Minnesota 2025-2026 Regular Session

Minnesota House Bill HF940 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; income; modifying the definition of resident trust; amending
3	3	1.3 Minnesota Statutes 2024, section 290.01, subdivision 7b.
4	4	1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
5	5	1.5 Section 1. Minnesota Statutes 2024, section 290.01, subdivision 7b, is amended to read:
6	6	1.6 Subd. 7b.Resident trust.(a) Resident trust means A trust, except a grantor type trust,
7	7	1.7which either that became irrevocable on or before December 31, 1995, or was first
8	8	1.8administered in Minnesota on or before December 31, 1995, is a resident trust only if two
9	9	1.9or more of the following conditions are satisfied:
10	10	1.10 (1) a majority of the discretionary decisions of the trustees relative to the investment of
11	11	1.11trust assets are made in Minnesota;
12	12	1.12 (2) a majority of the discretionary decisions of the trustees relative to the distributions
13	13	1.13of trust income and principal are made in Minnesota; or
14	14	1.14 (3) the official books and records of the trust, consisting of the original minutes of trustee
15	15	1.15meetings and the original trust instruments, are located in Minnesota.
16	16	1.16 (b) A trust, except a grantor type trust, that became irrevocable after December 31, 1995,
17	17	1.17or was first administered in Minnesota after December 31, 1995, is a resident trust only if:
18	18	1.18 (1) either it:
19	19	1.19 (i) was created by a will of a decedent who at death was domiciled in this state; or
20	20	1.20 (2) (ii) is an irrevocable trust, the grantor of which was domiciled in this state at the time
21	21	1.21the trust became irrevocable.; and
22	22	1Section 1.
23	23	REVISOR EAP/HL 25-0071711/22/24
24	24	State of Minnesota
25	25	This Document can be made available
26	26	in alternative formats upon request
27	27	HOUSE OF REPRESENTATIVES
28	28	H. F. No. 940
29	29	NINETY-FOURTH SESSION
30	30	Authored by Davids02/17/2025
31	31	The bill was read for the first time and referred to the Committee on Taxes 2.1 (2) two or more of the following conditions are satisfied:
32	32	2.2 (i) a majority of the discretionary decisions of the trustees relative to the investment of
33	33	2.3trust assets are made in Minnesota;
34	34	2.4 (ii) a majority of the discretionary decisions of the trustees relative to the distributions
35	35	2.5of trust income and principal are made in Minnesota; or
36	36	2.6 (iii) the official books and records of the trust, consisting of the original minutes of
37	37	2.7trustee meetings and the original trust instruments, are located in Minnesota.
38	38	2.8 (c) For the purpose of this subdivision, a trust is considered irrevocable to the extent the
39	39	2.9grantor is not treated as the owner thereof under sections 671 to 678 of the Internal Revenue
40	40	2.10Code. The term "grantor type trust" means a trust where the income or gains of the trust are
41	41	2.11taxable to the grantor or others treated as substantial owners under sections 671 to 678 of
42	42	2.12the Internal Revenue Code. This paragraph applies to trusts, except grantor type trusts, that
43	43	2.13became irrevocable after December 31, 1995, or are first administered in Minnesota after
44	44	2.14December 31, 1995.
45	45	2.15 (b) This paragraph applies to trusts, except grantor type trusts, that are not governed
46	46	2.16under paragraph (a). A trust, except a grantor type trust, is a resident trust only if two or
47	47	2.17more of the following conditions are satisfied:
48	48	2.18 (1) a majority of the discretionary decisions of the trustees relative to the investment of
49	49	2.19trust assets are made in Minnesota;
50	50	2.20 (2) a majority of the discretionary decisions of the trustees relative to the distributions
51	51	2.21of trust income and principal are made in Minnesota;
52	52	2.22 (3) the official books and records of the trust, consisting of the original minutes of trustee
53	53	2.23meetings and the original trust instruments, are located in Minnesota.
54	54	2.24 (c) (d) For purposes of paragraph paragraphs (a) and (b), if the trustees delegate decisions
55	55	2.25and actions to an agent or custodian, the actions and decisions of the agent or custodian
56	56	2.26must not be taken into account in determining whether the trust is administered in Minnesota,
57	57	2.27if:
58	58	2.28 (1) the delegation was permitted under the trust agreement;
59	59	2.29 (2) the trustees retain the power to revoke the delegation on reasonable notice; and
60	60	2.30 (3) the trustees monitor and evaluate the performance of the agent or custodian on a
61	61	2.31regular basis as is reasonably determined by the trustees.
62	62	2.32 EFFECTIVE DATE.This section is effective the day following final enactment.
63	63	2Section 1.
64	64	REVISOR EAP/HL 25-0071711/22/24