this section.
(2) If property held by the personal representative or
other person in possession of the property of the decedent
required to pay the estate tax or the decedent's
generation-skipping tax is distributed prior to final
apportionment of the estate tax or the decedent's
generation-skipping tax, the distributee shall provide a bond or
other security for the apportionment liability in the form and
amount prescribed by the personal representative or other
person, as the case may be.
(e)(1) In making an apportionment, allowances shall be made
for any exemptions granted, any classification made of persons
interested in the estate and for any deductions and credits
allowed by the law imposing the tax.
(2) Any exemption or deduction allowed by reason of the
relationship of any person to the decedent or, by reason of the
purposes of the gift, or by allocation to the gift (either by
election by the fiduciary or by operation of federal law),
inures to the benefit of the person bearing such relationship or
receiving the gift; but if an interest is subject to a prior
present interest which is not allowable as a deduction, the tax
apportionable against the present interest shall be paid from
principal.
(3) Any deduction for property previously taxed and any
credit for gift taxes or death taxes of a foreign country paid
by the decedent or the decedent's estate inures to the
proportionate benefit of all persons liable to apportionment.
(4) Any credit for inheritance, succession or estate taxes
or taxes in the nature thereof applicable to property or
interests includable in the estate, inures to the benefit of the
persons or interests chargeable with the payment thereof to the
extent proportionately that the credit reduces the tax.
(5) To the extent that property passing to or in trust for
a surviving spouse or any charitable, public or similar gift or
devisee devise is not an allowable deduction for purposes of the
estate tax solely by reason of an estate tax imposed upon and
deductible from the property, the property is not included in
the computation provided for in subsection (b)(1) hereof, and to
that extent no apportionment is made against the property. The
sentence immediately preceding does not apply to any case if the
result would be to deprive the estate of a deduction otherwise
allowable under section 2053(d) of the Internal Revenue Code of
1954 1986, as amended, of the United States, relating to
deduction for state death taxes on transfers for public,
charitable, or religious uses.
(f) No interest in income and no estate for years or for
life or other temporary interest in any property or fund is
subject to apportionment as between the temporary interest and
the remainder. The estate tax on the temporary interest and the
estate tax, if any, on the remainder is chargeable against the
corpus of the property or funds subject to the temporary
interest and remainder. The decedent's generation-skipping tax
is chargeable against the property which constitutes the
decedent's generation-skipping transfer.
(g) Neither the personal representative nor other person
required to pay the tax is under any duty to institute any
action to recover from any person interested in the estate the
amount of the estate tax or of the decedent's
generation-skipping tax apportioned to the person until the
expiration of the three months next following final
determination of the tax. A personal representative or other
person required to pay the estate tax or decedent's
generation-skipping tax who institutes the action within a
reasonable time after the three month period final determination
of the tax is not subject to any liability or surcharge because
any portion of the tax apportioned to any person interested in
the estate was collectible at a time following the death of the
decedent but thereafter became uncollectible. If the personal
representative or other person required to pay the estate tax or
decedent's generation-skipping tax cannot collect from any
person interested in the estate the amount of the tax
apportioned to the person, the amount not recoverable shall be
equitably apportioned among the other persons interested in the
estate who are subject to apportionment of the tax involved.
(h) A personal representative acting in another state or a
person required to pay the estate tax or decedent's
generation-skipping tax domiciled in another state may institute
an action in the courts of this state and may recover a
proportionate amount of the federal estate tax, of an estate tax
payable to another state or of a death duty due by a decedent's
estate to another state, or of the decedent's
generation-skipping tax, from a person interested in the estate
who is either domiciled in this state or who owns property in
this state subject to attachment or execution. For the purposes
of the action the determination of apportionment by the court
having jurisdiction of the administration of the decedent's
estate in the other state is prima facie correct.
Sec. 16. Minnesota Statutes 1994, section 524.3-1001, is
amended to read:
524.3-1001 [FORMAL PROCEEDINGS TERMINATING ADMINISTRATION;
TESTATE OR INTESTATE; ORDER OF DISTRIBUTION, DECREE, AND GENERAL
PROTECTION.]
(a)(1) A personal representative or any interested person
may petition for an order of complete settlement of the estate.
