Trust, probate code get largely technical updates

A new law makes technical changes, clarifications and statutory updates to the state’s Trust Code, the rule against perpetuities, powers of appointment, and the Uniform Probate Code.

Sponsored by Rep. Peggy Scott (R-Andover) and Sen. Bonnie Westlin (DFL-Plymouth), the law takes effect Aug. 1, 2025, unless otherwise noted.

HF360/SF571*/CH15

Uniform Statutory Rule Against Perpetuities

The time that an interest must vest to be valid will expand from 90 years to up to 500 years, unless a different number of years is included in the trust document, to trusts created on or after Aug. 1, 2025. These trusts are sometimes called Dynasty Trusts and their terms last 360 to 1,000 years, or in perpetuity, in other states.

Trust Code

The new law provides for many Trust Code clarifications, including:

• changes related to representatives who act on behalf of another;

• laws on representation by a holder of a power of appointment;

• when an oral intent can apply for real property or a testamentary trust which has requirements for writing in law;

• when an agent can modify terms of a noncharitable irrevocable trust by consent, including termination;

• when an agent can modify the terms of a revocable trust;

• time limits related to commencing a judicial proceeding related to the validity of a revocable trust;

• specifying that a designated trustee who does not accept a trusteeship within 120 days is deemed to have rejected the trusteeship;

• definitions in the Trust Code;

• power of an investment trust advisor, distribution trust advisor or trust protector;

• the role and powers of a directing party;

• the duty of an “excluded fiduciary” that will allow the excluded fiduciary to act as an interested party to petition a court under certain sections of the Trust Code, and require the excluded fiduciary to keep the directing party (or parties) up to date with information on the duties they perform;

• specifying that many laws related to a trustee apply to a directing party, including compensation, removal, resignation, and successor appointments;

• the effect of relying on a certificate of trust that is recorded related to real property in a trust;

• allowing an affidavit of trustee to be used to transfer personal property through a statutory form used for real property;

• changes regarding charging expenses to trust instruments; and

• specifying that a decedent’s estate includes any trust that was revocable by the decedent at the time of the decedent’s death.

Powers of appointment of property

In addition to a plethora of clarifying changes, the law sets forth procedures to follow when attempting to decant a trust when a portion of the appointed trust instrument doesn’t comply with existing statutes. It also removes a prohibition for a trustee related to receiving any paying commission or compensation for decanting a trust.

Uniform Probate Code

Effect May 7, 2025, a parent is prohibited from inheriting from a child when the child died after reaching the age of 18, and during the child’s minority the parental rights of a parent could have been terminated under the laws of the state and the parent and child were estranged. It also clarifies that this provision of law does not affect inheritance related to federal Indian trust land.

And the law clarifies how a divorce affects a trust that provides for a spouse or their family.

SF0571* / HF0360 / CH15