Author: Jasper Berg, J.D.

  • Unemployment and Quitter Confidence

    Unemployment and Quitter Confidence

    Quitter confidence impacts unemployment. For those unfamiliar with this term of art, quitter confidence is a term used to describe the level of confidence employees have in leaving their current job and finding a new one.

    This is an important concept in the labor market, as it is closely related to the unemployment rate and can provide valuable insights into the dynamics of the job market.

    When the unemployment rate is high, quitter confidence tends to be lower. This is because individuals may feel that there are limited job opportunities available and that it may be difficult to find new employment quickly. As a result, they may be less likely to quit their job and risk being unemployed for an extended period of time.

    Conversely, when the unemployment rate is low, quitter confidence tends to be higher. This is because there are more job openings available, and individuals may feel more confident in their ability to find new employment quickly. As a result, they may be more likely to quit their job and seek out new opportunities.

    The relationship between quitter confidence and the unemployment rate is complex and multifaceted.

    While a low unemployment rate can lead to an increase in quitter confidence, there are other factors that can impact an individual’s decision to quit their job, such as job satisfaction, salary, and career prospects.

    Job Market Impact

    Quitter confidence can have a significant impact on the labor market, as it affects the number of individuals who are actively seeking employment and the overall turnover rate of the workforce. When quitter confidence is high, there may be a higher turnover rate, which can create job openings and opportunities for new job seekers.

    On the other hand, when quitter confidence is low, there may be a decrease in the turnover rate, which can result in fewer job openings and less opportunity for new job seekers. This can lead to a stagnation in the labor market and a decrease in economic growth.

    Furthermore, while high quitter confidence can lead to an increase in job turnover and create job openings, it can also lead to increased competition for available jobs and put pressure on employers to offer competitive salaries and benefits in order to attract and retain employees.

    Understanding the relationship between quitter confidence and the unemployment rate is crucial for policymakers, economists, and employers, as it can provide insights into the dynamics of the labor market and inform decisions related to employment policies, job creation, and workforce development.

    In conclusion, quitter confidence and the unemployment rate are closely related concepts that have a significant impact on the labor market.

    By understanding this relationship and its various nuances, we can better understand the dynamics of the job market and make informed decisions to support economic growth and job creation.

  • Job Report Impact on Unemployment

    Job Report Impact on Unemployment

    The job report can impact Minnesota unemployment claims and benefits. I see this most often with audits and work availability issues.

    The job report provides data on the number of employment opportunities created. The unemployment office uses this data when claiming a person is not finding work fast enough or that the applicant’s labor market is compromised. Unfortunately, these big words and phrases are terms of art utilized by the unemployment office.

    Back to the statistics that came out on this past Friday, this information is used by policymakers, economists, and investors to assess the health of the economy and make decisions related to employment and other economic policies.

    Right or wrong, these types of things find themselves intertwined with certain types of unemployment appeals.

    In addition to impacting the unemployment rate, jobs data can also impact an applicant’s confidence in their work search process or encourage other job seeking strategies.

    Overall, looking at employment numbers is an important indicator of economic health and can have wide-reaching impacts on individuals, businesses, and the broader economy.

  • Funding Your Trust With Intangible Property

    Funding Your Trust With Intangible Property

    Funding your trust with Intangible property can be a smart strategy for managing these types of assets. A trust is a legal entity that allows an individual or entity to transfer property to a trustee.

    A trustee manages the property on behalf of the beneficiaries. This can be useful for intangible property, which can be difficult to manage and protect on one’s own.

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    There are several benefits to funding or transferring an asset into a trust. One major advantage is that it can help protect the property from legal challenges or disputes. By placing the property into a trust, designers and entities can help shield the property from legal actions.

    Another benefit of funding intangible property into a trust is to ensure the asset is utilized in accordance with the wishes of the grantor. The trustee can be instructed to use the property under specific conditions. This can be particularly important for intellectual property, which can be subject to infringement or misuse if not properly managed.

