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

UTC gives the states the discretion to decide if this rule should be altered if
the settlor becomes incapacitated.
4. The validity of a revocable trust may be contested within three years of the
settlor’s death. If the trustee sends a notice of the settlor’s death to any
interested person, the period to contest the revocable trust is reduced to 120
days of the date a person is sent a notice of the death of the settlor.
G. Article VII - Office of Trustee.
1. Provides rules on how a trustee accepts or declines a trusteeship. In absence
of a formal declaration of acceptance, a trustee accepts its duties by accepting
delivery of trust property or beginning take actions as trustee.
2. The roles of co-trustees are addressed. Co-trustees must act by majority vote.
3. Default rules are provided for appointing successor trustees. The qualified
beneficiaries may unanimously appoint a successor or the court can appoint a
successor.
4. Trustee has the right to resign.
5. Trustees can be removed by the court under certain circumstances, including a
request by all of the qualified beneficiaries.
6. The trustee is entitled to reasonable compensation and reimbursement of
expenses, with interest as appropriate.
H. Article VIII – Duties and Powers of a Trustee.
1. A trustee has a duty to administer a trust in good faith, in accordance with its
terms and purposes, in the interests of the beneficiaries and in accordance with
the UTC.
2. A trustee has a duty of loyalty to the beneficiaries.
3. A trustee must act impartially with respect to the interests of multiple
beneficiaries.
4. A trustee must act prudently and exercise reasonable care, skill and caution.
5. The trustee may only incur reasonable costs.
6. A trustee who has special skills or expertise shall use those skills or expertise.
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