Text of MN SF 369 (2009)

S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] A bill for an act 1.1 relating to estates and trusts; updating the Uniform Probate Code; adopting 1.2 the Uniform Estate Tax Apportionment Act, the Uniform Disclaimer of 1.3 Property Interests Act, the Uniform Power of Attorney Act, and the Uniform 1.4 Multiple-Person Accounts Act; amending Minnesota Statutes 2008, sections 1.5 524.1-201; 524.2-102; 524.2-103; 524.2-104; 524.2-114; 524.2-115; 524.2-202; 1.6 524.2-403; 524.2-502; 524.2-504; 524.2-705; 524.3-406; 524.3-916; 524.8-101; 1.7 proposing coding for new law in Minnesota Statutes, chapter 524; proposing 1.8 coding for new law as Minnesota Statutes, chapters 523A; 524A; repealing 1.9 Minnesota Statutes 2008, sections 501B.86; 523.01; 523.02; 523.03; 523.04; 1.10 523.05; 523.06; 523.07; 523.075; 523.08; 523.09; 523.10; 523.11; 523.12; 1.11 523.13; 523.131; 523.14; 523.15; 523.16; 523.17; 523.18; 523.19; 523.20; 1.12 523.21; 523.22; 523.23; 523.24; 524.2-108; 524.6-201; 524.6-202; 524.6-203; 1.13 524.6-204; 524.6-205; 524.6-206; 524.6-207; 524.6-208; 524.6-209; 524.6-210; 1.14 524.6-211; 524.6-212; 524.6-213; 524.6-214; 525.532. 1.15 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.16 ARTICLE 1 1.17 UNIFORM PROBATE CODE AMENDMENTS 1.18 Section 1. [524.1-109] COST-OF-LIVING ADJUSTMENT OF CERTAIN 1.19 DOLLAR AMOUNTS. 1.20 (a) In this section: 1.21 (1) "CPI" means the Consumer Price Index (Annual Average) for All Urban 1.22 Consumers (CPI-U): U.S. city average - All items, reported by the Bureau of Labor 1.23 Statistics, United States Department of Labor or its successor, or, if that index is 1.24 discontinued, an equivalent index reported by a federal authority. If no such index is 1.25 reported, the term means the substitute index chosen by the commissioner of human 1.26 services; and 1.27 (2) "reference base index" means the CPI for calendar year 2009. 1.28 Article 1 Section 1. 1 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (b) The dollar amounts stated in sections 524.2-102; 524.2-202, paragraph (b); 2.1 524.2-402; 524.2-403; and 524.2-405 apply to the estates of decedents who die in or after 2.2 January 1, 2010, except that, for the estates of decedents dying after January 1, 2010, 2.3 these dollar amounts must be increased or decreased if the CPI for the calendar year 2.4 immediately preceding the year of death exceeds or is less than the reference base index. 2.5 The amount of any increase or decrease is computed by multiplying each dollar amount by 2.6 the percentage by which the CPI for the calendar year immediately preceding the year 2.7 of death exceeds or is less than the reference base index. If any increase or decrease 2.8 produced by the computation is not a multiple of $100, the increase or decrease is rounded 2.9 down, if an increase, or up, if a decrease, to the next multiple of $100, except that, for 2.10 purposes of section 524.2-405, the periodic installment amount is the lump-sum amount 2.11 divided by 12. If the CPI for the year immediately prior to January 1, 2010, is changed 2.12 by the Bureau of Labor Statistics, the reference base index must be revised using the 2.13 rebasing factor published by the Bureau of Labor Statistics, or other comparable data if a 2.14 rebasing factor is not published. 2.15 (c) Before February 1, 2011, and before February 1 of each succeeding year, the 2.16 Department of Human Services shall publish a cumulative list, beginning with the dollar 2.17 amounts effective for the estates of decedents dying in 2011, of each dollar amount as 2.18 increased or decreased under this section. 2.19 Sec. 2. Minnesota Statutes 2008, section 524.1-201, is amended to read: 2.20 524.1-201 GENERAL DEFINITIONS. 2.21 Subdivision 1. Scope. Subject to additional definitions contained in the subsequent 2.22 articles which are applicable to specific articles or, parts, or sections, and unless the 2.23 context otherwise requires, in the definitions in this section apply to chapters 524 and 525:. 2.24 Subd. 2. Application. (2) "Application" means a written request to the registrar for 2.25 an order of informal probate or appointment under article III, part 3. 2.26 Subd. 3. Beneficiary. (3) "Beneficiary," as it relates to trust beneficiaries, includes a 2.27 person who has any present or future interest, vested or contingent, and also includes the 2.28 owner of an interest by assignment or other transfer and as it relates to a charitable trust, 2.29 includes any person entitled to enforce the trust. 2.30 Subd. 4. Child. (5) "Child" includes any individual entitled to take as a child 2.31 under law by intestate succession from the parent whose relationship is involved and 2.32 excludes any person who is only a stepchild, a foster child, a grandchild or any more 2.33 remote descendant. 2.34 Article 1 Sec. 2. 2 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] Subd. 5. Claims. (6) "Claims" includes liabilities of the decedent whether arising 3.1 in contract or otherwise and liabilities of the estate which arise after the death of the 3.2 decedent including funeral expenses and expenses of administration. The term does not 3.3 include taxes, demands or disputes regarding title of a decedent to specific assets alleged 3.4 to be included in the estate, tort claims, foreclosure of mechanic's liens, or to actions 3.5 pursuant to section 573.02. 3.6 Subd. 6. Conservator. "Conservator" means a person who is appointed by a court 3.7 to manage the estate of a protected person. 3.8 Subd. 7. Court. (7) "Court" means the court or branch having jurisdiction in matters 3.9 relating to the affairs of decedents. This court in this state is known as the district court. 3.10 (8) "Conservator" means a person who is appointed by a court to manage the estate 3.11 of a protected person. 3.12 Subd. 8. Descendant. (9) "Descendant" of an individual means all of the 3.13 individual's descendants of all generations, with the relationship of parent and child at each 3.14 generation being determined by the definition of child and parent contained in this section. 3.15 Subd. 9. Devise. (10) "Devise," when used as a noun, means a testamentary 3.16 disposition of real or personal property and when used as a verb, means to dispose of 3.17 real or personal property by will. 3.18 Subd. 10. Devisee. (11) "Devisee" means any person designated in a will to receive 3.19 a devise. In the case of a devise to an existing trust or trustee, or to a trustee on trust 3.20 described by will, the trust or trustee is the devisee and the beneficiaries are not devisees. 3.21 Subd. 11. Disability. (12) "Disability" means cause for appointment of a conservator 3.22 as described in section 524.5-401, or a protective order as described in section 524.5-412. 3.23 Subd. 12. Distributee. (13) "Distributee" means any person who has received or 3.24 who will receive property of a decedent from the decedent's personal representative other 3.25 than as a creditor or purchaser. A testamentary trustee is a distributee with respect to 3.26 property which the trustee has received from a personal representative only to the extent 3.27 of distributed assets or their increment remaining in the trustee's hands. A beneficiary 3.28 of a testamentary trust to whom the trustee has distributed property received from a 3.29 personal representative is a distributee of the personal representative. For purposes of this 3.30 provision, "testamentary trustee" includes a trustee to whom assets are transferred by 3.31 will, to the extent of the devised assets. 3.32 Subd. 13. Estate. (14) "Estate" includes all of the property of the decedent, trust, or 3.33 other person whose affairs are subject to this chapter as originally constituted and as it 3.34 exists from time to time during administration. 3.35 Article 1 Sec. 2. 3 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] Subd. 14. Fiduciary. (16) "Fiduciary" includes personal representative, guardian, 4.1 conservator and trustee. 4.2 Subd. 15. Foreign personal representative. (17) "Foreign personal representative" 4.3 means a personal representative of another jurisdiction. 4.4 Subd. 16. Formal proceedings. (18) "Formal proceedings" means those conducted 4.5 before a judge with notice to interested persons. 4.6 Subd. 17. Guardian. (20) "Guardian" means a person who has qualified as a 4.7 guardian of a minor or incapacitated person pursuant to testamentary or court appointment, 4.8 but excludes one who is merely a guardian ad litem. 4.9 Subd. 18. Heirs. (21) "Heirs" means those persons, including the surviving spouse, 4.10 who are entitled under the statutes of intestate succession to the property of a decedent. 4.11 Subd. 19. Incapacitated person. (22) "Incapacitated person" is as described in 4.12 section 524.5-102, subdivision 6, other than a minor. 4.13 Subd. 20. Informal proceedings. (23) "Informal proceedings" means those 4.14 conducted by the judge, the registrar, or the person or persons designated by the judge for 4.15 probate of a will or appointment of a personal representative in accordance with sections 4.16 524.3-301 to 524.3-311. 4.17 Subd. 21. Interested person. (24) "Interested person" includes heirs, devisees, 4.18 children, spouses, creditors, beneficiaries and any others having a property right in or 4.19 claim against the estate of a decedent, ward or protected person which may be affected 4.20 by the proceeding. It also includes persons having priority for appointment as personal 4.21 representative, and other fiduciaries representing interested persons. The meaning as it 4.22 relates to particular persons may vary from time to time and must be determined according 4.23 to the particular purposes of, and matter involved in, any proceeding. 4.24 Subd. 22. Lease. (27) "Lease" includes an oil, gas, or other mineral lease. 4.25 Subd. 23. Letters. (28) "Letters" includes letters testamentary, letters of 4.26 guardianship, letters of administration, and letters of conservatorship. 4.27 Subd. 24. Mortgage. (30) "Mortgage" means any conveyance, agreement or 4.28 arrangement in which property is used as security. 4.29 Subd. 25. Nonresident decedent. (31) "Nonresident decedent" means a decedent 4.30 who was domiciled in another jurisdiction at the time of death. 4.31 Subd. 26. Organization. (32) "Organization" includes a corporation, government or 4.32 governmental subdivision or agency, business trust, estate, trust, partnership or association, 4.33 two or more persons having a joint or common interest, or any other legal entity. 4.34 Subd. 27. Person. (35) "Person" means an individual, a corporation, an 4.35 organization, or other legal entity. 4.36 Article 1 Sec. 2. 4 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] Subd. 28. Personal representative. (36) "Personal representative" includes 5.1 executor, administrator, successor personal representative, special administrator, and 5.2 persons who perform substantially the same function under the law governing their status. 5.3 "General personal representative" excludes special administrator. 5.4 Subd. 29. Petition. (37) "Petition" means a written request to the court for an 5.5 order after notice. 5.6 Subd. 30. Proceeding. (38) "Proceeding" includes action at law and suit in equity. 5.7 Subd. 31. Property. (39) "Property" includes both real and personal property or any 5.8 interest therein and means anything that may be the subject of ownership. 5.9 Subd. 32. Protected person. (40) "Protected person" is as described in section 5.10 524.5-102, subdivision 14. 5.11 Subd. 33. Record. "Record" means information that is inscribed on a tangible 5.12 medium or that is stored in an electronic or other medium and is retrievable in perceivable 5.13 form. 5.14 Subd. 34. Registrar. (42) "Registrar" refers to the judge of the court or the person 5.15 designated by the court to perform the functions of registrar as provided in section 5.16 524.1-307. 5.17 Subd. 35. Security. (43) "Security" includes any note, stock, treasury stock, bond, 5.18 debenture, evidence of indebtedness, certificate of interest or participation in an oil, gas or 5.19 mining title or lease or in payments out of production under such a title or lease, collateral 5.20 trust certificate, transferable share, voting trust certificate or, in general, any interest or 5.21 instrument commonly known as a security, or any certificate of interest or participation, 5.22 any temporary or interim certificate, receipt or certificate of deposit for, or any warrant 5.23 or right to subscribe to or purchase, any of the foregoing. 5.24 Subd. 36. Settlement. (44) "Settlement," in reference to a decedent's estate, 5.25 includes the full process of administration, distribution, and closing. 5.26 Subd. 37. Sign. "Sign" means, with present intent to authenticate or adopt a record 5.27 other than a will: 5.28 (1) to execute or adopt a tangible symbol; or 5.29 (2) to attach to or logically associate with the record an electronic symbol, sound, 5.30 or process. 5.31 Subd. 38. Special administrator. (45) "Special administrator" means a personal 5.32 representative as described by sections 524.3-614 to 524.3-618. 5.33 Subd. 39. State. (46) "State" includes any state of the United States, the District of 5.34 Columbia, the Commonwealth of Puerto Rico, and any territory or possession subject to 5.35 the legislative authority of the United States. 5.36 Article 1 Sec. 2. 5 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] Subd. 40. Successor personal representative. (47) "Successor personal 6.1 representative" means a personal representative, other than a special administrator, who is 6.2 appointed to succeed a previously appointed personal representative. 6.3 Subd. 41. Successors. (48) "Successors" means those persons, other than creditors, 6.4 who are entitled to property of a decedent under the decedent's will, this chapter or chapter 6.5 525. "Successors" also means a funeral director or county government that provides the 6.6 funeral and burial of the decedent, or a state or county agency with a claim authorized 6.7 under section 256B.15. 6.8 Subd. 42. Supervised administration. (49) "Supervised administration" refers to 6.9 the proceedings described in sections 524.3-501 to 524.3-505. 6.10 Subd. 43. Testacy proceeding. (51) "Testacy proceeding" means a proceeding 6.11 to establish a will or determine intestacy. 6.12 Subd. 44. Trust. (53) "Trust" includes any express trust, private or charitable, 6.13 with additions thereto, wherever and however created. It also includes a trust created or 6.14 determined by judgment or decree under which the trust is to be administered in the 6.15 manner of an express trust. "Trust" excludes other constructive trusts, and it excludes 6.16 resulting trusts, conservatorships, personal representatives, trust accounts as defined in 6.17 chapter 528, custodial arrangements pursuant to sections 149A.97, 318.01 to 318.06, 6.18 527.21 to 527.44, business trusts providing for certificates to be issued to beneficiaries, 6.19 common trust funds, voting trusts, security arrangements, liquidation trusts, and trusts 6.20 for the primary purpose of paying debts, dividends, interest, salaries, wages, profits, 6.21 pensions, or employee benefits of any kind, and any arrangement under which a person is 6.22 nominee or escrowee for another. 6.23 Subd. 45. Trustee. (54) "Trustee" includes an original, additional, or successor 6.24 trustee, whether or not appointed or confirmed by court. 6.25 Subd. 46. Ward. (55) "Ward" is as described has the meaning given in section 6.26 524.5-102, subdivision 17. 6.27 Subd. 47. Will. (56) "Will" includes codicil and any testamentary instrument which 6.28 merely appoints an executor or revokes or revises another will. 6.29 Sec. 3. Minnesota Statutes 2008, section 524.2-102, is amended to read: 6.30 524.2-102 SHARE OF THE SPOUSE. 6.31 The intestate share of a decedent's surviving spouse is: 6.32 (1) the entire intestate estate if: 6.33 (i) no descendant of the decedent survives the decedent; or 6.34 Article 1 Sec. 3. 6 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (ii) all of the decedent's surviving descendants are also descendants of the surviving 7.1 spouse and there is no other descendant of the surviving spouse who survives the decedent; 7.2 (2) the first $300,000, plus three-fourths of any balance of the intestate estate, if no 7.3 descendant of the decedent survives the decedent, but a parent of the decedent survives 7.4 the decedent; 7.5 (3) the first $150,000 $225,000, plus one-half of any balance of the intestate estate, 7.6 if all of the decedent's surviving descendants are also descendants of the surviving spouse 7.7 and the surviving spouse has one or more surviving descendants who are not descendants 7.8 of the decedent,; or 7.9 (4) the first $150,000, plus one-half of any balance of the intestate estate, if one or 7.10 more of the decedent's surviving descendants are not descendants of the surviving spouse. 7.11 Sec. 4. Minnesota Statutes 2008, section 524.2-103, is amended to read: 7.12 524.2-103 SHARE OF HEIRS OTHER THAN SURVIVING SPOUSE. 7.13 (a) Any part of the intestate estate not passing to the a decedent's surviving spouse 7.14 under section 524.2-102, or the entire intestate estate if there is no surviving spouse, passes 7.15 in the following order to the individuals designated below who survive the decedent: 7.16 (1) to the decedent's descendants by representation; 7.17 (2) if there is no surviving descendant, to the decedent's parents equally if both 7.18 survive, or to the surviving parent if only one survives; 7.19 (3) if there is no surviving descendant or parent, to the descendants of the decedent's 7.20 parents or either of them by representation; 7.21 (4) if there is no surviving descendant, parent, or descendant of a parent, but the 7.22 decedent is survived on both the paternal and maternal sides by one or more grandparents 7.23 or descendants of grandparents,: 7.24 (i) half of the estate passes to the decedent's paternal grandparents equally if 7.25 both survive, or to the surviving paternal grandparent if only one survives, or to the 7.26 descendants of the decedent's paternal grandparents or either of them if both are deceased, 7.27 the descendants taking by representation; and the other 7.28 (ii) half passes to the decedent's maternal relatives in the same manner; but if 7.29 there is no surviving grandparent or descendant of a grandparent on either the paternal 7.30 or the maternal side, the entire estate passes grandparents equally if both survive, to 7.31 the surviving maternal grandparent if only one survives, or to the descendants of the 7.32 decedent's maternal grandparents or either of them if both are deceased, the descendants 7.33 taking by representation; 7.34 Article 1 Sec. 4. 7 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (5) if there is no surviving descendant, parent, or descendant of a parent, but the 8.1 decedent is survived by one or more grandparents or descendants of grandparents on the 8.2 paternal but not the maternal side, or on the maternal but not the paternal side, to the 8.3 decedent's relatives on the other side with one or more surviving members in the same 8.4 manner as the half; described in clause (4). 8.5 (5) (b) If there is no surviving descendant, parent, descendant of a parent, 8.6 grandparent, or descendant of a grandparent, to the next of kin in equal degree, except that 8.7 when there are two or more collateral kindred in equal degree claiming through different 8.8 ancestors, those who claim through the nearest ancestor shall take to the exclusion of those 8.9 claiming through an ancestor more remote. taker under paragraph (a), but the decedent has: 8.10 (i) one deceased spouse who has one or more descendants who survive the decedent, 8.11 the estate or part of the estate passes to that spouse's descendants by representation; or 8.12 (ii) more than one deceased spouse who has one or more descendants who survive 8.13 the decedent, an equal share of the estate or part of the estate passes to each set of 8.14 descendants by representation. 8.15 Sec. 5. Minnesota Statutes 2008, section 524.2-104, is amended to read: 8.16 524.2-104 REQUIREMENT THAT HEIR SURVIVE DECEDENT FOR OF 8.17 SURVIVAL BY 120 HOURS; INDIVIDUAL IN GESTATION. 8.18 (a) For purposes of intestate succession, homestead allowance, and exempt property, 8.19 and except as otherwise provided in paragraph (b): 8.20 (1) an individual born before a decedent's death who fails to survive the decedent by 8.21 120 hours is deemed to have predeceased the decedent for purposes of homestead, exempt 8.22 property, and intestate succession, and the decedent's heirs are determined accordingly. If 8.23 it is not established that an individual who would otherwise be an heir born before the 8.24 decedent's death survived the decedent by 120 hours, it is deemed that the individual failed 8.25 to survive for the required period. This section is not to be applied if its application would 8.26 result in a taking of intestate estate by the state under section 524.2-105.; and 8.27 (2) an individual in gestation at a decedent's death is deemed to be living at the 8.28 decedent's death if the individual lives 120 hours after birth. If it is not established by clear 8.29 and convincing evidence that an individual in gestation at the decedent's death lived 120 8.30 hours after birth, it is deemed that the individual failed to survive for the required period. 8.31 (b) This section does not apply if its application would cause the estate to pass to 8.32 the state under section 524.2-105. 8.33 Article 1 Sec. 5. 8 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] Sec. 6. Minnesota Statutes 2008, section 524.2-114, is amended to read: 9.1 524.2-114 MEANING OF CHILD AND RELATED TERMS PARENT 9.2 BARRED FROM INHERITING IN CERTAIN CIRCUMSTANCES. 9.3 If, for purposes of intestate succession, a relationship of parent and child must be 9.4 established to determine succession by, through, or from a person: 9.5 (1) An adopted child is the child of an adopting parent and not of the birth parents 9.6 except that adoption of a child by the spouse of a birth parent has no effect on the 9.7 relationship between the child and that birth parent. If a parent dies and a child is 9.8 subsequently adopted by a stepparent who is the spouse of a surviving parent, any rights 9.9 of inheritance of the child or the child's descendant from or through the deceased parent 9.10 of the child which exist at the time of the death of that parent shall not be affected by 9.11 the adoption. 9.12 (2) In cases not covered by clause (1), a person is the child of the person's parents 9.13 regardless of the marital status of the parents and the parent and child relationship may be 9.14 established under the Parentage Act, sections 257.51 to 257.74. 9.15 (a) A parent is barred from inheriting from or through a child of the parent if: 9.16 (1) the parent's parental rights were terminated and the parent-child relationship 9.17 was not judicially reestablished; or 9.18 (2) the child died before reaching 18 years of age and there is clear and convincing 9.19 evidence that immediately before the child's death the parental rights of the parent 9.20 could have been terminated under other law of this state on the basis of nonsupport, 9.21 abandonment, abuse, neglect, or other actions or inactions of the parent toward the child. 9.22 (b) For purposes of intestate succession from or through the deceased child, a parent 9.23 who is barred from inheriting under this section is treated as if the parent predeceased 9.24 the child. 9.25 Sec. 7. Minnesota Statutes 2008, section 524.2-115, is amended to read: 9.26 524.2-115 INSTRUMENTS REFERENCING INTESTACY LAWS 9.27 DEFINITIONS. 9.28 If a maker has executed a will or other instrument before January 1, 1996, which 9.29 directs disposition of all or part of the estate pursuant to the intestacy laws of the state 9.30 of Minnesota, the laws to be applied shall be in accordance with the laws of intestate 9.31 succession in effect on the date of the will or other instrument, unless the will or 9.32 instrument directs otherwise. 9.33 In sections 524.2-115 to 524.2-122: 9.34 (1) "adoptee" means an individual who is adopted; 9.35 Article 1 Sec. 7. 9 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (2) "assisted reproduction" means a method of causing pregnancy other than sexual 10.1 intercourse; 10.2 (3) "divorce" includes an annulment, dissolution, and declaration of invalidity of a 10.3 marriage; 10.4 (4) "functioned as a parent of the child" means behaving toward a child in a manner 10.5 consistent with being the child's parent and performing functions that are customarily 10.6 performed by a parent, including fulfilling parental responsibilities toward the child, 10.7 recognizing or holding out the child as the individual's child, materially participating in 10.8 the child's upbringing, and residing with the child in the same household as a regular 10.9 member of that household; 10.10 (5) "genetic father" means the man whose sperm fertilized the egg of a child's 10.11 genetic mother. If the father-child relationship is established under the presumption of 10.12 paternity under section 257.55, the term means only the man for whom that relationship 10.13 is established; 10.14 (6) "genetic mother" means the woman whose egg was fertilized by the sperm of 10.15 the child's genetic father; 10.16 (7) "genetic parent" means a child's genetic father or genetic mother; 10.17 (8) "incapacity" means the inability of an individual to function as a parent of a child 10.18 because of the individual's physical or mental condition; and 10.19 (9) "relative" means a grandparent or a descendant of a grandparent. 10.20 Sec. 8. [524.2-116] EFFECT OF PARENT-CHILD RELATIONSHIP. 10.21 Except as otherwise provided in section 524.2-119, paragraphs (b) to (e), if a 10.22 parent-child relationship exists or is established under sections 524.2-114 to 524.2-122, 10.23 the parent is a parent of the child and the child is a child of the parent for the purpose of 10.24 intestate succession. 10.25 Sec. 9. [524.2-117] NO DISTINCTION BASED ON MARITAL STATUS. 10.26 Except as otherwise provided in section 524.2-114, 524.2-119, 524.2-120, or 10.27 524.2-121, a parent-child relationship exists between a child and the child's genetic 10.28 parents, regardless of their marital status. 10.29 Sec. 10. [524.2-118] ADOPTEE AND ADOPTEE'S ADOPTIVE PARENT OR 10.30 PARENTS. 10.31 (a) A parent-child relationship exists between an adoptee and the adoptee's adoptive 10.32 parent or parents. 10.33 Article 1 Sec. 10. 10 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (b) For purposes of paragraph (a): 11.1 (1) an individual who is in the process of being adopted by a married couple when 11.2 one of the spouses dies is treated as adopted by the deceased spouse if the adoption is 11.3 subsequently granted to the decedent's surviving spouse; and 11.4 (2) a child of a genetic parent who is in the process of being adopted by a genetic 11.5 parent's spouse when the spouse dies is treated as adopted by the deceased spouse if the 11.6 genetic parent survives the deceased spouse by 120 hours. 11.7 (c) If, after a parent-child relationship is established between a child of assisted 11.8 reproduction and a parent under section 524.2-120 or between a gestational child and a 11.9 parent under section 524.2-121, the child is in the process of being adopted by the parent's 11.10 spouse when that spouse dies, the child is treated as adopted by the deceased spouse 11.11 for purposes of paragraph (b), clause (2). 11.12 Sec. 11. [524.2-119] ADOPTEE AND ADOPTEE'S GENETIC PARENTS. 11.13 (a) Except as otherwise provided in paragraphs (b) to (e), a parent-child relationship 11.14 does not exist between an adoptee and the adoptee's genetic parents. 11.15 (b) A parent-child relationship exists between an individual who is adopted by the 11.16 spouse of either genetic parent and: 11.17 (1) the genetic parent whose spouse adopted the individual; and 11.18 (2) the other genetic parent, but only for the purpose of the right of the adoptee or a 11.19 descendant of the adoptee to inherit from or through the other genetic parent. 11.20 (c) A parent-child relationship exists between both genetic parents and an individual 11.21 who is adopted by a relative of a genetic parent, or by the spouse or surviving spouse of 11.22 a relative of a genetic parent, but only for the purpose of the right of the adoptee or a 11.23 descendant of the adoptee to inherit from or through either genetic parent. 11.24 (d) A parent-child relationship exists between both genetic parents and an individual 11.25 who is adopted after the death of both genetic parents, but only for the purpose of the right 11.26 of the adoptee or a descendant of the adoptee to inherit through either genetic parent. 11.27 (e) If, after a parent-child relationship is established between a child of assisted 11.28 reproduction and a parent or parents under section 524.2-120 or between a gestational 11.29 child and a parent or parents under section 524.2-121, the child is adopted by another or 11.30 others, the child's parent or parents under section 524.2-120 or 524.2-121 are treated as the 11.31 child's genetic parent or parents for the purpose of this section. 11.32 Sec. 12. [524.2-120] CHILD CONCEIVED BY ASSISTED REPRODUCTION 11.33 OTHER THAN A CHILD BORN TO A GESTATIONAL CARRIER. 11.34 Article 1 Sec. 12. 11 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (a) In this section: 12.1 (1) "birth mother" means a woman, other than a gestational carrier under section 12.2 524.2-121, who gives birth to a child of assisted reproduction. The term is not limited to a 12.3 woman who is the child's genetic mother; 12.4 (2) "child of assisted reproduction" means a child conceived by means of assisted 12.5 reproduction by a woman other than a gestational carrier under section 524.2-121; and 12.6 (3) "third-party donor" means an individual who produces eggs or sperm used for 12.7 assisted reproduction, whether or not for consideration. The term does not include: 12.8 (i) a husband who provides sperm, or a wife who provides eggs, that are used for 12.9 assisted reproduction by the wife; 12.10 (ii) the birth mother of a child of assisted reproduction; or 12.11 (iii) an individual who has been determined under paragraph (e) or (f) to have a 12.12 parent-child relationship with a child of assisted reproduction. 12.13 (b) A parent-child relationship does not exist between a child of assisted reproduction 12.14 and a third-party donor. 12.15 (c) A parent-child relationship exists between a child of assisted reproduction and 12.16 the child' birth mother. 12.17 (d) Except as otherwise provided in paragraphs (i) and (j), a parent-child relationship 12.18 exists between a child of assisted reproduction and the husband of the child's birth 12.19 mother if the husband provided the sperm that the birth mother used during his lifetime 12.20 for assisted reproduction. 12.21 (e) A birth certificate identifying an individual other than the birth mother as the 12.22 other parent of a child of assisted reproduction presumptively establishes a parent-child 12.23 relationship between the child and that individual. 12.24 (f) Except as otherwise provided in paragraphs (g), (i), and (j), and unless a 12.25 parent-child relationship is established under paragraph (d) or (e), a parent-child 12.26 relationship exists between a child of assisted reproduction and an individual other than 12.27 the birth mother who consented to assisted reproduction by the birth mother with intent 12.28 to be treated as the other parent of the child. Consent to assisted reproduction by the 12.29 birth mother with intent to be treated as the other parent of the child is established if 12.30 the individual: 12.31 (1) before or after the child's birth, signed a record that, considering all the facts and 12.32 circumstances, evidences the individual's consent; or 12.33 (2) in the absence of a signed record under clause (1): 12.34 (i) functioned as a parent of the child no later than two years after the child's birth; 12.35 Article 1 Sec. 12. 12 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (ii) intended to function as a parent of the child no later than two years after the 13.1 child's birth, but was prevented from carrying out that intent by death, incapacity, or 13.2 other circumstances; or 13.3 (iii) intended to be treated as a parent of a posthumously conceived child if that 13.4 intent is established by clear and convincing evidence. 13.5 (g) For the purpose of paragraph (f), clause (1), neither an individual who signed a 13.6 record more than two years after the birth of the child, nor a relative of that individual 13.7 who is not also a relative of the birth mother, inherits from or through the child unless the 13.8 individual functioned as a parent of the child before the child reached 18 years of age. 13.9 (h) For the purpose of paragraph (f), clause (2): 13.10 (1) if the birth mother is married and no divorce proceeding is pending, in the 13.11 absence of clear and convincing evidence to the contrary, her spouse satisfies paragraph 13.12 (f), clause (2), item (i) or (ii); and 13.13 (2) if the birth mother is a surviving spouse and at her deceased spouse's death no 13.14 divorce proceeding was pending, in the absence of clear and convincing evidence to the 13.15 contrary, her deceased spouse satisfies paragraph (f), clause (2), item (ii) or (iii). 13.16 (i) If a married couple is divorced before placement of eggs, sperm, or embryos, a 13.17 child resulting from the assisted reproduction is not a child of the birth mother's former 13.18 spouse, unless the former spouse consented in a record that if assisted reproduction were 13.19 to occur after divorce, the child would be treated as the former spouse's child. 13.20 (j) If, in a record, an individual withdraws consent to assisted reproduction before 13.21 placement of eggs, sperm, or embryos, a child resulting from the assisted reproduction is 13.22 not a child of that individual, unless the individual subsequently satisfies paragraph (f). 13.23 (k) If, under this section, an individual is a parent of a child of assisted reproduction 13.24 who is conceived after the individual's death, the child is treated as in gestation at the 13.25 individual's death for purposes of section 524.2-104, paragraph (a), clause (2), if the 13.26 child is: 13.27 (1) in utero not later than 36 months after the individual's death; or 13.28 (2) born not later than 45 months after the individual's death. 13.29 Sec. 13. [524.2-121] CHILD BORN TO A GESTATIONAL CARRIER. 13.30 (a) In this section: 13.31 (1) "gestational agreement" means an enforceable or unenforceable agreement for 13.32 assisted reproduction in which a woman agrees to carry a child to birth for an intended 13.33 parent, intended parents, or an individual described in paragraph (e); 13.34 Article 1 Sec. 13. 13 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (2) "gestational carrier" means a woman who is not an intended parent who gives 14.1 birth to a child under a gestational agreement. The term is not limited to a woman who is 14.2 the child's genetic mother; 14.3 (3) "gestational child" means a child born to a gestational carrier under a gestational 14.4 agreement; and 14.5 (4) "intended parent" means an individual who entered into a gestational agreement 14.6 providing that the individual will be the parent of a child born to a gestational carrier by 14.7 means of assisted reproduction. The term is not limited to an individual who has a genetic 14.8 relationship with the child. 14.9 (b) A parent-child relationship is conclusively established by a court order 14.10 designating the parent or parents of a gestational child. 14.11 (c) A parent-child relationship between a gestational child and the child's gestational 14.12 carrier does not exist unless the gestational carrier is: 14.13 (1) designated as a parent of the child in a court order described in paragraph (b); or 14.14 (2) the child's genetic mother and a parent-child relationship does not exist under 14.15 this section with an individual other than the gestational carrier. 14.16 (d) In the absence of a court order under paragraph (b), a parent-child relationship 14.17 exists between a gestational child and an intended parent who: 14.18 (1) functioned as a parent of the child no later than two years after the child's birth; or 14.19 (2) died while the gestational carrier was pregnant if: 14.20 (i) there were two intended parents and the other intended parent functioned as a 14.21 parent of the child no later than two years after the child's birth; 14.22 (ii) there were two intended parents, the other intended parent also died while the 14.23 gestational carrier was pregnant, and a relative of either deceased intended parent or the 14.24 spouse or surviving spouse of a relative of either deceased intended parent functioned as a 14.25 parent of the child no later than two years after the child's birth; or 14.26 (iii) there was no other intended parent and a relative of or the spouse or surviving 14.27 spouse of a relative of the deceased intended parent functioned as a parent of the child no 14.28 later than two years after the child's birth. 14.29 (e) In the absence of a court order under paragraph (b), a parent-child relationship 14.30 exists between a gestational child and an individual whose sperm or eggs were used after 14.31 the individual's death or incapacity to conceive a child under a gestational agreement 14.32 entered into after the individual's death or incapacity if the individual intended to be 14.33 treated as the parent of the child. The individual's intent may be shown by: 14.34 (1) a record signed by the individual that, considering all the facts and circumstances, 14.35 evidences the individual's intent; or 14.36 Article 1 Sec. 13. 14 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (2) other facts and circumstances establishing the individual's intent by clear and 15.1 convincing evidence. 15.2 (f) Except as otherwise provided in paragraph (g), and unless there is clear and 15.3 convincing evidence of a contrary intent, an individual is deemed to have intended to be 15.4 treated as the parent of a gestational child for purposes of paragraph (e), clause (2), if: 15.5 (1) the individual, before death or incapacity, deposited the sperm or eggs that 15.6 were used to conceive the child; 15.7 (2) when the individual deposited the sperm or eggs, the individual was married and 15.8 no divorce proceeding was pending; and 15.9 (3) the individual's spouse or surviving spouse functioned as a parent of the child not 15.10 later than two years after the child's birth. 15.11 (g) The presumption under paragraph (f) does not apply if there is: 15.12 (1) a court order under paragraph (b); or 15.13 (2) a signed record that satisfies paragraph (e), clause (1). 15.14 (h) If, under this section, an individual is a parent of a gestational child who is 15.15 conceived after the individual's death, the child is treated as in gestation at the individual's 15.16 death for purposes of section 524.2-104, paragraph (a), clause (2), if the child is: 15.17 (1) in utero not later than 36 months after the individual's death; or 15.18 (2) born not later than 45 months after the individual's death. 15.19 (i) This section does not affect any law of this state other than this chapter regarding 15.20 the enforceability or validity of a gestational agreement. 15.21 Sec. 14. [524.2-122] EQUITABLE ADOPTION. 15.22 Sections 524.2-114 to 524.2-122 do not affect the doctrine of equitable adoption. 15.23 Sec. 15. Minnesota Statutes 2008, section 524.2-202, is amended to read: 15.24 524.2-202 ELECTIVE SHARE. 15.25 (a) Elective share amount. The surviving spouse of a decedent who dies domiciled 15.26 in this state has a right of election, under the limitations and conditions stated in this part, 15.27 to take an elective-share amount equal to the value of the elective-share percentage of the 15.28 augmented estate, determined by the length of time the spouse and the decedent were 15.29 married to each other, in accordance with the following schedule: 15.30 If the decedent and the spouse were 15.31 married to each other: 15.32 The elective-share percentage is: Less than one year Supplemental amount only 15.33 One year but less than two years Three percent of the augmented estate 15.34 Two years but less than three years Six percent of the augmented estate 15.35 Article 1 Sec. 15. 15 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] Three years but less than four years Nine percent of the augmented estate 16.1 Four years but less than five years 12 percent of the augmented estate 16.2 Five years but less than six years 15 percent of the augmented estate 16.3 Six years but less than seven years 18 percent of the augmented estate 16.4 Seven years but less than eight years 21 percent of the augmented estate 16.5 Eight years but less than nine years 24 percent of the augmented estate 16.6 Nine years but less than ten years 27 percent of the augmented estate 16.7 Ten years but less than 11 years 30 percent of the augmented estate 16.8 11 years but less than 12 years 34 percent of the augmented estate 16.9 12 years but less than 13 years 38 percent of the augmented estate 16.10 13 years but less than 14 years 42 percent of the augmented estate 16.11 14 years but less than 15 years 46 percent of the augmented estate 16.12 15 years or more 50 percent of the augmented estate 16.13 (b) Supplemental elective-share amount. If the sum of the amounts described in 16.14 sections 524.2-207, 524.2-209, paragraph (a), clause (1), and that part of the elective-share 16.15 amount payable from the decedent's probate estate and nonprobate transfers to others 16.16 under section 524.2-209, paragraphs (b) and (c), is less than $50,000 $75,000, the 16.17 surviving spouse is entitled to a supplemental elective-share amount equal to $50,000 16.18 $75,000, minus the sum of the amounts described in those sections. The supplemental 16.19 elective-share amount is payable from the decedent's probate estate and from recipients of 16.20 the decedent's nonprobate transfers to others in the order of priority set forth in section 16.21 524.2-209, paragraphs (b) and (c). 16.22 (c) Effect of election on statutory benefits. If the right of election is exercised by 16.23 or on behalf of the surviving spouse, the surviving spouse's homestead rights and other 16.24 allowances under sections 524.2-402, 524.2-403 and 524.2-404, if any, are not charged 16.25 against but are in addition to the elective-share and supplemental elective-share amounts. 16.26 (d) Nondomiciliary. The right, if any, of the surviving spouse of a decedent who 16.27 dies domiciled outside this state to take an elective share in property in this state is 16.28 governed by the law of the decedent's domicile at death. 16.29 Sec. 16. Minnesota Statutes 2008, section 524.2-403, is amended to read: 16.30 524.2-403 EXEMPT PROPERTY. 16.31 (a) If there is a surviving spouse, then, in addition to the homestead and family 16.32 allowance, the surviving spouse is entitled from the estate to: 16.33 (1) property not exceeding $10,000 $15,000 in value in excess of any security 16.34 interests therein, in household furniture, furnishings, appliances, and personal effects, 16.35 subject to an award of sentimental value property under section 525.152; and 16.36 (2) one automobile, if any, without regard to value. 