1.1                          A bill for an act 
  1.2             relating to property; clarifying treatment of certain 
  1.3             residential real estate held in trust; making certain 
  1.4             appeal periods consistent; changing provisions of the 
  1.5             Uniform Probate Code; amending Minnesota Statutes 
  1.6             1998, sections 501B.21; 524.2-513; 524.3-1203, 
  1.7             subdivision 5; and 525.712; Minnesota Statutes 1999 
  1.8             Supplement, section 273.124, subdivision 1. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.11  273.124, subdivision 1, is amended to read: 
  1.12     Subdivision 1.  [GENERAL RULE.] (a) Residential real estate 
  1.13  that is occupied and used for the purposes of a homestead by its 
  1.14  owner, who must be a Minnesota resident, is a residential 
  1.15  homestead.  
  1.16     Agricultural land, as defined in section 273.13, 
  1.17  subdivision 23, that is occupied and used as a homestead by its 
  1.18  owner, who must be a Minnesota resident, is an agricultural 
  1.19  homestead. 
  1.20     Dates for establishment of a homestead and homestead 
  1.21  treatment provided to particular types of property are as 
  1.22  provided in this section.  
  1.23     Property of a trustee, beneficiary, or grantor of a trust 
  1.24  is not disqualified from receiving homestead benefits if the 
  1.25  homestead requirements under this chapter are satisfied. 
  1.26     The assessor shall require proof, as provided in 
  1.27  subdivision 13, of the facts upon which classification as a 
  2.1   homestead may be determined.  Notwithstanding any other law, the 
  2.2   assessor may at any time require a homestead application to be 
  2.3   filed in order to verify that any property classified as a 
  2.4   homestead continues to be eligible for homestead status.  
  2.5   Notwithstanding any other law to the contrary, the department of 
  2.6   revenue may, upon request from an assessor, verify whether an 
  2.7   individual who is requesting or receiving homestead 
  2.8   classification has filed a Minnesota income tax return as a 
  2.9   resident for the most recent taxable year for which the 
  2.10  information is available. 
  2.11     When there is a name change or a transfer of homestead 
  2.12  property, the assessor may reclassify the property in the next 
  2.13  assessment unless a homestead application is filed to verify 
  2.14  that the property continues to qualify for homestead 
  2.15  classification. 
  2.16     (b) For purposes of this section, homestead property shall 
  2.17  include property which is used for purposes of the homestead but 
  2.18  is separated from the homestead by a road, street, lot, 
  2.19  waterway, or other similar intervening property.  The term "used 
  2.20  for purposes of the homestead" shall include but not be limited 
  2.21  to uses for gardens, garages, or other outbuildings commonly 
  2.22  associated with a homestead, but shall not include vacant land 
  2.23  held primarily for future development.  In order to receive 
  2.24  homestead treatment for the noncontiguous property, the owner 
  2.25  must use the property for the purposes of the homestead, and 
  2.26  must apply to the assessor, both by the deadlines given in 
  2.27  subdivision 9.  After initial qualification for the homestead 
  2.28  treatment, additional applications for subsequent years are not 
  2.29  required. 
  2.30     (c) Residential real estate that is occupied and used for 
  2.31  purposes of a homestead by a relative of the owner is a 
  2.32  homestead but only to the extent of the homestead treatment that 
  2.33  would be provided if the related owner occupied the property.  
  2.34  For purposes of this paragraph and paragraph paragraphs (g) and 
  2.35  (i), "relative" means a parent, stepparent, child, stepchild, 
  2.36  grandparent, grandchild, brother, sister, uncle, aunt, nephew, 
  3.1   or niece.  This relationship may be by blood or marriage.  
