The Minnesota Legislature adopted the Minnesota Trust Code during its 2015 session. With the adoption of the Trust Code, Minnesota joins thirty-one other states and the District of Columbia that have enacted a version of the Uniform Trust Code (UTC). The Trust Code became effective January 1, 2016, and marks a vast improvement on the existing statutes governing trusts. The Trust Code provides more guidance in the default rules that apply to trusts when the trust instrument is silent, more flexibility to modify or terminate a trust to align with the settlor’s intent or deal with a change in circumstance, and more explicit directions on judicial proceedings and nonjudicial settlements.
Part II of this article provides an overview of the Trust Code. It outlines major provisions in each article of the Trust Code and notes modifications or changes to the UTC language. Part III of this article more fully discusses important concepts in the Trust Code. Part III also provides information about charitable trusts provisions that remained in Minnesota Statutes chapter 501B and about decanting under Minnesota Statutes section 502.851. Part IV of this article offers concluding remarks.