MN SF6

Amends Minnesota Statutes section 290.01, subdivision 7b to modify how trusts are classified as "resident trusts" for state income tax purposes

For trusts that became irrevocable after December 31, 1995, adds a new requirement that the trust must meet BOTH a domicile test (grantor domiciled in Minnesota when trust became irrevocable, or created by will of Minnesota decedent) AND satisfy two of three Minnesota-connection conditions

The three Minnesota-connection conditions are: majority of investment decisions made in Minnesota, majority of distribution decisions made in Minnesota, or official trust records located in Minnesota

Current law only requires meeting the domicile test OR the Minnesota-connection conditions; the bill requires meeting both, narrowing which trusts qualify as resident trusts subject to Minnesota taxation

Effective the day following final enactment