    Funding a trust with property can also provide tax benefits. Depending on the type of trust and the nature of the property, it may be possible to reduce taxes or other liabilities.

    It is important to note, however, that funding intangible property into a trust can be a complex process. For this reason, work with an attorney to ensure that the trust is properly established and managed. Additionally, ongoing management of the trust and the intangible property will be necessary to ensure that it continues to provide the intended benefits over time.

    Overall, funding intangible property into a trust can be a powerful tool for managing and protecting these types of assets. With careful planning and management, it can help to ensure that intellectual property and other intangible assets are properly utilized and protected for years to come.

  • 5 Music Hits with Trust Law Lyrics

    5 Music Hits with Trust Law Lyrics

    Music artists have been historically wrong about the intent of a trust or role of a trustee. If only they knew how certain types of trusts can protect music copyrights.

    That aside, it is fun to see major hits calling out trusts. Here are a few songs that mention a trustee or trust:

    1. “Trust Fund Baby” by Why Don’t We – This song is about a person who comes from a wealthy family and has a trust fund.
    2. “Fortunate Son” by Creedence Clearwater Revival – This song talks about how people who are born into privilege and wealth have an easier path in life, and mentions “trust fund kings.”
    3. “Rich Girl” by Hall & Oates – This song is about a wealthy woman who has a trust fund and doesn’t need to work for a living.
    4. “Ain’t No Rest for the Wicked” by Cage the Elephant – This song mentions a “rich old man” who has a trust fund and still works because he enjoys it.
    5. “Money Trees” by Kendrick Lamar – This song talks about the desire for wealth and financial security, and mentions “trust funds for the kids.”

    If you need help with the trust drafting process, you found the right place.

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    It’s important to note that in many of these songs, the mention of a trust or trustee is simply a reference to wealth rather than a specific legal term.

    That aside, there are many other reasons to have a trust that are far more significant than monetary issues.

  • Trust Types: More Than 100 Kinds of Trusts

    Trust Types: More Than 100 Kinds of Trusts

    Trust Types in Minnesota are Endless

    Trust types in Minnesota are nearly endless. The first question to ask when picking a type of trust is to clarify the intended purpose.

    The trust purpose is dependent on needs, the property being transferred, and the beneficiary. Before going to far into the different types of trust documents, it makes sense defining what having a trust means.

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    100 Trust Types

    Here is list of various trust types to consider:

    • Accumulation Trust
    • Active Trust
    • Alimony Trust
    • Animal Trust
    • Annuity Trust
    • Asset Protection Trust
    • Bank Account Trust
    • Bitcoin Trust
    • Blended Trust
    • Blind Trust
    • Bond Trust
    • Business Trust
    • Bypass Trust
    • Charitable Remainder Annuity Trust
    • Charitable Remainder Trust
    • Charitable Trust
    • Claflin Trust
    • Clifford Trust
    • Common Law Trust
    • Community Trust
    • Complete Voluntary Trust
    • Complex Trust
    • Constructive Trust
    • Contingent Trust
    • Credit Shelter Trust
    • Custodial Trust
    • Destructible Trust
    • Directory Trust
    • Direct Trust
    • Discretionary Trust
    • Donative Trust
    • Dry Trust
    • Educational Trust
    • Equipment Trust
    • Equipment Trust
    • Estate Trust
    • Ex Delicto Trust
    • Executed Trust
    • Executory Trust
    • Express Active Trust
    • Express Private Passive Trust
    • Express Trust
    • Fixed Trust
    • Foreign Situs Trust
    • Foreign Trust
    • Generation Skipping Trust
    • Governmental Trust
    • Grantor Trust
    • Gun Trust
    • Honorary Trust
    • Illusory Trust
    • Imperfect Trust
    • Imperfect Trust
    • Implied Trust
    • Indestructible Trust
    • Insurance Trust
    • Inter Vivos Trust
    • Investment Trust
    • Involuntary Trust
    • Irrevocable Trust
    • Land Trust
    • Life Insurance Trust
    • Limited Trust
    • Liquidating Trust
    • Living Trust
    • Marital Deduction Trust
    • Medicaid Qualifying Trust
    • Ministerial Trust
    • Minnesota Trust
    • Mixed Trust
    • Naked Land Trust
    • Nominal Trust
    • Nominee Trust
    • Nondiscretionary Trust
    • Oral Trust
    • Passive Trust
    • Pension Trust
    • Perpetual Trust
    • Personal Trust
    • Pot Trust
    • Pour Over Trust
    • Power of Appointment Trust
    • Precatory Trust
    • Presumption Trust
    • Private Trust
    • Protective Trust
    • Public Trust
    • Purchase Money Resulting Trust
    • Qualified Terminable Interest Trust
    • Real Estate Investment Trust
    • Reciprocal Trust
    • Remedial Trust
    • Resulting Trust
    • Retirement Benefits Trust
    • Revocable Trust
    • Pot Trust
    • Savings Account Trust
    • Secret Trust
    • Self-Setttled Trust
    • Shifting Trust
    • Short Term Trust
    • Special Trust
    • Spendthrift Trust
    • Split Interest Trust
    • Sprinkling Trust
    • Support Trust
    • Tentative Trust
    • Testamentary Trust
    • Totten Trust
    • Transgressive Trust
    • Unit Investment Trust
    • Unitrust
    • Vertical Trust
    • Veterans Trust
    • Voluntary Trust
    • Voting Trust
    • Wasting Trust

