Bill Text: MN HF2362 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Uniform Community Property Rights at Death Act adopted.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2012-02-20 - Introduction and first reading, referred to Civil Law [HF2362 Detail]
Download: Minnesota-2011-HF2362-Introduced.html
1.2relating to community property; adopting the Uniform Community Property
1.3Rights at Death Act; proposing coding for new law as Minnesota Statutes,
1.4chapter 519A.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [519A.01] APPLICATION.
1.7This chapter applies to the disposition at death of the following property acquired
1.8by a married person:
1.9(1) all personal property, wherever situated:
1.10(i) which was acquired as or became, and remained, community property under the
1.11laws of another jurisdiction; or
1.12(ii) all or the proportionate part of that property acquired with the rents, issues, or
1.13income of, or the proceeds from, or in exchange for, or traceable to, that community
1.14property; and
1.15(2) all or the proportionate part of any real property situated in Minnesota which
1.16was acquired with the rents, issues, or income of, the proceeds from, or in exchange for,
1.17property acquired as or which became, and remained, community property under the laws
1.18of another jurisdiction, or property traceable to that community property.
1.19 Sec. 2. [519A.02] REBUTTABLE PRESUMPTIONS.
1.20In determining whether this chapter applies to specific property, the following
1.21rebuttable presumptions apply:
1.22(1) property acquired during marriage by a spouse of that marriage while domiciled
1.23in a jurisdiction under whose laws property could then be acquired as community property
2.1is presumed to have been acquired as or to have become, and remained, property to which
2.2this chapter applies; and
2.3(2) real property situated in Minnesota and personal property wherever situated
2.4acquired by a married person while domiciled in a jurisdiction under whose laws property
2.5could not then be acquired as community property, title to which was taken in a form
2.6which created rights of survivorship, are presumed to be property to which this chapter
2.7does not apply.
2.8 Sec. 3. [519A.03] DISPOSITION UPON DEATH.
2.9Upon the death of a married person, one-half of the property to which this chapter
2.10applies is the property of the surviving spouse and is not subject to testamentary
2.11disposition by the decedent or distribution under the laws of succession of Minnesota.
2.12The other one-half of that property is the property of the decedent and is subject to
2.13testamentary disposition or distribution under the laws of succession of Minnesota. With
2.14respect to property to which this chapter applies, the one-half of the property which is the
2.15property of the decedent is not subject to the surviving spouse's right to elect against the
2.16will and is not included in the decedent's net estate which is subject to the elective share
2.17of the surviving spouse.
2.18 Sec. 4. [519A.04] PERFECTION OF TITLE OF SURVIVING SPOUSE.
2.19If the title to any property to which this chapter applies was held by the decedent
2.20at the time of death or by a trustee of an inter vivos trust created by the decedent or the
2.21decedent and the decedent's spouse, title of the surviving spouse may be perfected by
2.22an order of the court or by execution of an instrument, with the approval of the court
2.23by the personal representative, the trustee, the heirs or devisees of the decedent, or the
2.24testamentary beneficiaries. None of the personal representative, the trustee of any trust
2.25described in this section, or the court having jurisdiction over the decedent's estate or trust
2.26has a duty to discover or attempt to discover whether property held by the decedent is
2.27property to which this chapter applies, unless a written demand is made by the surviving
2.28spouse or the spouse's successor in interest as follows:
2.29(1) within four months after the date of the first publication of notice to creditors, if
2.30the property was held by the decedent's estate at the time of death;
2.31(2) within 60 days after the decedent's date of death, if the property was held by a
2.32trustee of an inter vivos trust at the time of death and no written notice is provided to the
2.33surviving spouse or the spouse's successor in interest by the trustee; or
3.1(3) within 20 days after written notice is given by certified or registered mail or
3.2personally delivered to the surviving spouse or the spouse's successor in interest, if the
3.3property was held by a trustee of an inter vivos trust at the time of death and written notice
3.4is provided to the surviving spouse by the trustee.
3.5 Sec. 5. [519A.05] PERFECTION OF TITLE OF PERSONAL
3.6REPRESENTATIVE, TRUSTEE, HEIR OR DEVISEE, OR TESTAMENTARY
3.7BENEFICIARY.
3.8If the title to any property to which this chapter applies is held by the surviving
3.9spouse at the time of the decedent's death or by a trustee of an inter vivos trust created by
3.10the decedent or the decedent and the decedent's spouse, the personal representative, the
3.11trustee, an heir or devisee of the decedent, or a testamentary beneficiary may institute an
3.12action to perfect title to the property. Neither the personal representative nor the trustee
3.13of a trust described in this section has a fiduciary duty to discover or attempt to discover
3.14whether any property held by the surviving spouse or by a trustee of any trust described in
3.15this section is property to which this chapter applies, unless a written demand is made by
3.16an heir, devisee, testamentary beneficiary, or creditor of the decedent as follows:
3.17(1) within four months after the date of the first publication of notice to creditors, if
3.18the property was held by the surviving spouse at the time of the decedent's death; or
3.19(2) within 60 days after the decedent's date of death, if the property was held by a
3.20trustee of an inter vivos trust at the time of death.
