Section 501C.0802 - DUTY OF LOYALTY(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.(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: (1) the transaction was authorized by the terms of the trust;(2) the transaction was approved by the court;(3) the beneficiary did not commence a judicial proceeding within the time allowed by section 501C.1005;(4) the beneficiary consented to the trustee's conduct, ratified the transaction, or released the trustee in compliance with section 501C.1009; or(5) the transaction involves a contract entered into or claim acquired by the trustee before the person became a trustee.(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: (1) the trustee's spouse;(2) the trustee's descendants, siblings, parents, or their spouses;(3) an agent or an attorney of the trustee; or(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.(d) This section does not preclude the following transactions, if fair to the beneficiaries:(1) an agreement between a trustee and a beneficiary relating to the appointment or compensation of the trustee;(2) payment of reasonable compensation to the trustee;(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;(4) a deposit of trust money in a regulated financial service institution operated by the trustee; or(5) an advance by the trustee of money for the protection of the trust.(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.Added by 2015 Minn. Laws, ch. 5,s 8-2, eff. 1/1/2016.