Probate & Trust Law Section Conference Manual ... - Minnesota CLE

Reflect tax or other legal changes that affect trust administration;
Correct ambiguities, including scrivener errors, that might otherwise require court
construction or reformation;
Grant a beneficiary of any trust created under this agreement the testamentary power
to appoint all or part of the beneficiary’s trust or trust share to the creditors of the
beneficiary’s estate. My Trust Advisor may require, as a condition for the
beneficiary’s exercise of such power, that the beneficiary first obtain the consent of
my Trust Advisor. Any testamentary power of appointment granted by my Trust
Advisor must be in writing and may be revoked by my Trust Advisor at any time
during the lifetime of the beneficiary to whom the power was given. I suggest, but do
not require, that my Trust Advisor exercise this authority to subject trust property to
estate tax instead of the generation-skipping transfer tax when it appears that it may
reduce overall taxes.
My Trust Advisor may not amend this agreement in any manner that would result in a
reduction in the estate tax marital deduction under Section 2056 of the Internal
Revenue Code or the estate tax charitable deduction under Section 2055 to which my
estate would otherwise be entitled. Further, my Trust Advisor may not limit or alter
the rights of a beneficiary in any trust assets held by the trust before the amendment.
Any amendment made by my Trust Advisor in good faith is conclusive on all persons
interested in the trust and my Trust Advisor is not liable for the consequences of any
amendment or for not having amended the trust. Any amendment to this agreement
made by my Trust Advisor must be made in a written instrument signed by my Trust
Advisor. My Trust Advisor must deliver a copy of the amendment to the income
beneficiaries and to my trustee.
Not a General Power of Appointment
My Trust Advisor may not participate in the exercise of a power or a discretion conferred
under this agreement that would cause my Trust Advisor to possess a general power of
appointment within the meaning of Sections 2041 and 2514 of the Internal Revenue Code.
Specifically, my Trust Advisor may not use such powers for his or her personal benefit, nor
for the discharge of his or her financial obligations.
Release of Powers
My Trust Advisor, acting on its own behalf and on behalf of all successor Trust Advisors,
may at any time, by a written instrument delivered to my trustee, irrevocably release,
renounce, suspend or reduce any or all powers and discretions conferred on my Trust Advisor
by this agreement.
No Duty to Monitor
My Trust Advisor has no duty to monitor any trust created under this agreement in order to
determine whether any of the powers and discretions conferred by this agreement on my
Trust Advisor should be exercised. Further, my Trust Advisor has no duty to be informed as
to the acts or omissions of others or to take any action to prevent or minimize loss. Any
exercise or non-exercise of the powers and discretions granted to my Trust Advisor is in the
sole and absolute discretion of my Trust Advisor, and will be binding and conclusive on all
persons. My Trust Advisor is not required to exercise any power or discretion granted under
this agreement.
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