  3.2   Property that has been classified as seasonal recreational 
  3.3   residential property at any time during which it has been owned 
  3.4   by the current owner or spouse of the current owner will not be 
  3.5   reclassified as a homestead unless it is occupied as a homestead 
  3.6   by the owner; this prohibition also applies to property that, in 
  3.7   the absence of this paragraph, would have been classified as 
  3.8   seasonal recreational residential property at the time when the 
  3.9   residence was constructed.  Neither the related occupant nor the 
  3.10  owner of the property may claim a property tax refund under 
  3.11  chapter 290A for a homestead occupied by a relative.  In the 
  3.12  case of a residence located on agricultural land, only the 
  3.13  house, garage, and immediately surrounding one acre of land 
  3.14  shall be classified as a homestead under this paragraph, except 
  3.15  as provided in paragraph (d). 
  3.16     (d) Agricultural property that is occupied and used for 
  3.17  purposes of a homestead by a relative of the owner, is a 
  3.18  homestead, only to the extent of the homestead treatment that 
  3.19  would be provided if the related owner occupied the property, 
  3.20  and only if all of the following criteria are met: 
  3.21     (1) the relative who is occupying the agricultural property 
  3.22  is a son, daughter, father, or mother of the owner of the 
  3.23  agricultural property or a son or daughter of the spouse of the 
  3.24  owner of the agricultural property; 
  3.25     (2) the owner of the agricultural property must be a 
  3.26  Minnesota resident; 
  3.27     (3) the owner of the agricultural property must not receive 
  3.28  homestead treatment on any other agricultural property in 
  3.29  Minnesota; and 
  3.30     (4) the owner of the agricultural property is limited to 
  3.31  only one agricultural homestead per family under this paragraph. 
  3.32     Neither the related occupant nor the owner of the property 
  3.33  may claim a property tax refund under chapter 290A for a 
  3.34  homestead occupied by a relative qualifying under this 
  3.35  paragraph.  For purposes of this paragraph, "agricultural 
  3.36  property" means the house, garage, other farm buildings and 
  4.1   structures, and agricultural land. 
  4.2      Application must be made to the assessor by the owner of 
  4.3   the agricultural property to receive homestead benefits under 
  4.4   this paragraph.  The assessor may require the necessary proof 
  4.5   that the requirements under this paragraph have been met. 
  4.6      (e) In the case of property owned by a property owner who 
  4.7   is married, the assessor must not deny homestead treatment in 
  4.8   whole or in part if only one of the spouses occupies the 
  4.9   property and the other spouse is absent due to:  (1) marriage 
  4.10  dissolution proceedings, (2) legal separation, (3) employment or 
  4.11  self-employment in another location, or (4) other personal 
  4.12  circumstances causing the spouses to live separately, not 
  4.13  including an intent to obtain two homestead classifications for 
  4.14  property tax purposes.  To qualify under clause (3), the 
  4.15  spouse's place of employment or self-employment must be at least 
  4.16  50 miles distant from the other spouse's place of employment, 
  4.17  and the homesteads must be at least 50 miles distant from each 
  4.18  other.  Homestead treatment, in whole or in part, shall not be 
  4.19  denied to the owner's spouse who previously occupied the 
  4.20  residence with the owner if the absence of the owner is due to 
  4.21  one of the exceptions provided in this paragraph. 
  4.22     (f) The assessor must not deny homestead treatment in whole 
  4.23  or in part if: 
  4.24     (1) in the case of a property owner who is not married, the 
  4.25  owner is absent due to residence in a nursing home or boarding 
  4.26  care facility and the property is not otherwise occupied; or 
  4.27     (2) in the case of a property owner who is married, the 
  4.28  owner or the owner's spouse or both are absent due to residence 
  4.29  in a nursing home or boarding care facility and the property is 
  4.30  not occupied or is occupied only by the owner's spouse. 
  4.31     (g) If an individual is purchasing property with the intent 
  4.32  of claiming it as a homestead and is required by the terms of 
  4.33  the financing agreement to have a relative shown on the deed as 
  4.34  a coowner, the assessor shall allow a full homestead 
  4.35  classification.  This provision only applies to first-time 
  4.36  purchasers, whether married or single, or to a person who had 
  5.1   previously been married and is purchasing as a single individual 
  5.2   for the first time.  The application for homestead benefits must 
  5.3   be on a form prescribed by the commissioner and must contain the 
  5.4   data necessary for the assessor to determine if full homestead 
  5.5   benefits are warranted. 
