Author: Jasper Berg, J.D.

How do you write a trust in Minnesota? Well, the easiest way is to make declaratory decisions on paper, with clear intent, and have the document notarized.

Unfortunately, lots of people do not know what to write or where to being. For those looking for DIY options, the rules for writing a trust in Minnesota are found under Chapter 501C.

Otherwise, if you need help writing a trust, you found the right place.

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What is required when you write a trust?

Hopefully you agree that there are many advantages to writing a trust versus depending on an oral trust.

First, the person creating the trust must have capacity. In other words, a sound mind, even for a brief moment, to understand their intentions.

Unfortunately, an elderly person can be under duress by relying on their adult children.

Other times, a person can have the lack of capacity due to medication or their health.

So, the first thing needed to write a trust is having the mental capacity to create such an agreement.

What else do you need to write a trust?

For a person to write a trust in one sentence or less, consider meeting with a professional first.

In other words, a person cannot accidentally or unknowingly transfer their stuff or money into a trust without knowing and intending to do so.

To assure this element of the process, this law office asks clients to initial or sign every page making up a trust document. 

Do you need anything else to write a trust?

Yes, to write a trust, a person must also specifically identify a beneficiary of their stuff or money.

This means you need to identify a recipient.  An unborn or unnamed person or entity cannot be a beneficiary without meeting very specific conditions not defined or outlined in this article.

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Just because Minnesota has an oral trust agreement law, doesn’t mean we should rely on it in a time of need.  

None the less, the MN law that allows a verbal trust agreement in certain situations might come in handy during desperate times.

Still, the preferred method of creating a formal written document should always be the first and second option.

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Oral trusts are a risky and unreliable way to manage or transfer assets. While some jurisdictions may recognize them in limited circumstances, they are notoriously difficult to prove and enforce.

Obviously, oral trusts lack clear documentation, which makes it easy for misunderstandings, disputes, and legal challenges to arise—especially among heirs or beneficiaries.

In court, proving the existence and terms of an oral trust often relies on witness testimony or circumstantial evidence, which is vulnerable to contradiction or misinterpretation.

Without written instructions, there’s no definitive record of the settlor’s intent, the assets involved, or how they should be distributed. This can lead to prolonged litigation, strained family relationships, and unintended beneficiaries receiving property.

In short, an oral trust is a legal gamble. To protect your assets, ensure your wishes are carried out, and avoid unnecessary drama, always formalize your trust in writing with qualified legal guidance.

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Trust drafting is as complicated as one’s family dynamic.  Whether you consider yourself smart, educated, uneducated, prudent, or otherwise, avoid the temptation of DIY methods.

Of courses, saving money is an attractive feature when you found a trust drafting program online that costs $49.

Drafting your own trust is like performing surgery with a YouTube tutorial—technically possible, but you probably won’t like the outcome.

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Trust Drafting Steps

1. Determine the Purpose of the Trust. Decide whether the trust is for asset protection, estate planning, tax efficiency, charitable giving, or another specific goal.
2. Choose the Type of Trust. Select the appropriate trust structure (e.g., revocable vs. irrevocable, living trust, testamentary trust, asset protection trust).
3. Select the Trustee. Choose a responsible individual or institution to manage the trust assets according to your wishes.
4. Identify the Beneficiaries. Clearly name the individuals or entities who will benefit from the trust and how/when they will receive distributions.
5. Identify Assets. Identify which assets will be placed in the trust (real estate, accounts, investments, etc.) and ensure proper legal transfer.
6. Draft the Trust Document. Prepare a legally sound trust agreement that outlines the terms, powers, and responsibilities of the trustee and the distribution rules.
7. Review State and Tax Laws. Ensure the trust complies with applicable state laws and consider federal and state tax implications.
8. Sign and Notarize the Trust. Execute the trust with all required signatures and notarization to make it legally valid.
9. Fund the Trust. Officially transfer ownership of the designated assets into the trust (deeds, title changes, account re-titling, etc.).
10. Review and Update Periodically. Revisit the trust regularly or after major life events (marriage, divorce, birth, death, asset changes) to ensure it still meets your needs.

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An Asset Protection Trust is intended to shield assets from creditors and litigation. The goal is to protect beneficiaries from legal harm while preserving monetary benefits.

The process of protecting assets starts with a purposefully drafted trust.  Next, the trust is funded with assets. Then, the game plan is implemented by the trustee.

If you need support with addressing this type of legal document, you are in the right place.

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Again, the goal is to surround trust assets with protection, such that the beneficiary’s creditors cannot reach any of the assets.

One way of accomplishing this level of protection is to impose conditions onto the trustee. When this is not desired, there are other trust types that allow significant advantages.

Other Advantages of an Asset Protection Trust

Another benefit of this type of document is the opportunity to separates ownership of assets from the individual. Of course, there are other ways to do this. Nonetheless, this means placing assets under the control of a trustee.

Legal separation is important because makes it more difficult for creditors or claimants to access the assets. This offers a layer of financial security.

This trust type is especially useful for professionals and business owners who face a higher risk of legal action. By placing assets into a trust, individuals can protect wealth intended for family inheritance, retirement, or long-term investments.

Additionally, these types of tools can help with estate planning, reducing estate taxes and ensuring a transition of wealth to beneficiaries.

Many of planning strategies are structured in jurisdictions with favorable trust laws—such as Nevada or South Dakota domestically, or offshore in countries like the Cook Islands—further enhancing their protective benefits.

While these trusts must be carefully structured to comply with laws and avoid fraudulent conveyance, when properly implemented, they offer robust protection.

Overall, an asset protection trust is a proactive strategy for individuals seeking to preserve wealth, maintain privacy, and minimize exposure to future legal and financial risks.

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