16.37 Article 1 Sec. 16. 16 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (b) If there is no surviving spouse, the decedent's children are entitled jointly to 17.1 the same property as provided in paragraph (a), except that where it appears from the 17.2 decedent's will a child was omitted intentionally, the child is not entitled to the rights 17.3 conferred by this section. 17.4 (c) If encumbered chattels are selected and the value in excess of security interests, 17.5 plus that of other exempt property, is less than $10,000 $15,000, or if there is not $10,000 17.6 $15,000 worth of exempt property in the estate, the surviving spouse or children are 17.7 entitled to other personal property of the estate, if any, to the extent necessary to make up 17.8 the $10,000 $15,000 value. 17.9 (d) Rights to exempt property and assets needed to make up a deficiency of exempt 17.10 property have priority over all claims against the estate, but the right to any assets to 17.11 make up a deficiency of exempt property abates as necessary to permit earlier payment 17.12 of the family allowance. 17.13 (e) The rights granted by this section are in addition to any benefit or share passing 17.14 to the surviving spouse or children by the decedent's will, unless otherwise provided, by 17.15 intestate succession or by way of elective share. 17.16 (f) No rights granted to a decedent's adult children under this section shall have 17.17 precedence over a claim under section 246.53, 256B.15, 256D.16, 261.04, or 524.3-805, 17.18 paragraph (a), clause (1), (2), or (3). 17.19 Sec. 17. Minnesota Statutes 2008, section 524.2-502, is amended to read: 17.20 524.2-502 EXECUTION; WITNESSED OR NOTARIZED WILLS; 17.21 HOLOGRAPHIC WILLS. 17.22 (a) Except as otherwise provided in sections 524.2-503, 524.2-506, and 524.2-513, a 17.23 will must be: 17.24 (1) in writing; 17.25 (2) signed by the testator or in the testator's name by some other individual in the 17.26 testator's conscious presence and by the testator's direction or signed by the testator's 17.27 conservator pursuant to a court order under section 524.5-411; and 17.28 (3) either: 17.29 (i) signed by at least two individuals, each of whom signed within a reasonable 17.30 time after witnessing the individual witnessed either the signing of the will as described 17.31 in clause (2) or the testator's acknowledgment of that signature or acknowledgment of 17.32 the will; or 17.33 (ii) acknowledged by the testator before a notary public or other individual 17.34 authorized by law to take acknowledgments. 17.35 Article 1 Sec. 17. 17 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (b) A will that does not comply with paragraph (a) is valid as a holographic will, 18.1 whether or not witnessed, if the signature and material portions of the document are in 18.2 the testator's handwriting. 18.3 (c) Intent that a document constitute the testator's will can be established by extrinsic 18.4 evidence, including, for holographic wills, portions of the document that are not in the 18.5 testator's handwriting. 18.6 Sec. 18. Minnesota Statutes 2008, section 524.2-504, is amended to read: 18.7 524.2-504 SELF-PROVED WILL. 18.8 (a) A will that is executed with attesting witnesses may be contemporaneously 18.9 simultaneously executed, attested, and made self-proved, by acknowledgment thereof by 18.10 the testator and affidavits of the witnesses, each made before an officer authorized to 18.11 administer oaths under the laws of the state in which execution occurs and evidenced by 18.12 the officer's certificate, under official seal, in substantially the following form: 18.13 I, ................., the testator, sign my name to this instrument this ........ day of ................., 18.14 name 18.15 and being first duly sworn, do hereby declare to the undersigned authority that I sign and 18.16 execute this instrument as my will and that I sign it willingly (or willingly direct another 18.17 to sign for me), that I execute it as my free and voluntary act for the purposes therein 18.18 expressed, and that I am 18 years of age or older, of sound mind, and under no constraint 18.19 or undue influence. 18.20 ...................................................................... 18.21 Testator 18.22 We, ................., ................., the witnesses, sign our names to this instrument, being 18.23 name name 18.24 first duly sworn, and do hereby declare to the undersigned authority that the testator signs 18.25 and executes this instrument as the testator's will and that the testator signs it willingly (or 18.26 willingly directs another to sign for the testator), and that each of us, in the presence and 18.27 hearing of the testator, hereby signs this will as witness to the testator's signing, and that 18.28 to the best of our knowledge the testator is 18 years of age or older, of sound mind, and 18.29 under no constraint or undue influence. 18.30 ...................................................................... 18.31 Witness 18.32 ...................................................................... 18.33 Witness 18.34 Article 1 Sec. 18. 18 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] State of .......................................................... 19.1 County of ...................................................... 19.2 Subscribed, sworn to, and acknowledged before me by ................., the testator, and 19.3 subscribed and sworn to before me by ................., and ................., witnesses, this ........ 19.4 day of ............., ......... . 19.5 (Seal) 19.6 (Signed) ............................................................. 19.7 ............................................................................ 19.8 (Official capacity of officer) 19.9 (b) An attested A will that is executed with attesting witnesses may be made 19.10 self-proved at any time after its execution by the acknowledgment thereof by the testator 19.11 and the affidavits of the witnesses, each made before an officer authorized to administer 19.12 oaths under the laws of the state in which the acknowledgment occurs and evidenced 19.13 by the officer's certificate, under the official seal, attached or annexed to the will in 19.14 substantially the following form: 19.15 State of .......................................................... 19.16 County of ...................................................... 19.17 We, ................., ................., and ................., the testator and the witnesses, 19.18 name name name 19.19 respectively, whose names are signed to the attached or foregoing instrument, being first 19.20 duly sworn, do hereby declare to the undersigned authority that the testator signed and 19.21 executed the instrument as the testator's will and that the testator had signed willingly 19.22 (or willingly directed another to sign for the testator), and that the testator executed it as 19.23 the testator's free and voluntary act for the purposes therein expressed, and each of the 19.24 witnesses, in the presence and hearing of the testator, signed the will as witness and that 19.25 to the best of the witness' knowledge the testator was at the time 18 years of age or older, 19.26 of sound mind, and under no constraint or undue influence. 19.27 ...................................................................... 19.28 Testator 19.29 ...................................................................... 19.30 Witness 19.31 ...................................................................... 19.32 Witness 19.33 Article 1 Sec. 18. 19 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] Subscribed, sworn to, and acknowledged before me by ................., the testator, and 20.1 subscribed and sworn to before me by ................., and ................., witnesses, this ........ 20.2 day of ..............., ......... . 20.3 (Seal) 20.4 (Signed) ............................................................. 20.5 ............................................................................ 20.6 (Official capacity of officer) 20.7 (c) A signature affixed to a self-proving affidavit attached to a will is considered a 20.8 signature affixed to the will, if necessary to prove the will's due execution. 20.9 Sec. 19. Minnesota Statutes 2008, section 524.2-705, is amended to read: 20.10 524.2-705 CLASS GIFTS CONSTRUED TO ACCORD WITH INTESTATE 20.11 SUCCESSION; EXCEPTIONS. 20.12 Adopted individuals and individuals born out of wedlock (a) In this section: 20.13 (1) "adoptee" has the meaning given in section 524.2-115; 20.14 (2) "child of assisted reproduction" has the meaning given in section 524.2-120; 20.15 (3) "distribution date" means the time when an immediate or a postponed class gift 20.16 is to take effect in possession or enjoyment; 20.17 (4) "functioned as a parent of the adoptee" has the meaning given in section 20.18 524.2-115, substituting "adoptee" for "child" in that definition; 20.19 (5) "functioned as a parent of the child" has the meaning given in section 524.2-115; 20.20 (6) "genetic parent" has the meaning given in section 524.2-115; and 20.21 (7) "gestational child" has the meaning given in section 524.2-121; 20.22 (8) "relative" has the meaning given in section 524.2-115. 20.23 (b) A class gift that uses a term of relationship to identify the class members includes 20.24 a child of assisted reproduction, a gestational child, and, except as otherwise provided in 20.25 paragraphs (e) and (f), an adoptee and a child born to parents who are not married to each 20.26 other, and their respective descendants if appropriate to the class, are included in class 20.27 gifts and other terms of relationship in accordance with the rules for intestate succession 20.28 regarding parent-child relationships. 20.29 (c) Terms of relationship in a governing instrument that do not differentiate 20.30 relationships by blood from those by affinity marriage, such as "uncles," "aunts," "nieces," 20.31 or "nephews," are presumed construed to exclude relatives by affinity. marriage, unless: 20.32 (1) when the governing instrument was executed, the class was then and foreseeably 20.33 would be empty; or 20.34 Article 1 Sec. 19. 20 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (2) the language or circumstances otherwise establish that relatives by marriage were 21.1 intended to be included. 21.2 (d) Terms of relationship in a governing instrument that do not differentiate 21.3 relationships by the half blood from those by the whole blood, such as "brothers," "sisters," 21.4 "nieces," or "nephews," are presumed to include both types of relationships. 21.5 (e) In construing a dispositive provision of a transferor who is not the genetic 21.6 parent, a child of a genetic parent is not considered the child of the genetic parent unless 21.7 the genetic parent, a relative of the genetic parent, or the spouse or surviving spouse 21.8 of a relative of the genetic parent functioned as a parent of the child before the child 21.9 reached 18 years of age. 21.10 (f) In construing a dispositive provision of a transferor who is not the adoptive 21.11 parent, an adoptee is not considered the child of the adoptive parent unless: 21.12 (1) the adoption took place before the adoptee reached 18 years of age; 21.13 (2) the adoptive parent was the adoptee's stepparent or foster parent; or 21.14 (3) the adoptive parent functioned as a parent of the adoptee before the adoptee 21.15 reached 18 years of age. 21.16 (g) The following rules apply for purposes of the class-closing rules: 21.17 (1) a child in utero at a particular time is treated as living at that time if the child 21.18 lives 120 hours after birth; 21.19 (2) if a child of assisted reproduction or a gestational child is conceived 21.20 posthumously and the distribution date is the deceased parent's death, the child is treated 21.21 as living on the distribution date if the child lives 120 hours after birth and was in utero 21.22 not later than 36 months after the deceased parent's death or born not later than 45 months 21.23 after the deceased parent's death; and 21.24 (3) an individual who is in the process of being adopted when the class closes is 21.25 treated as adopted when the class closes if the adoption is subsequently granted. 21.26 Sec. 20. [524.2-805] REFORMATION TO CORRECT MISTAKES. 21.27 The court may reform the terms of a governing instrument, even if unambiguous, 21.28 to conform the terms to the transferor's intention if it is proved by clear and convincing 21.29 evidence that the transferor's intent and the terms of the governing instrument were 21.30 affected by a mistake of fact or law, whether in expression or inducement. 21.31 Sec. 21. [524.2-806] MODIFICATION TO ACHIEVE TRANSFEROR'S TAX 21.32 OBJECTIVES. 21.33 Article 1 Sec. 21. 21 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] To achieve the transferor's tax objectives, the court may modify the terms of a 22.1 governing instrument in a manner that is not contrary to the transferor's probable intention. 22.2 The court may provide that the modification has retroactive effect. 22.3 Sec. 22. Minnesota Statutes 2008, section 524.3-406, is amended to read: 22.4 524.3-406 FORMAL TESTACY PROCEEDINGS; CONTESTED CASES; 22.5 TESTIMONY OF ATTESTING WITNESSES. 22.6 (a) If evidence concerning execution of an attested will which is not self-proved is 22.7 necessary in contested cases, the testimony of at least one of the attesting witnesses, if 22.8 within the state competent and able to testify, is required. Due execution of a will may be 22.9 proved by other evidence. 22.10 (b) If the will is self-proved, compliance with signature requirements for execution 22.11 is conclusively presumed and other requirements of execution are presumed subject to 22.12 rebuttal without the testimony of any witness upon filing the will and the acknowledgment 22.13 and affidavits annexed or attached thereto, unless there is proof of fraud or forgery 22.14 affecting the acknowledgment or affidavit. 22.15 In a contested case in which the proper execution of a will is at issue, the following 22.16 rules apply: 22.17 (1) if the will is self-proved pursuant to section 524.2-504, the will complies with 22.18 the requirements for execution without the testimony of any attesting witness, upon filing 22.19 the will and the acknowledgment and affidavits annexed or attached to it, unless there is 22.20 evidence of fraud or forgery affecting the acknowledgment or affidavit; 22.21 (2) if the will is notarized pursuant to section 524.2-502, paragraph (a), clause (3), 22.22 item (ii), but not self-proved, there is a rebuttable presumption that the will complies with 22.23 the requirements for execution upon filing the will; and 22.24 (3) if the will is witnessed pursuant to section 524.2-502, paragraph (a), clause (3), 22.25 item (i), but not notarized or self-proved, the testimony of at least one of the attesting 22.26 witnesses is required to establish proper execution if the witness is within this state, 22.27 competent, and able to testify. Proper execution may be established by other evidence, 22.28 including an affidavit of an attesting witness. An attestation clause that is signed by the 22.29 attesting witnesses raises a rebuttable presumption that the events recited in the clause 22.30 occurred. 22.31 Sec. 23. Minnesota Statutes 2008, section 524.8-101, is amended to read: 22.32 524.8-101 PROVISIONS FOR TRANSITION. 22.33 Article 1 Sec. 23. 22 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] Except as provided elsewhere in this chapter, on the effective date of this chapter or 23.1 of an amendment to this chapter: 23.2 (1) the chapter or the amendment applies to any wills of decedents dying thereafter; 23.3 (2) the chapter or the amendment applies to any proceedings in court then pending 23.4 or thereafter commenced regardless of the time of the death of decedent except to the 23.5 extent that in the opinion of the court the former procedure should be made applicable 23.6 in a particular case in the interest of justice or because of infeasibility of application 23.7 of the procedure of this chapter; 23.8 (3) every personal representative including a person administering an estate of 23.9 a minor or incompetent holding an appointment on that date, continues to hold the 23.10 appointment but has only the powers conferred by this chapter or the amendment and is 23.11 subject to the duties imposed with respect to any act occurring or done thereafter; 23.12 (4) an act done before the effective date in any proceeding and any accrued right 23.13 is not impaired by this chapter or the amendment. If a right is acquired, extinguished or 23.14 barred upon the expiration of a prescribed period of time which has commenced to run 23.15 by the provisions of any statute before the effective date, the provisions shall remain in 23.16 force with respect to that right; 23.17 (5) any rule of construction or presumption provided in this chapter or the 23.18 amendment applies to instruments executed and multiple party accounts opened before the 23.19 effective date unless there is a clear indication of a contrary intent. 23.20 Sec. 24. REPEALER. 23.21 Minnesota Statutes 2008, section 524.2-108, is repealed. 23.22 ARTICLE 2 23.23 UNIFORM ESTATE TAX APPORTIONMENT ACT 23.24 Section 1. Minnesota Statutes 2008, section 524.3-916, is amended to read: 23.25 524.3-916 APPORTIONMENT OF ESTATE TAXES AND 23.26 GENERATION-SKIPPING TAX. 23.27 Subdivision 1. Definitions. (a) For purposes of this section:, the terms defined in 23.28 this subdivision have the meanings given them. 23.29 (1) "estate" means the gross estate of a decedent as determined for the purpose of 23.30 federal estate tax or the estate tax payable to this state; 23.31 (2) "decedent's generation-skipping transfers" means all generation-skipping 23.32 transfers as determined for purposes of the federal generation-skipping tax which occur by 23.33 Article 2 Section 1. 23 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] reason of the decedent's death which relate to property which is included in the decedent's 24.1 estate; 24.2 (3) "person" means any individual, partnership, association, joint stock company, 24.3 corporation, limited liability company, government, political subdivision, governmental 24.4 agency, or local governmental agency; 24.5 (4) "person interested in the estate" means any person entitled to receive, or who has 24.6 received, from a decedent or by reason of the death of a decedent any property or interest 24.7 therein included in the decedent's estate. It includes a personal representative, guardian, 24.8 conservator, trustee, and custodian; 24.9 (5) "state" means any state, territory, or possession of the United States, the District 24.10 of Columbia, and the Commonwealth of Puerto Rico; 24.11 (6) "estate tax" means the federal estate tax and the state estate tax determined by the 24.12 commissioner of revenue pursuant to chapter 291 and interest and penalties imposed in 24.13 addition to the tax; 24.14 (7) "decedent's generation-skipping tax" means the federal generation-skipping 24.15 tax imposed on the decedent's generation-skipping transfers and interest and penalties 24.16 imposed in addition to the tax; 24.17 (8) "fiduciary" means personal representative or trustee. 24.18 (b) Unless the will or other governing instrument otherwise provides: 24.19 (1) the estate tax shall be apportioned among all persons interested in the estate. The 24.20 apportionment is to be made in the proportion that the value of the interest of each person 24.21 interested in the estate bears to the total value of the interests of all persons interested in 24.22 the estate. The values used in determining the tax are to be used for that purpose; and 24.23 (2) the decedent's generation-skipping tax shall be apportioned as provided by 24.24 federal law. To the extent not provided by federal law, the decedent's generation-skipping 24.25 tax shall be apportioned among all persons receiving the decedent's generation-skipping 24.26 transfers whose tax apportionment is not provided by federal law in the proportion that the 24.27 value of the transfer to each person bears to the total value of all such transfers. 24.28 If the decedent's will or other written instrument directs a method of apportionment 24.29 of estate tax or of the decedent's generation-skipping tax different from the method 24.30 described in this section, the method described in the will or other written instrument 24.31 controls provided, however, that: 24.32 (i) unless the decedent's will or other written instrument specifically indicates an 24.33 intent to waive any right of recovery under section 2207A of the Internal Revenue Code of 24.34 1986, as amended, estate taxes must be apportioned under the method described in this 24.35 Article 2 Section 1. 24 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] section to property included in the decedent's estate under section 2044 of the Internal 25.1 Revenue Code of 1986, as amended; and 25.2 (ii) unless the decedent's will or other written instrument specifically indicates an 25.3 intent to waive any right of recovery under section 2207B of the Internal Revenue Code of 25.4 1986, as amended, estate taxes must be apportioned under the method described in this 25.5 section to property included in the decedent's estate under section 2036 of the Internal 25.6 Revenue Code of 1986, as amended. 25.7 (c)(1) The court in which venue lies for the administration of the estate of a decedent, 25.8 on petition for the purpose may determine the apportionment of the estate tax or of the 25.9 decedent's generation-skipping tax. 25.10 (2) If the court finds that it is inequitable to apportion interest and penalties in 25.11 the manner provided in subsection (b), because of special circumstances, it may direct 25.12 apportionment thereof in the manner it finds equitable. 25.13 (3) If the court finds that the assessment of penalties and interest assessed in relation 25.14 to the estate tax or the decedent's generation-skipping tax is due to delay caused by the 25.15 negligence of the fiduciary, the court may charge the fiduciary with the amount of the 25.16 assessed penalties and interest. 25.17 (4) In any action to recover from any person interested in the estate the amount of 25.18 the estate tax or of the decedent's generation-skipping tax apportioned to the person in 25.19 accordance with this section the determination of the court in respect thereto shall be 25.20 prima facie correct. 25.21 (d)(1) The personal representative or other person in possession of the property 25.22 of the decedent required to pay the estate tax or the decedent's generation-skipping tax 25.23 may withhold from any property distributable to any person interested in the estate, 25.24 upon its distribution, the amount of any taxes attributable to the person's interest. If the 25.25 property in possession of the personal representative or other person required to pay any 25.26 taxes and distributable to any person interested in the estate is insufficient to satisfy the 25.27 proportionate amount of the taxes determined to be due from the person, the personal 25.28 representative or other person required to pay any taxes may recover the deficiency from 25.29 the person interested in the estate. If the property is not in the possession of the personal 25.30 representative or the other person required to pay any taxes, the personal representative or 25.31 the other person required to pay any taxes may recover from any person interested in the 25.32 estate the amount of any taxes apportioned to the person in accordance with this section. 25.33 (2) If property held by the personal representative or other person in possession 25.34 of the property of the decedent required to pay the estate tax or the decedent's 25.35 generation-skipping tax is distributed prior to final apportionment of the estate tax or 25.36 Article 2 Section 1. 25 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] the decedent's generation-skipping tax, the distributee shall provide a bond or other 26.1 security for the apportionment liability in the form and amount prescribed by the personal 26.2 representative or other person, as the case may be. 26.3 (e)(1) In making an apportionment, allowances shall be made for any exemptions 26.4 granted, any classification made of persons interested in the estate and for any deductions 26.5 and credits allowed by the law imposing the tax. 26.6 (2) Any exemption or deduction allowed by reason of the relationship of any person 26.7 to the decedent, by reason of the purposes of the gift, or by allocation to the gift (either 26.8 by election by the fiduciary or by operation of federal law), inures to the benefit of the 26.9 person bearing such relationship or receiving the gift; but if an interest is subject to a prior 26.10 present interest which is not allowable as a deduction, the tax apportionable against the 26.11 present interest shall be paid from principal. 26.12 (3) Any deduction for property previously taxed and any credit for gift taxes or 26.13 death taxes of a foreign country paid by the decedent or the decedent's estate inures to the 26.14 proportionate benefit of all persons liable to apportionment. 26.15 (4) Any credit for inheritance, succession or estate taxes or taxes in the nature 26.16 thereof applicable to property or interests includable in the estate, inures to the benefit of 26.17 the persons or interests chargeable with the payment thereof to the extent proportionately 26.18 that the credit reduces the tax. 26.19 (5) To the extent that property passing to or in trust for a surviving spouse or any 26.20 charitable, public or similar gift or devise is not an allowable deduction for purposes of 26.21 the estate tax solely by reason of an estate tax imposed upon and deductible from the 26.22 property, the property is not included in the computation provided for in subsection (b)(1) 26.23 hereof, and to that extent no apportionment is made against the property. The sentence 26.24 immediately preceding does not apply to any case if the result would be to deprive the 26.25 estate of a deduction otherwise allowable under section 2053(d) of the Internal Revenue 26.26 Code of 1986, as amended, of the United States, relating to deduction for state death taxes 26.27 on transfers for public, charitable, or religious uses. 26.28 (f) No interest in income and no estate for years or for life or other temporary interest 26.29 in any property or fund is subject to apportionment as between the temporary interest 26.30 and the remainder. The estate tax on the temporary interest and the estate tax, if any, on 26.31 the remainder is chargeable against the corpus of the property or funds subject to the 26.32 temporary interest and remainder. The decedent's generation-skipping tax is chargeable 26.33 against the property which constitutes the decedent's generation-skipping transfer. 26.34 (g) Neither the personal representative nor other person required to pay the tax is 26.35 under any duty to institute any action to recover from any person interested in the estate 26.36 Article 2 Section 1. 26 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] the amount of the estate tax or of the decedent's generation-skipping tax apportioned to the 27.1 person until the final determination of the tax. A personal representative or other person 27.2 required to pay the estate tax or decedent's generation-skipping tax who institutes the 27.3 action within a reasonable time after final determination of the tax is not subject to any 27.4 liability or surcharge because any portion of the tax apportioned to any person interested 27.5 in the estate was collectible at a time following the death of the decedent but thereafter 27.6 became uncollectible. If the personal representative or other person required to pay the 27.7 estate tax or decedent's generation-skipping tax cannot collect from any person interested 27.8 in the estate the amount of the tax apportioned to the person, the amount not recoverable 27.9 shall be equitably apportioned among the other persons interested in the estate who are 27.10 subject to apportionment of the tax involved. 27.11 (h) A personal representative acting in another state or a person required to pay the 27.12 estate tax or decedent's generation-skipping tax domiciled in another state may institute an 27.13 action in the courts of this state and may recover a proportionate amount of the federal 27.14 estate tax, of an estate tax payable to another state or of a death duty due by a decedent's 27.15 estate to another state, or of the decedent's generation-skipping tax, from a person 27.16 interested in the estate who is either domiciled in this state or who owns property in this 27.17 state subject to attachment or execution. For the purposes of the action the determination 27.18 of apportionment by the court having jurisdiction of the administration of the decedent's 27.19 estate in the other state is prima facie correct. 27.20 (b) "Advanced fraction" means a fraction that has as its numerator the amount of 27.21 the advanced tax and as its denominator the value of the interests in insulated property 27.22 to which that tax is attributable. 27.23 (c) "Advanced tax" means the aggregate amount of estate tax attributable to interests 27.24 in insulated property which is required to be advanced by uninsulated holders under 27.25 subdivision 5, paragraph (b). 27.26 (d) "Apportionable estate" means the value of the gross estate as finally determined 27.27 for purposes of the estate tax to be apportioned, reduced by: 27.28 (1) any claim or expense allowable as a deduction for purposes of the tax; 27.29 (2) the value of any interest in property that, for purposes of the tax, qualifies for a 27.30 marital or charitable deduction or otherwise is deductible or is exempt; and 27.31 (3) any amount added to the decedent's gross estate because of a gift tax on transfers 27.32 made before death. 27.33 (e) "Estate tax" means a federal, state, or foreign tax imposed because of the death 27.34 of an individual and interest and penalties associated with the tax. The term does not 27.35 Article 2 Section 1. 27 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] include an inheritance tax, income tax, or generation-skipping transfer tax other than a 28.1 generation-skipping transfer tax incurred on a direct skip taking effect at death. 28.2 (f) "Gross estate" means, with respect to an estate tax, all interests in property 28.3 subject to the tax. 28.4 (g) "Insulated property" means property subject to a time-limited interest which is 28.5 included in the apportionable estate but is unavailable for payment of an estate tax because 28.6 of impossibility or impracticability. 28.7 (h) "Person" means an individual, corporation, business trust, estate, trust, 28.8 partnership, limited liability company, association, joint venture, public corporation, 28.9 government, governmental subdivision, agency, or instrumentality, or any other legal or 28.10 commercial entity. 28.11 (i) "Ratable" means apportioned or allocated pro rata according to the relative values 28.12 of interests to which the term is to be applied. "Ratably" has a corresponding meaning. 28.13 (j) "Special elective benefit" means a reduction in an estate tax obtained by an 28.14 election for: 28.15 (1) a reduced valuation of specified property that is included in the gross estate; 28.16 (2) a deduction from the gross estate, other than a marital or charitable deduction, 28.17 allowed for specified property; or 28.18 (3) an exclusion from the gross estate of specified property. 28.19 (k) "Specified property" means property for which an election has been made for a 28.20 special elective benefit. 28.21 (l) "Time-limited interest" means an interest in property which terminates on a lapse 28.22 of time or on the occurrence or nonoccurrence of an event or which is subject to the 28.23 exercise of discretion that could transfer a beneficial interest to another person. The term 28.24 does not include a cotenancy unless the cotenancy itself is a time-limited interest. 28.25 (m) "Uninsulated holder" means a person who has an interest in uninsulated property. 28.26 (n) "Uninsulated property" means property included in the apportionable estate other 28.27 than insulated property. 28.28 (o) "Value" means, with respect to an interest in property, fair market value as 28.29 finally determined for purposes of the estate tax that is to be apportioned, reduced by any 28.30 outstanding debt secured by the interest without reduction for taxes paid or required to be 28.31 paid or for any special valuation adjustment. 28.32 Subd. 2. Statutory apportionment of estate taxes. (a) To the extent that 28.33 apportionment of an estate tax is not controlled by an instrument described in subdivision 28.34 3 and except as otherwise provided in subdivisions 5 and 6, the rules in this subdivision 28.35 apply. 28.36 Article 2 Section 1. 28 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (b) Subject to paragraphs (c), (d), and (e), the estate tax is apportioned ratably to 29.1 each person that has an interest in the apportionable estate. 29.2 (c) A generation-skipping transfer tax incurred on a direct skip taking effect at death 29.3 is charged to the person to which the interest in property is transferred. 29.4 (d) If property is included in the decedent's gross estate because of section 2044 of 29.5 the Internal Revenue Code of 1986 or any similar estate tax provision, the difference 29.6 between the total estate tax for which the decedent's estate is liable and the amount of 29.7 estate tax for which the decedent's estate would have been liable if the property had not 29.8 been included in the decedent's gross estate is apportioned ratably among the holders of 29.9 interests in the property. The balance of the tax, if any, is apportioned ratably to each other 29.10 person having an interest in the apportionable estate. 29.11 (e) Except as otherwise provided in subdivision 3, paragraph (b), clause (4), and 29.12 except as to property to which subdivision 6 applies, an estate tax apportioned to persons 29.13 holding interests in property subject to a time-limited interest must be apportioned, 29.14 without further apportionment, to the principal of that property. 29.15 Subd. 3. Apportionment by will or other dispositive instrument. (a) Except as 29.16 otherwise provided in paragraph (c), the following rules apply: 29.17 (1) To the extent that a provision of a decedent's will expressly and unambiguously 29.18 directs the apportionment of an estate tax, the tax must be apportioned accordingly. 29.19 (2) Any portion of an estate tax not apportioned pursuant to clause (1) must be 29.20 apportioned in accordance with any provision of a revocable trust of which the decedent 29.21 was the settlor which expressly and unambiguously directs the apportionment of an 29.22 estate tax. If conflicting apportionment provisions appear in two or more revocable trust 29.23 instruments, the provision in the most recently dated instrument prevails. For purposes 29.24 of this clause: 29.25 (i) a trust is revocable if it was revocable immediately after the trust instrument was 29.26 executed, even if the trust subsequently becomes irrevocable; and 29.27 (ii) the date of an amendment to a revocable trust instrument is the date of the 29.28 amended instrument only if the amendment contains an apportionment provision. 29.29 (3) If any portion of an estate tax is not apportioned pursuant to clause (1) or (2), and 29.30 a provision in any other dispositive instrument expressly and unambiguously directs that 29.31 any interest in the property disposed of by the instrument is or is not to be applied to the 29.32 payment of the estate tax attributable to the interest disposed of by the instrument, the 29.33 provision controls the apportionment of the tax to that interest. 29.34 (b) Subject to paragraph (c), and unless the decedent expressly and unambiguously 29.35 directs the contrary, the following rules apply: 29.36 Article 2 Section 1. 29 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (1) If an apportionment provision directs that a person receiving an interest in 30.1 property under an instrument is to be exonerated from the responsibility to pay an estate 30.2 tax that would otherwise be apportioned to the interest: 30.3 (i) the tax attributable to the exonerated interest must be apportioned among the 30.4 other persons receiving interests passing under the instrument; or 30.5 (ii) if the values of the other interests are less than the tax attributable to the 30.6 exonerated interest, the deficiency must be apportioned ratably among the other persons 30.7 receiving interests in the apportionable estate that are not exonerated from apportionment 30.8 of the tax. 30.9 (2) If an apportionment provision directs that an estate tax is to be apportioned to 30.10 an interest in property, a portion of which qualifies for a marital or charitable deduction, 30.11 the estate tax must first be apportioned ratably among the holders of the portion that does 30.12 not qualify for a marital or charitable deduction and then apportioned ratably among the 30.13 holders of the deductible portion to the extent that the value of the nondeductible portion 30.14 is insufficient. 30.15 (3) Except as otherwise provided in clause (4), if an apportionment provision 30.16 directs that an estate tax be apportioned to property in which one or more time-limited 30.17 interests exist, other than interests in specified property under subdivision 6, the tax must 30.18 be apportioned to the principal of that property, regardless of the deductibility of some 30.19 of the interests in that property. 30.20 (4) If an apportionment provision directs that an estate tax is to be apportioned to the 30.21 holders of interests in property in which one or more time-limited interests exist and a 30.22 charity has an interest that otherwise qualifies for an estate tax charitable deduction, the 30.23 tax must first be apportioned, to the extent feasible, to interests in property that have not 30.24 been distributed to the persons entitled to receive the interests. 30.25 (c) A provision that apportions an estate tax is ineffective to the extent that it 30.26 increases the tax apportioned to a person having an interest in the gross estate over 30.27 which the decedent had no power to transfer immediately before the decedent executed 30.28 the instrument in which the apportionment direction was made. For purposes of this 30.29 paragraph, a testamentary power of appointment is a power to transfer the property that 30.30 is subject to the power. 30.31 Subd. 4. Credits and deferrals. Except as otherwise provided in subdivisions 5 and 30.32 6, the following rules apply to credits and deferrals of estate taxes: 30.33 (1) A credit resulting from the payment of gift taxes or from estate taxes paid on 30.34 property previously taxed inures ratably to the benefit of all persons to which the estate 30.35 tax is apportioned. 30.36 Article 2 Section 1. 30 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (2) A credit for state or foreign estate taxes inures ratably to the benefit of all 31.1 persons to which the estate tax is apportioned, except that the amount of a credit for 31.2 a state or foreign tax paid by a beneficiary of the property on which the state or foreign 31.3 tax was imposed, directly or by a charge against the property, inures to the benefit of 31.4 the beneficiary. 31.5 (3) If payment of a portion of an estate tax is deferred because of the inclusion in the 31.6 gross estate of a particular interest in property, the benefit of the deferral inures ratably to 31.7 the persons to which the estate tax attributable to the interest is apportioned. The burden 31.8 of any interest charges incurred on a deferral of taxes and the benefit of any tax deduction 31.9 associated with the accrual or payment of the interest charge is allocated ratably among 31.10 the persons receiving an interest in the property. 31.11 Subd. 5. Insulated property: advancement of tax. (a) If an estate tax is to be 31.12 advanced pursuant to paragraph (b) by persons holding interests in uninsulated property 31.13 subject to a time-limited interest other than property to which subdivision 6 applies, the 31.14 tax must be advanced, without further apportionment, from the principal of the uninsulated 31.15 property. 31.16 (b) Subject to subdivision 8, paragraphs (b) and (d), an estate tax attributable to 31.17 interests in insulated property must be advanced ratably by uninsulated holders. If 31.18 the value of an interest in uninsulated property is less than the amount of estate taxes 31.19 otherwise required to be advanced by the holder of that interest, the deficiency must be 31.20 advanced ratably by the persons holding interests in properties that are excluded from the 31.21 apportionable estate under subdivision 1, paragraph (d), clause 2, as if those interests were 31.22 in uninsulated property. 31.23 (c) A court having jurisdiction to determine the apportionment of an estate tax may 31.24 require a beneficiary of an interest in insulated property to pay all or part of the estate tax 31.25 otherwise apportioned to the interest if the court finds that it would be substantially more 31.26 equitable for that beneficiary to bear the tax liability personally than for that part of the 31.27 tax to be advanced by uninsulated holders. 31.28 (d) When a distribution of insulated property is made, each uninsulated holder may 31.29 recover from the distributee a ratable portion of the advanced fraction of the property 31.30 distributed. To the extent that undistributed insulated property ceases to be insulated, 31.31 each uninsulated holder may recover from the property a ratable portion of the advanced 31.32 fraction of the total undistributed property. 31.33 (e) Upon a distribution of insulated property for which, pursuant to paragraph (c), 31.34 the distributee becomes obligated to make a payment to uninsulated holders, a court may 31.35 Article 2 Section 1. 31 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] award an uninsulated holder a recordable lien on the distributee's property to secure the 32.1 distributee's obligation to that uninsulated holder. 32.2 Subd. 6. Apportionment and recapture of special elective benefits. (a) If an 32.3 election is made for one or more special elective benefits, an initial apportionment of a 32.4 hypothetical estate tax must be computed as if no election for any of those benefits had 32.5 been made. The aggregate reduction in estate tax resulting from all elections made must 32.6 be allocated among holders of interests in the specified property in the proportion that 32.7 the amount of deduction, reduced valuation, or exclusion attributable to each holder's 32.8 interest bears to the aggregate amount of deductions, reduced valuations, and exclusions 32.9 obtained by the decedent's estate from the elections. If the estate tax initially apportioned 32.10 to the holder of an interest in specified property is reduced to zero, any excess amount of 32.11 reduction reduces ratably the estate tax apportioned to other persons that receive interests 32.12 in the apportionable estate. 