  5.6      (h) If residential or agricultural real estate is occupied 
  5.7   and used for purposes of a homestead by a child of a deceased 
  5.8   owner and the property is subject to jurisdiction of probate 
  5.9   court, the child shall receive relative homestead classification 
  5.10  under paragraph (c) or (d) to the same extent they would be 
  5.11  entitled to it if the owner was still living, until the probate 
  5.12  is completed.  For purposes of this paragraph, "child" includes 
  5.13  a relationship by blood or by marriage. 
  5.14     (i) Residential real estate transferred to, acquired by, or 
  5.15  at any time held by the trustee of a testamentary, inter vivos, 
  5.16  revocable, or irrevocable trust which is occupied and used for 
  5.17  purposes of a homestead by a grantor, grantor's spouse or 
  5.18  surviving spouse, or grantor's relative or surviving relative, 
  5.19  qualifies for homestead classification for so long as a grantor, 
  5.20  grantor's spouse or surviving spouse, or grantor's relative or 
  5.21  surviving relative resides in the residential real estate.  
  5.22  Homestead treatment under this paragraph applies even if legal 
  5.23  title to the property is in the name of the trustee and not in 
  5.24  the name of the person residing in it.  This paragraph applies 
  5.25  to all testamentary, inter vivos, revocable, or irrevocable 
  5.26  trusts in existence as of August 1, 2000, or created, 
  5.27  established, or amended after that date. 
  5.28     For purposes of this section, "grantor" means the person 
  5.29  creating or establishing the testamentary, inter vivos, 
  5.30  revocable, or irrevocable trust by written instrument. 
  5.31     Sec. 2.  Minnesota Statutes 1998, section 501B.21, is 
  5.32  amended to read: 
  5.33     501B.21 [ORDER AND APPEAL.] 
  5.34     Upon hearing a petition filed under section 501B.16, the 
  5.35  court shall make an order it considers appropriate.  The order 
  5.36  is final as to all matters determined by it and binding in rem 
  6.1   upon the trust estate and upon the interests of all 
  6.2   beneficiaries, vested or contingent, even though unascertained 
  6.3   or not in being, except that.  An appeal from the order may be 
  6.4   taken by any party after service by any party of written notice 
  6.5   of its filing under the Rules of Appellate Procedure or, if no 
  6.6   notice is served, within six months after the filing of the 
  6.7   order. 
  6.8      Sec. 3.  Minnesota Statutes 1998, section 524.2-513, is 
  6.9   amended to read: 
  6.10     524.2-513 [SEPARATE WRITING IDENTIFYING BEQUEST OF TANGIBLE 
  6.11  PROPERTY.] 
  6.12     A will may refer to a written statement or list to dispose 
  6.13  of items of tangible personal property not otherwise 
  6.14  specifically disposed of by the will, other than money, 
  6.15  evidences of indebtedness, documents of title, and 
  6.16  securities and coin collections, and property used in trade or 
  6.17  business.  To be admissible under this section as evidence of 
  6.18  the intended disposition, the writing must be referred to in the 
  6.19  will, must be either be in the handwriting of the testator or be 
  6.20  signed by the testator, and must describe the items and the 
  6.21  devisees with reasonable certainty.  The writing may be referred 
  6.22  to as one to be in existence at the time of the testator's 
  6.23  death; it may be prepared before or after the execution of the 
  6.24  will; it may be altered by the testator after its preparation; 
  6.25  and it may be a writing which has no significance apart from its 
  6.26  effect upon the dispositions made by the will.  
  6.27     A writing may include multiple writings and if an item of 
  6.28  tangible personal property is disposed of to different persons 
  6.29  by different writings, the most recent writing controls the 
  6.30  disposition of the item. 