3.21 Sec. 6. [519A.06] PURCHASER FOR VALUE OR LENDER.
3.22(a) If a surviving spouse has apparent title to property to which this chapter
3.23applies, a purchaser for value or a lender taking a security interest in the property takes
3.24the purchaser's or lender's interest in the property free of any rights of the personal
3.25representative, trustee, heir, devisee, beneficiary, or distributee of the decedent.
3.26(b) If a personal representative, trustee, heir, devisee, beneficiary, or distributee of
3.27the decedent has apparent title to property to which this chapter applies, a purchaser for
3.28value or a lender taking a security interest in the property takes an interest in the property
3.29free of any rights of the surviving spouse.
3.30(c) A purchaser for value or a lender need not inquire whether a lender or borrower
3.31acted properly.
3.32(d) The proceeds of a sale or creation of a security interest must be treated in the
3.33same manner as the property transferred to the purchaser for value or a lender.
4.1(e) For purposes of this section, any reference to the term "apparent title" with
4.2respect to real property means "record title" to the property.
4.3 Sec. 7. [519A.07] CREDITOR'S RIGHTS.
4.4This chapter does not affect rights of creditors with respect to property to which
4.5this chapter applies.
4.6 Sec. 8. [519A.08] ACTS OF MARRIED PERSONS.
4.7This chapter does not prevent married persons from severing or altering their
4.8interests in property to which this chapter applies.
4.9 Sec. 9. [519A.09] LIMITATIONS ON TESTAMENTARY DISPOSITION.
4.10This chapter does not authorize a person to dispose of property by will or by trust
4.11disposition if the property is held under the limitations imposed by law preventing
4.12disposition by that person.
4.13 Sec. 10. [519A.10] UNIFORMITY OF APPLICATION AND CONSTRUCTION.
4.14The chapter shall be so applied and construed as to effectuate its general purpose
4.15to make uniform the law with respect to the subject of this chapter among those states
4.16which enact it.
4.17 Sec. 11. [519A.11] SHORT TITLE.
4.18This chapter may be cited as the "Uniform Disposition of Community Property
4.19Rights at Death Act."
1.3Rights at Death Act; proposing coding for new law as Minnesota Statutes,
1.4chapter 519A.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [519A.01] APPLICATION.
1.7This chapter applies to the disposition at death of the following property acquired
1.8by a married person:
1.9(1) all personal property, wherever situated:
1.10(i) which was acquired as or became, and remained, community property under the
1.11laws of another jurisdiction; or
1.12(ii) all or the proportionate part of that property acquired with the rents, issues, or
1.13income of, or the proceeds from, or in exchange for, or traceable to, that community
1.14property; and
1.15(2) all or the proportionate part of any real property situated in Minnesota which
1.16was acquired with the rents, issues, or income of, the proceeds from, or in exchange for,
1.17property acquired as or which became, and remained, community property under the laws
1.18of another jurisdiction, or property traceable to that community property.
1.19 Sec. 2. [519A.02] REBUTTABLE PRESUMPTIONS.
1.20In determining whether this chapter applies to specific property, the following
1.21rebuttable presumptions apply:
1.22(1) property acquired during marriage by a spouse of that marriage while domiciled
1.23in a jurisdiction under whose laws property could then be acquired as community property
2.1is presumed to have been acquired as or to have become, and remained, property to which
2.2this chapter applies; and
2.3(2) real property situated in Minnesota and personal property wherever situated
2.4acquired by a married person while domiciled in a jurisdiction under whose laws property
2.5could not then be acquired as community property, title to which was taken in a form
2.6which created rights of survivorship, are presumed to be property to which this chapter
2.7does not apply.
2.8 Sec. 3. [519A.03] DISPOSITION UPON DEATH.
2.9Upon the death of a married person, one-half of the property to which this chapter
2.10applies is the property of the surviving spouse and is not subject to testamentary
2.11disposition by the decedent or distribution under the laws of succession of Minnesota.
2.12The other one-half of that property is the property of the decedent and is subject to
2.13testamentary disposition or distribution under the laws of succession of Minnesota. With
2.14respect to property to which this chapter applies, the one-half of the property which is the
2.15property of the decedent is not subject to the surviving spouse's right to elect against the
2.16will and is not included in the decedent's net estate which is subject to the elective share
2.17of the surviving spouse.
