Author: Jasper Berg, J.D.

  • Minnesota’s Confusing Trustee Laws

    Minnesota’s Confusing Trustee Laws

    So, your Trustee is dead?  First, I sympathize with you and your family.  Second, lets assume the trust was valid.

    Generally, these are the next couple of steps:

    Trustee is Dead:  Do this while Alive

    If at all possible, I believe every trustee should have a backup plan.  In other words, have a conversation with the back-up trustee or successor trustee.

    During this conversation, make sure they are willing and able to step into the role when called upon.  If at all possible, keep accurate notes to help the back-up trustee step into your shoes.

    Trustee is Dead and I am the Backup

    For those stepping up because the trustee before them has since died, I think engaging professional advisement is always prudent.  After all, being a trustee is a lot of work.  And, having advisors like a financial planner, accountant and attorney can reduce problems.

    Trustee is Dead and I do Not Know What to Do

    Not knowing how to proceed is a common fear.  In my experience, the most surprising part is how much time the position of trustee can require.  Whether this means running mom to the doctor, paying her bills, keeping the house up or making sure her taxes are filed, it is an administrative task like none other.

    On the other hand, it is a lot easier than running to and from a probate court.  For this reason, a trustee that is no longer able to render services is a good problem to have.

    Am I Liable when my Trustee is Dead

    Here is the number one reason to jump on the transition process for a trustee:  liability.  Yes, trustees can become liable for errors and tardiness.

    Thus, the transition process should be engaged immediately.

  • Should You Transfer Your House and Avoid Probate in Minnesota?

    Should You Transfer Your House and Avoid Probate in Minnesota?

    How to transfer your house and avoid probate in Minnesota is a common question with situational or case by case results.

    The idea of forcing your family into probate when the process is so much easier while we are alive is a no brainer.  On the flip side, inheriting a mess is an ugly alternative.

    In my experience, it doesn’t matter if a family is young or old, rich or poor.  Everybody gets a choice, a few being very inexpensive!

    Here are  three really fantastic strategies to reduce problems with a family home:

    1. Joint Tenancy,
    2. Transfer on Death Deed (TODD), and
    3. Utilizing a revocable trust.

    Certainly, there are more than three options.  But, these are three of my favorites.

    Joint Tenancy to Avoid Probate

    Joint tenancy is a specific way to title a home.  Although this method does NOT reduce problems to a 0% percent chance, it can serve as a good step in the right direction.  

    The next question I hear is “how do I find out”?

    Generally, anybody can determine whether the deed to a house was titled joint tenancy by reading the deed.  

    For those who cannot find their deed, I encourage calling the real property department serving the county where the home is located.  

    A lot of people believe joint tenancy helps them avoid probate.  Again, this isn’t the case, but it is a god start because a joint tenancy supports a right of survivorship.

    Transfer Your House and Avoid Probate by using a TODD

    A transfer on death deed  does not necessarily help families avoid probate either.  

    However, these types of deeds are very inexpensive and help transfer a home quickly and efficiently in certain situations involving our death.

    If the person(s) receiving the property are still alive, then a TODD can be an effective tool.  If the person(s) receiving the property are not alive (dead), the effectiveness of a transfer on death deed has been defeated.

    Not to worry, because there are other options to reduce this problem too.  

    Transfer Your House and Avoid Probate with a Trust

    I love revocable trusts for a whole lot of reasons.  Most families can use this type of estate planning document to their advantage.

    Whether a trust can help depends on the documents being properly funded and:

    • Assumes the trustee doesn’t engage in mischief,
    • Beneficiaries are easily identified, and
    • There is a trustee.

    Wait, you are concerned about a crazy family member?  The idea of meeting one-in-one is to flush out these issues.

    Thus, this type of document is the preferred method of reducing problems.

    Leaving It Up To Chance

    I close with this:  none of us know how things are going to end.  

    Money and cost is always important.

     Luckily, there are excellent alternatives to the process of leaving everything to chance. 

  • Legal Research for Minnesota Unemployment Cases

    Legal Research for Minnesota Unemployment Cases

    Conducting legal research on unemployment cases in Minnesota is as easy as viewing case archives using this database.

    On the other hand,  I think a stronger position is asking for help.

