Legislative Update: Minnesota Trust Code revised to allow for trusts to remain in existence for generations

On May 6, 2025, Governor Walz signed new legislation to modify a provision in the Minnesota’s Uniform Trust Code to change the statutory rules against perpetuities applicable to assets held in trust, and thereby allowing the concept of a Dynasty Trust.

Like many other states that allow “Dynasty Trusts” (meaning Trusts that can remain in exists for several generations), the new law amends Minnesota’s rule against perpetuities for trust interests created on or after August 1, 2025, providing a new and greatly expanded outer limit for how long a trust can exist in Minnesota.  This change provides that interests in a trust must vest within 500 years after creation of the interest, thereby extending the prior 90-year limitation five fold. The purpose of this change it to allow individuals and families the ability to protect their assets for a longer period of time by holding them in trust for a significant 500 year period (i.e. spanning  many generations) while simultaneously avoiding estate tax implications on transfers of wealth.  This will allow families far more planning opportunities for generations to come!

Contact one of your Bravura Group estate planning attorneys to learn more about this important change regarding Dynasty Trusts.