The personal representative may petition at any time, and any
other interested person may petition after one year from the
appointment of the original personal representative except that
no petition under this section may be entertained until the time
for presenting claims which arose prior to the death of the
decedent has expired. The petition may request the court to
determine testacy, if not previously determined, to consider the
final account or compel or approve an accounting and
distribution, to construe any will or determine heirs and
adjudicate the final settlement and distribution of the estate.
After notice to all interested persons and hearing the court may
enter an order or orders, on appropriate conditions, determining
the persons entitled to distribution of the estate, and, as
circumstances require, approving settlement and directing or
approving distribution of the estate and discharging the
personal representative from further claim or demand of any
interested person.
(2) In such petition for complete settlement of the estate,
the petitioner may apply for a decree. Upon the hearing, if in
the best interests of interested persons, the court may issue
its decree which shall determine the persons entitled to the
estate and assign the same to them in lieu of ordering the
assignment by the personal representative. The decree shall
name the heirs and distributees, state their relationship to the
decedent, describe the property, and state the proportions or
part thereof to which each is entitled. In the estate of a
testate decedent, no heirs shall be named in the decree unless
all heirs be ascertained.
(3) In solvent estates, the hearing may be waived by
written consent to the proposed account and decree of
distribution or order of distribution by all heirs or
distributees, and the court may then enter its order allowing
the account and issue its decree or order of distribution.
(4) Where a decree or order for distribution is issued, the
personal representative shall not be discharged until all
property is paid or transferred to the persons entitled thereto
to the property, and the personal representative has otherwise
fully discharged the trust duties of a personal representative.
If an order assessing estate tax or request for documents is
filed with the court by the commissioner of revenue, no
discharge shall be issued until the assessment is paid or the
request is complied with. If no order assessing estate tax or
request for documents is filed, the court shall have the power
to settle and distribute the estate and discharge the personal
representative without regard to tax obligations.
(b) If one or more heirs or devisees were omitted as
parties in, or were not given notice of, a previous formal
testacy proceeding, the court, on proper petition for an order
of complete settlement of the estate under this section, and
after notice to the omitted or unnotified persons and other
interested parties determined to be interested on the assumption
that the previous order concerning testacy is conclusive as to
those given notice of the earlier proceeding, may determine
testacy as it affects the omitted persons and confirm or alter
the previous order of testacy as it affects all interested
persons as appropriate in the light of the new proofs. In the
absence of objection by an omitted or unnotified person,
evidence received in the original testacy proceeding shall
constitute prima facie proof of due execution of any will
previously admitted to probate, or of the fact that the decedent
left no valid will if the prior proceedings determined this fact.
Sec. 17. Minnesota Statutes 1994, section 524.3-1008, is
amended to read:
524.3-1008 [SUBSEQUENT ADMINISTRATION.]
If property of the estate is omitted or discovered after an
estate has been settled and the personal representative
discharged or after one year after a closing statement has been
filed, the court upon petition or the registrar upon application
of any interested person and upon notice as it directs may
appoint the same or a successor personal representative to
administer the subsequently discovered estate. If a new
appointment is made, unless the court or registrar orders
otherwise, the provisions of this chapter apply as appropriate;
but no claim previously barred may be asserted in the subsequent
administration.
Sec. 18. Minnesota Statutes 1994, section 524.3-1201, is
amended to read:
524.3-1201 [COLLECTION OF PERSONAL PROPERTY BY AFFIDAVIT.]
(a) Thirty days after the death of a decedent, (i) any
person indebted to the decedent or, (ii) any person having
possession of tangible personal property or an instrument
evidencing a debt, obligation, stock or chose in action
belonging to the decedent, or (iii) any safe deposit company, as
defined in section 55.01, controlling the right of access to
decedent's safe deposit box shall make payment of the
indebtedness or deliver the tangible personal property or an
instrument evidencing a debt, obligation, stock or chose in
action or deliver the entire contents of the safe deposit box to
a person claiming to be the successor of the decedent, or a
county agency with a claim authorized by section 256B.15, upon
being presented a certified death certificate of the decedent
and an affidavit, in duplicate, made by or on behalf of the
successor stating that:
(1) the value of the entire probate estate, wherever
located, including specifically any contents of a safe deposit
box, less liens and encumbrances, does not
exceed $10,000 $20,000;
(2) 30 days have elapsed since the death of the
decedent or, in the event the property to be delivered is the
contents of a safe deposit box, 30 days have elapsed since the
filing of an inventory of the contents of the box pursuant to
section 55.10, paragraph (h);
(3) no application or petition for the appointment of a
personal representative is pending or has been granted in any
jurisdiction; and
(4) the claiming successor is entitled to payment or
delivery of the property.