  • Picking the Wrong UI Identification Number

    Picking the Wrong UI Identification Number

    UI identification numbers are a big deal when a person appeals their case.  In my experience, there are three reasons why people fail with this issue:

    • They use the wrong id number,
    • People confuse the document number with the issue number, and
    • Applicants don’t realize they have more than one number for their case.

    Thus, lets explore these problem areas one by one.

    UI Identification Number:  The Wrong Number

    Anybody who has received more than one letter from the unemployment office on any given day can confuse their case number with something else.  For one, the number is random.  Second, very few people have experience with a claim for benefits.

    Luckily, we can set the record straight by accessing the on-line account.  Upon doing so and clicking around a bit, eventually a person will find a long number that looks like a social security number, but isn’t.  Generally, this is what is called an issue identification number.

    Now, the confusing part comes when applicants confuse a  “document id number” on a letter they received with the actual issue number for their unemployment account.

    ** Do not confuse the document number with an issue id number **

    UI identification Number:  More than One Number

    Here is another problem I see:  applicants seeking benefits sometimes think they have one claim with one number.  Unfortunately, this isn’t always the case.

    The way I look at it is this:  every time the unemployment office has a question about a person’s case, they will assign an identification number.

    Sometimes, questions can appear related.  For example, fraud and an overpayment issue.  Or, an earnings issue with a discharge issue.  Always look for more than one issue ID number.

    Here is another surprise.  Applicants can have dozens of issue identification numbers assigned to their benefit account.  In this situation, managing records is even more critical.

    So far so good, right?  Just wait to see what I fear the most.

    UI Identification Number:  One of My Biggest Fears

    My biggest fear for Applicants is the failure to appeal one or all of their unemployment issue identification numbers.

    I have advised far to many people who have made errors in their appeal filing.  For this reason, please be cautious and prudent.

    Therefore, do not confuse the document number with an issue id number.

  • Avoid Probate For Your Cabin In 6 Simple Ways

    Avoid Probate For Your Cabin In 6 Simple Ways

    You can help avoid probate for a cabin by utilizing a number of estate planning techniques and tools. Of course, there are pros and cons to each, as one size doesn’t fit all.

    In no particular order, here are the 5 ways:

    1. Grantor Retained Annuity Trust (GRAT).
    2. Record a transfer on death deed (TODD)
    3. Transfer the cabin into a Cabin Trust
    4. Have an entity (like an LLC) own the Cabin
    5. Deed or transfer the cabin now, while reserving a life-estate
    6. Sell the family cabin before death (Death Clock).
  • Did you Keep Unemployment Records from your Appeal?

    Did you Keep Unemployment Records from your Appeal?

    Nobody wants to keep unemployment records.  In fact, nobody wants to be unemployed.  Minnesota unemployment laws change on a yearly basis.

    As a result, I like the idea of keeping records for 10 years.

    Which Records should we Keep?

    All of them.  This includes but is not limited to:

    • Papers documenting a job loss
    • Copies of an initial application
    • Personal notes outlining when a person may have contacted the unemployment office
    • Any exhibit attached to an appeal
    • A formal decision rendered by an unemployment law judge

    Why Keep Unemployment Records?

    Anybody receiving unemployment benefits is prone to an audit.  Even worse, everybody is vulnerable to a fraud allegation. Because unemployment fraud is a big problem in Minnesota, all applicants are at risk of being accused of something they did not engage.

    Look, I wish this wasn’t true.  As we can see, Minnesota had a 10.377% overpayment rate for the 3rd quarter in 2016.  From my estimate, Minnesota’s unemployment office believes 1 out of 10 applicants acquired benefits incorrectly.

    Thus, keep unemployment records just in case.

    No Harm in Keeping Unemployment Records

    Keeping paper documents is easy.  You place them in a folder and attach the folder to yearly tax records.  Otherwise, scanning documents makes the process of keeping records even more accessible.

    Because the burden is small, there isn’t any harm in keeping records.

    Lots of Harm for no records

    On the other hand, if a person doesn’t have key documents to support their claim, damages may include:

    Therefore, I am in favor of keeping records for at least 10 years.  Maybe even longer as the process to collect electronic information becomes easier and easier.

    I wish you the very best.

  • Registered Will Required?

    Registered Will Required?