    When or if you decide to meet with a lawyer, their role is to help a person find a trust type that aligns with the Grantor’s goals, while addressing many issues likely never considered.

  • Inditement: Does Trust Law Protect Assets?

    Inditement: Does Trust Law Protect Assets?

    Inditement: Does Trust Law Protect Assets?

    Trusts are drafted to protect assets, but they are not foolproof in protecting against criminal indictment. The purpose of a trust is just as important as the trust corpus.

    In Minnesota, we can turn to Trust Law 501C.0404 for guidance on an inditement. If a trust is established with the intent to defraud creditors for example, it may not be able to protect assets from seizure in the event of criminal charges. Additionally, if the trust is found to be involved in criminal activity or used to shield criminal proceeds, it may be subject to forfeiture by law enforcement authorities.

    It’s important to note that simply creating a trust does not automatically protect assets from legal action. The legality and legitimacy of the trust, as well as the actions taken in establishing and managing it, are crucial factors that can impact its effectiveness in asset protection.

    It’s always recommended to seek the advice of an experienced attorney with expertise in asset protection when or if you are charged with a crime or need support with asset protection issues.

  • Downsizing For Future Trustees

    Downsizing For Future Trustees

    Downsizing

    Downsizing can help your future trustee. However, doing so can be a challenging process. This is especially true when deciding what to keep and what to throw away.

    Here are some tips to help you and your future trustee determine what to throw away when downsizing:

    1. Duplicate items: Get rid of items that you have more than one of, especially if they serve the same purpose. For example, if you have two sets of dishes, consider keeping only one.
    2. Outdated or Unused Items: If you haven’t used an item in a year or more, or if it’s no longer relevant or useful to you, it’s time to let it go. This can include clothes, electronics, and other items that have been collecting dust.
    3. Broken or Damaged Items: Items that are broken or damaged beyond repair are taking up space and serve no purpose. It’s better to let them go rather than holding onto them. Might I suggest making a donation?
    4. Sentimental Items: While it can be tough to part with sentimental items, it’s important to assess their true value. Unfortunately, the sentimental weight you assigned to an item might not be the same value assigned by a future trustee. If you have multiple items with sentimental value, consider choosing one or two to keep and take pictures of the rest. Speaking of pictures, let’s talk about digital downsizing in a future post.
    5. Excess Furniture: Furniture can take up a lot of space, so consider whether you really need all the pieces you have. If you’re moving to a smaller space, you may need to downsize your furniture as well.

    Remember, downsizing doesn’t mean you have to get rid of everything. It’s about making intentional choices and keeping only the items that are truly important or useful to you.