(b) A transfer agent of any security shall change the
registered ownership on the books of a corporation from the
decedent to the successor or successors upon the presentation of
an affidavit as provided in subsection (a).
(c) The claiming successor or county agency shall disburse
the proceeds collected under this section to any person with a
superior claim under section 524.2-403 or 524.3-805 or 525.15.
(d) A motor vehicle registrar shall issue a new certificate
of title in the name of the successor upon the presentation of
an affidavit as provided in subsection (a).
(e) The person controlling access to decedent's safe
deposit box need not open the box or deliver the contents of the
box if:
(1) the person has received notice of a written or oral
objection from any person or has reason to believe that there
would be an objection; or
(2) the lessee's key or combination is not available.
Sec. 19. Minnesota Statutes 1994, section 524.3-1202, is
amended to read:
524.3-1202 [EFFECT OF AFFIDAVIT.]
The person paying, delivering, transferring, or issuing
personal property or the evidence thereof pursuant to an
affidavit meeting the requirements of section 524.3-1201 is
discharged and released to the same extent as if the person
dealt with a personal representative of the decedent. The
person is not required to see to the application of the personal
property or evidence thereof or to inquire into the truth of any
statement in the affidavit. In particular, the person
delivering the contents of a safe deposit box is not required to
inquire into the value of the contents of the box and is
authorized to rely solely upon the representation in the
affidavit concerning the value of the entire probate estate. If
any person to whom an affidavit is delivered refuses to pay,
deliver, transfer, or issue any personal property or evidence
thereof, it may be recovered or its payment, delivery, transfer,
or issuance compelled upon proof of their right in a proceeding
brought for the purpose by or on behalf of the persons entitled
thereto. Any person to whom payment, delivery, transfer or
issuance is made is answerable and accountable therefor to any
personal representative of the estate or to any other person
having a superior right.
Sec. 20. Minnesota Statutes 1994, section 524.3-1203, is
amended to read:
524.3-1203 [SMALL ESTATES; SUMMARY ADMINISTRATIVE PROCEDURE
PROCEEDINGS.]
If it appears from the inventory and appraisal that the
entire estate, less liens and encumbrances, does not exceed an
exempt homestead as provided for in section 525.145, the
allowances provided for in section 525.15, costs and expenses of
administration, reasonable funeral expenses, and reasonable and
necessary medical and hospital expenses of the last illness of
the decedent, the personal representative, without giving
further notice to creditors, may immediately disburse and
distribute the estate to the persons entitled thereto and file a
closing statement as provided in section 524.3-1204.
Subdivision 1. [PETITION AND PAYMENT.] Upon petition of an
interested person, the court, with or without notice, may
determine that the decedent had no estate, or that the property
has been destroyed, abandoned, lost, or rendered valueless, and
that no recovery has been had nor can be had for it, or if there
is no property except property recovered for death by wrongful
act, property that is exempt from all debts and charges in the
probate court, or property that may be appropriated for the
payment of the property selection as provided in section
524.2-403, the allowances to the spouse and children mentioned
in section 524.2-404, and the expenses and claims provided in
section 524.3-805, paragraph (a), clauses (1) to (6), inclusive,
the personal representative by order of the court may pay the
estate in the order named. The court may then, with or without
notice, summarily determine the heirs, legatees, and devisees in
its final decree or order of distribution assigning to them
their share or part of the property with which the personal
representative is charged.
Subd. 2. [FINAL DECREE OR ORDER.] If upon hearing of a
petition for summary assignment or distribution, for special
administration, or for any administration, or for the probate of
a will, the court determines that there is no need for the
appointment of a representative and that the administration
should be closed summarily for the reason that all of the
property in the estate is exempt from all debts and charges in
the probate court, a final decree or order of distribution may
be entered, with or without notice, assigning that property to
the persons entitled to it under the terms of the will, or if
there is no will, under the law of intestate succession in force
at the time of the decedent's death.