32.13 (b) An additional estate tax imposed to recapture all or part of a special elective 32.14 benefit must be charged to the persons that are liable for the additional tax under the 32.15 law providing for the recapture. 32.16 Subd. 7. Securing payment of estate tax from property in possession of 32.17 fiduciary. (a) A fiduciary may defer a distribution of property until the fiduciary is 32.18 satisfied that adequate provision for payment of the estate tax has been made. 32.19 (b) A fiduciary may withhold from a distributee an amount equal to the amount of 32.20 estate tax apportioned to an interest of the distributee. 32.21 (c) As a condition to a distribution, a fiduciary may require the distributee to provide 32.22 a bond or other security for the portion of the estate tax apportioned to the distributee. 32.23 Subd. 8. Collection of estate tax by fiduciary. (a) A fiduciary responsible for 32.24 payment of an estate tax may collect from any person the tax apportioned to and the 32.25 tax required to be advanced by the person. 32.26 (b) Except as otherwise provided in subdivision 5, any estate tax due from a person 32.27 that cannot be collected from the person may be collected by the fiduciary from other 32.28 persons in the following order of priority: 32.29 (1) any person having an interest in the apportionable estate which is not exonerated 32.30 from the tax; 32.31 (2) any other person having an interest in the apportionable estate; and 32.32 (3) any person having an interest in the gross estate. 32.33 (c) A domiciliary fiduciary may recover from an ancillary personal representative the 32.34 estate tax apportioned to the property controlled by the ancillary personal representative. 32.35 Article 2 Section 1. 32 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (d) The total tax collected from a person pursuant to this section may not exceed 33.1 the value of the person's interest. 33.2 Subd. 9. Right of reimbursement. (a) A person required under subdivision 8 to 33.3 pay an estate tax greater than the amount due from the person under subdivision 2 or 3 33.4 has a right to reimbursement from another person to the extent that the other person has 33.5 not paid the tax required by subdivision 2 or 3 and a right to reimbursement ratably from 33.6 other persons to the extent that each has not contributed a portion of the amount collected 33.7 under subdivision 8, paragraph (b). 33.8 (b) A fiduciary may enforce the right of reimbursement under paragraph (a) on 33.9 behalf of the person that is entitled to the reimbursement and shall take reasonable steps to 33.10 do so if requested by the person. 33.11 Subd. 10. Action to determine or enforce act. A fiduciary, transferee, or 33.12 beneficiary of the gross estate may maintain an action for declaratory judgment to have a 33.13 court determine and enforce this section. 33.14 Subd. 11. Uniformity of application and construction. In applying and construing 33.15 this section, consideration must be given to the need to promote uniformity of the 33.16 law with respect to its subject matter among states that enact the Uniform Estate Tax 33.17 Apportionment Act. 33.18 Subd. 12. Short title. This section may be cited as the "Uniform Estate Tax 33.19 Apportionment Act." 33.20 Subd. 13. Delayed application. (a) Subdivisions 2 to 6 do not apply to the estate 33.21 of a decedent who dies on or within three years after January 1, 2010, nor to the estate 33.22 of a decedent who dies more than three years after January 1, 2010, if the decedent 33.23 continuously lacked testamentary capacity from the expiration of the three-year period 33.24 until the date of death. 33.25 (b) For the estate of a decedent who dies on or after January 1, 2010, to which 33.26 subdivisions 2 to 6 do not apply, estate taxes must be apportioned pursuant to the law in 33.27 effect immediately before January 1, 2010. 33.28 Sec. 2. EFFECTIVE DATE. 33.29 Section 1 is effective for taxes payable after December 31, 2009. 33.30 ARTICLE 3 33.31 UNIFORM DISCLAIMER OF PROPERTY INTERESTS ACT 33.32 Section 1. [524.2-1101] SHORT TITLE. 33.33 Article 3 Section 1. 33 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] Sections 524.2-1101 to 524.2-1116 may be cited as the "Uniform Disclaimer of 34.1 Property Interests Act." 34.2 Sec. 2. [524.2-1102] DEFINITIONS. 34.3 As used in sections 524.2-1101 to 524.2-1116: 34.4 (1) "benefactor means the creator of the interest that is subject to a disclaimer; 34.5 (2) "beneficiary designation" means an instrument, other than an instrument creating 34.6 or amending a trust, naming the beneficiary of: 34.7 (i) an annuity or insurance policy; 34.8 (ii) an account with a designation for payment on death; 34.9 (iii) a security registered in beneficiary form; 34.10 (iv) a pension, profit-sharing, retirement, or other employment-related benefit plan; 34.11 or 34.12 (v) any other nonprobate transfer at death; 34.13 (3) "disclaimant" means the person to whom a disclaimed interest or power would 34.14 have passed had the disclaimer not been made; 34.15 (4) "disclaimed interest" or "power" means the portion of the interest that would 34.16 have passed to the disclaimant had the disclaimer not been made; 34.17 (5) "disclaimer" means the refusal to accept an interest in or power over property; 34.18 (6) "fiduciary" means a personal representative, trustee of a trust, agent acting under 34.19 a power of attorney, conservator, or other person authorized to act as a fiduciary with 34.20 respect to the property of another person; 34.21 (7) "future interest" means an interest that takes effect in possession or enjoyment, if 34.22 at all, later than the time of its creation; 34.23 (8) "holder" means a person who has an interest in or power over property; 34.24 (9) "insolvent" means that the sum of a person's debts is greater than all of the 34.25 person's assets at fair valuation. A person is presumed to be "insolvent" if the person is 34.26 generally not paying debts as they become due. Assets do not include property that has 34.27 been transferred, concealed, or removed, with intent to hinder, delay, or defraud creditors, 34.28 or has been transferred in a manner making the transfer voidable. Debts do not include 34.29 an obligation to the extent it is secured by a valid lien or property of the debtor not 34.30 included as an asset; 34.31 (10) "jointly held property" means property held in the names of two or more 34.32 persons under an arrangement in which all holders have concurrent interests and under 34.33 which the last surviving holder is entitled to the whole of the property; 34.34 Article 3 Sec. 2. 34 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (11) "person" means an individual, living, deceased, or unborn, ascertained 35.1 or unascertained, whether entitled to an interest by right of intestacy or otherwise, 35.2 corporation, business trust, partnership, limited liability company, association, joint 35.3 venture, government, government subdivision, agency or instrumentality, public 35.4 corporation, or other commercial entity; 35.5 (12) "time of distribution" means the time when a disclaimed interest would have 35.6 taken effect in possession or enjoyment; 35.7 (13) "state" means a state of the United States, the District of Columbia, the 35.8 Commonwealth of Puerto Rico, the United States Virgin Islands, or any territory of 35.9 insular possession subject to the jurisdiction of the United States. The term includes an 35.10 Indian tribe or band, or Alaskan native village, recognized by federal law or formally 35.11 acknowledged by a state; and 35.12 (14) "trust" means: 35.13 (i) an express trust charitable or noncharitable, with additions thereto, whenever 35.14 and however created; and 35.15 (ii) a trust created pursuant to a statute, judgment, or decree which requires the trust 35.16 be administered in the manner of an express trust. 35.17 Sec. 3. [524.2-1103] SCOPE. 35.18 Sections 524.2-1101 to 524.2-1116 apply to disclaimers of any interest in or power 35.19 over property, whenever created. Except as provided in section 524.2-1116, sections 35.20 524.2-1101 to 524.2-1116 are the exclusive means by which a disclaimer may be made 35.21 under Minnesota law. 35.22 Sec. 4. [524.2-1104] TAX-QUALIFIED DISCLAIMER. 35.23 If the disclaimant is not insolvent, notwithstanding any other provision of sections 35.24 524.2-1101 to 524.2-1116, if, as a result of a disclaimer or transfer, the disclaimed or 35.25 transferred interest is treated pursuant to the provisions of section 2518 of the Internal 35.26 Revenue Code of 1986, as in effect on January 1, 2010, as never having been transferred to 35.27 the disclaimant, then the disclaimer or transfer is effective as a disclaimer under sections 35.28 524.2-1101 to 524.2-1116. 35.29 Sec. 5. [524.2-1105] WHEN DISCLAIMER IS PERMITTED. 35.30 A disclaimer may be made at any time unless it is barred under section 524.2-1106. 35.31 Nevertheless, as to a disclaimer intended to be a qualified disclaimer for federal tax 35.32 Article 3 Sec. 5. 35 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] purposes, the disclaimer must be received within the time limit specified in section 36.1 2518(b) of the Internal Revenue Code of 1986. 36.2 Sec. 6. [524.2-1106] WHEN DISCLAIMER IS BARRED OR LIMITED. 36.3 (a) A disclaimer is barred by a written waiver of the right to disclaim. 36.4 (b) A disclaimer of an interest in property is barred if any of the following events 36.5 occur before the disclaimer becomes effective: 36.6 (1) the disclaimant accepts the portion of the interest sought to be disclaimed; 36.7 (2) the disclaimant voluntarily assigns, conveys, encumbers, pledges, or transfers the 36.8 portion of the interest sought to be disclaimed or contracts to do so; 36.9 (3) the portion of the interest sought to be disclaimed is sold pursuant to a judicial 36.10 sale; or 36.11 (4) the disclaimant is insolvent when the disclaimer becomes irrevocable. 36.12 (c) A disclaimer, in whole or in part, of the future exercise of a power held in a 36.13 fiduciary capacity is not barred by its previous exercise. 36.14 (d) A disclaimer, in whole or in part, of the future exercise of a power not held in a 36.15 fiduciary capacity is not barred by its previous exercise unless the power is exercisable in 36.16 favor of the disclaimant. 36.17 (e) A disclaimer of an interest in, or a power over, property which is barred by 36.18 this section is ineffective. 36.19 Sec. 7. [524.2-1107] POWER TO DISCLAIM; GENERAL REQUIREMENTS; 36.20 WHEN IRREVOCABLE. 36.21 (a) A person may disclaim, in whole or in part, any interest in or power over 36.22 property, including a power of appointment. A person may disclaim the interest or power 36.23 even if its creator imposed a spendthrift provision or similar restriction on transfer or a 36.24 restriction or limitation on the right to disclaim. 36.25 (b) With court approval, a fiduciary may disclaim, in whole or in part, any interest in 36.26 or power over property, including a power of appointment when acting in a representative 36.27 capacity. Without court approval, a fiduciary may disclaim, in whole or in part, any interest 36.28 in or power over property, including a power of appointment, if and to the extent that the 36.29 instrument creating the fiduciary relationship explicitly grants the fiduciary the right to 36.30 disclaim. With court approval, a custodial parent may disclaim on behalf of a minor child 36.31 for whom no conservator has been appointed, in whole or in part, any interest in or power 36.32 over property, including a power of appointment, which the minor child is to receive. 36.33 Article 3 Sec. 7. 36 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (c) To be effective, a disclaimer must be in writing, declare the writing as a 37.1 disclaimer, describe the interest or power disclaimed, and be signed by the person or 37.2 fiduciary making the disclaimer and acknowledged in the manner provided for deeds of 37.3 real estate to be recorded in this state. In addition, for a disclaimer to be effective, an 37.4 original of the disclaimer must be delivered or filed in the manner provided in section 37.5 524.2-1114. 37.6 (d) A partial disclaimer may be expressed as a fraction, percentage, monetary 37.7 amount, term of years, limitation of a power, or any other interest or estate in the property. 37.8 (e) A disclaimer becomes irrevocable when the disclaimer is delivered or filed 37.9 pursuant to section 524.2-1114 or it becomes effective as provided in sections 524.2-1108 37.10 to 524.2-1113, whichever occurs later. 37.11 (f) A disclaimer made under sections 524.2-1101 to 524.2-1116 is not a transfer, 37.12 assignment, or release. 37.13 Sec. 8. [524.2-1108] DISCLAIMER OF INTEREST IN PROPERTY. 37.14 (a) Except for a disclaimer governed by section 524.2-1109 or 524.2-1110, the rules 37.15 in paragraphs (b) to (d) apply to a disclaimer of an interest in property. 37.16 (b) The disclaimer takes effect as of the time the instrument creating the interest 37.17 becomes irrevocable, or, if the interest arose under the law of intestate succession, as of 37.18 the time of the intestate's death. 37.19 (c) The disclaimed interest passes according to any provision in the instrument 37.20 creating the interest providing for the disposition of the interest, should it be disclaimed, 37.21 or as disclaimed interests in general. 37.22 (d) If the instrument does not contain a provision described in paragraph (c), the 37.23 following rules apply: 37.24 (1) if the disclaimant is an individual, the disclaimed interest passes as if the 37.25 disclaimant had died immediately before the interest was created, unless under the 37.26 governing instrument or other applicable law, the disclaimed interest is contingent on 37.27 surviving to the time of distribution, in which case the disclaimed interest passes as if 37.28 the disclaimant had died immediately before the time for distribution. However, if, by 37.29 law or under the governing instrument, the descendants of the disclaimant would share 37.30 in the disclaimed interest by any method of representation had the disclaimant died 37.31 before the time of distribution, the disclaimed interest passes only to the descendants of 37.32 the disclaimant who survive the time of distribution. For purposes of this paragraph, a 37.33 disclaimed interest is created at the death of the benefactor or such earlier time, if any, that 37.34 the benefactor's transfer of the interest is a completed gift for federal gift tax purposes. 37.35 Article 3 Sec. 8. 37 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] Also for purposes of this paragraph, a disclaimed interest in an inter vivos trust and other 38.1 will substitutes that do not lapse with certainty under state law shall pass as if the interest 38.2 had been created under a will; 38.3 (2) if the disclaimant is not an individual, the disclaimed interest passes as if the 38.4 disclaimant did not exist; and 38.5 (3) upon the disclaimer of a preceding interest, a future interest held by a person 38.6 other than the disclaimant takes effect as if the disclaimant had died or ceased to exist 38.7 immediately before the time of distribution, but a future interest held by the disclaimant is 38.8 not accelerated in possession or enjoyment as a result of the disclaimer. 38.9 Sec. 9. [524.2-1109] DISCLAIMER OF RIGHTS OF SURVIVORSHIP IN 38.10 JOINTLY HELD PROPERTY. 38.11 (a) Upon the death of a holder of jointly held property: 38.12 (1) if, during the deceased holder's lifetime, the deceased holder could have 38.13 unilaterally regained a portion of the property attributable to the deceased holder's 38.14 contributions without the consent of any other holder, another holder may disclaim, in 38.15 whole or in part, a fractional share of that portion of the property attributable to the 38.16 deceased holder's contributions determined by dividing the number one by the number of 38.17 joint holders alive immediately after the death of the holder to whose death the disclaimer 38.18 relates; and 38.19 (2) for all other jointly held property, another holder may disclaim, in whole or 38.20 in part, a fraction of the whole of the property the numerator of which is one and the 38.21 denominator of which is the product of the number of joint holders alive immediately 38.22 before the death of the holder to whose death the disclaimer relates multiplied by the 38.23 number of joint holders alive immediately after the death of the holder to whose death the 38.24 disclaimer relates. 38.25 (b) A disclaimer under paragraph (a) takes effect as of the death of the holder of 38.26 jointly held property to whose death the disclaimer relates. 38.27 (c) An interest in jointly held property disclaimed by a surviving holder of the 38.28 property passes as if the disclaimant predeceased the holder to whose death the disclaimer 38.29 relates. 38.30 Sec. 10. [524.2-1110] DISCLAIMER OF INTEREST BY TRUSTEE. 38.31 If a trustee having the power to disclaim under the instrument creating the fiduciary 38.32 relationship or pursuant to court order disclaims an interest in property that otherwise 38.33 would have become trust property, the interest does not become trust property. 38.34 Article 3 Sec. 10. 38 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] Sec. 11. [524.2-1111] DISCLAIMER OF POWER OF APPOINTMENT OR 39.1 OTHER POWER NOT HELD IN A FIDUCIARY CAPACITY. 39.2 If a holder disclaims a power of appointment or other power not held in a fiduciary 39.3 capacity, the following rules apply: 39.4 (1) if the holder has not exercised the power, the disclaimer takes effect as of the 39.5 time the instrument creating the power becomes irrevocable; 39.6 (2) if the holder has exercised the power, the disclaimer takes effect immediately 39.7 after the last exercise of the power; and 39.8 (3) the instrument creating the power is construed as if the power expired when 39.9 the disclaimer became effective. 39.10 Sec. 12. [524.2-1112] DISCLAIMER BY APPOINTEE, OBJECT, OR TAKER IN 39.11 DEFAULT OF EXERCISE OF POWER OF APPOINTMENT. 39.12 (a) A disclaimer of an interest in property by an appointee of a power of appointment 39.13 takes effect as of the time the instrument by which the holder exercises the power becomes 39.14 irrevocable. 39.15 (b) A disclaimer of an interest in property by an object, or taker in default of an 39.16 exercise of a power of appointment, takes effect as of the time the instrument creating 39.17 the power becomes irrevocable. 39.18 Sec. 13. [524.2-1113] DISCLAIMER OF POWER HELD IN FIDUCIARY 39.19 CAPACITY. 39.20 (a) If a fiduciary disclaims a power held in a fiduciary capacity which has not been 39.21 exercised, the disclaimer takes effect as of the time the instrument creating the power 39.22 becomes irrevocable. 39.23 (b) If a fiduciary disclaims a power held in a fiduciary capacity which has been 39.24 exercised, the disclaimer takes effect immediately after the last exercise of the power. 39.25 (c) A disclaimer under this section is effective as to another fiduciary if: 39.26 (1) the disclaimer so provides; and 39.27 (2) the fiduciary disclaiming has the authority to bind the estate, trust, or other 39.28 person for whom the fiduciary is acting. 39.29 Sec. 14. [524.2-1114] DELIVERY OR FILING. 39.30 (a) Subject to paragraphs (b) to (l), delivery of a disclaimer may be effective 39.31 by personal delivery, first-class mail, or any other method that results in its receipt. 39.32 A disclaimer sent by first-class mail is deemed to have been delivered on the date it is 39.33 Article 3 Sec. 14. 39 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] postmarked. Delivery by any other method is effective upon receipt by the person to 40.1 whom the disclaimer is to be delivered under this section. 40.2 (b) In the case of a disclaimer of an interest created under the law of intestate 40.3 succession or an interest created by will, other than an interest in a testamentary trust: 40.4 (1) the disclaimer must be delivered to the personal representative of the decedent's 40.5 estate; or 40.6 (2) if no personal representative is serving when the disclaimer is sought to be 40.7 delivered, the disclaimer must be filed with the clerk of the court in any county where 40.8 venue of administration would be proper. 40.9 (c) In the case of a disclaimer of an interest in a testamentary trust: 40.10 (1) the disclaimer must be delivered to the trustee serving when the disclaimer is 40.11 delivered or, if no trustee is then serving, to the personal representative of the decedent's 40.12 estate; or 40.13 (2) if no personal representative is serving when the disclaimer is sought to be 40.14 delivered, the disclaimer must be filed with the clerk of the court in any county where 40.15 venue of administration of the decedent's estate would be proper. 40.16 (d) In the case of a disclaimer of an interest in an inter vivos trust: 40.17 (1) the disclaimer must be delivered to the trustee serving when the disclaimer is 40.18 delivered; 40.19 (2) if no trustee is then serving, it must be filed with the clerk of the court in any 40.20 county where the filing of a notice of trust would be proper; or 40.21 (3) if the disclaimer is made before the time the instrument creating the trust becomes 40.22 irrevocable, the disclaimer must be delivered to the person with the power to revoke the 40.23 revocable trust or the transferor of the interest or to such person's legal representative. 40.24 (e) In the case of a disclaimer of an interest created by a beneficiary designation 40.25 made before the time the designation becomes irrevocable, the disclaimer must be 40.26 delivered to the person with the person making the beneficiary designation or to such 40.27 person's legal representative. 40.28 (f) In the case of a disclaimer of an interest created by a beneficiary designation 40.29 made after the time the designation becomes irrevocable, the disclaimer must be delivered 40.30 to the person obligated to distribute the interest. 40.31 (g) In the case of a disclaimer by a surviving holder of jointly held property, the 40.32 disclaimer must be delivered to the person to whom the disclaimed interest passes or, if 40.33 such person cannot reasonably be located by the disclaimant, the disclaimer must be 40.34 delivered as provided in paragraph (b). 40.35 Article 3 Sec. 14. 40 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (h) In the case of a disclaimer by an object, or taker in default of exercise, of a 41.1 power of appointment at any time after the power was created, the disclaimer must be 41.2 delivered to: 41.3 (1) the holder of the power; or 41.4 (2) the fiduciary acting under the instrument that created the power or, if no fiduciary 41.5 is serving when the disclaimer is sought to be delivered, filed with a court having authority 41.6 to appoint the fiduciary. 41.7 (i) In the case of a disclaimer by an appointee of a nonfiduciary power of 41.8 appointment, the disclaimer must be delivered to: 41.9 (1) the holder of the power or the personal representative of the holder's estate; or 41.10 (2) the fiduciary under the instrument that created the power or, if no fiduciary is 41.11 serving when the disclaimer is sought to be delivered, filed with a court having authority 41.12 to appoint the fiduciary. 41.13 (j) In the case of a disclaimer by a fiduciary of a power over a trust or estate, the 41.14 disclaimer must be delivered as provided in paragraph (b), (c), or (d) as if the power 41.15 disclaimed were an interest in property. 41.16 (k) In the case of a disclaimer of a power exercisable by an agent, other than a power 41.17 exercisable by a fiduciary over a trust or estate, the disclaimer must be delivered to the 41.18 principal or the principal's representative. 41.19 (l) Notwithstanding paragraph (a), delivery of a disclaimer of an interest in or 41.20 relating to real estate shall be presumed upon the recording of the disclaimer in the office 41.21 of the clerk of the court of the county or counties where the real estate is located. 41.22 (m) A fiduciary or other person having custody of the disclaimed interest is not 41.23 liable for any otherwise proper distribution or other disposition made without actual 41.24 notice of the disclaimer or, if the disclaimer is barred under section 524.2-1106, for any 41.25 otherwise proper distribution or other disposition made in reliance on the disclaimer, if 41.26 the distribution or disposition is made without actual knowledge of the facts constituting 41.27 the bar of the right to disclaim. 41.28 Sec. 15. [524.2-1115] RECORDING OF DISCLAIMER RELATING TO REAL 41.29 ESTATE. 41.30 (a) A disclaimer of an interest in or relating to real estate does not provide 41.31 constructive notice to all persons unless the disclaimer contains a legal description of the 41.32 real estate to which the disclaimer relates and unless the disclaimer is filed for recording in 41.33 the office of the county recorder in the county or counties where the real estate is located. 41.34 Article 3 Sec. 15. 41 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (b) An effective disclaimer meeting the requirements of paragraph (a) constitutes 42.1 constructive notice to all persons from the time of filing. Failure to record the disclaimer 42.2 does not affect its validity as between the disclaimant and persons to whom the property 42.3 interest or power passes by reason of the disclaimer. 42.4 Sec. 16. [524.2-1116] APPLICATION TO EXISTING RELATIONSHIPS. 42.5 Except as otherwise provided in section 524.2-1106, an interest in or power over 42.6 property existing on January 1, 2010, as to which the time for delivering or filing a 42.7 disclaimer under laws superseded by sections 524.2-1101 to 524.2-1116 has not expired, 42.8 may be disclaimed after January 1, 2010. 42.9 Sec. 17. REPEALER. 42.10 Minnesota Statutes 2008, sections 501B.86; and 525.532, are repealed. 42.11 Sec. 18. EFFECTIVE DATE. 42.12 Sections 1 to 17 are effective January 1, 2010. 42.13 ARTICLE 4 42.14 UNIFORM POWER OF ATTORNEY ACT 42.15 Section 1. [523A.101] SHORT TITLE. 42.16 This chapter may be cited as the "Uniform Power of Attorney Act." 42.17 Sec. 2. [523A.102] DEFINITIONS. 42.18 (a) The definitions in this section apply to this chapter. 42.19 (b) "Agent" means a person granted authority to act for a principal under a power 42.20 of attorney, whether denominated an agent, attorney-in-fact, or otherwise. The term 42.21 includes an original agent, co-agent, successor agent, and a person to which an agent's 42.22 authority is delegated. 42.23 (c) "Durable," with respect to a power of attorney, means not terminated by the 42.24 principal's incapacity. 42.25 (d) "Electronic" means relating to technology having electrical, digital, magnetic, 42.26 wireless, optical, electromagnetic, or similar capabilities. 42.27 (e) "Good faith" means honesty in fact. 42.28 (f) "Incapacity" means inability of an individual to manage property or business 42.29 affairs because the individual: 42.30 Article 4 Sec. 2. 42 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (1) has an impairment in the ability to receive and evaluate information or make or 43.1 communicate decisions even with the use of technological assistance; or 43.2 (2) is: 43.3 (i) missing; 43.4 (ii) detained, including incarcerated in a penal system; or 43.5 (iii) outside the United States and unable to return. 43.6 (g) "Person" means an individual, corporation, business trust, estate, trust, 43.7 partnership, limited liability company, association, joint venture, public corporation, 43.8 government or governmental subdivision, agency, or instrumentality, or any other legal or 43.9 commercial entity. 43.10 (h) "Power of attorney" means a writing or other record that grants authority to an 43.11 agent to act in the place of the principal, whether or not the term power of attorney is used. 43.12 (i) "Presently exercisable general power of appointment," with respect to property 43.13 or a property interest subject to a power of appointment, means power exercisable at the 43.14 time in question to vest absolute ownership in the principal individually, the principal's 43.15 estate, the principal's creditors, or the creditors of the principal's estate. The term includes 43.16 a power of appointment not exercisable until the occurrence of a specified event, the 43.17 satisfaction of an ascertainable standard, or the passage of a specified period only after 43.18 the occurrence of the specified event, the satisfaction of the ascertainable standard, or 43.19 the passage of the specified period. The term does not include a power exercisable in a 43.20 fiduciary capacity or only by will. 43.21 (j) "Principal" means an individual who grants authority to an agent in a power of 43.22 attorney. 43.23 (k) "Property" means anything that may be the subject of ownership, whether real or 43.24 personal, or legal or equitable, or any interest or right therein. 43.25 (l) "Record" means information that is inscribed on a tangible medium or that is 43.26 stored in an electronic or other medium and is retrievable in perceivable form. 43.27 (m) "Sign" means, with present intent to authenticate or adopt a record: 43.28 (1) to execute or adopt a tangible symbol; or 43.29 (2) to attach to or logically associate with the record an electronic sound, symbol, 43.30 or process. 43.31 (n) "State" means a state of the United States, the District of Columbia, Puerto 43.32 Rico, the United States Virgin Islands, or any territory or insular possession subject to the 43.33 jurisdiction of the United States. 43.34 (o) "Stocks and bonds" means stocks, bonds, mutual funds, and all other types of 43.35 securities and financial instruments, whether held directly, indirectly, or in any other 43.36 Article 4 Sec. 2. 43 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] manner. The term does not include commodity futures contracts and call or put options on 44.1 stocks or stock indexes. 44.2 Sec. 3. [523A.103] APPLICABILITY. 44.3 This chapter applies to all powers of attorney except: 44.4 (1) a power to the extent it is coupled with an interest in the subject of the power, 44.5 including a power given to or for the benefit of a creditor in connection with a credit 44.6 transaction; 44.7 (2) a power to make health care decisions; 44.8 (3) a proxy or other delegation to exercise voting rights or management rights with 44.9 respect to an entity; and 44.10 (4) a power created on a form prescribed by a government or governmental 44.11 subdivision, agency, or instrumentality for a governmental purpose. 44.12 Sec. 4. [523A.104] POWER OF ATTORNEY IS DURABLE. 44.13 A power of attorney created under this chapter is durable unless it expressly provides 44.14 that it is terminated by the incapacity of the principal. 44.15 Sec. 5. [523A.105] EXECUTION OF POWER OF ATTORNEY. 44.16 A power of attorney must be signed by the principal or in the principal's conscious 44.17 presence by another individual directed by the principal to sign the principal's name on the 44.18 power of attorney. A signature on a power of attorney is presumed to be genuine if the 44.19 principal acknowledges the signature before a notary public or other individual authorized 44.20 by law to take acknowledgments. 44.21 Sec. 6. [523A.106] VALIDITY OF POWER OF ATTORNEY. 44.22 (a) A power of attorney executed in this state on or after January 1, 2010, is valid if 44.23 its execution complies with section 523A.105. 44.24 (b) A power of attorney executed in this state before January 1, 2010, is valid if its 44.25 execution complied with the law of this state as it existed at the time of execution. 44.26 (c) A power of attorney executed other than in this state is valid in this state if, when 44.27 the power of attorney was executed, the execution complied with: 44.28 (1) the law of the jurisdiction that determines the meaning and effect of the power of 44.29 attorney pursuant to section 523A.107; or 44.30 (2) the requirements for a military power of attorney pursuant to United States 44.31 Code, title 10, section 1044b. 44.32 Article 4 Sec. 6. 44 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (d) Except as otherwise provided by statute other than this chapter, a photocopy 45.1 or electronically transmitted copy of an original power of attorney has the same effect 45.2 as the original. 45.3 Sec. 7. [523A.107] MEANING AND EFFECT OF POWER OF ATTORNEY. 45.4 The meaning and effect of a power of attorney is determined by the law of the 45.5 jurisdiction indicated in the power of attorney and, in the absence of an indication of 45.6 jurisdiction, by the law of the jurisdiction in which the power of attorney was executed. 45.7 Sec. 8. [523A.108] NOMINATION OF CONSERVATOR OR GUARDIAN; 45.8 RELATION OF AGENT TO COURT-APPOINTED FIDUCIARY. 45.9 (a) In a power of attorney, a principal may nominate a conservator or guardian of 45.10 the principal's estate or guardian of the principal's person for consideration by the court if 45.11 protective proceedings for the principal's estate or person are begun after the principal 45.12 executes the power of attorney. Except for good cause shown or disqualification, the court 45.13 shall make its appointment in accordance with the principal's most recent nomination. 45.14 (b) If, after a principal executes a power of attorney, a court appoints a conservator 45.15 or guardian of the principal's estate or other fiduciary charged with the management of 45.16 some or all of the principal's property, the agent is accountable to the fiduciary as well 45.17 as to the principal. The power of attorney is not terminated and the agent's authority 45.18 continues unless limited, suspended, or terminated by the court. 45.19 Sec. 9. [523A.109] WHEN POWER OF ATTORNEY EFFECTIVE. 45.20 (a) A power of attorney is effective when executed unless the principal provides in 45.21 the power of attorney that it becomes effective at a future date or upon the occurrence 45.22 of a future event or contingency. 45.23 (b) If a power of attorney becomes effective upon the occurrence of a future event or 45.24 contingency, the principal, in the power of attorney, may authorize one or more persons to 45.25 determine in a writing or other record that the event or contingency has occurred. 45.26 (c) If a power of attorney becomes effective upon the principal's incapacity and the 45.27 principal has not authorized a person to determine whether the principal is incapacitated, 45.28 or the person authorized is unable or unwilling to make the determination, the power of 45.29 attorney becomes effective upon a determination in a writing or other record by: 45.30 (1) a physician or licensed psychologist that the principal is incapacitated within the 45.31 meaning of section 523A.102, paragraph (f), clause (1); or 45.32 Article 4 Sec. 9. 45 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (2) an attorney at law, a judge, or an appropriate governmental official that the 46.1 principal is incapacitated within the meaning of section 523A.102, paragraph (f), clause 46.2 (2). 46.3 (d) A person authorized by the principal in the power of attorney to determine 46.4 that the principal is incapacitated may act as the principal's personal representative 46.5 pursuant to the federal Health Insurance Portability and Accountability Act, sections 1171 46.6 through 1179, of the Social Security Act, United States Code, title 42, section 1320d, and 46.7 applicable regulations, to obtain access to the principal's health care information and 46.8 communicate with the principal's health care provider. 46.9 Sec. 10. [523A.110] TERMINATION OF POWER OF ATTORNEY OR 46.10 AGENT'S AUTHORITY. 46.11 (a) A power of attorney terminates when: 46.12 (1) the principal dies; 46.13 (2) the principal becomes incapacitated, if the power of attorney is not durable; 46.14 (3) the principal revokes the power of attorney; 46.15 (4) the power of attorney provides that it terminates; 46.16 (5) the purpose of the power of attorney is accomplished; or 46.17 (6) the principal revokes the agent's authority or the agent dies, becomes 46.18 incapacitated, or resigns, and the power of attorney does not provide for another agent to 46.19 act under the power of attorney. 46.20 (b) An agent's authority terminates when: 46.21 (1) the principal revokes the authority; 46.22 (2) the agent dies, becomes incapacitated, or resigns; 46.23 (3) an action is filed for the dissolution or annulment of the agent's marriage to the 46.24 principal or their legal separation, unless the power of attorney otherwise provides; or 46.25 (4) the power of attorney terminates. 46.26 (c) Unless the power of attorney otherwise provides, an agent's authority is 46.27 exercisable until the authority terminates under paragraph (b), notwithstanding a lapse of 46.28 time since the execution of the power of attorney. 46.29 (d) Termination of an agent's authority or of a power of attorney is not effective as 46.30 to the agent or another person that, without actual knowledge of the termination, acts in 46.31 good faith under the power of attorney. An act so performed, unless otherwise invalid or 46.32 unenforceable, binds the principal and the principal's successors in interest. 46.33 (e) Incapacity of the principal of a power of attorney that is not durable does not 46.34 revoke or terminate the power of attorney as to an agent or other person that, without 46.35 Article 4 Sec. 10. 46 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] actual knowledge of the incapacity, acts in good faith under the power of attorney. An 47.1 act so performed, unless otherwise invalid or unenforceable, binds the principal and the 47.2 principal's successors in interest. 47.3 (f) The execution of a power of attorney does not revoke a power of attorney 47.4 previously executed by the principal unless the subsequent power of attorney provides that 47.5 the previous power of attorney is revoked or that all other powers of attorney are revoked. 47.6 Sec. 11. [523A.111] CO-AGENTS AND SUCCESSOR AGENTS. 47.7 (a) A principal may designate two or more persons to act as co-agents. Unless 47.8 the power of attorney otherwise provides, each co-agent may exercise its authority 47.9 independently. 47.10 (b) A principal may designate one or more successor agents to act if an agent resigns, 47.11 dies, becomes incapacitated, is not qualified to serve, or declines to serve. A principal 47.12 may grant authority to designate one or more successor agents to an agent or other person 47.13 designated by name, office, or function. Unless the power of attorney otherwise provides, 47.14 a successor agent: 47.15 (1) has the same authority as that granted to the original agent; and 47.16 (2) may not act until all predecessor agents have resigned, died, become 47.17 incapacitated, are no longer qualified to serve, or have declined to serve. 47.18 (c) Except as otherwise provided in the power of attorney and paragraph (d), an 47.19 agent that does not participate in or conceal a breach of fiduciary duty committed by 47.20 another agent, including a predecessor agent, is not liable for the actions of the other agent. 47.21 (d) An agent that has actual knowledge of a breach or imminent breach of fiduciary 47.22 duty by another agent shall notify the principal and, if the principal is incapacitated, 47.23 take any action reasonably appropriate in the circumstances to safeguard the principal's 47.24 best interest. An agent that fails to notify the principal or take action as required by this 47.25 paragraph is liable for the reasonably foreseeable damages that could have been avoided if 47.26 the agent had notified the principal or taken such action. 47.27 Sec. 12. [523A.112] REIMBURSEMENT AND COMPENSATION OF AGENT. 47.28 Unless the power of attorney otherwise provides, an agent is entitled to 47.29 reimbursement of expenses reasonably incurred on behalf of the principal and to 47.30 compensation that is reasonable under the circumstances. 47.31 Sec. 13. [523A.113] AGENT'S ACCEPTANCE. 47.32 Article 4 Sec. 13. 47 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] Except as otherwise provided in the power of attorney, a person accepts appointment 48.1 as an agent under a power of attorney by exercising authority or performing duties as an 48.2 agent or by any other assertion or conduct indicating acceptance. 48.3 Sec. 14. [523A.114] AGENT'S DUTIES. 48.4 (a) Notwithstanding provisions in the power of attorney, an agent that has accepted 48.5 appointment shall: 48.6 (1) act in accordance with the principal's reasonable expectations to the extent 48.7 actually known by the agent and, otherwise, in the principal's best interest; 48.8 (2) act in good faith; and 48.9 (3) act only within the scope of authority granted in the power of attorney. 48.10 (b) Except as otherwise provided in the power of attorney, an agent that has accepted 48.11 appointment shall: 48.12 (1) act loyally for the principal's benefit; 48.13 (2) act so as not to create a conflict of interest that impairs the agent's ability to act 48.14 impartially in the principal's best interest; 48.15 (3) act with the care, competence, and diligence ordinarily exercised by agents 48.16 in similar circumstances; 48.17 (4) keep a record of all receipts, disbursements, and transactions made on behalf of 48.18 the principal; 48.19 (5) cooperate with a person that has authority to make health care decisions for the 48.20 principal to carry out the principal's reasonable expectations to the extent actually known 48.21 by the agent and, otherwise, act in the principal's best interest; and 48.22 (6) attempt to preserve the principal's estate plan, to the extent actually known 48.23 by the agent, if preserving the plan is consistent with the principal's best interest based 48.24 on all relevant factors, including: 48.25 (i) the value and nature of the principal's property; 48.26 (ii) the principal's foreseeable obligations and need for maintenance; 48.27 (iii) minimization of taxes, including income, estate, inheritance, generation-skipping 48.28 transfer, and gift taxes; and 48.29 (iv) eligibility for a benefit, a program, or assistance under a statute or regulation. 48.30 (c) An agent that acts in good faith is not liable to any beneficiary of the principal's 48.31 estate plan for failure to preserve the plan. 48.32 (d) An agent that acts with care, competence, and diligence for the best interest of 48.33 the principal is not liable solely because the agent also benefits from the act or has an 48.34 individual or conflicting interest in relation to the property or affairs of the principal. 48.35 Article 4 Sec. 14. 48 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (e) If an agent is selected by the principal because of special skills or expertise 49.1 possessed by the agent or in reliance on the agent's representation that the agent has 49.2 special skills or expertise, the special skills or expertise must be considered in determining 49.3 whether the agent has acted with care, competence, and diligence under the circumstances. 49.4 (f) Absent a breach of duty to the principal, an agent is not liable if the value of 49.5 the principal's property declines. 49.6 (g) An agent that exercises authority to delegate to another person the authority 49.7 granted by the principal or that engages another person on behalf of the principal is not 49.8 liable for an act, error of judgment, or default of that person if the agent exercises care, 49.9 competence, and diligence in selecting and monitoring the person. 