  • Spring Cleaning Your Estate Plan

    Spring Cleaning Your Estate Plan

    Spring Cleaning

    Spring cleaning applies to our estates too. As we approach Spring, now more than ever is a great time to revisit, review, and perhaps revise your estate plan.

    Just like spring cleaning a home or cabin, refreshing and organizing our planning documents helps others help us.

    Even more so, it offers assurance to our children and grandchildren. So, let’s take a look at a checklist.

    Spring Cleaning Checklist

    A spring clean-up checklist from an estate planning perspective looks something like this:

    • Revisit and Review. As we age, our plans and needs change. Take 15 minutes and reflect on your current plan, wishes, and circumstances.
    • Beneficiary Designations. Review every beneficiary designation. This includes any forms associated with bank accounts, retirement accounts, life insurance policies, annuities, motor vehicles, and other assets to ensure they are up-to-date and aligned with estate planning goals. Even more so, if you do not have a hard copy of each form, you have a problem that needs immediate attention.
    • Tax Changes. Evaluate any (Federal and State) changes in tax laws that may negatively impact an estate plan. Then, consider necessary adjustments to account for such matters.
    • Ancillary Documents. Review and update powers of attorney documents (both financial and HIPAA). Also, look at your healthcare directives to ensure wishes are being accurately represented. Have you made any changes based on our experiences from COVID-19? Certainly being locked behind glass doors isn’t appealing for you or your loved ones.
    • Family Dynamics. Consider any changes to your family, that may impact an estate plan, such as the birth of a child, marriage, divorce, substance abuse issues, and or mental impairments.
    • Trust Funding. Incorrectly funded trusts is a chronic problem or flaw with many estate plans. Spring is the perfect time to readdress whether an asset was included or purposely excluded from a trust. If you do not know, this issue must be addressed.
    • Lost and Found. Organize estate planning documents and ensure loved ones know where to find them in case of an emergency. For those with a safe deposit box, there is added risk.

    All this said, spring cleanup requires action. Thus, start right now.

  • Richfield Community Education

    Richfield Community Education welcomed attorney Jasper Berg and a presentation called “Pre-Planning Do’s and Dont’s”. If you attended, please tell others.

    For those curious about future classes, visit Richfield’s site or herein under the Events Tab.

    In the meantime, here is a brief list of the matters addressed.

    Planning Do’s

    • Identifying and Naming Key People who can serve in variable roles
    • Assess future monetary values of assets and insurance
    • Pros and cons of a Health Care Directive, POA, Trust, and Will
    • Communication with Key People
    • Review, Revisit, and Revise

    Planning Don’ts

    • Beneficiary Form Mistakes
    • Banking and Combined Accounts
    • Birth certificates, Marriage Licenses, and Divorce Records
    • Usernames, Passwords, Photos on Phones, and Entry Codes

    Again, thank you supporting Richfield Community Education.

  • 10 Digital Assets To Know and Plan

    10 Digital Assets To Know and Plan

    Digital assets are part of the estate planning process.  As a result, knowing the different types of assets can help you plan accordingly.  Like any asset type, everybody has something different. Nonetheless, here are 10 key terms to help you get started: 

    1. Bitcoin

    Bitcoin is a digital asset that uses encryption and blockchain technology to record transactions on a global distributed ledger. Created in 2008 as a peer-to-peer payment system, today it is the largest digital asset by market share, but it is not backed by any government, central bank, or physical asset.

    2. Blockchain

    Blockchain is a method of structuring and securing data into unchangeable blocks of transactions. Any attempt to make changes to an earlier block in the chain would change all the subsequent blocks and alert the network to the attempted change. Once a transaction is entered on the blockchain, it cannot be undone.

    3. DeFi

    DeFi or decentralized finance “DeFi” broadly refers to a variety of financial products, services, activities, and arrangements supported by smart-contract technology and designed to exist without intermediaries or third parties such as banks, brokers, or clearinghouses. But the degree of decentralization across DeFi applications can differ widely. In some cases, despite claims of decentralization, operations and activities can be highly concentrated in a small group of developers or investors.

