{"data":{"id":"us-mn/minn.-stat.-501c.0802","jurisdiction":"us-mn","citation":"Minn. Stat. § 501C.0802","heading":"DUTY OF LOYALTY.","body":"(a) A trustee owes a duty of loyalty to the beneficiaries. A trustee shall not place the trustee's own interests above those of the beneficiaries.\n(b) Subject to the rights of persons dealing with or assisting the trustee as provided in section 501C.1012, a sale, encumbrance, or other transaction involving the investment or management of trust property entered into by the trustee for the trustee's own personal account or which is otherwise affected by a conflict between the trustee's fiduciary and personal interests is voidable by a beneficiary affected by the transaction unless:\n(1) the transaction was authorized by the terms of the trust;\n(2) the transaction was approved by the court;\n(3) the beneficiary did not commence a judicial proceeding within the time allowed by section 501C.1005;\n(4) the beneficiary consented to the trustee's conduct, ratified the transaction, or released the trustee in compliance with section 501C.1009; or\n(5) the transaction involves a contract entered into or claim acquired by the trustee before the person became a trustee.\n(c) A sale, encumbrance, or other transaction involving the investment or management of trust property is presumed to be affected by a conflict between personal and fiduciary interests if it is entered into by the trustee with:\n(1) the trustee's spouse;\n(2) the trustee's descendants, siblings, parents, or their spouses;\n(3) an agent or an attorney of the trustee; or\n(4) a corporation or other person or enterprise in which the trustee, or a person who owns a significant interest in the trustee, has an interest that might affect the trustee's best judgment.\n(d) This section does not preclude the following transactions, if fair to the beneficiaries:\n(1) an agreement between a trustee and a beneficiary relating to the appointment or compensation of the trustee;\n(2) payment of reasonable compensation to the trustee;\n(3) a transaction between a trust and another trust, decedent's estate, or conservatorship of which the trustee is a fiduciary or in which a beneficiary has an interest;\n(4) a deposit of trust money in a regulated financial service institution operated by the trustee; or\n(5) an advance by the trustee of money for the protection of the trust.\n(e) The court may appoint a special fiduciary to make a decision with respect to any proposed transaction that might violate this section if entered into by the trustee.","path":["PROPERTY AND PROPERTY INTERESTS","CHAPTER 501C. TRUSTS","DUTIES AND POWERS OF TRUSTEE"],"source_url":"https://www.revisor.mn.gov/statutes/cite/501C.0802","current_through":"2025 Minnesota Statutes","vintage":"","retrieved_at":"2026-09-02T22:10:48Z","sha256":"27ba41cad866022ecb3db53e35411843d7402b2e8c498dfe8d5ecc318f553117","source_id":"us-mn","stale":false,"prev":"us-mn/minn.-stat.-501c.0801","next":"us-mn/minn.-stat.-501c.0803"},"notice":"GroundRules: Original legal text. Not legal advice."}