49.10 (h) Except as otherwise provided in the power of attorney, an agent is not required 49.11 to disclose receipts, disbursements, or transactions conducted on behalf of the principal 49.12 unless ordered by a court or requested by the principal, a guardian, a conservator, another 49.13 fiduciary acting for the principal, a governmental agency having authority to protect the 49.14 welfare of the principal, or, upon the death of the principal, by the personal representative 49.15 or successor in interest of the principal's estate. If so requested, within 30 days the agent 49.16 shall comply with the request or provide a writing or other record substantiating why 49.17 additional time is needed and shall comply with the request within an additional 30 days. 49.18 Sec. 15. [523A.115] EXONERATION OF AGENT. 49.19 A provision in a power of attorney relieving an agent of liability for breach of duty 49.20 is binding on the principal and the principal's successors in interest except to the extent 49.21 the provision: 49.22 (1) relieves the agent of liability for breach of duty committed dishonestly, with an 49.23 improper motive, or with reckless indifference to the purposes of the power of attorney or 49.24 the best interest of the principal; or 49.25 (2) was inserted as a result of an abuse of a confidential or fiduciary relationship 49.26 with the principal. 49.27 Sec. 16. [523A.116] JUDICIAL RELIEF. 49.28 (a) The following persons may petition a court to construe a power of attorney or 49.29 review the agent's conduct, and grant appropriate relief: 49.30 (1) the principal or the agent; 49.31 (2) a guardian, conservator, or other fiduciary acting for the principal; 49.32 (3) a person authorized to make health care decisions for the principal; 49.33 (4) the principal's spouse, parent, or descendant; 49.34 Article 4 Sec. 16. 49 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (5) an individual who would qualify as a presumptive heir of the principal; 50.1 (6) a person named as a beneficiary to receive any property, benefit, or contractual 50.2 right on the principal's death or as a beneficiary of a trust created by or for the principal 50.3 that has a financial interest in the principal's estate; 50.4 (7) a governmental agency having regulatory authority to protect the welfare of 50.5 the principal; 50.6 (8) the principal's caregiver or another person that demonstrates sufficient interest in 50.7 the principal's welfare; and 50.8 (9) a person asked to accept the power of attorney. 50.9 (b) Upon motion by the principal, the court shall dismiss a petition filed under 50.10 this section, unless the court finds that the principal lacks capacity to revoke the agent's 50.11 authority or the power of attorney. 50.12 Sec. 17. [523A.117] AGENT'S LIABILITY. 50.13 An agent that violates this chapter is liable to the principal or the principal's 50.14 successors in interest for the amount required to: 50.15 (1) restore the value of the principal's property to what it would have been had 50.16 the violation not occurred; and 50.17 (2) reimburse the principal or the principal's successors in interest for the attorney's 50.18 fees and costs paid on the agent's behalf. 50.19 Sec. 18. [523A.118] AGENT'S RESIGNATION; NOTICE. 50.20 Unless the power of attorney provides a different method for an agent's resignation, 50.21 an agent may resign by giving notice to the principal and, if the principal is incapacitated: 50.22 (1) to the conservator or guardian, if one has been appointed for the principal, and a 50.23 co-agent or successor agent; or 50.24 (2) if there is no person described in clause (1), to: 50.25 (i) the principal's caregiver; 50.26 (ii) another person reasonably believed by the agent to have sufficient interest in 50.27 the principal's welfare; or 50.28 (iii) a governmental agency having authority to protect the welfare of the principal. 50.29 Sec. 19. [523A.119] ACCEPTANCE OF AND RELIANCE UPON 50.30 ACKNOWLEDGED POWER OF ATTORNEY. 50.31 Article 4 Sec. 19. 50 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (a) For purposes of this section and section 523A.120, "acknowledged" means 51.1 purportedly verified before a notary public or other individual authorized to take 51.2 acknowledgements. 51.3 (b) A person that in good faith accepts an acknowledged power of attorney without 51.4 actual knowledge that the signature is not genuine may rely upon the presumption under 51.5 section 523A.105 that the signature is genuine. 51.6 (c) A person that in good faith accepts an acknowledged power of attorney without 51.7 actual knowledge that the power of attorney is void, invalid, or terminated; that the 51.8 purported agent's authority is void, invalid, or terminated; or that the agent is exceeding 51.9 or improperly exercising the agent's authority may rely upon the power of attorney 51.10 as if the power of attorney were genuine, valid, and still in effect; the agent's authority 51.11 were genuine, valid, and still in effect; and the agent had not exceeded and had properly 51.12 exercised the authority. 51.13 (d) A person that is asked to accept an acknowledged power of attorney may request, 51.14 and rely upon, without further investigation: 51.15 (1) an agent's certification under penalty of perjury of any factual matter concerning 51.16 the principal, agent, or power of attorney; 51.17 (2) an English translation of the power of attorney if the power of attorney contains, 51.18 in whole or in part, language other than English; and 51.19 (3) an opinion of counsel as to any matter of law concerning the power of attorney 51.20 if the person making the request provides in a writing or other record the reason for the 51.21 request. 51.22 (e) An English translation or an opinion of counsel requested under this section must 51.23 be provided at the principal's expense unless the request is made more than seven business 51.24 days after the power of attorney is presented for acceptance. 51.25 (f) For purposes of this section and section 523A.120, a person that conducts 51.26 activities through employees is without actual knowledge of a fact relating to a power of 51.27 attorney, a principal, or an agent if the employee conducting the transaction involving the 51.28 power of attorney is without actual knowledge of the fact. 51.29 Sec. 20. [523A.120] LIABILITY FOR REFUSAL TO ACCEPT 51.30 ACKNOWLEDGED POWER OF ATTORNEY. 51.31 (a) Except as otherwise provided in paragraph (b): 51.32 (1) a person shall either accept an acknowledged power of attorney or request a 51.33 certification, a translation, or an opinion of counsel under section 523A.119, paragraph (d), 51.34 no later than seven business days after presentation of the power of attorney for acceptance; 51.35 Article 4 Sec. 20. 51 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (2) if a person requests a certification, a translation, or an opinion of counsel under 52.1 section 523A.119, paragraph (d), the person shall accept the power of attorney no later than 52.2 five business days after receipt of the certification, translation, or opinion of counsel; and 52.3 (3) a person may not require an additional or different form of power of attorney 52.4 for authority granted in the power of attorney presented. 52.5 (b) A person is not required to accept an acknowledged power of attorney if: 52.6 (1) the person is not otherwise required to engage in a transaction with the principal 52.7 in the same circumstances; 52.8 (2) engaging in a transaction with the agent or the principal in the same 52.9 circumstances would be inconsistent with federal law; 52.10 (3) the person has actual knowledge of the termination of the agent's authority or of 52.11 the power of attorney before exercise of the power; 52.12 (4) a request for a certification, a translation, or an opinion of counsel under section 52.13 523A.119, paragraph (d), is refused; 52.14 (5) the person in good faith believes that the power of attorney is not valid or that 52.15 the agent does not have the authority to perform the act requested, whether or not a 52.16 certification, a translation, or an opinion of counsel under section 523A.119, paragraph 52.17 (d), has been requested or provided; or 52.18 (6) the person makes, or has actual knowledge that another person has made, a report 52.19 to the local adult protective services office stating a good faith belief that the principal 52.20 may be subject to physical or financial abuse, neglect, exploitation, or abandonment by the 52.21 agent or a person acting for or with the agent. 52.22 (c) A person that refuses in violation of this section to accept an acknowledged 52.23 power of attorney is subject to: 52.24 (1) a court order mandating acceptance of the power of attorney; and 52.25 (2) liability for reasonable attorney fees and costs incurred in any action or 52.26 proceeding that confirms the validity of the power of attorney or mandates acceptance 52.27 of the power of attorney. 52.28 Sec. 21. [523A.121] PRINCIPLES OF LAW AND EQUITY. 52.29 Unless displaced by a provision of this chapter, the principles of law and equity 52.30 supplement this chapter. 52.31 Sec. 22. [523A.122] LAWS APPLICABLE TO FINANCIAL INSTITUTIONS 52.32 AND ENTITIES. 52.33 Article 4 Sec. 22. 52 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] This chapter does not supersede any other law applicable to financial institutions or 53.1 other entities, and the other law controls if inconsistent with this chapter. 53.2 Sec. 23. [523A.123] REMEDIES UNDER OTHER LAW. 53.3 The remedies under this chapter are not exclusive and do not abrogate any right or 53.4 remedy under the law of this state other than this chapter. 53.5 Sec. 24. [523A.201] AUTHORITY THAT REQUIRES SPECIFIC GRANT; 53.6 GRANT OF GENERAL AUTHORITY. 53.7 (a) An agent under a power of attorney may do the following on behalf of the 53.8 principal or with the principal's property only if the power of attorney expressly grants the 53.9 agent the authority and exercise of the authority is not otherwise prohibited by another 53.10 agreement or instrument to which the authority or property is subject: 53.11 (1) create, amend, revoke, or terminate an inter vivos trust; 53.12 (2) make a gift; 53.13 (3) create or change rights of survivorship; 53.14 (4) create or change a beneficiary designation; 53.15 (5) delegate authority granted under the power of attorney; 53.16 (6) waive the principal's right to be a beneficiary of a joint and survivor annuity, 53.17 including a survivor benefit under a retirement plan; 53.18 (7) exercise fiduciary powers that the principal has authority to delegate; or 53.19 (8) disclaim property, including a power of appointment. 53.20 (b) Notwithstanding a grant of authority to do an act described in paragraph (a), 53.21 unless the power of attorney otherwise provides, an agent that is not an ancestor, spouse, 53.22 or descendant of the principal, may not exercise authority under a power of attorney to 53.23 create in the agent, or in an individual to whom the agent owes a legal obligation of 53.24 support, an interest in the principal's property, whether by gift, right of survivorship, 53.25 beneficiary designation, disclaimer, or otherwise. 53.26 (c) Subject to paragraphs (a), (b), (d), and (e), if a power of attorney grants to an 53.27 agent authority to do all acts that a principal could do, the agent has the general authority 53.28 described in sections 523A.204 to 523A.216. 53.29 (d) Unless the power of attorney otherwise provides, a grant of authority to make a 53.30 gift is subject to section 523A.217. 53.31 (e) Subject to paragraphs (a), (b), and (d), if the subjects over which authority is 53.32 granted in a power of attorney are similar or overlap, the broadest authority controls. 53.33 Article 4 Sec. 24. 53 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (f) Authority granted in a power of attorney is exercisable with respect to property 54.1 that the principal has when the power of attorney is executed or acquires later, whether or 54.2 not the property is located in this state and whether or not the authority is exercised or the 54.3 power of attorney is executed in this state. 54.4 (g) An act performed by an agent pursuant to a power of attorney has the same effect 54.5 and inures to the benefit of and binds the principal and the principal's successors in interest 54.6 as if the principal had performed the act. 54.7 Sec. 25. [523A.202] INCORPORATION OF AUTHORITY. 54.8 (a) An agent has authority described in sections 523A.201 to 523A.217 if the power 54.9 of attorney refers to general authority with respect to the descriptive term for the subjects 54.10 stated in sections 523A.204 to 523A.217 or cites the section in which the authority is 54.11 described. 54.12 (b) A reference in a power of attorney to general authority with respect to the 54.13 descriptive term for a subject in sections 523A.204 to 523A.217 or a citation to a section 54.14 of sections 523A.204 to 523A.217 incorporates the entire section as if it were set out 54.15 in full in the power of attorney. 54.16 (c) A principal may modify authority incorporated by reference. 54.17 Sec. 26. [523A.203] CONSTRUCTION OF AUTHORITY GENERALLY. 54.18 Except as otherwise provided in the power of attorney, by executing a power 54.19 of attorney that incorporates by reference a subject described in sections 523A.204 54.20 to 523A.217 or that grants to an agent authority to do all acts that a principal could do 54.21 pursuant to section 523A.201, paragraph (c), a principal authorizes the agent, with respect 54.22 to that subject, to: 54.23 (1) demand, receive, and obtain by litigation or otherwise, money or another thing of 54.24 value to which the principal is, may become, or claims to be entitled, and conserve, invest, 54.25 disburse, or use anything so received or obtained for the purposes intended; 54.26 (2) contract in any manner with any person, on terms agreeable to the agent, to 54.27 accomplish a purpose of a transaction and perform, rescind, cancel, terminate, reform, 54.28 restate, release, or modify the contract or another contract made by or on behalf of the 54.29 principal; 54.30 (3) execute, acknowledge, seal, deliver, file, or record any instrument or 54.31 communication the agent considers desirable to accomplish a purpose of a transaction, 54.32 including creating at any time a schedule listing some or all of the principal's property 54.33 and attaching it to the power of attorney; 54.34 Article 4 Sec. 26. 54 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (4) initiate, participate in, submit to alternative dispute resolution, settle, oppose, or 55.1 propose or accept a compromise with respect to a claim existing in favor of or against the 55.2 principal or intervene in litigation relating to the claim; 55.3 (5) seek on the principal's behalf the assistance of a court or other governmental 55.4 agency to carry out an act authorized in the power of attorney; 55.5 (6) engage, compensate, and discharge an attorney, accountant, discretionary 55.6 investment manager, expert witness, or other advisor; 55.7 (7) prepare, execute, and file a record, report, or other document to safeguard or 55.8 promote the principal's interest under a statute or regulation; 55.9 (8) communicate with any representative or employee of a government or 55.10 governmental subdivision, agency, or instrumentality, on behalf of, the principal; 55.11 (9) access communications intended for, and communicate on behalf of, the 55.12 principal, whether by mail, electronic transmission, telephone, or other means; and 55.13 (10) do any lawful act with respect to the subject and all property related to the 55.14 subject. 55.15 Sec. 27. [523A.204] REAL PROPERTY. 55.16 Unless the power of attorney otherwise provides, language in a power of attorney 55.17 granting general authority with respect to real property authorizes the agent to: 55.18 (1) demand, buy, lease, receive, accept as a gift or as security for an extension of 55.19 credit, or otherwise acquire or reject an interest in real property or a right incident to 55.20 real property; 55.21 (2) sell; exchange; convey with or without covenants, representations, or warranties; 55.22 quitclaim; release; surrender; retain title for security; encumber; partition; consent to 55.23 partitioning; subject to an easement or covenant; subdivide; apply for zoning or other 55.24 governmental permits; plat or consent to platting; develop; grant an option concerning; 55.25 lease; sublease; contribute to an entity in exchange for an interest in that entity; or 55.26 otherwise grant or dispose of an interest in real property or a right incident to real property; 55.27 (3) pledge or mortgage an interest in real property or right incident to real property 55.28 as security to borrow money or pay, renew, or extend the time of payment of a debt of the 55.29 principal or a debt guaranteed by the principal; 55.30 (4) release, assign, satisfy, or enforce by litigation or otherwise a mortgage, deed of 55.31 trust, conditional sale contract, encumbrance, lien, or other claim to real property which 55.32 exists or is asserted; 55.33 (5) manage or conserve an interest in real property or a right incident to real property 55.34 owned or claimed to be owned by the principal, including: 55.35 Article 4 Sec. 27. 55 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (i) insuring against liability or casualty or other loss; 56.1 (ii) obtaining or regaining possession of or protecting the interest or right by 56.2 litigation or otherwise; 56.3 (iii) paying, assessing, compromising, or contesting taxes or assessments or applying 56.4 for and receiving refunds in connection with them; and 56.5 (iv) purchasing supplies, hiring assistance or labor, and making repairs or alterations 56.6 to the real property; 56.7 (6) use, develop, alter, replace, remove, erect, or install structures or other 56.8 improvements upon real property in or incident to which the principal has, or claims to 56.9 have, an interest or right; 56.10 (7) participate in a reorganization with respect to real property or an entity that owns 56.11 an interest in or right incident to real property and receive, and hold, and act with respect 56.12 to stocks and bonds or other property received in a plan of reorganization, including: 56.13 (i) selling or otherwise disposing of them; 56.14 (ii) exercising or selling an option, right of conversion, or similar right with respect 56.15 to them; and 56.16 (iii) exercising any voting rights in person or by proxy; 56.17 (8) change the form of title of an interest in or right incident to real property; and 56.18 (9) dedicate to public use, with or without consideration, easements or other real 56.19 property in which the principal has, or claims to have, an interest. 56.20 Sec. 28. [523A.205] TANGIBLE PERSONAL PROPERTY. 56.21 Unless the power of attorney otherwise provides, language in a power of attorney 56.22 granting general authority with respect to tangible personal property authorizes the agent 56.23 to: 56.24 (1) demand, buy, receive, accept as a gift or as security for an extension of credit, 56.25 or otherwise acquire or reject ownership or possession of tangible personal property or 56.26 an interest in tangible personal property; 56.27 (2) sell; exchange; convey with or without covenants, representations, or warranties; 56.28 quitclaim; release; surrender; create a security interest in; grant options concerning; lease; 56.29 sublease; or otherwise dispose of tangible personal property or an interest in tangible 56.30 personal property; 56.31 (3) grant a security interest in tangible personal property or an interest in tangible 56.32 personal property as security to borrow money or pay, renew, or extend the time of 56.33 payment of a debt of the principal or a debt guaranteed by the principal; 56.34 Article 4 Sec. 28. 56 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (4) release, assign, satisfy, or enforce by litigation or otherwise, a security interest, 57.1 lien, or other claim on behalf of the principal, with respect to tangible personal property or 57.2 an interest in tangible personal property; 57.3 (5) manage or conserve tangible personal property or an interest in tangible personal 57.4 property on behalf of the principal, including: 57.5 (i) insuring against liability or casualty or other loss; 57.6 (ii) obtaining or regaining possession of or protecting the property or interest, by 57.7 litigation or otherwise; 57.8 (iii) paying, assessing, compromising, or contesting taxes or assessments or applying 57.9 for and receiving refunds in connection with taxes or assessments; 57.10 (iv) moving the property from place to place; 57.11 (v) storing the property for hire or on a gratuitous bailment; and 57.12 (vi) using and making repairs, alterations, or improvements to the property; and 57.13 (6) change the form of title of an interest in tangible personal property. 57.14 Sec. 29. [523A.206] STOCKS AND BONDS. 57.15 Unless the power of attorney otherwise provides, language in a power of attorney 57.16 granting general authority with respect to stocks and bonds authorizes the agent to: 57.17 (1) buy, sell, and exchange stocks and bonds; 57.18 (2) establish, continue, modify, or terminate an account with respect to stocks and 57.19 bonds; 57.20 (3) pledge stocks and bonds as security to borrow, pay, renew, or extend the time of 57.21 payment of a debt of the principal; 57.22 (4) receive certificates and other evidences of ownership with respect to stocks 57.23 and bonds; and 57.24 (5) exercise voting rights with respect to stocks and bonds in person or by proxy, 57.25 enter into voting trusts, and consent to limitations on the right to vote. 57.26 Sec. 30. [523A.207] COMMODITIES AND OPTIONS. 57.27 Unless the power of attorney otherwise provides, language in a power of attorney 57.28 granting general authority with respect to commodities and options authorizes the agent to: 57.29 (1) buy, sell, exchange, assign, settle, and exercise commodity futures contracts and 57.30 call or put options on stocks or stock indexes traded on a regulated option exchange; and 57.31 (2) establish, continue, modify, and terminate option accounts. 57.32 Sec. 31. [523A.208] BANKS AND OTHER FINANCIAL INSTITUTIONS. 57.33 Article 4 Sec. 31. 57 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] Unless the power of attorney otherwise provides, language in a power of attorney 58.1 granting general authority with respect to banks and other financial institutions authorizes 58.2 the agent to: 58.3 (1) continue, modify, and terminate an account or other banking arrangement made 58.4 by or on behalf of the principal; 58.5 (2) establish, modify, and terminate an account or other banking arrangement with a 58.6 bank, trust company, savings and loan association, credit union, thrift company, brokerage 58.7 firm, or other financial institution selected by the agent; 58.8 (3) contract for services available from a financial institution, including renting a 58.9 safe deposit box or space in a vault; 58.10 (4) withdraw, by check, order, electronic funds transfer, or otherwise, money or 58.11 property of the principal deposited with or left in the custody of a financial institution; 58.12 (5) receive statements of account, vouchers, notices, and similar documents from a 58.13 financial institution and act with respect to them; 58.14 (6) enter a safe deposit box or vault and withdraw or add to the contents; 58.15 (7) borrow money and pledge as security personal property of the principal necessary 58.16 to borrow money or pay, renew, or extend the time of payment of a debt of the principal or 58.17 a debt guaranteed by the principal; 58.18 (8) make, assign, draw, endorse, discount, guarantee, and negotiate promissory 58.19 notes, checks, drafts, and other negotiable or nonnegotiable paper of the principal or 58.20 payable to the principal or the principal's order, transfer money, receive the cash or other 58.21 proceeds of those transactions, and accept a draft drawn by a person upon the principal 58.22 and pay it when due; 58.23 (9) receive for the principal and act upon a sight draft, warehouse receipt, or other 58.24 document of title whether tangible or electronic, or other negotiable or nonnegotiable 58.25 instrument; 58.26 (10) apply for, receive, and use letters of credit, credit and debit cards, electronic 58.27 transaction authorizations, and traveler's checks from a financial institution and give an 58.28 indemnity or other agreement in connection with letters of credit; and 58.29 (11) consent to an extension of the time of payment with respect to commercial 58.30 paper or a financial transaction with a financial institution. 58.31 Sec. 32. [523A.209] OPERATION OF ENTITY OR BUSINESS. 58.32 Subject to the terms of a document or an agreement governing an entity or an entity 58.33 ownership interest, and unless the power of attorney otherwise provides, language in a 58.34 Article 4 Sec. 32. 58 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] power of attorney granting general authority with respect to operation of an entity or 59.1 business authorizes the agent to: 59.2 (1) operate, buy, sell, enlarge, reduce, or terminate an ownership interest; 59.3 (2) perform a duty or discharge a liability and exercise in person or by proxy a right, 59.4 power, privilege, or option that the principal has, may have, or claims to have; 59.5 (3) enforce the terms of an ownership agreement; 59.6 (4) initiate, participate in, submit to alternative dispute resolution, settle, oppose, 59.7 or propose or accept a compromise with respect to litigation to which the principal is 59.8 a party because of an ownership interest; 59.9 (5) exercise in person or by proxy, or enforce by litigation or otherwise, a right, 59.10 power, privilege, or option the principal has or claims to have as the holder of stocks 59.11 and bonds; 59.12 (6) initiate, participate in, submit to alternative dispute resolution, settle, oppose, 59.13 or propose or accept a compromise with respect to litigation to which the principal is a 59.14 party concerning stocks and bonds; 59.15 (7) with respect to an entity or business owned solely by the principal: 59.16 (i) continue, modify, renegotiate, extend, and terminate a contract made by or on 59.17 behalf of the principal with respect to the entity or business before execution of the 59.18 power of attorney; 59.19 (ii) determine: 59.20 (A) the location of its operation; 59.21 (B) the nature and extent of its business; 59.22 (C) the methods of manufacturing, selling, merchandising, financing, accounting, 59.23 and advertising employed in its operation; 59.24 (D) the amount and types of insurance carried; and 59.25 (E) the mode of engaging, compensating, and dealing with its employees and 59.26 accountants, attorneys, or other advisors; 59.27 (iii) change the name or form of organization under which the entity or business is 59.28 operated and enter into an ownership agreement with other persons to take over all or part 59.29 of the operation of the entity or business; and 59.30 (iv) demand and receive money due or claimed by the principal or on the principal's 59.31 behalf in the operation of the entity or business and control and disburse the money in the 59.32 operation of the entity or business; 59.33 (8) put additional capital into an entity or business in which the principal has an 59.34 interest; 59.35 Article 4 Sec. 32. 59 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (9) join in a plan of reorganization, consolidation, conversion, domestication, or 60.1 merger of the entity or business; 60.2 (10) sell or liquidate all or part of an entity or business; 60.3 (11) establish the value of an entity or business under a buyout agreement to which 60.4 the principal is a party; 60.5 (12) prepare, sign, file, and deliver reports, compilations of information, returns, or 60.6 other papers with respect to an entity or business and make related payments; and 60.7 (13) pay, compromise, or contest taxes, assessments, fines, or penalties and perform 60.8 any other act to protect the principal from illegal or unnecessary taxation, assessments, 60.9 fines, or penalties, with respect to an entity or business, including attempts to recover, in 60.10 any manner permitted by law, money paid before or after the execution of the power of 60.11 attorney. 60.12 Sec. 33. [523A.210] INSURANCE AND ANNUITIES. 60.13 Unless the power of attorney otherwise provides, language in a power of attorney 60.14 granting general authority with respect to insurance and annuities authorizes the agent to: 60.15 (1) continue, pay the premium or make a contribution on, modify, exchange, rescind, 60.16 release, or terminate a contract procured by or on behalf of the principal which insures or 60.17 provides an annuity to either the principal or another person, whether or not the principal 60.18 is a beneficiary under the contract; 60.19 (2) procure new, different, and additional contracts of insurance and annuities for the 60.20 principal and the principal's spouse, children, and other dependents, and select the amount, 60.21 type of insurance or annuity, and mode of payment; 60.22 (3) pay the premium or make a contribution on, modify, exchange, rescind, release, 60.23 or terminate a contract of insurance or annuity procured by the agent; 60.24 (4) apply for and receive a loan secured by a contract of insurance or annuity; 60.25 (5) surrender and receive the cash surrender value on a contract of insurance or 60.26 annuity; 60.27 (6) exercise an election; 60.28 (7) exercise investment powers available under a contract of insurance or annuity; 60.29 (8) change the manner of paying premiums on a contract of insurance or annuity; 60.30 (9) change or convert the type of insurance or annuity with respect to which the 60.31 principal has or claims to have authority described in this section; 60.32 (10) apply for and procure a benefit or assistance under a statute or regulation to 60.33 guarantee or pay premiums of a contract of insurance on the life of the principal; 60.34 Article 4 Sec. 33. 60 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (11) collect, sell, assign, hypothecate, borrow against, or pledge the interest of the 61.1 principal in a contract of insurance or annuity; 61.2 (12) select the form and timing of the payment of proceeds from a contract of 61.3 insurance or annuity; and 61.4 (13) pay, from proceeds or otherwise, compromise or contest, and apply for refunds 61.5 in connection with, a tax or assessment levied by a taxing authority with respect to a 61.6 contract of insurance or annuity or its proceeds or liability accruing by reason of the 61.7 tax or assessment. 61.8 Sec. 34. [523A.211] ESTATES, TRUSTS, AND OTHER BENEFICIAL 61.9 INTERESTS. 61.10 (a) In this section, "estate, trust, or other beneficial interest" means a trust, probate 61.11 estate, guardianship, conservatorship, escrow, or custodianship or a fund from which the 61.12 principal is, may become, or claims to be, entitled to a share or payment. 61.13 (b) Unless the power of attorney otherwise provides, language in a power of attorney 61.14 granting general authority with respect to estates, trusts, and other beneficial interests 61.15 authorizes the agent to: 61.16 (1) accept, receive, receipt for, sell, assign, pledge, or exchange a share in or 61.17 payment from an estate, trust, or other beneficial interest; 61.18 (2) demand or obtain money or another thing of value to which the principal is, may 61.19 become, or claims to be, entitled by reason of an estate, trust, or other beneficial interest, 61.20 by litigation or otherwise; 61.21 (3) exercise for the benefit of the principal a presently exercisable general power of 61.22 appointment held by the principal; 61.23 (4) initiate, participate in, submit to alternative dispute resolution, settle, oppose, 61.24 or propose or accept a compromise with respect to litigation to ascertain the meaning, 61.25 validity, or effect of a deed, will, declaration of trust, or other instrument or transaction 61.26 affecting the interest of the principal; 61.27 (5) initiate, participate in, submit to alternative dispute resolution, settle, oppose, 61.28 or propose or accept a compromise with respect to litigation to remove, substitute, or 61.29 surcharge a fiduciary; 61.30 (6) conserve, invest, disburse, or use anything received for an authorized purpose; 61.31 (7) transfer an interest of the principal in real property, stocks and bonds, accounts 61.32 with financial institutions or securities intermediaries, insurance, annuities, and other 61.33 property to the trustee of a revocable trust created by the principal as settlor; and 61.34 Article 4 Sec. 34. 61 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (8) reject, renounce, disclaim, release, or consent to a reduction in or modification of 62.1 a share in or payment from an estate, trust, or other beneficial interest. 62.2 Sec. 35. [523A.212] CLAIMS AND LITIGATION. 62.3 Unless the power of attorney otherwise provides, language in a power of attorney 62.4 granting general authority with respect to claims and litigation authorizes the agent to: 62.5 (1) assert and maintain before a court or administrative agency a claim, claim for 62.6 relief, cause of action, counterclaim, offset, recoupment, or defense, including an action 62.7 to recover property or other thing of value, recover damages sustained by the principal, 62.8 eliminate or modify tax liability, or seek an injunction, specific performance, or other relief; 62.9 (2) bring an action to determine adverse claims or intervene or otherwise participate 62.10 in litigation; 62.11 (3) seek an attachment, garnishment, order of arrest, or other preliminary, 62.12 provisional, or intermediate relief and use an available procedure to effect or satisfy a 62.13 judgment, order, or decree; 62.14 (4) make or accept a tender, offer of judgment, or admission of facts, submit 62.15 a controversy on an agreed statement of facts, consent to examination, and bind the 62.16 principal in litigation; 62.17 (5) submit to alternative dispute resolution, settle, and propose or accept a 62.18 compromise; 62.19 (6) waive the issuance and service of process upon the principal, accept service of 62.20 process, appear for the principal, designate persons upon which process directed to the 62.21 principal may be served, execute and file or deliver stipulations on the principal's behalf, 62.22 verify pleadings, seek appellate review, procure and give surety and indemnity bonds, 62.23 contract and pay for the preparation and printing of records and briefs, receive, execute, 62.24 and file or deliver a consent, waiver, release, confession of judgment, satisfaction of 62.25 judgment, notice, agreement, or other instrument in connection with the prosecution, 62.26 settlement, or defense of a claim or litigation; 62.27 (7) act for the principal with respect to bankruptcy or insolvency, whether voluntary 62.28 or involuntary, concerning the principal or some other person, or with respect to a 62.29 reorganization, receivership, or application for the appointment of a receiver or trustee 62.30 which affects an interest of the principal in property or other thing of value; 62.31 (8) pay a judgment, award, or order against the principal or a settlement made in 62.32 connection with a claim or litigation; and 62.33 (9) receive money or other thing of value paid in settlement of or as proceeds of a 62.34 claim or litigation. 62.35 Article 4 Sec. 35. 62 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] Sec. 36. [523A.213] PERSONAL AND FAMILY MAINTENANCE. 63.1 (a) Unless the power of attorney otherwise provides, language in a power of attorney 63.2 granting general authority with respect to personal and family maintenance authorizes the 63.3 agent to: 63.4 (1) perform the acts necessary to maintain the customary standard of living of the 63.5 principal, the principal's spouse, and the following individuals, whether living when the 63.6 power of attorney is executed or later born: 63.7 (i) the principal's children; 63.8 (ii) other individuals legally entitled to be supported by the principal; and 63.9 (iii) the individuals whom the principal has customarily supported or indicated 63.10 the intent to support; 63.11 (2) make periodic payments of child support and other family maintenance required 63.12 by a court or governmental agency or an agreement to which the principal is a party; 63.13 (3) provide living quarters for the individuals described in clause (1) by: 63.14 (i) purchase, lease, or other contract; or 63.15 (ii) paying the operating costs, including interest, amortization payments, repairs, 63.16 improvements, and taxes, for premises owned by the principal or occupied by those 63.17 individuals; 63.18 (4) provide normal domestic help, usual vacations and travel expenses, and funds 63.19 for shelter, clothing, food, appropriate education, including postsecondary and vocational 63.20 education, and other current living costs for the individuals described in clause (1); 63.21 (5) pay expenses for necessary health care and custodial care on behalf of the 63.22 individuals described in clause (1); 63.23 (6) act as the principal's personal representative pursuant to the Health Insurance 63.24 Portability and Accountability Act, sections 1171 through 1179 of the Social Security 63.25 Act, United States Code, title 42, section 1320d, and applicable regulations, in making 63.26 decisions related to the past, present, or future payment for the provision of health care 63.27 consented to by the principal or anyone authorized under the law of this state to consent 63.28 to health care on behalf of the principal; 63.29 (7) continue any provision made by the principal for automobiles or other means 63.30 of transportation, including registering, licensing, insuring, and replacing them, for the 63.31 individuals described in clause (1); 63.32 (8) maintain credit and debit accounts for the convenience of the individuals 63.33 described in clause (1) and open new accounts; and 63.34 Article 4 Sec. 36. 63 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (9) continue payments incidental to the membership or affiliation of the principal in a 64.1 religious institution, club, society, order, or other organization or to continue contributions 64.2 to those organizations. 64.3 (b) Authority with respect to personal and family maintenance is neither dependent 64.4 upon, nor limited by, authority that an agent may or may not have with respect to gifts 64.5 under this chapter. 64.6 Sec. 37. [523A.214] BENEFITS FROM GOVERNMENTAL PROGRAMS OR 64.7 CIVIL OR MILITARY SERVICE. 64.8 (a) In this section, "benefits from governmental programs or civil or military service" 64.9 means any benefit, program, or assistance provided under a statute or regulation including 64.10 Social Security, Medicare, and Medicaid. 64.11 (b) Unless the power of attorney otherwise provides, language in a power of attorney 64.12 granting general authority with respect to benefits from governmental programs or civil or 64.13 military service authorizes the agent to: 64.14 (1) execute vouchers in the name of the principal for allowances and reimbursements 64.15 payable by the United States or a foreign government or by a state or subdivision of a 64.16 state to the principal, including allowances and reimbursements for transportation of the 64.17 individuals described in section 523A.213, paragraph (a), clause (1), and for shipment of 64.18 their household effects; 64.19 (2) take possession and order the removal and shipment of property of the principal 64.20 from a post, warehouse, depot, dock, or other place of storage or safekeeping, either 64.21 governmental or private, and execute and deliver a release, voucher, receipt, bill of lading, 64.22 shipping ticket, certificate, or other instrument for that purpose; 64.23 (3) enroll in, apply for, select, reject, change, amend, or discontinue, on the 64.24 principal's behalf, a benefit or program; 64.25 (4) prepare, file, and maintain a claim of the principal for a benefit or assistance, 64.26 financial or otherwise, to which the principal may be entitled under a statute or regulation; 64.27 (5) initiate, participate in, submit to alternative dispute resolution, settle, oppose, 64.28 or propose or accept a compromise with respect to litigation concerning any benefit or 64.29 assistance the principal may be entitled to receive under a statute or regulation; and 64.30 (6) receive the financial proceeds of a claim described in clause (4) and conserve, 64.31 invest, disburse, or use for a lawful purpose anything so received. 64.32 Sec. 38. [523A.215] RETIREMENT PLANS. 64.33 Article 4 Sec. 38. 64 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (a) In this section, "retirement plan" means a plan or account created by an employer, 65.1 the principal, or another individual to provide retirement benefits or deferred compensation 65.2 of which the principal is a participant, beneficiary, or owner, including a plan or account 65.3 under the following sections of the Internal Revenue Code: 65.4 (1) an individual retirement account under section 408 of the Internal Revenue Code, 65.5 United States Code, title 26, section 408; 65.6 (2) a Roth individual retirement account under section 408A of the Internal Revenue 65.7 Code, United States Code, title 26, section 408A; 65.8 (3) a deemed individual retirement account under section 408(q) of the Internal 65.9 Revenue Code, United States Code, title 26, section 408(q); 65.10 (4) an annuity or mutual fund custodial account under section 403(b) of the Internal 65.11 Revenue Code, United States Code, title 26, section 403(b); 65.12 (5) a pension, profit-sharing, stock bonus, or other retirement plan qualified under 65.13 section 401(a) of the Internal Revenue Code, United States Code, title 26, section 401(a); 65.14 (6) a plan under section 457(b) of the Internal Revenue Code, United States Code, 65.15 title 26, section 457(b); and 65.16 (7) a nonqualified deferred compensation plan under section 409A of the Internal 65.17 Revenue Code, United States Code, title 26, section 409A. 65.18 (b) Unless the power of attorney otherwise provides, language in a power of attorney 65.19 granting general authority with respect to retirement plans authorizes the agent to: 65.20 (1) select the form and timing of payments under a retirement plan and withdraw 65.21 benefits from a plan; 65.22 (2) make a rollover, including a direct trustee-to-trustee rollover, of benefits from 65.23 one retirement plan to another; 65.24 (3) establish a retirement plan in the principal's name; 65.25 (4) make contributions to a retirement plan; 65.26 (5) exercise investment powers available under a retirement plan; and 65.27 (6) borrow from, sell assets to, or purchase assets from a retirement plan. 65.28 Sec. 39. [523A.216] TAXES. 65.29 Unless the power of attorney otherwise provides, language in a power of attorney 65.30 granting general authority with respect to taxes authorizes the agent to: 65.31 (1) prepare, sign, and file federal, state, local, and foreign income, gift, payroll, 65.32 property, Federal Insurance Contributions Act, and other tax returns, claims for refunds, 65.33 requests for extension of time, petitions regarding tax matters, and any other tax-related 65.34 documents, including receipts, offers, waivers, consents, including consents and 65.35 Article 4 Sec. 39. 