2.18 Sec. 4. [519A.04] PERFECTION OF TITLE OF SURVIVING SPOUSE.
2.19If the title to any property to which this chapter applies was held by the decedent
2.20at the time of death or by a trustee of an inter vivos trust created by the decedent or the
2.21decedent and the decedent's spouse, title of the surviving spouse may be perfected by
2.22an order of the court or by execution of an instrument, with the approval of the court
2.23by the personal representative, the trustee, the heirs or devisees of the decedent, or the
2.24testamentary beneficiaries. None of the personal representative, the trustee of any trust
2.25described in this section, or the court having jurisdiction over the decedent's estate or trust
2.26has a duty to discover or attempt to discover whether property held by the decedent is
2.27property to which this chapter applies, unless a written demand is made by the surviving
2.28spouse or the spouse's successor in interest as follows:
2.29(1) within four months after the date of the first publication of notice to creditors, if
2.30the property was held by the decedent's estate at the time of death;
2.31(2) within 60 days after the decedent's date of death, if the property was held by a
2.32trustee of an inter vivos trust at the time of death and no written notice is provided to the
2.33surviving spouse or the spouse's successor in interest by the trustee; or
3.1(3) within 20 days after written notice is given by certified or registered mail or
3.2personally delivered to the surviving spouse or the spouse's successor in interest, if the
3.3property was held by a trustee of an inter vivos trust at the time of death and written notice
3.4is provided to the surviving spouse by the trustee.
3.5 Sec. 5. [519A.05] PERFECTION OF TITLE OF PERSONAL
3.6REPRESENTATIVE, TRUSTEE, HEIR OR DEVISEE, OR TESTAMENTARY
3.7BENEFICIARY.
3.8If the title to any property to which this chapter applies is held by the surviving
3.9spouse at the time of the decedent's death or by a trustee of an inter vivos trust created by
3.10the decedent or the decedent and the decedent's spouse, the personal representative, the
3.11trustee, an heir or devisee of the decedent, or a testamentary beneficiary may institute an
3.12action to perfect title to the property. Neither the personal representative nor the trustee
3.13of a trust described in this section has a fiduciary duty to discover or attempt to discover
3.14whether any property held by the surviving spouse or by a trustee of any trust described in
3.15this section is property to which this chapter applies, unless a written demand is made by
3.16an heir, devisee, testamentary beneficiary, or creditor of the decedent as follows:
3.17(1) within four months after the date of the first publication of notice to creditors, if
3.18the property was held by the surviving spouse at the time of the decedent's death; or
3.19(2) within 60 days after the decedent's date of death, if the property was held by a
3.20trustee of an inter vivos trust at the time of death.
3.21 Sec. 6. [519A.06] PURCHASER FOR VALUE OR LENDER.
3.22(a) If a surviving spouse has apparent title to property to which this chapter
3.23applies, a purchaser for value or a lender taking a security interest in the property takes
3.24the purchaser's or lender's interest in the property free of any rights of the personal
3.25representative, trustee, heir, devisee, beneficiary, or distributee of the decedent.
3.26(b) If a personal representative, trustee, heir, devisee, beneficiary, or distributee of
3.27the decedent has apparent title to property to which this chapter applies, a purchaser for
3.28value or a lender taking a security interest in the property takes an interest in the property
3.29free of any rights of the surviving spouse.
3.30(c) A purchaser for value or a lender need not inquire whether a lender or borrower
3.31acted properly.
3.32(d) The proceeds of a sale or creation of a security interest must be treated in the
3.33same manner as the property transferred to the purchaser for value or a lender.
4.1(e) For purposes of this section, any reference to the term "apparent title" with
4.2respect to real property means "record title" to the property.
4.3 Sec. 7. [519A.07] CREDITOR'S RIGHTS.
4.4This chapter does not affect rights of creditors with respect to property to which
4.5this chapter applies.
4.6 Sec. 8. [519A.08] ACTS OF MARRIED PERSONS.
4.7This chapter does not prevent married persons from severing or altering their
4.8interests in property to which this chapter applies.
4.9 Sec. 9. [519A.09] LIMITATIONS ON TESTAMENTARY DISPOSITION.
4.10This chapter does not authorize a person to dispose of property by will or by trust
4.11disposition if the property is held under the limitations imposed by law preventing
4.12disposition by that person.
4.13 Sec. 10. [519A.10] UNIFORMITY OF APPLICATION AND CONSTRUCTION.
4.14The chapter shall be so applied and construed as to effectuate its general purpose
4.15to make uniform the law with respect to the subject of this chapter among those states
4.16which enact it.
4.17 Sec. 11. [519A.11] SHORT TITLE.
4.18This chapter may be cited as the "Uniform Disposition of Community Property
4.19Rights at Death Act."