  6.31     Sec. 4.  Minnesota Statutes 1998, section 524.3-1203, 
  6.32  subdivision 5, is amended to read: 
  6.33     Subd. 5.  [EXHAUSTION OF ESTATE.] In any summary, special, 
  6.34  or other administration in which it appears that the estate will 
  6.35  not be exhausted in payment of the priority items enumerated in 
  6.36  subdivisions 1 to 4, the estate may nevertheless be summarily 
  7.1   closed without further notice, and the property assigned to the 
  7.2   proper persons, if the gross probate estate, exclusive of any 
  7.3   exempt homestead as defined in section 524.2-402, and any exempt 
  7.4   property as defined in section 524.2-403, does not exceed the 
  7.5   value of $30,000 $100,000.  If the closing and distribution of 
  7.6   assets is made pursuant to the terms of a will, no decree shall 
  7.7   issue until a hearing has been held for formal probate of the 
  7.8   will as provided in sections 524.3-401 to 524.3-413.  
  7.9      No summary closing of an estate shall be made to any 
  7.10  distributee under this subdivision, unless a showing is made by 
  7.11  the personal representative or the petitioner, that all property 
  7.12  selected by and allowances to the spouse and children as 
  7.13  provided in section 524.2-403 and the expenses and claims 
  7.14  provided in section 524.3-805 have been paid, and provided, 
  7.15  further, that a bond shall be filed by the personal 
  7.16  representative or the petitioner, conditioned upon the fact that 
  7.17  all such obligations have been paid and that all the facts shown 
  7.18  on the petition are true, with sufficient surety approved by the 
  7.19  court in an amount as may be fixed by the court to cover 
  7.20  potential improper distributions.  If a personal representative 
  7.21  is appointed, the representative's bond shall be sufficient for 
  7.22  such purpose unless an additional bond is ordered, and the 
  7.23  sureties on the bond shall have the same obligations and 
  7.24  liabilities as provided for sureties on a distribution bond.  
  7.25     In the event that an improper distribution or disbursement 
  7.26  is made in a summary closing, in that not all of said 
  7.27  obligations have been paid or that other facts as shown by the 
  7.28  personal representative or the petitioner, are not true, 
  7.29  resulting in damage to any party, the court may vacate its 
  7.30  summary decree or closing order, and the petitioner or the 
  7.31  personal representative, together with the surety, shall be 
  7.32  liable for damages to any party determined to be injured thereby 
  7.33  as herein provided.  The personal representative, petitioner, or 
  7.34  the surety, may seek reimbursement for damages so paid or 
  7.35  incurred from any distributee or recipient of assets under 
  7.36  summary decree or order, who shall be required to make a 
  8.1   contribution to cover such damages upon a pro rata basis or as 
  8.2   may be equitable to the extent of assets so received.  The court 
  8.3   is hereby granted complete and plenary jurisdiction of any and 
  8.4   all such proceedings and may enter such orders and judgments as 
  8.5   may be required to effectuate the purposes of this subdivision.  
  8.6      Any judgment rendered for damages or the recovery of assets 
  8.7   in such proceedings shall be upon petition and only after 
  8.8   hearing held thereon on 14 days' notice of hearing and a copy of 
  8.9   petition served personally upon the personal representative and 
  8.10  the surety and upon any distributee or recipient of assets where 
  8.11  applicable.  Any action for the recovery of money or damages 
  8.12  under this subdivision is subject to the time and other 
  8.13  limitations imposed by section 525.02.  
  8.14     Sec. 5.  Minnesota Statutes 1998, section 525.712, is 
  8.15  amended to read: 
  8.16     525.712 [REQUISITES.] 
  8.17     The appeal may be taken under the Rules of Appellate 
  8.18  Procedure by any person aggrieved within 30 days after service 
  8.19  by any party of written notice of the filing of the order, 
  8.20  judgment, or decree appealed from, or if no written notice be is 
  8.21  served, within six months after the filing of the order, 
  8.22  judgment, or decree.  Except as provided in this section, the 
  8.23  appeal shall be perfected and determined upon the record as 
  8.24  provided in the Rules of Appellate Procedure. 
  8.25     Sec. 6.  [EFFECTIVE DATE.] 
  8.26     Section 3 is effective for wills signed on or after August 
  8.27  1, 2000.