65 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] agreements under section 2032A of the Internal Revenue Code, United States Code, title 66.1 26, section 2032A, closing agreements, and any power of attorney required by the Internal 66.2 Revenue Service or other taxing authority with respect to a tax year upon which the statute 66.3 of limitations has not run and the following 25 tax years; 66.4 (2) pay taxes due, collect refunds, post bonds, receive confidential information, and 66.5 contest deficiencies determined by the Internal Revenue Service or other taxing authority; 66.6 (3) exercise any election available to the principal under federal, state, local, or 66.7 foreign tax law; and 66.8 (4) act for the principal in all tax matters for all periods before the Internal Revenue 66.9 Service, or other taxing authority. 66.10 Sec. 40. [523A.217] GIFTS. 66.11 (a) In this section, a gift "for the benefit of" a person includes a gift to a trust, an 66.12 account under the Uniform Transfers to Minors Act, and a tuition savings account or 66.13 prepaid tuition plan as defined under section 529 of the Internal Revenue Code, United 66.14 States Code, title 26, section 529. 66.15 (b) Unless the power of attorney otherwise provides, language in a power of attorney 66.16 granting general authority with respect to gifts authorizes the agent only to: 66.17 (1) make outright to, or for the benefit of, a person, a gift of any of the principal's 66.18 property, including by the exercise of a presently exercisable general power of appointment 66.19 held by the principal, in an amount per donee not to exceed the annual dollar limits 66.20 of the federal gift tax exclusion under section 2503(b) of the Internal Revenue Code, 66.21 United States Code, title 26, section 2503(b), without regard to whether the federal gift 66.22 tax exclusion applies to the gift, or if the principal's spouse agrees to consent to a split 66.23 gift pursuant to section 2513 of the Internal Revenue Code, United States Code, title 66.24 26, section 2513, in an amount per donee not to exceed twice the annual federal gift 66.25 tax exclusion limit; and 66.26 (2) consent, pursuant to section 2513 of the Internal Revenue Code, United States 66.27 Code, title 26, section 2513, to the splitting of a gift made by the principal's spouse in an 66.28 amount per donee not to exceed the aggregate annual gift tax exclusions for both spouses. 66.29 (c) An agent may make a gift of the principal's property only as the agent determines 66.30 is consistent with the principal's objectives if actually known by the agent and, if unknown, 66.31 as the agent determines is consistent with the principal's best interest based on all relevant 66.32 factors, including: 66.33 (1) the value and nature of the principal's property; 66.34 (2) the principal's foreseeable obligations and need for maintenance; 66.35 Article 4 Sec. 40. 66 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (3) minimization of taxes, including income, estate, inheritance, generation-skipping 67.1 transfer, and gift taxes; 67.2 (4) eligibility for a benefit, a program, or assistance under a statute or regulation; and 67.3 (5) the principal's personal history of making or joining in making gifts. 67.4 Sec. 41. [523A.301] STATUTORY FORM POWER OF ATTORNEY. 67.5 A document substantially in the following form may be used to create a statutory 67.6 form power of attorney that has the meaning and effect prescribed by this chapter. 67.7 MINNESOTA 67.8 STATUTORY FORM POWER OF ATTORNEY 67.9 IMPORTANT INFORMATION 67.10 This power of attorney authorizes another person (your agent) to make decisions 67.11 concerning your property for you (the principal). Your agent will be able to make 67.12 decisions and act with respect to your property (including your money) whether or not you 67.13 are able to act for yourself. The meaning of authority over subjects listed on this form is 67.14 explained in the Uniform Power of Attorney Act, Minnesota Statutes, chapter 523A. 67.15 This power of attorney does not authorize the agent to make health care decisions for you. 67.16 You should select someone you trust to serve as your agent. Unless you specify otherwise, 67.17 generally the agent's authority will continue until you die or revoke the power of attorney 67.18 or the agent resigns or is unable to act for you. 67.19 Your agent is entitled to reasonable compensation unless you state otherwise in the 67.20 Special Instructions. 67.21 This form provides for designation of one agent. If you wish to name more than one agent 67.22 you may name a co-agent in the Special Instructions. Co-agents are not required to act 67.23 together unless you include that requirement in the Special Instructions. 67.24 If your agent is unable or unwilling to act for you, your power of attorney will end unless 67.25 you have named a successor agent. You may also name a second successor agent. 67.26 This power of attorney becomes effective immediately unless you state otherwise in 67.27 the Special Instructions. 67.28 If you have questions about the power of attorney or the authority you are granting 67.29 to your agent, you should seek legal advice before signing this form. 67.30 DESIGNATION OF AGENT 67.31 I _____________________________________ name the following person as my agent: 67.32 (Name of Principal) 67.33 Article 4 Sec. 41. 67 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] Name of Agent: _________________________________________________________ 68.1 Agent's Address: ________________________________________________________ 68.2 Agent's Telephone Number: _______________________________________________ 68.3 DESIGNATION OF SUCCESSOR AGENT(S) (OPTIONAL) 68.4 If my agent is unable or unwilling to act for me, I name as my successor agent: 68.5 Name of Successor Agent: ________________________________________________ 68.6 Successor Agent's Address: _______________________________________________ 68.7 Successor Agent's Telephone Number: _______________________________________ 68.8 If my successor agent is unable or unwilling to act for me, I name as my second successor 68.9 agent: 68.10 Name of Second Successor Agent: __________________________________________ 68.11 Second Successor Agent's Address: _________________________________________ 68.12 Second Successor Agent's Telephone Number: ________________________________ 68.13 GRANT OF GENERAL AUTHORITY 68.14 I grant my agent and any successor agent general authority to act for me with respect 68.15 to the following subjects as defined in the Uniform Power of Attorney Act, Minnesota 68.16 Statutes, chapter 523A: 68.17 (INITIAL each subject you want to include in the agent's general authority. If you wish to 68.18 grant general authority over all of the subjects you may initial "All Preceding Subjects" 68.19 instead of initialing each subject.) 68.20 (___ ) Real Property 68.21 (___ ) Tangible Personal Property 68.22 (___ ) Stocks and Bonds 68.23 (___ ) Commodities and Options 68.24 (___ ) Banks and Other Financial Institutions 68.25 (___ ) Operation of Entity or Business 68.26 (___ ) Insurance and Annuities 68.27 (___ ) Estates, Trusts, and Other Beneficial Interests 68.28 (___ ) Claims and Litigation 68.29 (___ ) Personal and Family Maintenance 68.30 (___ ) Benefits from Governmental Programs or Civil or Military Service 68.31 (___ ) Retirement Plans 68.32 (___ ) Taxes 68.33 (___ ) All Preceding Subjects 68.34 GRANT OF SPECIFIC AUTHORITY (OPTIONAL) 68.35 My agent MAY NOT do any of the following specific acts for me UNLESS I have 68.36 INITIALED the specific authority listed below: 68.37 Article 4 Sec. 41. 68 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (CAUTION: Granting any of the following will give your agent the authority to take 69.1 actions that could significantly reduce your property or change how your property is 69.2 distributed at your death. INITIAL ONLY the specific authority you WANT to give 69.3 your agent.) 69.4 (___ ) Create, amend, revoke, or terminate an inter vivos trust 69.5 (___ ) Make a gift, subject to the limitations of the Uniform Power of Attorney Act, 69.6 Minnesota Statutes, section 523A.217, and any special instructions in this power 69.7 of attorney 69.8 (___ ) Create or change rights of survivorship 69.9 (___ ) Create or change a beneficiary designation 69.10 (___ ) Authorize another person to exercise the authority granted under this power of 69.11 attorney 69.12 (___ ) Waive the principal's right to be a beneficiary of a joint and survivor annuity, 69.13 including a survivor benefit under a retirement plan 69.14 (___ ) Exercise fiduciary powers that the principal has authority to delegate 69.15 [( __ ) Disclaim or refuse an interest in property, including a power of appointment] 69.16 LIMITATION ON AGENT'S AUTHORITY 69.17 An agent that is not my ancestor, spouse, or descendant MAY NOT use my property to 69.18 benefit the agent or a person to whom the agent owes an obligation of support unless I 69.19 have included that authority in the Special Instructions. 69.20 SPECIAL INSTRUCTIONS (optional) 69.21 You may give special instructions on the following lines: 69.22 ______________________________________________________________________ 69.23 ______________________________________________________________________ 69.24 EFFECTIVE DATE 69.25 This power of attorney is effective immediately unless I have stated otherwise in the 69.26 Special Instructions. 69.27 NOMINATION OF CONSERVATOR OR GUARDIAN (OPTIONAL) 69.28 If it becomes necessary for a court to appoint a conservator or guardian of my estate or 69.29 guardian of my person, I nominate the following person(s) for appointment: 69.30 Name of Nominee for conservator or guardian of my estate: ______________________ 69.31 Nominee's Address: _____________________________________________________ 69.32 Nominee's Telephone Number: _____________________________________________ 69.33 Name of Nominee for guardian of my person: _________________________________ 69.34 Nominee's Address: _____________________________________________________ 69.35 Nominee's Telephone Number: _____________________________________________ 69.36 RELIANCE ON THIS POWER OF ATTORNEY 69.37 Article 4 Sec. 41. 69 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] Any person, including my agent, may rely upon the validity of this power of attorney or a 70.1 copy of it unless that person knows it has terminated or is invalid. 70.2 SIGNATURE AND ACKNOWLEDGMENT 70.3 _____________________________________ _______________ 70.4 Your Signature Date 70.5 _____________________________________ 70.6 Your Name Printed 70.7 _____________________________________ 70.8 _____________________________________ 70.9 Your Address 70.10 _____________________________________ 70.11 Your Telephone Number 70.12 State of _______________________________ 70.13 [County] of ___________________________ 70.14 This document was acknowledged before me on ______________ , 70.15 (Date) 70.16 by ___________________________________. 70.17 (Name of Principal) 70.18 _____________________________________ (Seal, if any) 70.19 Signature of Notary 70.20 My commission expires: _________________ 70.21 (This document prepared by: 70.22 ______________________________________________________ 70.23 _____________________________________________________ ) 70.24 IMPORTANT INFORMATION FOR AGENT 70.25 Agent's Duties 70.26 When you accept the authority granted under this power of attorney, a special legal 70.27 relationship is created between you and the principal. This relationship imposes upon 70.28 you legal duties that continue until you resign or the power of attorney is terminated or 70.29 revoked. You must: 70.30 (1) do what you know the principal reasonably expects you to do with the principal's 70.31 property or, if you do not know the principal's expectations, act in the principal's 70.32 best interest; 70.33 (2) act in good faith; 70.34 (3) do nothing beyond the authority granted in this power of attorney; and 70.35 (4) disclose your identity as an agent whenever you act for the principal by writing 70.36 or printing the name of the principal and signing your own name as "agent" in 70.37 the following manner: 70.38 Article 4 Sec. 41. 70 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] ___________________ by _____________ as Agent 71.1 (Principal's Name) (Your Signature) 71.2 Unless the Special Instructions in this power of attorney state otherwise, you must also: 71.3 (1) act loyally for the principal's benefit; 71.4 (2) avoid conflicts that would impair your ability to act in the principal's best interest; 71.5 (3) act with care, competence, and diligence; 71.6 (4) keep a record of all receipts, disbursements, and transactions made on behalf of 71.7 the principal; 71.8 (5) cooperate with any person that has authority to make health care decisions for the 71.9 principal to do what you know the principal reasonably expects or, if you do not 71.10 know the principal's expectations, to act in the principal's best interest; and 71.11 (6) attempt to preserve the principal's estate plan if you know the plan and preserving 71.12 the plan is consistent with the principal's best interest. 71.13 Termination of Agent's Authority 71.14 You must stop acting on behalf of the principal if you learn of any event that terminates 71.15 this power of attorney or your authority under this power of attorney. Events that terminate 71.16 a power of attorney or your authority to act under a power of attorney include: 71.17 (1) death of the principal; 71.18 (2) the principal's revocation of the power of attorney or your authority; 71.19 (3) the occurrence of a termination event stated in the power of attorney; 71.20 (4) the purpose of the power of attorney is fully accomplished; or 71.21 (5) if you are married to the principal, a legal action is filed with a court to end your 71.22 marriage, or for your legal separation, unless the Special Instructions in this power 71.23 of attorney state that such an action will not terminate your authority. 71.24 Liability of Agent 71.25 The meaning of the authority granted to you is defined in the Uniform Power of Attorney 71.26 Act, Minnesota Statutes, chapter 523A. If you violate the Uniform Power of Attorney Act, 71.27 Minnesota Statutes, chapter 523A, or act outside the authority granted, you may be liable 71.28 for any damages caused by your violation. 71.29 If there is anything about this document or your duties that you do not understand, 71.30 you should seek legal advice. 71.31 Sec. 42. [523A.302] AGENT'S CERTIFICATION. 71.32 The following optional form may be used by an agent to certify facts concerning a 71.33 power of attorney. 71.34 Article 4 Sec. 42. 71 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] AGENT'S CERTIFICATION AS TO THE VALIDITY OF POWER OF 72.1 ATTORNEY AND AGENT'S AUTHORITY 72.2 State of ____________________________ 72.3 [County] of ________________________ 72.4 I, _________________ (Name of Agent), certify under penalty of perjury that 72.5 _______________ (Name of Principal) granted me authority as an agent or successor 72.6 agent in a power of attorney dated ______________. 72.7 I further certify that to my knowledge: 72.8 (1) the Principal is alive and has not revoked the Power of Attorney or my authority 72.9 to act under the Power of Attorney and the Power of Attorney and my authority to act 72.10 under the Power of Attorney have not terminated; 72.11 (2) if the Power of Attorney was drafted to become effective upon the happening of 72.12 an event or contingency, the event or contingency has occurred; 72.13 (3) if I was named as a successor agent, the prior agent is no longer able or willing 72.14 to serve; and 72.15 (4) _______________________________________________________________ 72.16 (Insert other relevant statements) 72.17 SIGNATURE AND ACKNOWLEDGMENT 72.18 _____________________________________ _______________ 72.19 Agent's Signature Date 72.20 _____________________________________ 72.21 Agent's Name Printed 72.22 _____________________________________ 72.23 _____________________________________ 72.24 Agent's Address 72.25 _____________________________________ 72.26 Agent's Telephone Number 72.27 This document was acknowledged before me on ______________ , 72.28 (Date) 72.29 by ___________________________________. 72.30 (Name of Agent) 72.31 _____________________________________ (Seal, if any) 72.32 Signature of Notary 72.33 My commission expires: __________________________________ 72.34 (This document prepared by: _____________________________ ) 72.35 Sec. 43. [523A.401] UNIFORMITY OF APPLICATION AND CONSTRUCTION. 72.36 Article 4 Sec. 43. 72 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] In applying and construing this uniform act, consideration must be given to the 73.1 need to promote uniformity of the law with respect to its subject matter among the states 73.2 that enact it. 73.3 Sec. 44. [523A.402] RELATION TO ELECTRONIC SIGNATURES IN GLOBAL 73.4 AND NATIONAL COMMERCE ACT. 73.5 This chapter modifies, limits, and supersedes the federal Electronic Signatures in 73.6 Global and National Commerce Act, United States Code, title 15, section 7001, et seq., 73.7 but does not modify, limit, or supersede section 101(c) of that act, United States Code, 73.8 title 15, section 7001(c), or authorize electronic delivery of any of the notices described in 73.9 section 103(b) of that act, United States Code, title 15, section 7003(b). 73.10 Sec. 45. [523A.403] EFFECT ON EXISTING POWERS OF ATTORNEY. 73.11 Except as otherwise provided in this chapter, on January 1, 2010: 73.12 (1) this chapter applies to a power of attorney created before, on, or after January 73.13 1, 2010; 73.14 (2) this chapter applies to a judicial proceeding concerning a power of attorney 73.15 commenced on or after January 1, 2010; 73.16 (3) this chapter applies to a judicial proceeding concerning a power of attorney 73.17 commenced before January 1, 2010, unless the court finds that application of a provision 73.18 of this chapter would substantially interfere with the effective conduct of the judicial 73.19 proceeding or prejudice the rights of a party, in which case that provision does not apply 73.20 and the superseded law applies; and 73.21 (4) an act done before January 1, 2010, is not affected by this chapter. 73.22 Sec. 46. REPEALER. 73.23 Minnesota Statutes 2008, sections 523.01; 523.02; 523.03; 523.04; 523.05; 523.06; 73.24 523.07; 523.075; 523.08; 523.09; 523.10; 523.11; 523.12; 523.13; 523.131; 523.14; 73.25 523.15; 523.16; 523.17; 523.18; 523.19; 523.20; 523.21; 523.22; 523.23; and 523.24, are 73.26 repealed. 73.27 Sec. 47. EFFECTIVE DATE. 73.28 This article is effective January 1, 2010. 73.29 Article 4 Sec. 47. 73 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] ARTICLE 5 74.1 UNIFORM MULTIPLE-PERSON ACCOUNTS ACT 74.2 Section 1. [524A.101] NONPROBATE TRANSFERS ON DEATH. 74.3 (a) A provision for a nonprobate transfer on death in an insurance policy, contract 74.4 of employment, bond, mortgage, promissory note, certificated or uncertificated security, 74.5 account agreement, custodial agreement, deposit agreement, compensation plan, pension 74.6 plan, individual retirement plan, employee benefit plan, trust, conveyance, deed of 74.7 gift, marital property agreement, or other written instrument of a similar nature is 74.8 nontestamentary. This paragraph includes a written provision that: 74.9 (1) money or other benefits due to, controlled by, or owned by a decedent before 74.10 death must be paid after the decedent's death to a person whom the decedent designates 74.11 either in the instrument or in a separate writing, including a will, executed either before or 74.12 at the same time as the instrument, or later; 74.13 (2) money due or to become due under the instrument ceases to be payable in the 74.14 event of death of the promisee or the promisor before payment or demand; or 74.15 (3) any property controlled by or owned by the decedent before death which is 74.16 the subject of the instrument passes to a person the decedent designates either in the 74.17 instrument or in a separate writing, including a will, executed either before or at the same 74.18 time as the instrument, or later. 74.19 (b) This section does not limit rights of creditors under other laws of this state. 74.20 Sec. 2. [524A.102] LIABILITY OF NONPROBATE TRANSFEREES FOR 74.21 CREDITOR CLAIMS AND STATUTORY ALLOWANCES. 74.22 (a) In this section, "nonprobate transfer" means a valid transfer effective at death, 74.23 other than a transfer of a survivorship interest in a joint tenancy of real estate, by a 74.24 transferor whose last domicile was in this state to the extent that the transferor immediately 74.25 before death had power, acting alone, to prevent the transfer by revocation or withdrawal 74.26 and instead to use the property for the benefit of the transferor or apply it to discharge 74.27 claims against the transferor's probate estate. 74.28 (b) Except as otherwise provided by statute, a transferee of a nonprobate transfer 74.29 is subject to liability to any probate estate of the decedent for allowed claims against 74.30 decedent's probate that estate and statutory allowances to the decedent's spouse and 74.31 children to the extent the estate is insufficient to satisfy those claims and allowances. The 74.32 liability of a nonprobate transferee may not exceed the value of nonprobate transfers 74.33 received or controlled by that transferee. 74.34 Article 5 Sec. 2. 74 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (c) Nonprobate transferees are liable for the insufficiency described in paragraph (b) 75.1 in the following order of priority: 75.2 (1) a transferee designated in the decedent's will or any other governing instrument, 75.3 as provided in the instrument; 75.4 (2) the trustee of a trust serving as the principal nonprobate instrument in the 75.5 decedent's estate plan as shown by its designation as devisee of the decedent's residuary 75.6 estate or by other facts or circumstances, to the extent of the value of the nonprobate 75.7 transfer received or controlled; and 75.8 (3) other nonprobate transferees, in proportion to the values received. 75.9 (d) Unless otherwise provided by the trust instrument, interests of beneficiaries in all 75.10 trusts incurring liabilities under this section abate as necessary to satisfy the liability, as if 75.11 all of the trust instruments were a single will and the interests were devises under it. 75.12 (e) A provision made in one instrument may direct the apportionment of the liability 75.13 among the nonprobate transferees taking under that or any other governing instrument. If 75.14 a provision in one instrument conflicts with a provision in another, the later one prevails. 75.15 (f) Upon due notice to a nonprobate transferee, the liability imposed by this section is 75.16 enforceable in proceedings in this state, whether or not the transferee is located in this state. 75.17 (g) A proceeding under this section may not be commenced unless the personal 75.18 representative of the decedent's estate has received a written demand for the proceeding 75.19 from the surviving spouse or a child, to the extent that statutory allowances are affected, 75.20 or a creditor. If the personal representative declines or fails to commence a proceeding 75.21 after demand, a person making demand may commence the proceeding in the name of the 75.22 decedent's estate, at the expense of the person making the demand and not of the estate. A 75.23 personal representative who declines in good faith to commence a requested proceeding 75.24 incurs no personal liability for declining. 75.25 (h) A proceeding under this section must be commenced within one year after the 75.26 decedent's death, but a proceeding on behalf of a creditor whose claim was allowed after 75.27 proceedings challenging disallowance of the claim may be commenced within 60 days 75.28 after final allowance of the claim. 75.29 (i) Unless a written notice asserting that a decedent's probate estate is nonexistent or 75.30 insufficient to pay allowed claims and statutory allowances has been received from the 75.31 decedent's personal representative, the following rules apply: 75.32 (1) Payment or delivery of assets by a financial institution, registrar, or other obligor, 75.33 to a nonprobate transferee in accordance with the terms of the governing instrument 75.34 controlling the transfer releases the obligor from all claims for amounts paid or assets 75.35 delivered. 75.36 Article 5 Sec. 2. 75 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (2) A trustee receiving or controlling a nonprobate transfer is released from liability 76.1 under this section with respect to any assets distributed to the trust's beneficiaries. Each 76.2 beneficiary to the extent of the distribution received becomes liable for the amount of the 76.3 trustee's liability attributable to assets received by the beneficiary. 76.4 Sec. 3. [524A.201] DEFINITIONS. 76.5 (a) The definitions in this section apply to this chapter. 76.6 (b) "Account" means a contract of deposit between a depositor and a financial 76.7 institution, and includes a checking account, savings account, certificate of deposit, and 76.8 share account. 76.9 (c) "Agent" means a person authorized to make account transactions for a party. 76.10 (d) "Beneficiary" means a person named as one to whom sums on deposit in an 76.11 account are payable on request after death of all parties or for whom a party is named 76.12 as trustee. 76.13 (e) "Devisee" means a person designated in a will to receive a testamentary 76.14 disposition of real or personal property. 76.15 (f) "Financial institution" means an organization authorized to do business under 76.16 state or federal laws relating to financial institutions, and includes a bank, trust company, 76.17 savings bank, building and loan association, savings and loan company or association, 76.18 and credit union. 76.19 (g) "Heirs" means those persons, including surviving spouse, who are entitled under 76.20 the statutes of intestate succession to the property of a decedent. 76.21 (h) "Multiple-party account" means an account payable on request to one or more of 76.22 two or more parties, whether or not a right of survivorship is mentioned. 76.23 (i) "Party" means a person who, by the terms of an account, has a present right, 76.24 subject to request, to payment from the account other than as a beneficiary or agent. 76.25 (j) "Payment" of sums on deposit includes withdrawal, payment to a party or third 76.26 person pursuant to check or other request, and a pledge of sums on deposit by a party, or a 76.27 set-off, reduction, or other disposition of all or part of an account pursuant to a pledge. 76.28 (k) "Person" means an individual, a corporation, an organization, or other legal entity. 76.29 (l) "Personal representative" includes executor, administrator, successor personal 76.30 representative, special administrator, and persons who perform substantially the same 76.31 function under the law governing their status. 76.32 (m) "POD designation" means the designation of: 76.33 Article 5 Sec. 3. 76 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (1) a beneficiary in an account payable on request to one party during the party's 77.1 lifetime and on the party's death to one or more beneficiaries, or to one or more parties 77.2 during their lifetimes and on death of all of them to one or more beneficiaries; or 77.3 (2) a beneficiary in an account in the name of one or more parties as trustee for one 77.4 or more beneficiaries if the relationship is established by the terms of the account and 77.5 there is no subject of the trust other than the sums on deposit in the account, whether or 77.6 not payment to the beneficiary is mentioned. 77.7 (n) "Receive," as it relates to notice to a financial institution, means receipt in the 77.8 office or branch office of the financial institution in which the account is established, but if 77.9 the terms of the account require notice at a particular place, in the place required. 77.10 (o) "Request" means a request for payment complying with all terms of the account, 77.11 including special requirements concerning necessary signatures and regulations of the 77.12 financial institution; but, for purposes of this chapter, if terms of the account condition 77.13 payment on advance notice, a request for payment is treated as immediately effective and 77.14 a notice of intent to withdraw is treated as a request for payment. 77.15 (p) "State" includes any state of the United States, the District of Columbia, the 77.16 Commonwealth of Puerto Rico, and any territory or possession subject to the legislative 77.17 authority of the United States. 77.18 (q) "Successors" means those persons, other than creditors, who are entitled to 77.19 property of a decedent under the decedent's will or otherwise. 77.20 (r) "Sums on deposit" means the balance payable on an account, including interest 77.21 and dividends earned, whether or not included in the current balance, and any deposit life 77.22 insurance proceeds added to the account by reason of death of a party. 77.23 (s) "Terms of the account" includes the deposit agreement and other terms and 77.24 conditions, including the form, of the contract of deposit. 77.25 Sec. 4. [524A.202] SCOPE OF CHAPTER. 77.26 (a) This chapter applies to accounts in this state. 77.27 (b) This chapter does not apply to: 77.28 (1) an account established for a partnership, joint venture, or other organization 77.29 for a business purpose; 77.30 (2) an account controlled by one or more persons as an agent or trustee for a 77.31 corporation, unincorporated association, or charitable or civic organization; or 77.32 (3) a fiduciary or trust account in which the relationship is established other than by 77.33 the terms of the account. 77.34 Article 5 Sec. 4. 77 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] Sec. 5. [524A.203] TYPES OF ACCOUNT; EXISTING ACCOUNTS. 78.1 (a) An account may be for a single party or multiple parties. A multiple-party 78.2 account may be with or without a right of survivorship between the parties. Subject to 78.3 section 524A.12, paragraph (c), either a single-party account or a multiple-party account 78.4 may have a POD designation, an agency designation, or both. 78.5 (b) An account established before, on, or after the effective date of this chapter, 78.6 whether in the form prescribed in section 524A.104 or any other form, is either a 78.7 single-party account or a multiple-party account, with or without right of survivorship, 78.8 and with or without a POD designation or an agency designation, within the meaning of 78.9 this chapter, and is governed by this chapter. 78.10 Sec. 6. [524A.204] FORMS. 78.11 (a) A contract of deposit that contains provisions in substantially the following form 78.12 establishes the type of account provided, and the account is governed by the provisions of 78.13 this chapter applicable to an account of that type: 78.14 UNIFORM SINGLE- OR MULTIPLE-PARTY ACCOUNT FORM 78.15 PARTIES [Name One or More Parties]: 78.16 _______________________ _______________________ 78.17 OWNERSHIP [Select One And Initial]: 78.18 ___ SINGLE-PARTY ACCOUNT 78.19 ___ MULTIPLE-PARTY ACCOUNT 78.20 Parties own account in proportion to net contributions unless there is 78.21 clear and convincing evidence of a different intent. 78.22 RIGHTS AT DEATH [Select One And Initial]: 78.23 ___ SINGLE-PARTY ACCOUNT 78.24 At death of party, ownership passes as part of party's estate. 78.25 ___ SINGLE-PARTY ACCOUNT WITH POD (PAY ON DEATH) 78.26 DESIGNATION 78.27 [Name One Or More Beneficiaries]: 78.28 _______________________ _______________________ 78.29 At death of party, ownership passes to POD beneficiaries and is not 78.30 part of party's estate. 78.31 ___ MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP 78.32 At death of party, ownership passes to surviving parties. 78.33 ___ MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP AND 78.34 POD (PAY ON DEATH) DESIGNATION 78.35 [Name One Or More Beneficiaries]: 78.36 _______________________ _______________________ 78.37 At death of last surviving party, ownership passes to POD beneficiaries 78.38 and is not part of last surviving party's estate. 78.39 Article 5 Sec. 6. 78 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] ___ MULTIPLE-PARTY ACCOUNT WITHOUT RIGHT OF 79.1 SURVIVORSHIP 79.2 At death of party, deceased party's ownership passes as part of 79.3 deceased party's estate. 79.4 AGENCY (POWER OF ATTORNEY) DESIGNATION [Optional] 79.5 Agents may make account transactions for parties but have no ownership or 79.6 rights at death unless named as POD beneficiaries. 79.7 [To Add Agency Designation To Account, Name One Or More Agents]: 79.8 ______________________ ______________________ 79.9 [Select One And Initial]: 79.10 _____ AGENCY DESIGNATION SURVIVES DISABILITY OR 79.11 INCAPACITY OF PARTIES 79.12 _____ AGENCY DESIGNATION TERMINATES ON DISABILITY OR 79.13 INCAPACITY OF PARTIES 79.14 (b) A contract of deposit that does not contain provisions in substantially the form 79.15 provided in paragraph (a) is governed by the provisions of this chapter applicable to the 79.16 type of account that most nearly conforms to the depositor's intent. 79.17 Sec. 7. [524A.205] DESIGNATION OF AGENT. 79.18 (a) By a writing signed by all parties, the parties may designate as agent of all parties 79.19 on an account a person other than a party. 79.20 (b) Unless the terms of an agency designation provide that the authority of the agent 79.21 terminates on disability or incapacity of a party, the agent's authority survives disability 79.22 and incapacity. The agent may act for a disabled or incapacitated party until the authority 79.23 of the agent is terminated. 79.24 (c) Death of the sole party or last surviving party terminates the authority of an agent. 79.25 Sec. 8. [524A.206] APPLICABILITY OF CHAPTER. 79.26 The provisions of sections 524A.211 to 524A.216 concerning beneficial ownership 79.27 as between parties or as between parties and beneficiaries apply only to controversies 79.28 between those persons and their creditors and other successors, and do not apply to the 79.29 right of those persons to payment as determined by the terms of the account. Sections 79.30 524A.222 to 524A.227 govern the liability and set-off rights of financial institutions 79.31 that make payments pursuant to it. 79.32 Sec. 9. [524A.211] OWNERSHIP DURING LIFETIME. 79.33 (a) In this section, "net contribution" of a party means the sum of all deposits to 79.34 an account made by or for the party, less all payments from the account made to or 79.35 for the party which have not been paid to or applied to the use of another party and a 79.36 Article 5 Sec. 9. 79 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] proportionate share of any charges deducted from the account, plus a proportionate share 80.1 of any interest or dividends earned, whether or not included in the current balance. The 80.2 term includes any deposit life insurance proceeds added to the account by reason of death 80.3 of the party whose net contribution is in question. 80.4 (b) During the lifetime of all parties, an account belongs to the parties in proportion 80.5 to the net contribution of each to the sums on deposit, unless there is clear and convincing 80.6 evidence of a different intent. As between parties married to each other, in the absence of 80.7 proof otherwise, the net contribution of each is presumed to be an equal amount. 80.8 (c) A beneficiary in an account having a POD designation has no right to sums on 80.9 deposit during the lifetime of any party. 80.10 (d) An agent in an account with an agency designation has no beneficial right 80.11 to sums on deposit. 80.12 Sec. 10. [524A.212] RIGHTS AT DEATH. 80.13 (a) Except as otherwise provided in this chapter, on death of a party sums on deposit 80.14 in a multiple-party account belong to the surviving party or parties. If two or more parties 80.15 survive and one is the surviving spouse of the decedent, the amount to which the decedent, 80.16 immediately before death, was beneficially entitled under section 524A.211 belongs to the 80.17 surviving spouse. If two or more parties survive and none is the surviving spouse of the 80.18 decedent, the amount to which the decedent, immediately before death, was beneficially 80.19 entitled under section 524A.211 belongs to the surviving parties in equal shares, and 80.20 augments the proportion to which each survivor, immediately before the decedent's death, 80.21 was beneficially entitled under section 524A.211, and the right of survivorship continues 80.22 between the surviving parties. 80.23 (b) In an account with a POD designation: 80.24 (1) On death of one of two or more parties, the rights in sums on deposit are 80.25 governed by paragraph (a). 80.26 (2) On death of the sole party or the last survivor of two or more parties, sums on 80.27 deposit belong to the surviving beneficiary or beneficiaries. If two or more beneficiaries 80.28 survive, sums on deposit belong to them in equal and undivided shares, and there is no 80.29 right of survivorship in the event of death of a beneficiary thereafter. If no beneficiary 80.30 survives, sums on deposit belong to the estate of the last surviving party. 80.31 (c) Sums on deposit in a single-party account without a POD designation, or in a 80.32 multiple-party account that, by the terms of the account, is without right of survivorship, 80.33 are not affected by death of a party, but the amount to which the decedent, immediately 80.34 before death, was beneficially entitled under section 524A.211 is transferred as part of 80.35 Article 5 Sec. 10. 80 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] the decedent's estate. A POD designation in a multiple-party account without right of 81.1 survivorship is ineffective. For purposes of this section, designation of an account as a 81.2 tenancy in common establishes that the account is without right of survivorship. 81.3 (d) The ownership right of a surviving party or beneficiary, or of the decedent's 81.4 estate, in sums on deposit is subject to requests for payment made by a party before the 81.5 party's death, whether paid by the financial institution before or after death, or unpaid. 81.6 The surviving party or beneficiary, or the decedent's estate, is liable to the payee of an 81.7 unpaid request for payment. The liability is limited to a proportionate share of the amount 81.8 transferred under this section, to the extent necessary to discharge the request for payment. 81.9 Sec. 11. [524A.213] ALTERATION OF RIGHTS. 81.10 (a) Rights at death under section 524A.212 are determined by the type of account 81.11 at the death of a party. The type of account may be altered by written notice given by a 81.12 party to the financial institution to change the type of account or to stop or vary payment 81.13 under the terms of the account. The notice must be signed by a party and received by the 81.14 financial institution during the party's lifetime. 81.15 (b) A right of survivorship arising from the express terms of the account, section 81.16 524A.212, or a POD designation, may not be altered by will. 81.17 Sec. 12. [524A.214] ACCOUNTS AND TRANSFERS NONTESTAMENTARY. 81.18 Except as provided in the statutes governing augmented estates or as a consequence 81.19 of, and to the extent directed by, section 524A.215, a transfer resulting from the application 81.20 of section 524A.212 is effective by reason of the terms of the account involved and this 81.21 chapter and is not testamentary or subject to estate administration. 81.22 Sec. 13. [524A.215] RIGHTS OF CREDITORS AND OTHERS. 81.23 (a) For the purpose of this section, a nonprobate transfer occurs if the last domicile 81.24 of a depositor whose interest is transferred under section 524A.212 was in this state. 81.25 (b) A transferee of a nonprobate transfer is subject to liability to any probate estate 81.26 of the decedent for allowed claims against that estate and statutory allowances to the 81.27 decedent's spouse and children to the extent the estate is insufficient to satisfy those claims 81.28 and allowances. The liability of a nonprobate transferee may not exceed the value of 81.29 nonprobate transfers received by that transferee. 81.30 (c) Nonprobate transferees are liable for the insufficiency described in paragraph (b) 81.31 in the following order of priority: 81.32 Article 5 Sec. 13. 81 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (1) a transferee designated in the decedent's will or any other governing instrument, 82.1 as provided in the instrument; 82.2 (2) the trustee of a trust serving as the principal nonprobate instrument in the 82.3 decedent's estate plan as shown by its designation as devisee of the decedent's residuary 82.4 estate or by other facts or circumstances, to the extent of the value of the nonprobate 82.5 transfer received; 82.6 (3) other nonprobate transferees, in proportion to the values received. 82.7 (d) A provision made in one instrument may direct the apportionment of the liability 82.8 among the nonprobate transferees taking under that or any other governing instrument. If 82.9 a provision in one instrument conflicts with a provision in another, the later one prevails. 82.10 (e) Upon due notice to a nonprobate transferee, the liability imposed by this section is 82.11 enforceable in proceedings in this state, whether or not the transferee is located in this state. 82.12 (f) A proceeding under this section may not be commenced unless the personal 82.13 representative of the decedent's estate has received a written demand for the proceeding 82.14 from the surviving spouse or a child, to the extent that statutory allowances are affected, 82.15 or a creditor. If the personal representative declines or fails to commence a proceeding 82.16 after demand, a person making demand may commence the proceeding in the name of the 82.17 decedent's estate, at the expense of the person making the demand and not of the estate. A 82.18 personal representative who declines in good faith to commence a requested proceeding 82.19 incurs no personal liability for declining. 82.20 (g) A proceeding under this section must be commenced within one year after the 82.21 decedent's death, but a proceeding on behalf of a creditor whose claim was allowed after 82.22 proceedings challenging disallowance of the claim may be commenced within 60 days 82.23 after final allowance of the claim. 82.24 (h) Unless a written notice asserting that a decedent's estate is insufficient to pay 82.25 allowed claims and statutory allowances has been received from the decedent's personal 82.26 representative, a trustee receiving a nonprobate transfer is released from liability under this 82.27 section with respect to any assets distributed to the trust's beneficiaries. Each beneficiary 82.28 to the extent of the distribution received becomes liable for the amount of the trustee's 82.29 liability attributable to assets received by the beneficiary. 82.30 (i) In this section: 82.31 (1) "child" includes any individual entitled to take as a child by intestate succession 82.32 from the parent whose relationship is involved and excludes any person who is only a 82.33 stepchild, a foster child, a grandchild, or any more remote descendant; and 82.34 (2) "claims," in respect to the estate of a decedent, includes liabilities of the decedent 82.35 whether arising in contract, tort or otherwise, and liabilities of the estate which arise at or 82.36 Article 5 Sec. 13. 