    A registered will is the process of taking a valid will and filing or depositing it with a Court.  Minnesota’s law supporting a deposited will falls under rule 524.2-515.

    On the other hand, I still find myself questioning whether this is a good idea or bad idea.

    Registered Will:  Bad Idea

    The families and veterans I serve always ask where they should store their will.  Everybody, including myself, can become stressed over the idea of loosing our documents to fire or other means.  Today, we have more technology savvy opportunities to prevent this from occurring.

    For myself, I believe it is a bad idea to register a will because I do not want my intimate estate plans shared with a court unless absolutely necessary.  For this one reason, it might be a bad idea to deposit a will with a court.

    The second reason why this might be a bad idea is because I want freedom to make changes to my plan without running to the local court-house and making a day of it.

    Third, who is to say the court won’t  lose it too?  In case it was forgotten, our government lost critical records in the past and it wouldn’t surprise me if it happens again.  Minnesota high schools are being exploited by children.  Target Corporation was hacked.  Very likely, evil people are trying to break into our ancillary documents too.

    Fourth, it gives me heartburn wondering whether people are snooping through records.  Like you, I have nothing to hide.  But, our privacy is slipping away and I do not want a court filing to turn into a bigger deal.

    Registered Will:  Good Idea

    A good reason to deposit a will with a court while I am still living is because I do not want my greedy family to make changes without my knowledge.  Of course I joke about my family being greedy.  But, we all know a person who might be tempted to edit our will without our consent.

    A second reason a registered will in Minnesota is a good idea is because we are fearful of fire or theft.  Buying a fire-proof safe is expensive.  Buying a safe deposit box is a hassle.  Maybe just maybe using a court to keep it safe is a good idea.

    A third reason why giving my will to a court to keep during my lifetime is because I know where it is.  The feeling of losing a document or having a document stolen can be unsettling.

    A fourth reason why registering my will with a court is a good idea is because it puts my creditors on notice without making my personal representative rush to a court-house days after I die.

    Register my Will in Minnesota

    On second thought, maybe giving my will during my lifetime sounds like a really good idea.  On the other hand, I still like my privacy (dead or alive) even more.

    If you are a Veteran and have time, I addressed a similar issue with our DD 214 document.

    Otherwise, I wish you the very best.

  • 10 Fast Overpayment Options for your Unemployment Claim

    10 Fast Overpayment Options for your Unemployment Claim

    Yes, people have unemployment overpayment options.  I know this is a very stressful issue.

    Because  many people with claims from  Minnesotan are given horrible feedback,  lets quickly identify potential responses.

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    Easy Overpayment Options

    • Appeal the overpayment and fight like mad
    • Show the unemployment office why their overpayment claim is a mistake
    • Seek a reduced repayment plan
    • Use current benefits to repay past due amounts
    • Acquire a loan from a bank and apply it to an overpayment [in most cases, this is a bad idea]

    Hard Overpayment Options

    • Show the unemployment office why their overpayment claim is a mistake
    • Wait for a garnishment (taxes or wages) and hope that helps
    • Acquire a loan from a bank and apply it to an overpayment
    • Consider bankruptcy
    • Do nothing and live in fear

    Other Overpayment Options

    Unfortunately, these types of unemployment problems are getting worse. Even so, there are a couple of stronger responses that I classify as significant unemployment overpayment options, but these are going to apply on a case-by-case basis.

  • Epilepsy Estate Planning Questions and Answers

    Epilepsy Estate Planning Questions and Answers

    In a recent class, I was asked about an estate plan for a person with Epilepsy.

    In hindsight, I could have offered a better answer to our discussion regarding capacity and sound mind.

    Thus, please allow me an opportunity to identify some ancillary support to families trying to manage this very difficult medical condition.

    Epilepsy Estate Plans – A Suggestion

    No, there isn’t a specific will or estate plan exclusive to a person with this condition.  Instead, the goal of any plan is to draft documents that encompass as many issues as  possible,  epilepsy and then some.

    When a person’s cognitive ability is lacking or prevents them from doing certain things, I believe a strong approach to an estate plan is  asking for help from the  doctor offering care.  In other words, asking a doctor to render a written medical opinion on whether a person is of sound mind.  Then, asking the doctor to attach their favorable  medical opinion to the patient’s chart or medical records.

