The rights of beneficiaries of a Minnesota trust are primarily based on Minnesota Statutes and the trust document. When a trust document and/or statute imposes a duty on the trustee, for the benefit of the beneficiary, the beneficiary has rights. Here are some examples from the Minnesota Trust Code, Minnesota Statutes chapter 501C.
Good Faith
A beneficiary has a right to have a trustee “administer the trust in good faith, in accordance with its terms and purposes and the interests of the beneficiaries, and in accordance with this chapter and all other applicable law.” See Minnesota Statutes section 501C.0801.
Loyalty
A beneficiary has a right to have a trustee who is loyal to the beneficiaries. See Minnesota Statutes section 501C.0802.
Impartiality
A beneficiary has a right to be treated in an impartial manner among the other beneficiaries. See Minnesota Statutes section 501C.0803.
Prudence
A beneficiary has a right to have a trustee who administers the trust “as a prudent person would, by considering the purposes, terms, and distribution requirements of the trust and all relevant circumstances,” exercising “reasonable care, skill, and caution.” See Minnesota Statutes section 501C.0804.
Information
A qualified beneficiary of an irrevocable trust has a right to be kept “reasonably informed about the administration of the trust and of the material facts necessary to protect their interests.” See Minnesota Statutes section 501C.0813.
Protection of Property
A beneficiary has a right to have a trustee who protects the trust property. See Minnesota Statutes section 501C.0809.
Recordkeeping
A beneficiary has a right to have a trustee who keeps adequate records and keeps trust property separate. See Minnesota Statutes section 501C.0810.
Unless the trust provides otherwise, you can petition the court to require the trustee to account. Requiring a trustee to account is among the matters a judicial proceeding involving a trust may relate to under section 501C.0202(8). The court may also order an accounting as a remedy for a breach of trust under section 501C.1001(b)(4). The trustee’s underlying duty to inform and report runs from section 501C.0813. Section 501C.0810, by contrast, governs only the trustee’s internal recordkeeping and the separation of trust property; it does not address court-ordered accountings. Here is one example of a form used to provide an accounting.
Enforcement
A beneficiary has a right to have a trustee who enforces legal claims for the trust. See Minnesota Statutes section 501C.0811.
Removal of a Trustee
A beneficiary has a right to ask the court to remove a trustee if
(1) the trustee has committed a serious breach of trust;
(2) lack of cooperation among cotrustees substantially impairs the administration of the trust;
(3) the court determines that removal of the trustee best serves the interests of the beneficiaries because of unfitness, unwillingness, or persistent failure of the trustee to administer the trust effectively; or
(4) there has been a substantial change in circumstances or removal is requested by all of the qualified beneficiaries, the court finds that removal of the trustee best serves the interests of all of the beneficiaries and is not inconsistent with a material purpose of the trust, and a suitable cotrustee or successor trustee is available.