82 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] after the death of the decedent, including funeral expenses and expenses of administration. 83.1 The term does not include estate or inheritance taxes, or demands or disputes regarding 83.2 title of a decedent to specific assets alleged to be included in the estate. 83.3 Sec. 14. [524A.216] COMMUNITY PROPERTY AND TENANCY BY THE 83.4 ENTIRETIES. 83.5 (a) A deposit of community property in an account does not alter the community 83.6 character of the property or community rights in the property, but a right of survivorship 83.7 between parties married to each other arising from the express terms of the account or 83.8 section 524A.212 may not be altered by will. 83.9 (b) This chapter does not affect the law governing tenancy by the entireties. 83.10 Sec. 15. [524A.221] AUTHORITY OF FINANCIAL INSTITUTION. 83.11 A financial institution may enter into a contract of deposit for a multiple-party 83.12 account to the same extent it may enter into a contract of deposit for a single-party 83.13 account, and may provide for a POD designation and an agency designation in either a 83.14 single-party account or a multiple-party account. A financial institution need not inquire 83.15 as to the source of a deposit to an account or as to the proposed application of a payment 83.16 from an account. 83.17 Sec. 16. [524A.222] PAYMENT ON MULTIPLE-PARTY ACCOUNT. 83.18 A financial institution, on request, may pay sums on deposit in a multiple-party 83.19 account to: 83.20 (1) one or more of the parties, whether or not another party is disabled, incapacitated, 83.21 or deceased when payment is requested and whether or not the party making the request 83.22 survives another party; or 83.23 (2) the personal representative, if any, or, if there is none, the heirs or devisees of a 83.24 deceased party if proof of death is presented to the financial institution showing that the 83.25 deceased party was the survivor of all other persons named on the account either as a party 83.26 or beneficiary, unless the account is without right of survivorship under section 524A.212. 83.27 Sec. 17. [524A.223] PAYMENT ON POD DESIGNATION. 83.28 A financial institution, on request, may pay sums on deposit in an account with a 83.29 POD designation to: 83.30 Article 5 Sec. 17. 83 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (1) one or more of the parties, whether or not another party is disabled, incapacitated, 84.1 or deceased when the payment is requested and whether or not a party survives another 84.2 party; 84.3 (2) the beneficiary or beneficiaries, if proof of death is presented to the financial 84.4 institution showing that the beneficiary or beneficiaries survived all persons named 84.5 as parties; or 84.6 (3) the personal representative, if any, or, if there is none, the heirs or devisees of 84.7 a deceased party, if proof of death is presented to the financial institution showing that 84.8 the deceased party was the survivor of all other persons named on the account either 84.9 as a party or beneficiary. 84.10 Sec. 18. [524A.224] PAYMENT TO DESIGNATED AGENT. 84.11 A financial institution, on request of an agent under an agency designation for an 84.12 account, may pay to the agent sums on deposit in the account, whether or not a party is 84.13 disabled, incapacitated, or deceased when the request is made or received, and whether or 84.14 not the authority of the agent terminates on the disability or incapacity of a party. 84.15 Sec. 19. [524A.225] PAYMENT TO MINOR. 84.16 If a financial institution is required or permitted to make payment pursuant to this 84.17 chapter to a minor designated as a beneficiary, payment may be made pursuant to the 84.18 Uniform Transfers to Minors Act. 84.19 Sec. 20. [524A.226] DISCHARGE. 84.20 (a) Payment made pursuant to this chapter in accordance with the type of account 84.21 discharges the financial institution from all claims for amounts so paid, whether or not 84.22 the payment is consistent with the beneficial ownership of the account as between 84.23 parties, beneficiaries, or their successors. Payment may be made whether or not a party, 84.24 beneficiary, or agent is disabled, incapacitated, or deceased when payment is requested, 84.25 received, or made. 84.26 (b) Protection under this section does not extend to payments made after a financial 84.27 institution has received written notice from a party, or from the personal representative, 84.28 surviving spouse, or heir or devisee of a deceased party, to the effect that payments in 84.29 accordance with the terms of the account, including one having an agency designation, 84.30 should not be permitted, and the financial institution has had a reasonable opportunity 84.31 to act on it when the payment is made. Unless the notice is withdrawn by the person 84.32 giving it, the successor of any deceased party must concur in a request for payment if the 84.33 Article 5 Sec. 20. 84 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] financial institution is to be protected under this section. Unless a financial institution has 85.1 been served with process in an action or proceeding, no other notice or other information 85.2 shown to have been available to the financial institution affects its right to protection 85.3 under this section. 85.4 (c) A financial institution that receives written notice pursuant to this section or 85.5 otherwise has reason to believe that a dispute exists as to the rights of the parties may 85.6 refuse, without liability, to make payments in accordance with the terms of the account. 85.7 (d) Protection of a financial institution under this section does not affect the rights 85.8 of parties in disputes between themselves or their successors concerning the beneficial 85.9 ownership of sums on deposit in accounts or payments made from accounts. 85.10 Sec. 21. [524A.227] SET-OFF. 85.11 Without qualifying any other statutory right to set-off or lien and subject to any 85.12 contractual provision, if a party is indebted to a financial institution, the financial 85.13 institution has a right to set-off against the account. The amount of the account subject 85.14 to set-off is the proportion to which the party is, or immediately before death was, 85.15 beneficially entitled under section 524A.211 or, in the absence of proof of that proportion, 85.16 an equal share with all parties. 85.17 Sec. 22. [524A.231] SHORT TITLE. 85.18 This chapter may be cited as the Uniform Multiple-Person Accounts Act. 85.19 Sec. 23. [524A.301] DEFINITIONS. 85.20 (a) The definitions in this section apply to sections 524A.301 to 524A.310. 85.21 (b) "Beneficiary form" means a registration of a security which indicates the present 85.22 owner of the security and the intention of the owner regarding the person who will become 85.23 the owner of the security upon the death of the owner. 85.24 (c) "Devisee" means any person designated in a will to receive a disposition of 85.25 real or personal property. 85.26 (d) "Heirs" means those persons, including the surviving spouse, who are entitled 85.27 under the statutes of intestate succession to the property of a decedent. 85.28 (e) "Person" means an individual, a corporation, an organization, or other legal entity. 85.29 (f) "Personal representative" includes executor, administrator, successor personal 85.30 representative, special administrator, and persons who perform substantially the same 85.31 function under the law governing their status. 85.32 Article 5 Sec. 23. 85 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (g) "Property" includes both real and personal property or any interest therein and 86.1 means anything that may be the subject of ownership. 86.2 (h) "Register," including its derivatives, means to issue a certificate showing the 86.3 ownership of a certificated security or, in the case of an uncertificated security, to initiate 86.4 or transfer an account showing ownership of securities. 86.5 (i) "Registering entity" means a person who originates or transfers a security title 86.6 by registration, and includes a broker maintaining security accounts for customers and a 86.7 transfer agent or other person acting for or as an issuer of securities. 86.8 (j) "Security" means a share, participation, or other interest in property, in a business, 86.9 or in an obligation of an enterprise or other issuer, and includes a certificated security, an 86.10 uncertificated security, and a security account. 86.11 (k) "Security account" means: 86.12 (1) a reinvestment account associated with a security, a securities account with a 86.13 broker, a cash balance in a brokerage account, cash, interest, earnings, or dividends earned 86.14 or declared on a security in an account, a reinvestment account, or a brokerage account, 86.15 whether or not credited to the account before the owner's death; or 86.16 (2) a cash balance or other property held for or due to the owner of a security as a 86.17 replacement for or product of an account security, whether or not credited to the account 86.18 before the owner's death. 86.19 (l) "State" includes any state of the United States, the District of Columbia, the 86.20 Commonwealth of Puerto Rico, and any territory or possession subject to the legislative 86.21 authority of the United States. 86.22 Sec. 24. [524A.302] REGISTRATION IN BENEFICIARY FORM; SOLE OR 86.23 JOINT TENANCY OWNERSHIP. 86.24 Only individuals whose registration of a security shows sole ownership by one 86.25 individual or multiple ownership by two or more with right of survivorship, rather than 86.26 as tenants in common, may obtain registration in beneficiary form. Multiple owners of a 86.27 security registered in beneficiary form hold as joint tenants with right of survivorship, as 86.28 tenants by the entireties, or as owners of community property held in survivorship form, 86.29 and not as tenants in common. 86.30 Sec. 25. [524A.303] REGISTRATION IN BENEFICIARY FORM; APPLICABLE 86.31 LAW. 86.32 A security may be registered in beneficiary form if the form is authorized by this or a 86.33 similar statute of the state of organization of the issuer or registering entity, the location of 86.34 Article 5 Sec. 25. 86 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] the registering entity's principal office, the office of its transfer agent or its office making 87.1 the registration, or by this or a similar statute of the law of the state listed as the owner's 87.2 address at the time of registration. A registration governed by the law of a jurisdiction 87.3 in which this or similar legislation is not in force or was not in force when a registration 87.4 in beneficiary form was made is nevertheless presumed to be valid and authorized as 87.5 a matter of contract law. 87.6 Sec. 26. [524A.304] ORIGINATION OF REGISTRATION IN BENEFICIARY 87.7 FORM. 87.8 A security, whether evidenced by certificate or account, is registered in beneficiary 87.9 form when the registration includes a designation of a beneficiary to take the ownership at 87.10 the death of the owner or the deaths of all multiple owners. 87.11 Sec. 27. [524A.305] FORM OF REGISTRATION IN BENEFICIARY FORM. 87.12 Registration in beneficiary form may be shown by the words "transfer on death" or 87.13 the abbreviation "TOD," or by the words "pay on death" or the abbreviation "POD," after 87.14 the name of the registered owner and before the name of a beneficiary. 87.15 Sec. 28. [524A.306] EFFECT OF REGISTRATION IN BENEFICIARY FORM. 87.16 The designation of a TOD beneficiary on a registration in beneficiary form has no 87.17 effect on ownership until the owner's death. A registration of a security in beneficiary 87.18 form may be canceled or changed at any time by the sole owner or all then surviving 87.19 owners without the consent of the beneficiary. 87.20 Sec. 29. [524A.307] OWNERSHIP ON DEATH OF OWNER. 87.21 On death of a sole owner or the last to die of all multiple owners, ownership of 87.22 securities registered in beneficiary form passes to the beneficiary or beneficiaries who 87.23 survive all owners. On proof of death of all owners and compliance with any applicable 87.24 requirements of the registering entity, a security registered in beneficiary form may be 87.25 reregistered in the name of the beneficiary or beneficiaries who survived the death of all 87.26 owners. Until division of the security after the death of all owners, multiple beneficiaries 87.27 surviving the death of all owners hold their interests as tenants in common. If no 87.28 beneficiary survives the death of all owners, the security belongs to the estate of the 87.29 deceased sole owner or the estate of the last to die of all multiple owners. 87.30 Sec. 30. [524A.308] PROTECTION OF REGISTERING ENTITY. 87.31 Article 5 Sec. 30. 87 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (a) A registering entity is not required to offer or to accept a request for security 88.1 registration in beneficiary form. If a registration in beneficiary form is offered by a 88.2 registering entity, the owner requesting registration in beneficiary form assents to the 88.3 protections given to the registering entity by sections 524A.301 to 524A.310. 88.4 (b) By accepting a request for registration of a security in beneficiary form, the 88.5 registering entity agrees that the registration will be implemented on death of the deceased 88.6 owner as provided in sections 524A.301 to 524A.310. 88.7 (c) A registering entity is discharged from all claims to a security by the estate, 88.8 creditors, heirs, or devisees of a deceased owner if it registers a transfer of the security 88.9 in accordance with section 524A.307 and does so in good faith reliance on (1) the 88.10 registration, (2) sections 524A.301 to 524A.310, and (3) information provided to it 88.11 by affidavit of the personal representative of the deceased owner, or by the surviving 88.12 beneficiary or by the surviving beneficiary's representatives, or other information available 88.13 to the registering entity. The protections of sections 524A.301 to 524A.310 do not 88.14 extend to a reregistration or payment made after a registering entity has received written 88.15 notice from any claimant to any interest in the security objecting to implementation of 88.16 a registration in beneficiary form. No other notice or other information available to the 88.17 registering entity affects its right to protection under sections 524A.301 to 524A.310. 88.18 (d) The protection provided by sections 524A.301 to 524A.310 to the registering 88.19 entity of a security does not affect the rights of beneficiaries in disputes between 88.20 themselves and other claimants to ownership of the security transferred or its value or 88.21 proceeds. 88.22 Sec. 31. [524A.309] NONTESTAMENTARY TRANSFER ON DEATH. 88.23 A transfer on death resulting from a registration in beneficiary form is effective by 88.24 reason of the contract regarding the registration between the owner and the registering 88.25 entity and sections 524A.301 to 524A.310 and is not testamentary. 88.26 Sec. 32. [524A.310] TERMS, CONDITIONS, AND FORMS FOR 88.27 REGISTRATION. 88.28 (a) A registering entity offering to accept registrations in beneficiary form may 88.29 establish the terms and conditions under which it will receive requests (1) for registrations 88.30 in beneficiary form, and (2) for implementation of registrations in beneficiary form, 88.31 including requests for cancellation of previously registered TOD beneficiary designations 88.32 and requests for reregistration to effect a change of beneficiary. The terms and conditions 88.33 so established may provide for proving death, avoiding or resolving any problems 88.34 Article 5 Sec. 32. 88 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] concerning fractional shares, designating primary and contingent beneficiaries, and 89.1 substituting a named beneficiary's descendants to take in the place of the named beneficiary 89.2 in the event of the beneficiary's death. Substitution may be indicated by appending to the 89.3 name of the primary beneficiary the letters LDPS, standing for "lineal descendants per 89.4 stirpes." This designation substitutes a deceased beneficiary's descendants who survive 89.5 the owner for a beneficiary who fails to so survive, the descendants to be identified 89.6 and to share in accordance with the law of the beneficiary's domicile at the owner's 89.7 death governing inheritance by descendants of an intestate. Other forms of identifying 89.8 beneficiaries who are to take on one or more contingencies, and rules for providing proofs 89.9 and assurances needed to satisfy reasonable concerns by registering entities regarding 89.10 conditions and identities relevant to accurate implementation of registrations in beneficiary 89.11 form, may be contained in a registering entity's terms and conditions. 89.12 (b) The following are illustrations of registrations in beneficiary form which a 89.13 registering entity may authorize: 89.14 (1) Sole owner-sole beneficiary: John S Brown TOD (or POD) John S Brown Jr. 89.15 (2) Multiple owners-sole beneficiary: John S Brown Mary B Brown JT TEN TOD 89.16 John S Brown Jr. 89.17 (3) Multiple owners-primary and secondary (substituted) beneficiaries: John S 89.18 Brown Mary B Brown JT TEN TOD John S Brown Jr SUB BENE Peter Q Brown or John 89.19 S Brown Mary B Brown JT TEN TOD John S Brown Jr LDPS. 89.20 Sec. 33. [524A.311] UNIFORMITY OF APPLICATION AND CONSTRUCTION. 89.21 This chapter shall be applied and construed to effectuate its general purpose to make 89.22 uniform the law with respect to the subject of this chapter among states enacting it. 89.23 Sec. 34. [524A.312] SUPPLEMENTARY GENERAL PRINCIPLES OF LAW 89.24 APPLICABLE. 89.25 Unless displaced by the particular provisions of this chapter, the principles of law 89.26 and equity supplement its provisions. 89.27 Sec. 35. REPEALER. 89.28 Minnesota Statutes 2008, sections 524.6-201; 524.6-202; 524.6-203; 524.6-204; 89.29 524.6-205; 524.6-206; 524.6-207; 524.6-208; 524.6-209; 524.6-210; 524.6-211; 89.30 524.6-212; 524.6-213; and 524.6-214, are repealed. 89.31 Sec. 36. EFFECTIVE DATE. 89.32 Article 5 Sec. 36. 89 S.F. No. 369, as introduced - 86th Legislative Session (2009-2010) [09-0050] (a) This article is effective January 1, 2010. 90.1 (b) On January 1, 2010: 90.2 (1) an act done before January 1, 2010, and any accrued right is not impaired by 90.3 this article. If a right is acquired, extinguished, or barred on the expiration of a prescribed 90.4 period of time that has commenced to run by the provisions of any statute before January 90.5 1, 2010, the provisions shall remain in force with respect to that right; and 90.6 (2) any rule of construction or presumption provided in this chapter applies to 90.7 accounts established before January 1, 2010, unless there is a clear indication of a contrary 90.8 intent. 90.9 (c) The rights of a party, beneficiary, or creditor in an account established before 90.10 January 1, 2010, are governed by the law applicable before January 1, 2010, for a period 90.11 of one year after January 1, 2010, and thereafter are governed by this chapter. 90.12 Article 5 Sec. 36. 90 APPENDIX Article locations in 09-0050 ARTICLE 1 UNIFORM PROBATE CODE AMENDMENTS ................................. Page.Ln 1.17 ARTICLE 2 UNIFORM ESTATE TAX APPORTIONMENT ACT ......................... Page.Ln 23.23 ARTICLE 3 UNIFORM DISCLAIMER OF PROPERTY INTERESTS ACT ......... Page.Ln 33.31 ARTICLE 4 UNIFORM POWER OF ATTORNEY ACT ......................................... Page.Ln 42.14 ARTICLE 5 UNIFORM MULTIPLE-PERSON ACCOUNTS ACT ........................ Page.Ln 74.1 1 APPENDIX Repealed Minnesota Statutes: 09-0050 501B.86 DISCLAIMER OF INTERESTS PASSING BY DEED, ASSIGNMENT, UNDER CERTAIN NONTESTAMENTARY INSTRUMENTS, OR UNDER CERTAIN POWERS OF APPOINTMENT. Subdivision 1. Definitions. As used in this section, unless otherwise clearly required by the context: (a) "beneficiary" means a person entitled, but for the person's disclaimer, to take an interest: (1) as grantee; (2) as donee; (3) under an assignment or instrument of conveyance or transfer; (4) by succession to a disclaimed interest, other than by will, intestate succession, or through the exercise or nonexercise of a testamentary power of appointment; (5) as beneficiary of an inter vivos trust or insurance contract; (6) pursuant to the exercise or nonexercise of a nontestamentary power of appointment; (7) as donee of a power of appointment created by a nontestamentary instrument; or (8) otherwise under a nontestamentary instrument; (b) "interest" means: (1) the whole of any property, real or personal, legal or equitable; (2) a fractional part, share, particular portion, or specific assets of property; (3) an estate in property; (4) a power to appoint, consume, apply, or expend property; or (5) any other right, power, privilege, or immunity relating to property; and (c) "disclaimer" means a written instrument that declines, refuses, releases, or disclaims an interest that would otherwise be succeeded to by a beneficiary, if the instrument defines the nature and extent of the interest disclaimed and is signed, witnessed, and acknowledged by the disclaimant in the manner provided for deeds of real estate. Subd. 2. Who may disclaim. A beneficiary may disclaim an interest in whole or in part, or with reference to specific parts, shares, portions, or assets, by filing a disclaimer in court in the manner provided in this section. A guardian or conservator of the estate of a minor or an incapacitated person under sections 524.5-101 to 524.5-502, the Uniform Guardianship and Protective Proceedings Act, or the personal representative of the estate of a deceased beneficiary may execute and file a disclaimer on behalf of the beneficiary if that representative considers it not detrimental to the best interests of the beneficiary and in the best interests of those interested in the beneficiary's estate and of those who take the beneficiary's interest by virtue of the disclaimer. The representative may file the disclaimer with or without a court order within the time specified in subdivision 3. A beneficiary may file a disclaimer by an attorney or attorney-in-fact. Subd. 3. Filing deadline. A disclaimer under subdivision 2 may be filed at any time after the creation of the interest, but it must be filed within nine months after the effective date of the nontestamentary instrument creating the interest, or, if the disclaimant is not then finally ascertained as a beneficiary or the disclaimant's interest has not then become indefeasibly fixed both in quality and in quantity, the disclaimer must be filed not later than nine months after the event that would cause the disclaimant to become finally ascertained and the interest to become indefeasibly fixed both in quality and quantity. Subd. 4. Effective date. (a) A disclaimer under subdivision 2 is effective on being filed in a district court of the state of Minnesota. A copy of the disclaimer must be delivered or mailed to the trustee of a trust in which the interest disclaimed exists or to any other person who has legal title to, or possession of, the property in which the interest disclaimed exists. The trustee or person is not liable for any otherwise proper distribution or other disposition made without actual notice of the disclaimer. (b) If an interest in or relating to real estate is disclaimed, the original of the disclaimer, or a copy of the disclaimer certified as true and complete by the court administrator of the district court where the disclaimer has been filed, must also be filed with the county recorder or with the registrar of titles, as appropriate, in the county or counties where the real estate is situated. The filed disclaimer is notice to all persons after the time of filing. If title to the real estate has not been registered under chapter 508, the disclaimer or certified copy must be filed with the county recorder. If title to the real estate has been registered under chapter 508, the disclaimer or certified copy must be filed with the registrar of titles. Subd. 5. Distribution of disclaimed property. Unless otherwise provided in the nontestamentary instrument creating the interest with reference to the possibility of a disclaimer by the beneficiary, the interest disclaimed must be distributed or otherwise disposed of in the same manner as if the disclaimant had died immediately preceding the death or other event that 1R APPENDIX Repealed Minnesota Statutes: 09-0050 causes the disclaimant to become finally ascertained as a beneficiary and the interest to become indefeasibly fixed both in quality and quantity. The disclaimer relates for all purposes to that date, whether filed before or after the death or other event. Unless the disclaimer provides otherwise, a person disclaiming an interest in a nonresiduary gift under a trust instrument or otherwise is not excluded from sharing in a gift of the residue even though, through lapse, the residue includes the assets disclaimed. Subd. 6. Bars to right to disclaim. The right to disclaim is barred if the beneficiary: (1) is insolvent; (2) assigns or transfers, or contracts to assign or transfer, an interest in the property to be disclaimed; (3) in writing, waives the right to disclaim the succession to an interest in the property; or (4) sells or otherwise disposes of an interest in the property. Subd. 7. Effect of restrictions. The right to disclaim granted by this section exists despite a limitation imposed on the interest of the disclaimant in the nature of an express or implied spendthrift provision or similar restriction. A disclaimer, when filed under this section, or a written waiver of the right to disclaim, is binding on the disclaimant or waiving beneficiary and all parties later claiming by, through, or under the disclaimant or waiving beneficiary, except that a waiving beneficiary may later transfer, assign, or release the waiving beneficiary's interest if it is not prohibited by an express or implied spendthrift provision. If an interest in real estate is disclaimed and the disclaimer is filed in accordance with subdivision 4, the spouse of the disclaimant, if the spouse has consented to the disclaimer in writing, is automatically debarred from the spouse's statutory or common law right or estate by curtesy or in dower or otherwise in the real estate to which the spouse, except for the disclaimer, would have been entitled. Subd. 8. Other law. This section does not abridge the right of a person, apart from this section, under an existing or future statute or rule of law, to disclaim an interest or to assign, convey, release, renounce, or otherwise dispose of an interest. Subd. 9. Interests in existence on May 22, 1965. If an interest existed on May 22, 1965, it may be disclaimed under this section if it had not then become indefeasibly fixed both in quality and quantity or if its taker had not then become finally ascertained. Subd. 10. Bank deposits. The survivor or survivors of a bank deposit held in the names of the decedent and the survivor or survivors may at any time disclaim that interest by authorizing the inclusion of the proceeds of the bank deposit in the inventory and appraisal required by law to be filed by the representative or executor of the estate of the decedent. For purposes of this subdivision, "bank deposit" includes a checking or savings account or time deposit in any financial institution authorized to accept deposits. 523.01 AUTHORIZATION. A person who is a competent adult may, as principal, designate another person or an authorized corporation as the person's attorney-in-fact by a written power of attorney. The power of attorney is validly executed when it is dated and signed by the principal and, in the case of a signature on behalf of the principal, by another, or by a mark, acknowledged by a notary public. Only powers of attorney validly created pursuant to this section or section 523.02 are validly executed powers of attorney for the purposes of sections 523.01 to 523.24. 523.02 COMMON LAW, PREEXISTING AND FOREIGN POWERS OF ATTORNEY. A written power of attorney is a validly executed power of attorney for the purposes of sections 523.01 to 523.24, and is subject to the provisions of sections 523.01 to 523.24, if it is validly created pursuant to: (1) the law of Minnesota as it existed prior to the enactment of sections 523.01 to 523.24 if it was executed prior to August 1, 1984; (2) the common law; or (3) the law of another state or country. A power of attorney executed before August 1, 1992, in conformity with section 523.23 as that statute existed before that date is a statutory short form power of attorney. A power of attorney executed on or after August 1, 1992, in conformity with section 523.23 as it exists on or after that date is a statutory short form power of attorney. A provision in a power of attorney that would make it a durable power of attorney under section 523.07 but for its use of the term "disability" in place of "incapacity or incompetence" is nonetheless a durable power of attorney. 523.03 DEFINITIONS. As used in this chapter: (1) "incapacity" means cause for appointment of a guardian or conservator of an adult under sections 524.5-101 to 524.5-502; 2R APPENDIX Repealed Minnesota Statutes: 09-0050 (2) "principal" includes a guardian or conservator appointed for the principal at any time; and (3) "power of attorney" means a validly executed power of attorney. 523.04 PRESUMPTION OF VALID EXECUTION. A written power of attorney that is dated and purports to be signed by the principal named in it is presumed to be valid. All parties may rely on this presumption except those who have actual knowledge that the power was not validly executed. 523.05 RECORDING. If the exercise of the power of attorney requires execution and delivery of any instrument which is recordable, the power of attorney and any affidavit authorized under sections 523.01 to 523.24 when authenticated for record in conformity with section 507.24, are also recordable. 523.06 CERTIFICATION. A certified copy of a power of attorney has the same force and effect as a power of attorney bearing the signature of the principal. A copy of a power of attorney may be certified by an official of a state or of a political subdivision of a state who is authorized to make certifications. The certification shall state that the certifying official has examined an original power of attorney and the copy and that the copy is a true and correct copy of the original power of attorney. 523.07 DURABLE POWER OF ATTORNEY. A power of attorney is durable if it contains language such as "This power of attorney shall not be affected by incapacity or incompetence of the principal" or "This power of attorney shall become effective upon the incapacity or incompetence of the principal," or similar words showing the intent of the principal that the authority conferred is exercisable notwithstanding the principal's later incapacity or incompetence. 523.075 EXPIRATION DATE IN A POWER OF ATTORNEY. In a power of attorney, an expiration date, if any, must be stated in terms of a specific month, day, and year. An expiration date stated in any other way has no effect. 523.08 TERMINATION OF A DURABLE POWER. A durable power of attorney terminates on the earliest to occur of the death of the principal, the expiration of a date of termination specified in the power of attorney, or, in the case of a power of attorney to the spouse of the principal, upon the commencement of proceedings for dissolution, separation, or annulment of the principal's marriage. 523.09 TERMINATION OF A NONDURABLE POWER OF ATTORNEY. A nondurable power of attorney terminates on the death of the principal, the incapacity or incompetence of the principal, the expiration of a date of termination specified in the power of attorney, or, in the case of a power of attorney to the spouse of the principal, upon the commencement of proceedings for dissolution, separation, or annulment of the principal's marriage. 523.10 MISSING PERSONS PRESUMED LIVING. For purposes of this chapter, a missing person is presumed to be living until actual proof of death or legal adjudication of death occurs. 523.11 REVOCATION OF A POWER. Subdivision 1. Manner. An executed power of attorney may be revoked only by a written instrument of revocation signed by the principal and, in the case of a signature on behalf of the principal by another or a signature by a mark, acknowledged before a notary public. The conservator or guardian of the principal has the same power the principal would have if the 3R APPENDIX Repealed Minnesota Statutes: 09-0050 principal were not incapacitated or incompetent to revoke, suspend, or terminate all or any part of the power of attorney. Subd. 2. Effect; definition of actual notice of revocation. Revocation of an executed power of attorney is not effective as to any party unless that party has actual notice of the revocation. As used in this chapter, "actual notice of revocation" means that a written instrument of revocation has been received by the party. In real property transactions only, "actual notice of revocation" means that a written instrument of revocation has been received by the party, or that a written instrument of revocation containing the legal description of the real property has been recorded in the office of the county recorder or filed in the office of the registrar of titles. Recorded or filed revocation is actual notice of revocation of a power of attorney only as to any interest in real property described in the revocation and located in the county where it is recorded. Subd. 3. Presumptions. A written instrument of revocation that purports to be signed by the principal named in the power of attorney is presumed to be valid. Any party receiving the written instrument of revocation may rely on this presumption and is not liable for later refusing to accept the authority of the attorney-in-fact. Subd. 4. Transferee affidavit of nonrevocation. In the case of a conveyance of an interest in property, an affidavit signed by an initial transferee of the interest of the principal stating that the initial transferee had not received, at the time of the conveyance, a written instrument of revocation of the power of attorney, constitutes conclusive proof as to all subsequent transferees that no written instrument of revocation was received by the initial transferee, except as to a subsequent transferee who commits an intentional fraud. 523.12 POWER OF ATTORNEY-IN-FACT TO BIND PRINCIPAL. Any action taken by the attorney-in-fact pursuant to the power of attorney binds the principal, the principal's heirs and assigns, and the representative of the estate of the principal in the same manner as though the action was taken by the principal, and, during any time while a guardian or conservator has been appointed for the principal and only the guardian or conservator has the power to take relevant action, as though the action was taken by the guardian or conservator. 523.13 MULTIPLE ATTORNEYS-IN-FACT. Unless it is provided to the contrary in a power of attorney which authorizes two or more attorneys-in-fact to act on behalf of a principal, any action taken by any one of the several attorneys-in-fact pursuant to the power of attorney, whether the other attorneys-in-fact consent or object to the action, binds the principal, the principal's heirs and assigns, and the representative of the estate of the principal in the same manner as though the action was taken by the principal, and, during any time while a guardian or conservator has been appointed for the principal and only the guardian or conservator has the power to take the relevant action, as though the action was taken by the guardian or conservator. 523.131 QUALIFICATION OF SUCCESSOR ATTORNEY-IN-FACT IN STATUTORY SHORT FORM POWER OF ATTORNEY. If two or more attorneys-in-fact are originally appointed and one dies, resigns, or is unable to serve, a successor attorney-in-fact named in a power of attorney executed in conformity with section 523.23 replaces the attorney-in-fact who dies, resigns, or is unable to serve. If the original attorneys-in-fact were required to act jointly, the attorneys-in-fact acting at any time must act jointly. If the original attorneys-in-fact were allowed to act individually, the attorneys-in-fact acting at any time may act individually. If attorneys-in-fact acting at any time are required to act jointly, and there is only one remaining attorney-in-fact because of the death, resignation, or inability to serve of all other original and successor attorneys-in-fact, the remaining attorney-in-fact may act alone. 523.14 SUCCESSOR ATTORNEY-IN-FACT NOT LIABLE FOR ACTS OF PREDECESSOR. 4R APPENDIX Repealed Minnesota Statutes: 09-0050 An attorney-in-fact who is named in a power of attorney to succeed an attorney-in-fact who dies, resigns, or otherwise is unable to serve, is not liable for any action taken by the predecessor attorney-in-fact. 523.15 CO-ATTORNEYS-IN-FACT NOT LIABLE FOR ACTS OF EACH OTHER. When two or more attorneys-in-fact are authorized to act on behalf of a principal, an attorney-in-fact who did not join in or consent to the action of one or more co-attorneys-in-fact is not liable for that action. Failure to object to an action is not consent. 523.16 AFFIDAVIT AS PROOF OF AUTHORITY OF ATTORNEY-IN-FACT. If the attorney-in-fact exercising a power pursuant to a power of attorney has authority to act as a result of the death, incompetency, or resignation of one or more attorneys-in-fact named in the power of attorney, an affidavit executed by the attorney-in-fact setting forth the conditions precedent to the attorney-in-fact's authority to act under the power of attorney and stating that those conditions have occurred is conclusive proof as to any party relying on the affidavit of the occurrence of those conditions. 523.17 AFFIDAVIT OF ATTORNEY-IN-FACT AS CONCLUSIVE PROOF OF NONTERMINATION AND NONREVOCATION IN REAL PROPERTY TRANSACTIONS. Subdivision 1. Form of affidavit. An affidavit of nontermination or nonrevocation in support of a real property transaction may be substantially in the following form: AFFIDAVIT BY ATTORNEY IN FACT STATE OF MINNESOTA ) ) ss. COUNTY OF ) ............................., being first duly sworn on oath says that: 1. Affiant is the Attorney-in-Fact (or agent) named in that certain Power of Attorney dated ................, ............, and filed for record ................, ............, as Document No. ............ (or in Book ............... of ............ Page ............), in the Office of the (County Recorder) (Registrar of Titles) of ..................... County, Minnesota, executed by ............................................... as Grantor and Principal, relating to real property in ......................... County, Minnesota, legally described as follows: ............................................................................................................................................. ........................................................................................................................................................... ........................................................................................................................................................... (If more space is needed, continue on back or on an attachment.) 2. Affiant does not have actual knowledge and has not received actual notice of the revocation or termination of the Power of Attorney by Grantor's death, incapacity, incompetence, or otherwise, or notice of any facts indicating the same. 3. Affiant has examined the legal description(s) if any, attached to said Power of Attorney, and certifies that the description(s) has (have) not been changed, replaced, or amended subsequent to the signing of said Power of Attorney by the Principal. ...................................................................... , Affiant Subscribed and sworn to before me this ..................day of .................. , .................. ...................................................................... Notary Stamp or Seal Signature of Notary Public or Other Official This instrument was drafted by: ............................................................................ 5R APPENDIX Repealed Minnesota Statutes: 09-0050 ............................................................................ ............................................................................ Subd. 2. Effect. An affidavit by the attorney-in-fact under subdivision 1 is conclusive proof that the power of attorney has not terminated or been revoked, and that the powers granted extended to the property described in the power of attorney or any attachment to it, as of the time of the exercise of the power, as to any party relying on the affidavit except any party dealing directly with the attorney-in-fact who has actual knowledge that the power of attorney had terminated prior to the exercise of the power or actual notice of the revocation of the power of attorney or actual knowledge that the powers do not extend to the real property legally described in the power of attorney, including any attachment. 523.18 SIGNATURE OF ATTORNEY-IN-FACT AS CONCLUSIVE PROOF OF NONTERMINATION. In the exercise of a power granted by a power of attorney, other than in a transaction relating to real property described in section 523.17, a signature by a person as "attorney-in-fact for (Name of the principal)" or "(Name of the principal) by (Name of the attorney-in-fact) the principal's attorney-in-fact" or any similar written disclosure of the principal and attorney-in-fact relationship constitutes an attestation by the attorney-in-fact that the attorney-in-fact did not have, at the time of signing, actual knowledge of the termination of the power of attorney by the death of the principal or, in the case of a power of attorney to the spouse of the principal, by the commencement of proceedings for dissolution, separation, or annulment of the principal's marriage, or, if the power is one which terminates upon incapacity or incompetence of the principal, actual knowledge of the principal's incapacity or incompetence, or actual notice of the revocation of the power of attorney, and is conclusive proof as to any party relying on the attestation that the power of attorney had not terminated or been revoked at the time of the signature by the attorney-in-fact on behalf of the principal except as to any party who has actual knowledge that the power of attorney had terminated prior to the signature or actual notice of the revocation of the power of attorney. 