Minnesota’s new Trust Code will take effect on January 1, 2016. The new law is a variation of the Uniform Trust Code (UTC), a federal trust law which the states are encouraged, but not required, to enact. 30 states and Washington, D.C. have adopted some version of the UTC. New Jersey has introduced the UTC in A2915, which has been sent to the state Senate Judiciary Committee.
The goal of the Code is to make trust law easier to navigate for lawyers, trustees, beneficiaries, courts and tax advisers. Amid the much larger law is a small provision in section 501C.0702 regarding surety bonds. It states that a trustee may be required by the court to post a bond, ensuring that the trustee performs their duties. The court will determine if the bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust (a requirement the court can choose to dispense with). The court will also determine the amount of the bond and its liabilities.