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

. No Power to Reject Assets.
1. Corporate trustees like to have the power to reject assets
because of the inherent risks associated with unusual or
specialty assets for both the trustee and the beneficiary.
We strive to work with the client to address the
management of difficult assets, but without this provision,
the corporate trustee may not be able to serve or would
have to simply resign if asked to hold an objectionable
asset. Accepting appointment is less problematic if the
power to reject is included in the document. If you know
that the client holds an asset that requires special
monitoring and review, discuss your options with the
corporate trustee ahead of time because they can work
with you to find a solution.
c. Inadequate Trustees’ Powers.
1. Trustees’ powers are referenced in a number of ways in
estate planning documents. Most often you see the powers
incorporated by reference to 501B.81 with the addition of
some expanded powers to the body of the document.
Sometimes we see the Trustees’ Powers Act incorporated
by reference as it exists at the time of executing the
document. This may seem best for the client at the time of
drafting, but consider what happens when sometime in the
future a trust is created and you are trying to determine if a
trustee has the power to do a particular thing. The trustee
will need to go back and find the powers as they existed on
the date of execution. That can be cumbersome and if it
really is the intent to use the powers as they exist on that
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