523.19 THIRD PARTIES HELD HARMLESS. Any party accepting the authority of an attorney-in-fact to exercise a power granted by a power of attorney is not liable to the principal, to the heirs and assigns of the principal, or to any representative of the estate of the principal if: (1) the applicable provisions of sections 523.17 and 523.18 have been satisfied; (2) the provisions of section 523.16 have been satisfied, if applicable; (3) the party has no actual notice of the revocation of the power of attorney prior to the transaction; (4) the party has no actual knowledge of the death of the principal and, if the power of attorney is not a durable power of attorney, has not received actual notice of a judicial determination that the principal is legally incapacitated or incompetent; and (5) the duration of the power of attorney specified in the power of attorney itself, if any, has not expired. A good faith purchaser from any party who has obtained an interest in property from an attorney-in-fact is not liable to the principal, the heirs or assigns of the principal, or the representative of the estate of the principal. 523.20 LIABILITY OF PARTIES REFUSING AUTHORITY OF ATTORNEY-IN-FACT TO ACT ON PRINCIPAL'S BEHALF. Any party refusing to accept the authority of an attorney-in-fact to exercise a power granted by a power of attorney which (1) is executed in conformity with section 523.23; (2) contains a specimen signature of the attorney-in-fact authorized to act; (3) with regard to the execution or delivery of any recordable instrument relating to real property, is accompanied by affidavits that satisfy the provisions of section 523.17; (4) with regard to any other transaction, is signed by the attorney-in-fact in a manner conforming to section 523.18; and (5) when applicable, is accompanied by an affidavit and any other document required by section 523.16, is liable to the principal and to the principal's heirs, assigns, and representative of the estate of the principal in the same manner as the party would be liable had the party refused to accept the authority of the principal to act on the principal's own behalf unless: (1) the party has actual notice of the revocation of the power of attorney prior to the exercise of the power; (2) the duration of the power of attorney specified in the power of attorney itself has expired; or (3) the party has actual knowledge of the death of the principal or, if the power of attorney is not a durable power of attorney, actual notice of a judicial determination that the principal is legally incompetent. 6R APPENDIX Repealed Minnesota Statutes: 09-0050 This provision does not negate any liability which a party would have to the principal or to the attorney-in-fact under any other form of power of attorney under the common law or otherwise. 523.21 DUTIES OF AN ATTORNEY-IN-FACT. The attorney-in-fact shall keep complete records of all transactions entered into by the attorney-in-fact on behalf of the principal. The attorney-in-fact has no duty to render an accounting of those transactions unless: (1) requested to do so at any time by the principal; (2) the instrument conferring the power of attorney requires that the attorney-in-fact render accountings and specifies to whom the accounting must be delivered; or (3) the attorney-in-fact has reimbursed the attorney-in-fact for any expenditure the attorney-in-fact has made on behalf of the principal. A written statement that gives reasonable notice of all transactions entered into by the attorney-in-fact on behalf of the principal is an adequate accounting. The persons entitled to examine and copy the records of the attorney-in-fact are the principal, a person designated by the principal in the document creating the power of attorney as the recipient of accountings required by this section, and the guardian or conservator of the estate of the principal while the principal is living and the personal representative of the estate of the principal after the death of the principal. The attorney-in-fact has no affirmative duty to exercise any power conferred upon the attorney-in-fact under the power of attorney. In exercising any power conferred by the power of attorney, the attorney-in-fact shall exercise the power in the same manner as an ordinarily prudent person of discretion and intelligence would exercise in the management of the person's own affairs and shall have the interests of the principal utmost in mind. The attorney-in-fact is personally liable to any person, including the principal, who is injured by an action taken by the attorney-in-fact in bad faith under the power of attorney or by the attorney-in-fact's failure to account when the attorney-in-fact has a duty to account under this section. 523.22 LIABILITY OF ATTORNEY-IN-FACT FOR IMPROPER EXECUTION OF AFFIDAVITS AND SIGNATURE. Nothing in sections 523.01 to 523.24 limits any rights the principal may have against the attorney-in-fact for any fraudulent or negligent actions in executing affidavits or signing or acting on behalf of the principal as an attorney-in-fact. An attorney-in-fact who knowingly executes a false affidavit or, knowing that the conditions of section 523.18 are not satisfied, signs on behalf of the principal is liable for treble the amount of damages suffered by the principal. 523.23 STATUTORY SHORT FORM OF GENERAL POWER OF ATTORNEY; FORMAL REQUIREMENTS; JOINT AGENTS. 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) ............................................................................. ............................................................................. ............................................................................. ATTORNEY(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 ............................................. 7R APPENDIX Repealed Minnesota Statutes: 09-0050 ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... 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.) .......... (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.) ................................................................................................................................... ................................................................................................................................... ............................................................................................................................................................. ................................................................................................................................... ................................................................................................................................... ................................................................................................................................... (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.) 8R APPENDIX Repealed Minnesota Statutes: 09-0050 .......... 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 ................ , ................ ............................................................................ (Signature of Principal) (Acknowledgment of Principal) STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this ..... day of .........., ........, by ............................................................................. (Insert Name of Principal) ...................................................................... (Signature of Notary Public or other Official) This instrument was drafted by: Specimen Signature of Attorney(s)-in-Fact (Notarization not required) ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... Subd. 2. Failure to check or "X" a power. Any of the powers of the form in subdivision 1 which is not checked or X-ed is withheld by the principal from the attorney-in-fact unless the power of (N) of the form in subdivision 1 is checked or X-ed. Subd. 3. Requirements. To constitute a "statutory short form power of attorney," as this phrase is used in this chapter the wording and content of the form in subdivision 1 must be 9R APPENDIX Repealed Minnesota Statutes: 09-0050 duplicated exactly and with no modifications, parts First, Second, and Third must be properly completed, and the signature of the principal must be acknowledged. Failure to name a successor attorney-in-fact, to provide an expiration date, or to complete part Fourth does not invalidate the power as a statutory short form power of attorney. A power of attorney that does not satisfy the requirements of this subdivision, but purports to be a statutory short form power of attorney, may constitute a common law power of attorney that incorporates by reference the definitions of powers contained in section 523.24; however, a party refusing to accept the authority of the common law attorney-in-fact is not liable under section 523.20. Subd. 3a. Legal description. Use of a street address instead of a legal description under the power of (A) in part First of the statutory short form power of attorney invalidates the power of (A) for all real property transactions, but does not affect the powers of (B) to (M), nor does it affect the power of (N) except with respect to real property transactions. Subd. 4. Powers of attorney-in-fact. All powers enumerated in section 523.24 may be legally performed by an attorney-in-fact acting on behalf of a principal. Subd. 5. Reimbursement of attorney-in-fact. The attorney-in-fact acting under a statutory short form power of attorney is authorized to reimburse the attorney-in-fact for expenditures the attorney-in-fact has made on behalf of the principal even if the principal has not authorized the attorney-in-fact to receive transfers directly under part Third. In the event a reimbursement is made, the attorney-in-fact shall render an accounting in accordance with section 523.21. 523.24 CONSTRUCTION. 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 10R APPENDIX Repealed Minnesota Statutes: 09-0050 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. Subd. 2. Tangible personal property transactions. In a statutory short form power of attorney, the language conferring general authority with respect to tangible personal property transactions, means that the principal authorizes the attorney-in-fact: (1) to accept as a gift, or as security for a loan, reject, demand, buy, receive, or otherwise to acquire either ownership or possession of any tangible personal property or any interest in tangible personal property; (2) to sell, exchange, convey either with or without covenants, release, surrender, mortgage, encumber, pledge, hypothecate, pawn, grant options concerning, lease or sublet to others, or otherwise to dispose of any tangible personal property or any interest in any tangible personal 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, which exists, or is claimed to exist, in favor of the principal, with respect to any tangible personal property or any interest in tangible personal property; (4) to do any act of management or of conservation, with respect to any tangible personal property or to any interest in any tangible personal 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 the tangible personal property or interest in any tangible personal property, by action, proceeding, or otherwise, to pay, compromise, or contest taxes or assessments, to apply for and receive refunds in connection with taxes or assessments, move from place to place, store for hire or on a gratuitous bailment, use, alter, and make repairs or alterations of any tangible personal property, or interest in any tangible personal property; (5) to demand, receive, or 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 any tangible personal property or of any interest in any tangible personal 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; (6) 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 any agreement or contract or any other similar agreement or contract made by or on behalf of the principal; (7) to execute, acknowledge, seal, and deliver any conveyance, 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; (8) 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 tangible personal property transaction or to intervene in any action or proceeding relating to such a claim; 11R APPENDIX Repealed Minnesota Statutes: 09-0050 (9) to hire, discharge, and compensate any attorney, accountant, expert witness, or other assistant when the attorney-in-fact deems that action to be desirable for the proper execution by the attorney-in-fact of any of the powers described in this subdivision, and for the keeping of needed records; and (10) in general, and in addition to all the specific acts listed in this subdivision, to do any other acts with respect to any tangible personal property or interest in any tangible personal property. All powers described in this subdivision are exercisable equally with respect to any tangible personal property or interest in any tangible personal 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. Subd. 3. Bond, share, and commodity transactions. In a statutory short form power of attorney, the language conferring general authority with respect to bond, share, and commodity transactions means that the principal authorizes the attorney-in-fact: (1) to accept as a gift or as security for a loan, reject, demand, buy, receive, or otherwise to acquire either ownership or possession of any bond, share, instrument of similar character, commodity interest, or any instrument with respect to the bond, share, or interest, together with the interest, dividends, proceeds, or other distributions connected with any of those instruments; (2) to sell or sell short and to exchange, transfer either with or without a guaranty, release, surrender, hypothecate, pledge, grant options concerning, loan, trade in, or otherwise to dispose of any bond, share, instrument of similar character, commodity interest, or any instrument with respect to the bond, share, or interest; (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 pledge, encumbrance, lien, or other claim as to any bond, share, instrument of similar character, commodity interest or any interest with respect to the bond, share, or interest, when the pledge, encumbrance, lien, or other claim is owned, or claimed to be owned, by the principal; (4) to do any act of management or of conservation with respect to any bond, share, instrument of similar character, commodity interest or any instrument with respect thereto, owned or claimed to be owned by the principal or in which the principal has or claims to have an interest, 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 the principal's interest therein by action, proceeding or otherwise, to pay, compromise or contest taxes or assessments, to apply for and receive refunds in connection with taxes or assessments, to consent to and participate in any reorganization, recapitalization, liquidation, merger, consolidation, sale or lease, or other change in or revival of a corporation or other association, or in the financial structure of any corporation or other association, or in the priorities, voting rights, or other special rights with respect to the corporation or association, to become a depositor with any protective, reorganization, or similar committee of the bond, share, other instrument of similar character, commodity interest, or any instrument with respect to the bond, share, or interest, belonging to the principal, to make any payments reasonably incident to the foregoing, to exercise or sell any option, conversion, or similar right, to vote in person or by the granting of a proxy with or without the power of substitution, either discretionary, general or otherwise, for the accomplishment of any of the purposes enumerated in this subdivision; (5) to carry in the name of a nominee selected by the attorney-in-fact any evidence of the ownership of any bond, share, other instrument of similar character, commodity interest, or instrument with respect to the bond, share, or interest, belonging to the principal; (6) to employ, in any way believed to be desirable by the attorney-in-fact, any bond, share, other instrument of similar character, commodity interest, or any instrument with respect to the bond, share, or interest, in which the principal has or claims to have any interest, for the protection or continued operation of any speculative or margin transaction personally begun or personally guaranteed, in whole or in part, by the principal; (7) to demand, receive, or 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 any interest in a bond, share, other instrument of similar character, commodity interest, or any instrument with respect to the bond, share, or interest, 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; (8) to agree and contract, in any manner, with any broker or other person, and on any terms which the attorney-in-fact selects, for the accomplishment of any of the purposes enumerated in 12R APPENDIX Repealed Minnesota Statutes: 09-0050 this subdivision, and to perform, rescind, reform, release, or modify the agreement or contract or any other similar agreement made by or on behalf of the principal; (9) to execute, acknowledge, seal, and deliver any consent, agreement, authorization, assignment, revocation, notice, waiver of 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 execute, acknowledge, and file any report or certificate required by law or governmental regulation; (11) 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 bond, share, or commodity transaction or to intervene in any related action or proceeding; (12) 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 (13) in general, and in addition to all the specific acts listed in this subdivision, to do any other acts with respect to any interest in any bond, share, other instrument of similar character, commodity, or instrument with respect to a commodity. All powers described in this subdivision are exercisable equally with respect to any interest in any bond, share or other instrument of similar character, commodity, or instrument with respect to a commodity owned by the principal at the giving of the power of attorney or acquired after that time, whether located in the state of Minnesota or elsewhere. Subd. 4. Banking transactions. In a statutory short form power of attorney, the language conferring general authority with respect to banking transactions, means that the principal authorizes the attorney-in-fact: (1) to continue, modify, and terminate any deposit account or other banking arrangement made by or on behalf of the principal prior to the execution of the power of attorney; (2) to open in the name of the principal alone, or in a way that clearly evidences the principal and attorney-in-fact relationship, a deposit account of any type with any bank, trust company, savings association, credit union, thrift company, brokerage firm, or other institution which serves as a depository for funds selected by the attorney-in-fact, to hire safe deposit box or vault space and to make other contracts for the procuring of other services made available by the banking institution as the attorney-in-fact deems desirable; (3) to make, sign, and deliver checks or drafts for any purpose, to withdraw by check, order, or otherwise any funds or property of the principal deposited with or left in the custody of any banking institution, wherever located, either before or after the execution of the power of attorney; (4) to prepare any necessary financial statements of the assets and liabilities or income and expenses of the principal for submission to any banking institution; (5) to receive statements, vouchers, notices, or other documents from any banking institution and to act with respect to them; (6) to enter at any time any safe deposit box or vault which the principal could enter if personally present; (7) to borrow money at any interest rate the attorney-in-fact selects, to pledge as security any assets of the principal the attorney-in-fact deems desirable or necessary for borrowing, to pay, renew, or extend the time of payment of any debt of the principal; (8) to make, assign, draw, endorse, discount, guarantee, and negotiate, all promissory notes, bills of exchange, checks, drafts, or other negotiable or nonnegotiable paper of the principal, or payable to the principal or the principal's order, to receive the cash or other proceeds of any of those transactions, to accept any bill of exchange or draft drawn by any person upon the principal, and to pay it when due; (9) to receive for the principal and to deal in and to deal with any sight draft, warehouse receipt, or other negotiable or nonnegotiable instrument in which the principal has or claims to have an interest; (10) to apply for and to receive letters of credit from any banking institution selected by the attorney-in-fact, giving indemnity or other agreement in connection with the letters of credit which the attorney-in-fact deems desirable or necessary; (11) to consent to an extension in the time of payment with respect to any commercial paper or any banking transaction in which the principal has an interest or by which the principal is, or might be, affected in any way; (12) 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 any banking transaction, and to reimburse the attorney-in-fact for any expenditures 13R APPENDIX Repealed Minnesota Statutes: 09-0050 properly made in the execution of the powers conferred upon the attorney-in-fact by the statutory short form power of attorney; (13) to execute, acknowledge, and deliver any instrument of any kind, in the name of the principal or otherwise, which the attorney-in-fact deems useful for the accomplishment of any of the purposes enumerated in this subdivision; (14) 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 banking transaction or to intervene in any related action or proceeding; (15) to hire, discharge, and compensate any attorney, accountant, expert witness, or other assistant 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 (16) in general, and in addition to all the specific acts listed in this subdivision, to do any other acts in connection with any banking transaction which does or might in any way affect the financial or other interests of the principal. All powers described in this subdivision are exercisable equally with respect to any banking transaction engaged in by the principal at the giving of the power of attorney or engaged in after that time, and whether conducted in the state of Minnesota or elsewhere. Subd. 5. Business operating transactions. In a statutory short form power of attorney, the language conferring general authority with respect to business operating transactions, means that the principal authorizes the attorney-in-fact: (1) to discharge and perform any duty or liability and also to exercise any right, power, privilege, or option which the principal has, or claims to have, under any partnership agreement whether the principal is a general or limited partner, to enforce the terms of a partnership agreement for the protection of the principal, by action, proceeding, or otherwise, as the attorney-in-fact deems desirable or necessary, and to defend, submit to arbitration, settle, or compromise any action or other legal proceeding to which the principal is a party because of membership in the partnership; (2) to exercise in person or by proxy or to enforce by action, proceeding, or otherwise, any right, power, privilege, or option which the principal has as the holder of any bond, share, or other instrument of similar character and to defend, submit to arbitration, settle or compromise any action or other legal proceeding to which the principal is a party because of a bond, share, or other instrument of similar character; (3) with respect to any business enterprise which is owned solely by the principal: (a) to continue, modify, renegotiate, extend, and terminate any contractual arrangements made with any person or entity, firm, association, or corporation by or on behalf of the principal with respect to the business enterprise prior to the granting of the power of attorney; (b) to determine the policy of the business enterprise as to the location of the site or sites to be used for its operation, the nature and extent of the business to be undertaken by it, the methods of manufacturing, selling, merchandising, financing, accounting, and advertising to be employed in its operation, the amount and types of insurance to be carried, the mode of securing, compensating, and dealing with accountants, attorneys, servants, and other agents and employees required for its operation, and to agree and to contract in any manner, with any person, and on any terms which the attorney-in-fact deems desirable or necessary for effectuating any or all of the decisions of the attorney-in-fact as to policy, and to perform, rescind, reform, release, or modify the agreement or contract or any other similar agreement or contract made by or on behalf of the principal; (c) to change the name or form of organization under which the business enterprise is operated and to enter into a partnership agreement with other persons or to organize a corporation to take over the operation of the business or any part of the business, as the attorney-in-fact deems desirable or necessary; (d) to demand and receive all money which is or may become due to the principal or which may be claimed by or for the principal in the operation of the business enterprise, and to control and disburse the funds in the operation of the enterprise in any way which the attorney-in-fact deems desirable or necessary, and to engage in any banking transactions which the attorney-in-fact deems desirable or necessary for effectuating the execution of any of the powers of the attorney-in-fact described in clauses (a) to (d); (4) to prepare, sign, file, and deliver all reports, compilations of information, returns, or other papers with respect to any business operating transaction of the principal, which are required by any governmental agency, department, or instrumentality or which the attorney-in-fact deems desirable or necessary for any purpose, and to make any related payments; (5) to pay, compromise, or contest taxes or assessments and to do any act or acts which the attorney-in-fact deems desirable or necessary to protect the principal from illegal or unnecessary 14R APPENDIX Repealed Minnesota Statutes: 09-0050 taxation, fines, penalties, or assessments in connection with the principal's business operations, including power to attempt to recover, in any manner permitted by law, sums paid before or after the execution of the power of attorney as taxes, fines, penalties, or assessments; (6) to demand, receive, obtain by action, proceeding, or otherwise, any money or other thing of value to which the principal is, may become, or may claim to be entitled as the proceeds of any business operation of the principal, to conserve, to invest, to disburse, or to use 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 upon the attorney-in-fact by the statutory short form power of attorney; (7) to execute, acknowledge, seal, and deliver any deed, assignment, mortgage, lease, notice, consent, agreement, authorization, check, or other instrument which the attorney-in-fact deems useful for the accomplishment of any of the purposes enumerated in this subdivision; (8) 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 business operating transaction or to intervene in any related action or proceeding; (9) to hire, discharge, and compensate any attorney, accountant, expert witness, or other assistant when the attorney-in-fact deems that action to be desirable for the proper execution by the attorney-in-fact of any of the powers described in this subdivision, and for the keeping of needed records; and (10) in general, and in addition to all the specific acts listed in this subdivision, to do any other act which the attorney-in-fact deems desirable or necessary for the furtherance or protection of the interests of the principal in any business. All powers described in this subdivision are exercisable equally with respect to any business in which the principal is interested at the time of giving of the power of attorney or in which the principal becomes interested after that time, and whether operated in the state of Minnesota or elsewhere. Subd. 6. Insurance transactions. In a statutory short form power of attorney, the language conferring general authority with respect to insurance transactions, means that the principal authorizes the attorney-in-fact: (1) to continue, pay the premium or assessment on, modify, rescind, release, or terminate any contract of life, accident, health, or disability insurance or for the provision of health care services, or any combination of these contracts procured by or on behalf of the principal prior to the granting of the power of attorney which insures either the principal or any other person, without regard to whether the principal is or is not a beneficiary under the contract; (2) to procure new, different, or additional contracts of life, accident, health, or disability insurance for the principal or for provision of health care services for the principal, to select the amount, the type of insurance and the mode of payment under each contract, to pay the premium or assessment on, modify, rescind, release or terminate, any contract so procured by the attorney-in-fact, and to designate the beneficiary of the contract, provided, however, that the attorney-in-fact cannot be named a beneficiary except, if permitted under subdivision 8, the attorney-in-fact can be named the beneficiary of death benefit proceeds under an insurance contract, or, if the attorney-in-fact was named as a beneficiary under the contract which was procured by the principal prior to the granting of the power of attorney, then the attorney-in-fact can continue to be named as the beneficiary under the contract or under any extension or renewal of or substitute for the contract; (3) to apply for and receive any available loan on the security of the contract of insurance, whether for the payment of a premium or for the procuring of cash, to surrender and then to receive the cash surrender value, to exercise any election as to beneficiary or mode of payment, to change the manner of paying premiums, to change or convert the type of insurance contract, with respect to any contract of life, accident, health, disability, or liability insurance as to which the principal has, or claims to have, any one or more of the powers described in this subdivision and to change the beneficiary of the contract of insurance, provided, however, that the attorney-in-fact cannot be a new beneficiary except, if permitted under subdivision 8, the attorney-in-fact can be the beneficiary of death benefit proceeds under an insurance contract, or, if the attorney-in-fact was named as a beneficiary under the contract which was procured by the principal prior to the granting of the power of attorney, then the attorney-in-fact can continue to be named as the beneficiary under the contract or under any extension or renewal of or substitute for the contract; (4) to demand, receive, obtain by action, proceeding, or otherwise, any money, dividend, or other thing of value to which the principal is, or may become, or may claim to be entitled as the proceeds of any contract of insurance 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 15R APPENDIX Repealed Minnesota Statutes: 09-0050 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; (5) to apply for and procure any available governmental aid in the guaranteeing or paying of premiums of any contract of insurance on the life of the principal; (6) to sell, assign, hypothecate, borrow upon, or pledge the interest of the principal in any contract of insurance; (7) to pay from any proceeds or otherwise, compromise, or contest, and to apply for refunds in connection with, any tax or assessment levied by a taxing authority with respect to any contract of insurance or the proceeds of the refunds or liability accruing by reason of the tax or assessment; (8) to agree and contract in any manner, with any person, and on any terms which the attorney-in-fact selects for the accomplishment of any of the purposes enumerated in this subdivision, and to perform, rescind, reform, release, or modify the agreement or contract; (9) to execute, acknowledge, seal, and deliver any consent, demand, request, application, agreement, indemnity, authorization, assignment, pledge, notice, check, receipt, waiver, or other instrument which the attorney-in-fact deems useful for the accomplishment of any of the purposes enumerated in this subdivision; (10) to continue, procure, pay the premium or assessment on, modify, rescind, release, terminate, or otherwise deal with any contract of insurance, other than those enumerated in clause (1) or (2), whether fire, marine, burglary, compensation, liability, hurricane, casualty, or other type, or any combination of insurance, to do any act or acts with respect to the contract or with respect to its proceeds or enforcement which the attorney-in-fact deems desirable or necessary for the promotion or protection of the interests of the principal; (11) 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 insurance transaction or to intervene in any related action or proceeding; (12) to hire, discharge, and compensate any attorney, accountant, expert witness, or other assistants when the attorney-in-fact deems the action to be desirable for the proper execution by the attorney-in-fact of any of the powers described in this subdivision and for the keeping of needed records; and (13) in general, and in addition to all the specific acts listed in this subdivision, to do any other acts in connection with procuring, supervising, managing, modifying, enforcing, and terminating contracts of insurance or for the provisions of health care services in which the principal is the insured or is otherwise in any way interested. All powers described in this subdivision are exercisable with respect to any contract of insurance or for the provision of health care service in which the principal is in any way interested, whether made in the state of Minnesota or elsewhere. Subd. 7. Beneficiary transactions. In the statutory short form power of attorney, the language conferring general authority with respect to beneficiary transactions, means that the principal authorizes the attorney-in-fact: (1) to represent and act for the principal in all ways and in all matters affecting any trust, probate estate, guardianship, conservatorship, escrow, custodianship, qualified benefit plan, nonqualified benefit plan, individual retirement asset, or other fund out of which the principal is entitled, or claims to be entitled, as a beneficiary or participant, to some share or payment, including, but not limited to the following: (a) to accept, reject, disclaim, receive, receipt for, sell, assign, release, pledge, exchange, or consent to a reduction in or modification of any share in or payment from the fund; (b) to demand or obtain by action, proceeding, or otherwise any money or other thing of value to which the principal is, may become, or may claim to be entitled by reason of the fund, to initiate, to participate in, and to oppose any proceeding, judicial, or otherwise, for the ascertainment of the meaning, validity, or effect of any deed, declaration of trust, or other transaction affecting in any way the interest of the principal, to initiate, participate in, and oppose any proceeding, judicial or otherwise, for the removal, substitution, or surcharge of a fiduciary, to conserve, invest, disburse, or use anything so received for purposes listed 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; (c) to prepare, sign, file, and deliver all reports, compilations of information, returns, or papers with respect to any interest had or claimed by or on behalf of the principal in the fund, to pay, compromise, or contest, and apply for and receive refunds in connection with, any tax or assessment, with respect to any interest had or claimed by or on behalf of the principal in the fund or with respect to any property in which an interest is had or claimed; 16R APPENDIX Repealed Minnesota Statutes: 09-0050 (d) to agree and contract in any manner, with any person, and on any terms the attorney-in-fact selects, for the accomplishment of the purposes listed in this subdivision, and to perform, rescind, reform, release, or modify the agreement or contract or any other similar agreement or contract made by or on behalf of the principal; (e) to execute, acknowledge, verify, seal, file, and deliver any deed, assignment, mortgage, lease, consent, designation, pleading, notice, demand, election, conveyance, release, assignment, check, pledge, waiver, admission of service, notice of appearance, or other instrument which the attorney-in-fact deems useful for the accomplishment of any of the purposes enumerated in this subdivision; (f) to submit to arbitration or settle and propose or accept a compromise with respect to any controversy or claim which affects the administration of the fund, in any one of which the principal has, or claims to have, an interest, and to do any and all acts which the attorney-in-fact deems to be desirable or necessary in effectuating the compromise; (g) to hire, discharge, and compensate any attorney, accountant, expert witness, or other assistant, when the attorney-in-fact deems that action to be desirable for the proper execution by the attorney-in-fact of any of the powers described in this subdivision, and for the keeping of needed records; (h) to transfer any part or all of any interest which the principal may have in any interests in real estate, stocks, bonds, bank accounts, insurance, and any other assets of any kind and nature, to the trustee of any revocable trust created by the principal as grantor. For the purposes of clauses (a) to (h), "the fund" means any trust, probate estate, guardianship, conservatorship, escrow, custodianship, qualified benefit plan, nonqualified benefit plan, individual retirement asset, or other fund in which the principal has or claims to have an interest. (2) in general, and in addition to all the specific acts listed in this subdivision, to do any other acts with respect to the administration of a trust, probate estate, guardianship, conservatorship, escrow, custodianship, qualified benefit plan, nonqualified benefit plan, individual retirement asset, or other fund, in which the principal has, or claims to have, an interest as a beneficiary or participant. All powers described in this subdivision are exercisable equally with respect to the administration or disposition of any trust, probate estate, guardianship, conservatorship, escrow, custodianship, qualified benefit plan, nonqualified benefit plan, individual retirement asset, or other fund in which the principal is interested at the giving of the power of attorney or becomes interested after that time, as a beneficiary or participant, and whether located in the state of Minnesota or elsewhere. Subd. 8. Gift transactions. In the statutory short form power of attorney, the language conferring general authority with respect to gift transactions, means that the principal authorizes the attorney-in-fact: (1) to make gifts to organizations, whether charitable or otherwise, to which the principal has made gifts, and to satisfy pledges made to organizations by the principal; (2) to make gifts on behalf of the principal to the principal's spouse, children, and other descendants or the spouse of any child or other descendant, and, if authorized by the principal in part Third, to the attorney-in-fact, either outright or in trust, for purposes which the attorney-in-fact deems to be in the best interest of the principal, specifically including minimization of income, estate, inheritance, or gift taxes, provided that, notwithstanding that the principal in part Third may have authorized the attorney-in-fact to transfer the principal's property to the attorney-in-fact, no attorney-in-fact nor anyone the attorney-in-fact has a legal obligation to support may be the recipient of any gifts in any one calendar year which, in the aggregate, exceed $10,000 in value to each recipient; (3) to prepare, execute, consent to on behalf of the principal, and file any return, report, declaration, or other document required by the laws of the United States, any state or subdivision of a state, or any foreign government, which the attorney-in-fact deems to be desirable or necessary with respect to any gift made under the authority of this subdivision; (4) to execute, acknowledge, seal, and deliver any deed, assignment, agreement, authorization, check, or other instrument which the attorney-in-fact deems useful for the accomplishment of any of the purposes enumerated in this subdivision; (5) 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 gift transaction or to intervene in any related action or proceeding; (6) to hire, discharge, and compensate any attorney, accountant, expert witness, or other assistant when the attorney-in-fact deems that action to be desirable for the proper execution by 17R APPENDIX Repealed Minnesota Statutes: 09-0050 the attorney-in-fact of any of the powers described in this subdivision, and for the keeping of needed records; and (7) in general, and in addition to but not in contravention of all the specific acts listed in this subdivision, to do any other acts which the attorney-in-fact deems desirable or necessary to complete any gift on behalf of the principal. All powers described in this subdivision are exercisable equally with respect to a gift of any property in which the principal is interested at the giving of the power of attorney or becomes interested after that time, and whether located in the state of Minnesota or elsewhere. Subd. 9. Fiduciary transactions. In a statutory short form power of attorney, the language conferring general authority with respect to fiduciary transactions, means that the principal authorizes the agent: (1) to represent and act for the principal in all ways and in all matters affecting any fund with respect to which the principal is a fiduciary; (2) to initiate, participate in, and oppose any proceeding, judicial or otherwise, for the removal, substitution, or surcharge of a fiduciary, to conserve, to invest or to disburse anything received for the purposes of the fund for which it is received, 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; (3) to agree and contract, in any manner, with any person, and on any terms which the attorney-in-fact selects for the accomplishment of the purposes enumerated in this subdivision, and to perform, rescind, reform, release, or modify the agreement or contract or any other similar agreement or contract made by or on behalf of the principal; (4) to execute, acknowledge, verify, seal, file, and deliver any consent, designation, pleading, notice, demand, election, conveyance, release, assignment, check, pledge, waiver, admission of service, notice of appearance, or other instrument which the attorney-in-fact deems useful for the accomplishment of any of the purposes enumerated in this subdivision; (5) to hire, discharge, and compensate any attorney, accountant, expert witness, or other assistants, when the attorney-in-fact deems that action to be desirable for the proper execution by the attorney-in-fact of any of the powers described in this subdivision, and for the keeping of needed records; and (6) in general, and in addition to all the specific acts listed in this subdivision, to do any other acts with respect to a fund of which the principal is a fiduciary. Nothing in this subdivision authorizes delegation of any power of a fiduciary unless the power is one the fiduciary is authorized to delegate under the terms of the instrument governing the exercise of the power