    Epilepsy Estate Plan Rules

    Again, there isn’t a specific law exclusive to epilepsy.  That said, Minnesota identifies a sound mind standard for people wishing to create a will under rule 524.2-501.

    If a doctor cannot opine on the mental capacity of a person because capacity is lacking, very likely the sound mind standard I keep referencing is insufficient.  Not always, but the process will be difficult.

    On the other hand, a moment of clarity or a moment supporting a sound mind is all that is required.  The trick is knowing about or finding this moment.

    Epilepsy Estate Plans – Mental Capacity

    I believe one of the better approaches to meet  a mental threshold is asking a  doctor to offer their  written opinion. Without question, the doctor’s written medical opinion should be included as a condition of the will and including the doctor’s signature as support for validation.  Why?  To reduce the risk of a challenge.

    Epilepsy Estate Issues – More Thoughts

    We as human beings are doing the best we can to manage difficult scenarios.  If we catch medical issues, this can help us plan accordingly.  When we are surprised on a Tuesday afternoon, Minnesota supports a process for self-proved wills.

    As you might guess,  I am a huge proponent of planning.  But, planning isn’t always possible.  If everything seems to be falling apart at the same time,  personally, I turn my  attention towards acts of unconditional love and faith.

    I wish you the very best.

  • Why Getting Unemployment Mail is Worse than Junk Mail

    Why Getting Unemployment Mail is Worse than Junk Mail

    Unemployment mail from the office in Minnesota is horrible.  First, it never shows up.  Second, it often gets lost.  Third, their letters can sometimes bring bad news.

    Now, imagine getting a letter in 6-8 years telling you that the once lost letter has reappeared.  For this group of people, this can feel worse than falling of a bike.

    Because I field a number of phone calls inquiring about their rights, I wanted to offer a public service announcement about unemployment mail:  open it.

    Unemployment Mail:  What does it look like?

    Whether your letters are small, large, thin or thick, most communications from Minnesota’s unemployment office comes in two forms:

    • White envelopes with big red letters
    • Large yellow envelopes.

    Regardless of the letter’s color, open it.

    Unemployment Mail:  Why am I getting duplicates?

    A common complaint I receive comes from folks suggesting they received the same letter on more than one occasion or their questionnaire was duplicated.

    In my experience, a duplicate letter often means a person has more than one unemployment issue assigned to their claim.  Even though the claim might stem from the same job, each claim should be approached as a different problem.

    For those wondering whether they have more than one claim, I encourage folks to log into their account and look for long numbers under the “determination and issues” tab.  What might look like a serial number or a number that doesn’t look important is actually a significant clue in reducing confusion.

    Thus, do not let duplication prevent you from opening it.

    Unemployment Mail:  If I don’t open it, then I never received it

    If this was the case, then none of us would be on the hook for our bills.  Just because a person doesn’t open their mail sent by Minnesota’s unemployment office, doesn’t mean it was never sent.

    Thus, open it.

    Unemployment Mail:  I really didn’t get their letter

    Yes, I see this problem too, which means  it definitely happens.  For those who truly never received a letter, I believe seeking due process or demanding proper notice from the unemployment office is necessary.

    Improper notice is a breach of our constitutional rights.

    Thus, a person cannot open what you never received.

    Unemployment Mail:  What do I do with it?

    Like many others, reducing clutter often starts with a stack of mail.  Regardless, we live in a world that almost demands proving our every step.  Personally, I love the idea of keeping copies of every letter sent by the unemployment office.

    Really, this is easier than it sounds.  I encourage folks to keep their notices and communications in the same spot they might keep tax forms.  For those that do not keep their taxes or unemployment mail, today is the day you are going to start, right?

  • Why the Unemployment Office Slow in Responding to my Appeal?

    Why the Unemployment Office Slow in Responding to my Appeal?

    Unemployment office slow is going to take on a new meaning after you read about this.  If you call Minnesota’s unemployment office directly, they will tell you otherwise, but my opinion still stands.

    Unfortunately, slow can turn into lost.  Thus, I wanted to address why or how a person can help their slow or lost appeal.