    4. Digital Wallet

    A Digital wallet stores a digital asset owner’s private key—needed to use or spend the digital asset—and public keys, which is how the owner is identified on the blockchain. The private key serves as a digital signature unique to you and must be carefully protected. If your private key is lost or stolen, you will not be able to access your digital assets. There are many kinds of digital wallets, which includes custodial wallets, noncustodial wallets, and hardware wallets.  

    5. Distributed Ledger

    A distributed ledger is a record used to track money coming in and money going out, like your monthly bank statement. A distributed ledger is a public database that runs on many computers around the world. Instead of being centralized—at your bank, for example—a distributed ledger is shared and synchronized among the network participants so there is no single point of failure.

    6. Mining

    Mining is a very strange type of digital asset.  Just like there are gold, silver, and copper mines, there are digital mines as well. Mining is the process of receiving a reward of newly minted digital assets and transaction fees for the work of validating transactions and adding blocks to the blockchain. Miners also maintain copies of the distributed ledger.

    7. Money Service Business or MSB

    A money service business or “MSB” is a nonbank company that transmits money, offers currency exchange, or that issues or redeems travelers checks or money orders. Currently, digital asset exchanges offering service to customers in the U.S. are required to register as MSBs with the Financial Crimes Enforcement Center (FinCEN) and many states. Registration as an MSB won’t protect us from fraud or other problems, but most fraud is committed by unregistered entities.

    8. Non-Fungible Token or NFT

    A non-fungible token or “NFT” is a one-of-a-kind digital asset. It is a proof of ownership of a unique asset that is recorded on a blockchain. No NFT is exactly like another, so they cannot be traded one-for-one like virtual currency or other types of tokens.

    9. Smart Contract

    Another type of digital asset is a smart contract.  A computer program that is stored and runs on a blockchain. They may incorporate the elements of a binding contract or run only under certain conditions.

    10. Stablecoins

    Stablecoins are digital assets that are designed to maintain a stable value relative to a national currency, a commodity, such as gold, or other reference assets.

    Therefore, if you need help addressing digital assets as part of your estate plan, consider working with an estate attorney.

  • Trust Mistake on the Back End

    Trust Mistake on the Back End

    A trust mistake often occurs with refunds. In the post-mortem administration of property, trustees sometimes work to fast at closing out a revocable trust.

    Refunds from prepaid insurance, taxes, rents, etc. are often unanticipated and slow. Prematurely distributing assets can be detrimental to the management of the trust.

    For example, consider the event when a trustee mistakenly closes out a checking account. In the following month, a refund check is delivered to the mailbox. If the bank account assigned to a trust had already been closed, it will be very difficult or almost impossible to deposit a refund check without some for of probate administration. Although inadvertent, a trust make has occurred.

    An additional trust mistake can occur when there are unpaid bills. Again, trustees who fall for the trap of a “just getting this over with” mentality, unpaid bills can create personal liability. In other words, when the trustee mistakenly pays out funds before all bills have been paid, specifically taxes or utility bills, the financial impact to the bigger picture can be detrimental.

    Therefore, trustees must be prudent and diligent versus fast.

  • Joint Tenancy After A Spouse Dies

    Joint Tenancy After A Spouse Dies

    Joint tenancy questions and concerns are common during the estate planning process. For families who have not transferred their home into a trust or were unable to complete a transfer on death deed, options are still available upon the death of a spouse.

    Many married couples who purchase a home form a joint tenancy. This means if one of the spouses dies, the surviving owner will automatically be the sole owner of the property. For many, the surviving joint tenant can file an Affidavit of Identity and Survivorship with the County, along with a Certified Copy of the Death Certificate to transfer ownership to the surviving spouse.

    When the surviving spouse or joint tenant passes away, because the property title will be in his or her name alone, the property will not automatically pass to the rightful heirs. As a result, planning is needed to reduce the risk of probate.