Subd. 3. [SUMMARY DISTRIBUTION.] Summary distribution may
be made under this section in any proceeding of any real,
personal, or other property in kind in reimbursement or payment
of the property selection as provided in section 524.2-403, the
allowances to the spouse and children mentioned in section
524.2-404, and the expenses and claims provided in section
524.3-805, paragraph (a), clauses (1) to (6), inclusive, in the
order named, if the court is satisfied as to the propriety of
the distribution and as to the valuation, based upon appraisal
in the case of real estate other than homestead, of the property
being assigned to exhaust the assets of the estate.
Subd. 4. [PERSONAL REPRESENTATIVE.] Summary proceedings
may be had with or without the appointment of a personal
representative. In all summary proceedings in which no personal
representative is appointed, the court may require the
petitioner to file a corporate surety bond in an amount fixed
and approved by the court. The condition of the bond must be
that the petitioner has made a full, true, and correct
disclosure of all the facts related in the petition and will
perform the terms of the decree or order of distribution issued
pursuant to the petition. Any interested person suffering
damages as a result of misrepresentation or negligence of the
petitioner in stating facts in the petition pursuant to which an
improper decree or order of distribution is issued, or the terms
of the decree or order of distribution are not performed by the
petitioner as required, has a cause of action against the
petitioner and the surety to recover those damages in the court
in which the proceeding took place. That court has jurisdiction
of the cause of action.
Subd. 5. [EXHAUSTION OF ESTATE.] In any summary, special,
or other administration in which it appears that the estate will
not be exhausted in payment of the priority items enumerated in
subdivisions 1 to 4, the estate may nevertheless be summarily
closed without further notice, and the property assigned to the
proper persons, if the gross probate estate, exclusive of any
exempt homestead as defined in section 524.2-402, does not
exceed the value of $30,000. If the closing and distribution of
assets is made pursuant to the terms of a will, no decree shall
issue until a hearing has been held for formal probate of the
will as provided in sections 524.3-401 to 524.3-413.
No summary closing of an estate shall be made to any
distributee under this subdivision, unless a showing is made by
the personal representative or the petitioner, that all property
selected by and allowances to the spouse and children as
provided in section 524.2-403 and the expenses and claims
provided in section 524.3-805 have been paid, and provided,
further, that a bond shall be filed by the personal
representative or the petitioner, conditioned upon the fact that
all such obligations have been paid and that all the facts shown
on the petition are true, with sufficient surety approved by the
court in an amount as may be fixed by the court to cover
potential improper distributions. If a personal representative
is appointed, the representative's bond shall be sufficient for
such purpose unless an additional bond is ordered, and the
sureties on the bond shall have the same obligations and
liabilities as provided for sureties on a distribution bond.
In the event that an improper distribution or disbursement
is made in a summary closing, in that not all of said
obligations have been paid or that other facts as shown by the
personal representative or the petitioner, are not true,
resulting in damage to any party, the court may vacate its
summary decree or closing order, and the petitioner or the
personal representative, together with the surety, shall be
liable for damages to any party determined to be injured thereby
as herein provided. The personal representative, petitioner, or
the surety, may seek reimbursement for damages so paid or
incurred from any distributee or recipient of assets under
summary decree or order, who shall be required to make a
contribution to cover such damages upon a pro rata basis or as
may be equitable to the extent of assets so received. The court
is hereby granted complete and plenary jurisdiction of any and
all such proceedings and may enter such orders and judgments as
may be required to effectuate the purposes of this subdivision.
Any judgment rendered for damages or the recovery of assets
in such proceedings shall be upon petition and only after
hearing held thereon on 14 days' notice of hearing and a copy of
petition served personally upon the personal representative and
the surety and upon any distributee or recipient of assets where
applicable. Any action for the recovery of money or damages
under this subdivision is subject to the time and other
limitations imposed by section 525.02.
Sec. 21. [REPEALER.]
Minnesota Statutes 1994, sections 525.145 and 525.51, are
repealed.
Sec. 22. [EFFECTIVE DATE; APPLICATION.]
(a) This act is effective January 1, 1996.
(b) Sections 1, 14, 17, 18, 19, and 20 apply to all
decedents' estates, whenever the decedent died.
(c) Section 4 applies to all trusts, whenever executed or
created.
(d) Sections 6 and 10 apply to powers of attorney executed
on or after the effective date.
(e) Sections 12, 13, and 15 apply to the rights of
successors of decedents dying on or after the effective date and
to any wills of decedents dying on or after the effective date.
Presented to the governor May 4, 1995
Signed by the governor May 5, 1995, 9:07 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes