Minnesota Statutes 502.86 – Rights of Creditors in Appointive Property
Subdivision 1.Special power.
Property that is covered by either a special power of appointment or a general power of appointment that is exercisable solely for the support, maintenance, health, and education of the donee within the meaning of sections 2041 and 2514 of the Internal Revenue Code is not subject to the payment of the claims of creditors of the donee, the donee’s estate, or the expenses of administering the donee’s estate.
Subd. 2.General power currently exercisable.
Terms Used In Minnesota Statutes 502.86
- Donee: The recipient of a gift.
- Donee: means the person to whom a power is given or in whose favor a power is reserved. See Minnesota Statutes 502.81
- Person: may extend and be applied to bodies politic and corporate, and to partnerships and other unincorporated associations. See Minnesota Statutes 645.44
- Power: means an authority to do any act in relation to property, including the creation or revocation of an estate therein or a charge thereon, that the donor of the power might do, except that the term, as used in this chapter, does not apply to a power of attorney to convey property in the name of the owner. See Minnesota Statutes 502.81
- Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
Terms Used In Minnesota Statutes 502.86
- Donee: The recipient of a gift.
- Donee: means the person to whom a power is given or in whose favor a power is reserved. See Minnesota Statutes 502.81
- Person: may extend and be applied to bodies politic and corporate, and to partnerships and other unincorporated associations. See Minnesota Statutes 645.44
- Power: means an authority to do any act in relation to property, including the creation or revocation of an estate therein or a charge thereon, that the donor of the power might do, except that the term, as used in this chapter, does not apply to a power of attorney to convey property in the name of the owner. See Minnesota Statutes 502.81
- Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
Property that is covered by a general power of appointment, other than one exercisable solely for the support, maintenance, health, and education of the donee within the meaning of sections 2041 and 2514 of the Internal Revenue Code, that is presently exercisable, or of a postponed power that has become exercisable, is subject to the payment of the claims of creditors of the donee, the donee’s estate, and the expenses of administering the donee’s estate, but only to the extent that other property available for the payment of the creditor’s claim is insufficient for this payment. It is immaterial whether the donor of the power is the donee or some other person, or whether the donee has or has not purported to exercise the power.
Subd. 3.Power subject to a condition.
A general power of appointment may be created subject to a condition precedent or subsequent, and, until the condition is fulfilled, it is not subject to the provisions of subdivision 2.
Subd. 4.General power not presently exercisable.
Property that is covered by a general power of appointment which, when created, is not presently exercisable, is subject to the payment of the claims of creditors of the donee, the donee’s estate, and the expenses of administering the donee’s estate only if:
(1) the power was created by the donee in favor of the donee; or
(2) a postponed power becomes exercisable in accordance with the terms of the creating instrument, except in the case of a testamentary general power.