    Unemployment Office Slow:  Their Deadlines

    Yes, every element of the appeal process has deadlines.  From an applicant’s perspective, deadlines are strictly enforced.  From the perspective of DEED, deadlines waiver.  But, let’s be very real:  I would rather see the process move along slow with the right decision versus a fast response with the wrong decision.

    Thus, have faith that they will get it right.

    Unemployment Office Slow:  My Experiences

    In my experience, I have seen the unemployment office blow right past the deadlines outlined under rule 268.105.  In my early years, I recall waiting for one case nearly three months longer than it should have taken.

    Now, I think the best strategy is to follow-up with the assigned judge and unemployment appeal’s office the second something doesn’t look right.

    Unemployment Office Slow:  What to Do?

    In my experience, the type of appeal a person is experiencing will dictate how to proceed.

    That said, the type of appeal most often impacted by a slow response or lost response is a Request for Reconsideration.  I suggest doing two (2) things to combat a slow or lost reconsideration:

    • Contact the unemployment appeal hotline and confirm they received the filing, and
    • Send a letter to the Unemployment Law Judge assigned to the case and ask for confirmation that a decision is forthcoming.

    Unemployment Office Slow:  Don’t Do This

    I know you need this benefit and bills cannot wait.  Please, stay the course and do not give up.   This means keep requesting benefits (assuming you meet the conditions).

    Did I mention not giving up

  • Are these 5 Minnesota Bequest Categories Part of Your Estate?

    Are these 5 Minnesota Bequest Categories Part of Your Estate?

    A Minnesota bequest is a gift of property.  Every person I advise who is wishing to create an estate plan must think through how they want their property and stuff gifted or transferred onto the next person or generation.  Generally, this can be a difficult thing to do if you have not given it consistent thought.

    When I meet with a person for the first time, I challenge them to place a gift into five categories:

    • Necessity,
    • Cash Gift,
    • Sentimental Value,
    • Pets, and
    • Our Organs.

    If my Clients are not able to label their gifts under one of these five categories, I encourage them to simplify.  Here is what I mean:

    Minnesota Bequests: Necessity

    My favorite gift to add to a person’s estate is a gift of necessity because a bequest of this kind generally has a significant impact on the beneficiary.

    For example, I recently had a Client who owned a hutch and matching kitchen table.  Because the person’s adult child did not have a kitchen table, gifting their kitchen table was important.

    On the other hand, sometimes gifting a person’s possessions onto their favorite charity is more significant because it takes the guess work out of the organization mom or dad wanted to help.

    Thus, a bequest in MN based on necessity can go both ways.

    Minnesota Bequest:  Cash Gift

    Gifting cash to an organization (a church or non-profit), friend or family member is another popular gift.  In fact, it seems to be as popular while we are alive as it is when we are dead.  

    Gifting cash is a process that requires thought too because most people experience their greatest expense during the last 6 months of life.

    Yes, sometimes placing money in an irrevocable trust makes sense because we know it will transfer accordingly.  On the other hand, being comfortable in a setting that we worked hard to achieve can also have value.

    Thus, making a cash bequest is not always as straight forward as it might appear.

    Minnesota Bequest:  Sentimental Value

    Buried wedding rings

    As you might expect, anything you own can acquire  a memory or event generally described as sentimental value.  

    Some of my favorite sentimental gifts include:

    • Wedding Rings,
    • Military Medals,
    • And baseball card collections.

    Thus, a gift or bequest that carry sentimental value are sometimes even more important than cash or other gifts described herein.

    Minnesota Bequest: Pets

    Your pet is a member of your family.  It doesn’t seem right to view our pets as a gift or bequest.  Right or wrong, pets are viewed as property.

    I believe the best way to assure a pet is cared for by a person you know and trust is through the gifting clause of a will or trust.  Generally, I like the idea of attaching a small monetary gift to a pet as well such that they are properly cared for by an animal doctor.

    MN Bequests: Organs

    Every person and faith has a different perspective on gifting organs.  Generally, I discourage Clients from making organ donations inside their will.

    Instead, I think the best way to handle organ donation is through:

    • Health Care Directive (also called a living will), or
    • An exclusive directive like that used by a specific entity or university.

    Final Thoughts

    If you stuck with me to the end, thank you.  Everybody is different and all of us have the ability to identify a gift.

    That said, I think associating a gift with one of the five categories referenced above makes this process easier to think about.