or under local law. For the purposes of clauses (1) to (6), "fund" means any trust, probate estate, guardianship, conservatorship, escrow, custodianship, or any other fund in which the principal has, or claims to have, an interest as a fiduciary. All powers described in this subdivision are exercisable equally with respect to any fund of which the principal is a fiduciary prior to the giving of the power of attorney or becomes a fiduciary after that time, and whether located in the state of Minnesota or elsewhere. Subd. 10. Claims and litigation. In a statutory short form power of attorney, the language conferring general authority with respect to claims and litigation, means that the principal authorizes the attorney-in-fact: (1) to assert and prosecute before any court, administrative board, department, commissioner, or other tribunal, any cause of action, claim, counterclaim, offset, or defense, which the principal has, or claims to have, against any individual, partnership, association, corporation, government, or other person or instrumentality, including, by way of illustration and not of restriction, power to sue for the recovery of land or of any other thing of value, for the recovery of damages sustained by the principal in any manner, for the elimination or modification of tax liability, for an injunction, for specific performance, or for any other relief; (2) to bring an action of interpleader or other action to determine adverse claims, to intervene or interplead in any action or proceeding, and to act in any litigation as amicus curiae; (3) in connection with any action or proceeding or controversy at law or otherwise, to apply for and, if possible, procure a libel, an attachment, a garnishment, an order of arrest, or other preliminary, provisional, or intermediate relief and to resort to and to utilize in all ways permitted by law any available procedure for the effectuation or satisfaction of the judgment, order, or decree obtained; (4) in connection with any action or proceeding, at law or otherwise, to perform any act which the principal might perform, including by way of illustration and not of restriction, acceptance of tender, offer of judgment, admission of any facts, submission of any controversy 18R APPENDIX Repealed Minnesota Statutes: 09-0050 on an agreed statement of facts, consent to examination before trial, and generally to bind the principal in the conduct of any litigation or controversy as seems desirable to the attorney-in-fact; (5) to submit to arbitration, settle, and propose or accept a compromise with respect to any claim existing in favor of or against the principal or any litigation to which the principal is, may become, or may be designated a party; (6) to waive the issuance and service of a summons, citation, or other process upon the principal, accept service of process, appear for the principal, designate persons upon whom process directed to the principal may be served, execute and file or deliver stipulations on the principal's behalf, verify pleadings, appeal to appellate tribunals, procure and give surety and indemnity bonds at the times and to the extent the attorney-in-fact deems desirable or necessary, contract and pay for the preparation and printing of records and briefs, receive and execute and file or deliver any consent, waiver, release, confession of judgment, satisfaction of judgment, notice, agreement, or other instrument which the attorney-in-fact deems desirable or necessary in connection with the prosecution, settlement, or defense of any claim by or against the principal or of any litigation to which the principal is or may become or be designated a party; (7) to appear for, represent, and act for the principal with respect to bankruptcy or insolvency proceedings, whether voluntary or involuntary, whether of the principal or of some other person, with respect to any reorganization proceeding, or with respect to any receivership or application for the appointment of a receiver or trustee which, in any way, affects any interest of the principal in any real property, bond, share, commodity interest, tangible personal property, or other thing of value; (8) to hire, discharge, and compensate any attorney, accountant, expert witness or other assistant when the attorney-in-fact deems that action to be desirable for the proper execution of any of the powers described in this subdivision; (9) to pay, from funds in the control of the attorney-in-fact or for the account of the principal, any judgment against the principal or any settlement which may be made in connection with any transaction enumerated in this subdivision, and to receive and conserve any money or other things of value paid in settlement of or as proceeds of one or more of the transactions enumerated in this subdivision, and to receive, endorse, and deposit checks; and (10) in general, and in addition to all the specific acts listed in this subdivision, to do any other acts in connection with any claim by or against the principal or with litigation to which the principal is or may become or be designated a party. All powers described in this subdivision are exercisable equally with respect to any claim or litigation existing at the giving of the power of attorney or arising after that time, and whether arising in the state of Minnesota or elsewhere. Subd. 11. Family maintenance. In a statutory short form power of attorney, the language conferring general authority with respect to family maintenance, means that the principal authorizes the attorney-in-fact: (1) to do all acts necessary for maintaining the customary standard of living of the spouse and children, and other persons customarily supported by the principal, including by way of illustration and not by way of restriction, power to provide living quarters by purchase, lease, or other contract, or by payment of the operating costs, including interest, amortization payments, repairs, and taxes of premises owned by the principal and occupied by the principal's family or dependents, to provide normal domestic help for the operation of the household, to provide usual vacations and usual travel expenses, to provide usual educational facilities, and to provide funds for all the current living costs of the spouse, children, and other dependents, including, among other things, shelter, clothing, food, and incidentals; (2) to pay for necessary medical, dental, and surgical care, hospitalization, and custodial care for the spouse, children, and other dependents of the principal; (3) to continue whatever provision has been made by the principal, either prior to or after the execution of the power of attorney, for the principal's spouse and other persons customarily supported by the principal, with respect to automobiles, or other means of transportation, including by way of illustration but not by way of restriction, power to license, insure, and replace any automobiles owned by the principal and customarily used by the spouse, children, or other persons customarily supported by the principal; (4) to continue whatever charge accounts have been operated by the principal prior to the execution of the power of attorney or thereafter for the convenience of the principal's spouse, children, or other persons customarily supported by the principal, to open new accounts the attorney-in-fact deems to be desirable for the accomplishment of any of the purposes enumerated in this subdivision, and to pay the items charged on those accounts by any person authorized or permitted by the principal to make charges prior to the execution of the power of attorney; 19R APPENDIX Repealed Minnesota Statutes: 09-0050 (5) to continue payments incidental to the membership or affiliation of the principal in any church, club, society, order, or other organization or to continue contributions to those organizations; (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 salary, wages, commission, or other remuneration for services performed, or as a dividend or distribution upon any stock, or as interest or principal upon any indebtedness, or any periodic distribution of profits from any partnership or business in which the principal has or claims an interest, and to endorse, collect, or otherwise realize upon any instrument for the payment received; (7) to use any asset of the principal for the performance of the powers enumerated in this subdivision, including by way of illustration and not by way of restriction, power to draw money by check or otherwise from any bank deposit of the principal, to sell any interest in real property, bond, share, commodity interest, tangible personal property, or other asset of the principal, to borrow money and pledge as security for a loan, any asset, including insurance, which belongs to the principal; (8) to execute, acknowledge, verify, seal, file, and deliver any application, consent, petition, notice, release, waiver, agreement, or other instrument which the attorney-in-fact deems useful for the accomplishment of any of the purposes enumerated in this subdivision; (9) to hire, discharge, and compensate any attorney, accountant, or other assistant when the attorney-in-fact deems that action to be desirable for the proper execution by any of the powers described in this subdivision, and for the keeping of needed records; and (10) in general, and in addition to all the specific acts listed in this subdivision, to do any other acts for the welfare of the spouse, children, or other persons customarily supported by the principal or for the preservation and maintenance of the other personal relationships of the principal to parents, relatives, friends, and organizations as are appropriate. All powers described in this subdivision are exercisable equally whether the acts required for their execution relate to real or personal property owned by the principal at the giving of the power of attorney or acquired after that time and whether those acts are performable in the state of Minnesota or elsewhere. Subd. 12. Benefits from military service. In a statutory short form power of attorney, the language conferring general authority with respect to benefits from military service, means that the principal authorizes the attorney-in-fact: (1) to execute vouchers in the name of the principal for any and all allowances and reimbursements payable by the United States or by any state or subdivision of a state to the principal, including, by way of illustration and not of restriction, all allowances and reimbursements for transportation of the principal and of the principal's dependents, and for shipment of household effects, to receive, endorse, and collect the proceeds of any check payable to the order of the principal drawn on the treasurer or other fiscal officer or depository of the United States or of any state or subdivision of a state; (2) to take possession and order the removal and shipment of any property of the principal from any post, warehouse, depot, dock, or other place of storage or safekeeping, either governmental or private, to execute and deliver any release, voucher, receipt, bill of lading, shipping ticket, certificate, or other instrument which the attorney-in-fact deems desirable or necessary for that purpose; (3) to prepare, file, and prosecute the claim of the principal to any benefit or assistance, financial or otherwise, to which the principal is, or claims to be, entitled, under the provisions of any statute or regulation existing at the execution of the power of attorney or enacted after that time by the United States or by any state or by any subdivision of a state, or by any foreign government, which benefit or assistance arises from or is based upon military service performed prior to or after the execution of the power of attorney by the principal or by any person related by blood or marriage to the principal, to execute any receipt or other instrument which the attorney-in-fact deems desirable or necessary for the enforcement or for the collection of that claim; (4) to receive the financial proceeds of any claim of the type described in this subdivision, to conserve, invest, disburse, or use anything so received for purposes enumerated in this subdivision, and to reimburse the attorney-in-fact for any expenditures properly made in the execution of the powers conferred on the attorney-in-fact by the statutory short form power of attorney; (5) 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 benefits from military service or to intervene in any related action or proceeding; 20R APPENDIX Repealed Minnesota Statutes: 09-0050 (6) to hire, discharge, and compensate any attorney, accountant, expert witness, or other assistant when the attorney-in-fact deems that action to be desirable for the proper execution by the attorney-in-fact of any of the powers described in this subdivision; and (7) in general, and in addition to all the specific acts listed in this subdivision, to do any other acts which the attorney-in-fact deems desirable or necessary, to assure to the principal, and to the dependents of the principal, the maximum possible benefit from the military service performed prior to or after the execution of the power of attorney by the principal or by any person related by blood or marriage to the principal. All powers described in this subdivision are exercisable equally with respect to any benefits from military service existing at the giving of the power of attorney or accruing after that time, and whether accruing in the state of Minnesota or elsewhere. Subd. 13. Records, reports, and statements. In a statutory short form power of attorney, the language conferring general authority with respect to records, reports, and statements means that the principal authorizes the attorney-in-fact: (1) to keep records of all cash received and disbursed for or on account of the principal, of all credits and debits to the account of the principal, and of all transactions affecting in any way the assets and liabilities of the principal; (2) to prepare, execute, and file all tax and tax information returns, for all periods, required by the laws of the United States, any state or any subdivision of a state, or any foreign government, to prepare, execute, and file all other tax-related documents for all tax periods, including requests for extension of time, offers, waivers, consents, powers of attorney, closing agreements, and petitions to any Tax Court regarding tax matters, and to prepare, execute, and file all other instruments which the attorney-in-fact deems desirable or necessary for the safeguarding of the principal against excessive or illegal taxation or against penalties imposed for claimed violation of any law or other governmental regulation, it being the intent of this provision that it is sufficiently definite to permit the attorney-in-fact to represent the principal respecting all taxes that the principal has paid and all tax returns that the principal has filed, either personally or through an agent, with the Internal Revenue Service or any other agency of the United States government, any state department of revenue, any political subdivision of a state, and any foreign country or political subdivision of a foreign country; (3) to prepare, execute, and file any return, report, declaration, or other document required by the laws of the United States, any state, subdivision of a state, or any foreign government, including, by way of illustration and not as a limitation, any report or declaration required by the Social Security Administration, the commissioner of employment and economic development or other, similar, governmental agency, which the attorney-in-fact deems to be desirable or necessary for the safeguarding or maintenance of the principal's interest; (4) to prepare, execute, and file any record, report, or statement which the attorney-in-fact deems desirable or necessary for the safeguarding or maintenance of the principal's interest, with respect to price, rent, wage, or rationing control, or other governmental activity; (5) to hire, discharge, and compensate any attorney, accountant, or other assistant 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 (6) in general, and in addition to all the specific acts listed in this subdivision, to do any other acts in connection with the preparation, execution, filing, storage, or other use of any records, reports, or statements of or concerning the principal's affairs. All powers described in this subdivision are exercisable equally with respect to any records, reports, or statements of or concerning the affairs of the principal existing at the giving of the power of attorney or arising after that time, and whether arising in the state of Minnesota or elsewhere. Subd. 14. All other matters. In a statutory short form power of attorney, the language conferring general authority with respect to all other matters, means that the principal authorizes the attorney-in-fact to act as an alter ego of the principal with respect to any and all possible matters and affairs affecting property owned by the principal which are not enumerated in subdivisions 1 to 13, and which the principal can do through an agent. 524.2-108 AFTER-BORN HEIRS. An individual in gestation at a particular time is treated as living at that time if the individual lives 120 hours or more after birth. 524.6-201 DEFINITIONS. 21R APPENDIX Repealed Minnesota Statutes: 09-0050 Subdivision 1. Scope. As used in sections 524.6-201 to 524.6-214, the terms defined in this section have the meanings given them. Subd. 2. Account. "Account" means a contract of deposit of funds between a depositor and a financial institution, and includes a checking account, savings account, certificate of deposit, share account and other like arrangement. Subd. 3. Financial institution. "Financial institution" means any organization authorized to do business under state or federal laws relating to financial institutions, including, without limitation, banks and trust companies, savings banks, savings associations, and credit unions. Subd. 4. Joint account. "Joint account" means an account so designated, and any account payable on request to one or more of two or more parties and to the survivor of them. Subd. 5. Multiple-party account. A "multiple-party account" means a joint account or a P.O.D. account. It does not include accounts established for deposit of funds of a partnership, joint venture, or other association for business purposes, or accounts controlled by one or more persons as the duly authorized agent or trustee for a person, corporation, unincorporated association, charitable or civic organization or a regular fiduciary or trust account where the relationship is established other than by deposit agreement. Subd. 6. Net contribution. "Net contribution" of a party to a joint account as of any given time is the sum of all deposits thereto made by or for the party, less all withdrawals made by or for the party which have not been paid to or applied to the use of any other party, plus a pro rata share of any interest or dividends included in the current balance. The term includes any proceeds of deposit life insurance added to the account by reason of the death of the party whose net contribution is in question. Subd. 7. Party. "Party" means a person who, by the terms of the account, has a present right, subject to request, to payment from a multiple-party account. A P.O.D. payee is a party only after the account becomes payable by reason of the payee surviving the original party. Unless the context otherwise requires, it includes a guardian, conservator, personal representative, or assignee, including an attaching creditor, of a party. It also includes a person identified as a trustee of an account for another whether or not a beneficiary is named, but it does not include any named beneficiary unless the beneficiary has a present right of withdrawal. Subd. 8. Payment. "Payment" of sums on deposit includes withdrawal, payment on check or other directive of a party, and any pledge of sums on deposit by a party and any setoff, or reduction or other disposition of all or part of an account pursuant to a pledge. Subd. 9. Proof of death. "Proof of death" includes (a) a certified or authenticated copy of a death record purporting to be issued by an official or agency of the place where the death purportedly occurred which shall be prima facie proof of the fact, place, date and time of death and the identity of the decedent, (b) a certified or authenticated copy of any record or report of any governmental agency, domestic or foreign, that a person is dead which shall be prima facie evidence of the fact, place, date and time of death and the identity of the decedent. Subd. 10. P.O.D. account. "P.O.D. account" means an account payable on request to one or more parties and on the death of the parties to one or more P.O.D. payees. The term also means an account in the name of one or more parties as trustee for one or more beneficiaries where the relationship is established by the form of the account and the deposit agreement with the financial institution and there is no subject of the trust other than the sums on deposit in the account. A P.O.D. account does not include a trust account established under a testamentary trust or inter vivos trust, or a fiduciary account arising from a fiduciary relationship such as attorney-client. Subd. 11. P.O.D. payee. "P.O.D. payee" means a person designated on a P.O.D. account as one to whom the account is payable on request after the death of one or more persons. Subd. 12. Request. "Request" means a proper request for withdrawals, or a check or order for payment, which complies with all conditions of the account, including special requirements concerning necessary signatures and regulations of the financial institution; but if the financial institution conditions withdrawal or payment on advance notice, for purposes of this part the request for withdrawal or payment is treated as immediately effective and a notice of intent to withdraw is treated as a request for withdrawal. Subd. 13. Sums on deposit. "Sums on deposit" means the balance payable on a multiple-party account including interest, dividends and, in addition, any deposit life insurance proceeds added to the account by reason of the death of a party. Subd. 14. Withdrawal. "Withdrawal" includes payment to a third person pursuant to check or other directive of a party. 524.6-202 OWNERSHIP AS BETWEEN PARTIES, AND OTHERS; PROTECTION OF FINANCIAL INSTITUTIONS. 22R APPENDIX Repealed Minnesota Statutes: 09-0050 The provisions of sections 524.6-203 to 524.6-205 concerning beneficial ownership as between parties, or as between parties and P.O.D. payees or beneficiaries of multiple-party accounts, are relevant only to controversies between these persons and their creditors and other successors, and have no bearing on the power of withdrawal of these persons as determined by the terms of account contracts. The provisions of sections 524.6-208 to 524.6-212 govern the liability of financial institutions who make payments pursuant thereto, and their setoff rights. 524.6-203 OWNERSHIP DURING LIFETIME. (a) A joint account belongs, during the lifetime of all parties, to the parties in proportion to the net contributions by each to the sums on deposit, unless there is clear and convincing evidence of a different intent. (b) A P.O.D. account belongs to the original purchasing or depositing party during the party's lifetime and not to the P.O.D. payee or payees; if two or more parties are named as original parties, during their lifetimes, rights as between them are governed by clause (a). 524.6-204 RIGHT OF SURVIVORSHIP. (a) Sums remaining on deposit at the death of a party to a joint account belong to the surviving party or parties as against the estate of the decedent unless there is clear and convincing evidence of a different intention, or there is a different disposition made by a valid will as herein provided, specifically referring to such account. If there are two or more surviving parties, their respective ownerships during lifetime shall be in proportion to their previous ownership interests under section 524.6-203 augmented by an equal share for each survivor of any interest the decedent may have owned in the account immediately before death; and the right of survivorship continues between the surviving parties. The interest so determined is also the interest disposable by will. (b) If the account is a P.O.D. account, on the death of the original party or of the survivor of two or more original parties, any sums remaining on deposit belong to the P.O.D. payees if surviving, or to the survivor of them if one or more die before the surviving original party; if two or more P.O.D. payees survive, there is no right of survivorship in event of death of a P.O.D. payee thereafter unless the terms of the account or deposit agreement expressly provide for survivorship between them. (c) In other cases, the death of any party to a multiple-party account has no effect on beneficial ownership of the account other than to transfer the rights of the decedent as part of the estate. (d) A right of survivorship arising from the express terms of the account, or under this section, or under a P.O.D. payee designation, may be changed by specific reference by will, but the terms of such will shall not be binding upon any financial institution unless it has been given a notice in writing of a claim thereunder, in which event the deposit shall remain undisbursed until an order has been made by the probate court adjudicating the decedent's interest disposable by will. 524.6-205 EFFECT OF A WRITTEN NOTICE TO FINANCIAL INSTITUTION. The provisions of section 524.6-204 as to rights of survivorship are determined by the form of the account at the death of a party. This form may be altered by written order given by a party to the financial institution to change the form of the account or to stop or vary payment under the terms of the account. The order or request must be signed by a party and received by the financial institution during the party's lifetime. 524.6-206 ACCOUNTS AND TRANSFERS NONTESTAMENTARY. Any transfers resulting from the application of section 524.6-204 are effective by reason of the account contracts involved and this statute, and are not to be considered as subject to probate except as to the transfers expressly changed by will, as provided for by section 524.6-204, clause (d). 524.6-207 RIGHTS OF CREDITORS. No multiple-party account will be effective against an estate of a deceased party to transfer to a survivor sums needed to pay debts, taxes, and expenses of administration, including statutory allowances to the surviving spouse, minor children and dependent children or against the state or a county agency with a claim authorized by section 256B.15, if other assets of the estate are 23R APPENDIX Repealed Minnesota Statutes: 09-0050 insufficient, to the extent the deceased party is the source of the funds or beneficial owner. A surviving party or P.O.D. payee who receives payment from a multiple-party account after the death of a deceased party shall be liable to account to the deceased party's personal representative or the state or a county agency with a claim authorized by section 256B.15 for amounts the decedent owned beneficially immediately before death to the extent necessary to discharge any such claims and charges remaining unpaid after the application of the assets of the decedent's estate. No proceeding to assert this liability shall be commenced by the personal representative unless the personal representative has received a written demand by a surviving spouse, a creditor or one acting for a minor dependent child of the decedent, and no proceeding shall be commenced later than two years following the death of the decedent. Sums recovered by the personal representative shall be administered as part of the decedent's estate. This section shall not affect the right of a financial institution to make payment on multiple-party accounts according to the terms thereof, or make it liable to the estate of a deceased party unless, before payment, the institution has been served with process in a proceeding by the personal representative or the state or a county agency with a claim authorized by section 256B.15, or has been presented by the state or a county agency with a claim authorized by section 256B.15 with an affidavit pursuant to section 524.3-1201. Upon being presented with such an affidavit, the financial institution shall make payment of the multiple-party account to the affiant in an amount equal to the lesser of the claim stated in the affidavit or the extent to which the affidavit identifies the decedent as the source of funds or beneficial owner of the account. 524.6-208 FINANCIAL INSTITUTION PROTECTION; PAYMENT ON SIGNATURE OF ONE PARTY. Financial institutions may enter into multiple-party accounts to the same extent that they may enter into single-party accounts. Any multiple-party account may be paid, on request, to any one or more of the parties. A financial institution shall not be required to inquire as to the source of funds received for deposit to a multiple-party account, or to inquire as to the proposed application of any sum withdrawn from an account. A minor may be a party to a joint account. 524.6-209 FINANCIAL INSTITUTION PROTECTION; PAYMENT AFTER DEATH OR DISABILITY; JOINT ACCOUNT. Any sums in a joint account may be paid, on request, to any party without regard to whether any other party is incapacitated or deceased at the time the payment is demanded; but payment may not be made to the personal representative or heirs of a deceased party unless proofs of death are presented to the financial institution showing that the decedent was the last surviving party or unless there is no right of survivorship under section 524.6-204, or unless a will provides other distribution; in which case the procedure set forth in section 524.6-204, clause (d), shall be followed. A minor may be a party to a joint account. 524.6-210 FINANCIAL INSTITUTION PROTECTION; PAYMENT OF P.O.D. ACCOUNT. Any P.O.D. account may be paid, on request, to any original party to the account. Payment of the interest of a P.O.D. payee may be made, on request, to the P.O.D. payee or to the personal representative or heirs of a deceased P.O.D. payee upon presentation to the financial institution of proof of death showing that the P.O.D. payee survived all persons named as original parties. Payment may be made to the personal representative or heirs of a deceased original party if proof of death is presented to the financial institution showing that the original party was the survivor of all other persons named on the account either as an original party or as P.O.D. payee. 524.6-211 FINANCIAL INSTITUTION PROTECTION; DISCHARGE. Payment made pursuant to sections 524.6-208 to 524.6-210 discharges the financial institution from all claims for amounts so paid whether or not the payment is consistent with the beneficial ownership of the account as between parties, P.O.D. payees, or beneficiaries by will or otherwise, or their successors. The protection here given does not extend to payments made after a financial institution has received written notice from any person entitled to request payment to the effect that withdrawals in accordance with the terms of the account should not be permitted. Unless the notice is withdrawn by the person giving it, the successor of any deceased party and all other parties entitled to payment must concur in any demand for withdrawal if the financial 24R APPENDIX Repealed Minnesota Statutes: 09-0050 institution is to be protected under this section. No other notice or any other information shown to have been available to a financial institution shall affect its right to the protection provided here. The protection here provided shall not affect the rights of parties in disputes between themselves or their successors concerning the beneficial ownership of funds in, or withdrawn from, multiple-party accounts. 524.6-212 FINANCIAL INSTITUTION PROTECTION; SETOFF. Without qualifying any other statutory right to setoff or lien and subject to any contractual provision, if a party to a multiple-party account is indebted to a financial institution, the financial institution has a right to setoff against the account in which the party has or had immediately before death a present right of withdrawal. The amount of the account subject to setoff is that proportion to which the debtor is, or was immediately before death, beneficially entitled, and in the absence of proof of net contributions, to an equal share with all parties having present rights of withdrawal. 524.6-213 FORMS. Subdivision 1. Survivorship account. Deposits made using a form of account containing the following language signed by the depositor shall be conclusive evidence of the intent of the depositor, in the absence of fraud or misrepresentation, subject, nevertheless, to other disposition made by will as provided in section 524.6-204, clause (d), to establish a survivorship account: (a) "I (we) direct that the balance remaining in this account shall be PAYABLE ON DEATH (of the survivor of us) to: ........................................................ ......................................................... ........................................................ ......................................................... Signed: ......................................................... ......................................................... Dated: .............................................. " (b) "I (we) intend and agree that the balance in this account, upon the death of any party to this account, shall belong to the surviving party, or if there are two or more surviving parties, they shall take as JOINT TENANTS. Signed: ......................................................... ......................................................... Dated: .............................................. " Subd. 2. Account subject to power of attorney with no survivorship rights. Where no rights of survivorship are intended and the account is one to be established for convenience only between a depositor and an agent, the following language is recommended for use, and when so used, the account shall be construed as a matter of law to be an account subject to a power of attorney with no survivorship rights, the form to read as follows: "I ......................... (grantor of power), hereby constitute and appoint ......................... (grantee of power), as my attorney-in-fact, to deposit or withdraw funds held in ............... .......... (name of bank), in account No. ................. Signed: ............................................................................ Dated: Acknowledgment: In the presence of ........................... (an authorized person), ............................ (name of financial institution)." The power so granted is subject to the provisions of sections 508.72, 508A.72, and 523.01 to 523.24. 524.6-214 CITATION. 25R APPENDIX Repealed Minnesota Statutes: 09-0050 Sections 524.6-201 to 524.6-214 may be cited as the "Minnesota Multiparty Accounts Act." 525.532 DISCLAIMER OF INTERESTS PASSING BY WILL, INTESTATE SUCCESSION OR UNDER CERTAIN POWERS OF APPOINTMENT. Subdivision 1. Definitions. As used in this section, unless otherwise clearly required by the context: (a) "Beneficiary" means and includes any person entitled, but for that person's disclaimer, to take an interest: by intestate succession; by devise; by legacy or bequest; by succession to a disclaimed interest by will, intestate succession or through the exercise or nonexercise of a testamentary power of appointment; by virtue of a renunciation and election to take against a will; as beneficiary of a testamentary trust; pursuant to the exercise or nonexercise of a testamentary power of appointment; as donee of a power of appointment created by testamentary instrument; or otherwise under a testamentary instrument; (b) "Interest" means and includes the whole of any property, real or personal, legal or equitable, or any fractional part, share or particular portion or specific assets thereof or any estate in any such property or power to appoint, consume, apply or expend property or any other right, power, privilege or immunity relating thereto; (c) "Disclaimer" means a written instrument which declines, refuses, releases, renounces or disclaims an interest which would otherwise be succeeded to by a beneficiary, which instrument defines the nature and extent of the interest disclaimed thereby and which must be signed, witnessed and acknowledged by the disclaimant in the manner provided for deeds of real estate. Subd. 2. Right to disclaim. A beneficiary may disclaim any interest in whole or in part, or with reference to specific parts, shares or assets thereof, by filing a disclaimer in court in the manner hereinafter provided. A guardian, executor, administrator or other personal representative of the estate of a minor, incompetent or deceased beneficiary, if that person deems it in the best interests of those interested in the estate of such beneficiary and of those who take the beneficiary's interest by virtue of the disclaimer and not detrimental to the best interests of the beneficiary, with or without an order of the probate court, may execute and file a disclaimer on behalf of the beneficiary within the time and in the manner in which the beneficiary could disclaim if living, of legal age and competent. A beneficiary likewise may execute and file a disclaimer by agent or attorney so empowered. Subd. 3. Filing deadline. Such disclaimer shall be filed at any time after the creation of the interest, but in all events within nine months after the death of the person by whom the interest was created or from whom it would have been received, or, if the disclaimant is not finally ascertained as a beneficiary or the interest has not become indefeasibly fixed both in quality and quantity as of the death of such person, then such disclaimer shall be filed not later than nine months after the event which would cause the disclaimant so to become finally ascertained and the interest to become indefeasibly fixed both in quality and quantity. Subd. 4. Effectiveness; procedures. Such disclaimer shall be effective upon being filed in the court in which the estate of the person by whom the interest was created or from whom it would have been received is, or has been, administered or, if no probate administration has been commenced, then in the court where it would be pending if commenced. A copy of the disclaimer shall be delivered or mailed to the personal representative, trustee or other person having legal title to, or possession of, the property in which the interest disclaimed exists, and no such representative, trustee or person shall be liable for any otherwise proper distribution or other disposition made without actual notice of the disclaimer. If an interest in or relating to real estate is disclaimed, the original of the disclaimer, or a copy of the disclaimer certified as true and complete by the court administrator of the court wherein the same has been filed, shall be filed in the office of the county recorder or the registrar of titles, as hereinafter provided, in the county or counties where the real estate is situated and shall constitute notice to all persons only from and after the time of such filing. If title to such real estate has not been registered under the provisions of chapter 508, such disclaimer or certified copy shall be filed with the county recorder. If title to such real estate has been registered under the provisions of chapter 508, such disclaimer or certified copy shall be filed with the registrar of titles. Subd. 5. Descent of disclaimed property. Unless the person by whom the interest was created or from whom it would have been received has otherwise provided by will or other appropriate instrument with reference to the possibility of a disclaimer by the beneficiary, the property in which the interest disclaimed existed shall descend, be distributed or otherwise be disposed of in the same manner as if the disclaimant had died immediately preceding the death or other event which causes the disclaimant to become finally ascertained as a beneficiary and 26R APPENDIX Repealed Minnesota Statutes: 09-0050 the interest to become indefeasibly fixed both in quality and quantity, and, in any case, the disclaimer shall relate for all purposes to such date, whether filed before or after such death or other event. However, one disclaiming an interest in a nonresiduary gift, devise or bequest shall not be excluded, unless the disclaimer so provides, from sharing in a gift, devise or bequest of the residue even though, through lapse, such residue includes the assets disclaimed. An interest of any nature in or to the estate of an intestate may be declined, refused or disclaimed as herein provided without ever vesting in the disclaimant. Subd. 6. Limitation. The right to disclaim otherwise conferred by this section shall be barred if the beneficiary is insolvent at the time of the event giving rise to the right to disclaim. Any voluntary assignment or transfer of, or contract to assign or transfer, an interest in real or personal property, or written waiver of the right to disclaim the succession to an interest in real or personal property, by any beneficiary, or any sale or other disposition of an interest in real or personal property pursuant to judicial process, made before the beneficiary has filed a disclaimer, as herein provided, bars the right otherwise hereby conferred on such beneficiary to disclaim as to such interest. Subd. 7. Spendthrift and similar provisions. The right to disclaim granted by this section shall exist irrespective of any limitation imposed on the interest of the disclaimant in the nature of an express or implied spendthrift provision or similar restriction. A disclaimer, when filed as provided in this section, or a written waiver of the right to disclaim, shall be binding upon the disclaimant or beneficiary so waiving and all parties thereafter claiming by, through or under that person, except that a beneficiary so waiving may thereafter transfer, assign or release the interest if such is not prohibited by an express or implied spendthrift provision. If an interest in real estate is disclaimed and the disclaimer is duly filed in accordance with the provisions of subdivision 4, the spouse of the disclaimant, if such spouse has consented to the disclaimer in writing, shall thereupon be automatically debarred from any spouse's statutory or common law right or estate by curtesy or in dower or otherwise in such real estate to which such spouse, except for such disclaimer, would have been entitled. Subd. 8. Rights under other law. This section shall not abridge the right of any person, apart from this section, under any existing or future statute or rule of law, to disclaim any interest or to assign, convey, release, renounce or otherwise dispose of any interest. Subd. 9. Interests existing on May 22, 1965. Any interest which exists on May 22, 1965, but which has not then become indefeasibly fixed both in quality and quantity, or the taker of which has not then become finally ascertained, may be disclaimed after May 22, 1965, in the manner provided herein. 27R