Being unemployed is a scary process. The fear of becoming homeless or without food, creeps into the picture. Unfortunately, I hear this alot in my practice.
I think the solution to an unemployment dilemma is keeping it simple and to strategize each step accordingly. Anxiety triggers fear and fear can cause a person to make bad choices. Even worse, anxiety can cause a person to make no choice at all, which can be even more damaging.
Jumping from a job loss and into poverty is not the general rule. For those overcome by the thought of losing everything while weighing the unemployment process, consider organizing a game plan. Consider using this as a starter to your said plan:
Prepare your claim for benefits, as if there was an appeal, and
Approach each day as a separate and exclusive mission.
Whether this is your first time or last time of engaging the unemployment process, fear and anxiety is normal. On the other hand, consider taking each day or perhaps each hour as your mission for benefits and ultimately finding work.
As a side note, you can see this fight firsthand by following one of my public cases serving the unemployed. Otherwise, I wish you the very best.
A minor child of the participant (but only until the age of majority is reached, at which time the 10-year payout applies)
A disabled beneficiary
A Chronically Ill Individual
A person not more than 10 years younger than the participant.
Of course, the idea of making this determination is such that the the participant or the person who owns the retirement plan can make planning decisions specific to a see-through trust.
UI Audits or unemployment audits are on the rise. An audit through Minnesota’s unemployment office looks different to every person. This is true because every person has a different fact pattern or claim for benefits. For some, an audit starts with an on-line questionnaire. For others, an audit starts as a phone call or email. Unfortunately, many do not connect the dots until the appeal stage.
The Pandemic has not been easy for anybody. For those seeking benefits, this is already a known fact. To make matters worse, applicants can spend hours or days calling the unemployment office, only to get disconnected. I share this frustration.
Right or wrong, the unemployment office is following their same pattern they took in the year 2007/2008. Presently, I am seeing trends that are turning from eligibility to a re-review of benefits that date back to early 2020. Again, audits are on the rise.
What makes 2021 and 2022 cases different from the past, is the the fact the unemployment office is following a new set of rules that are poorly vetted by auditors and others. The new rules I am referring too, are those that apply to benefits under the PUA program or Pandemic Unemployment Assistance.
Taking this into consideration, because every audit looks different, each person impacted by this process should consider a strategy specific to their own situation.
Surprise, UI Audits or unemployment audits are on the rise. An audit through Minnesota’s unemployment office looks different to every person.
For some, an audit starts with an on-line questionnaire. For others, an audit starts as a phone call, email, or a part-time tip job gone bad. Unfortunately, many do not connect the dots until the appeal stage.
Right or wrong, the unemployment office is following their same pattern they took in the year 2007/2008. Presently, I am seeing trends that are turning from eligibility to a re-review of benefits that date back to early 2020. Again, audits are on the rise.
What makes present cases different from the past, is the the fact the unemployment office is following a new set of rules redefined by the pandemic.
Taking this into consideration, because every audit looks different, each person impacted by this process should consider a strategy specific to their own situation.
Life expectancy from an estate planning perspective is only important when there time has expired. That said, assuming younger generations will outlive older generations isn’t necessarily true.
Take for example the life expectancy of a 40 year old person. Using 2000M actuary tables, that person is expected to live another 38 years. In other words, a person 40 years old is expected to live to 78. This might seem reasonable, until you compare this to a 75 year old person.
Again, using the 2000M mortality tables from Section 7520 of the Internal Revenue Code, a person that is 75 years old in 2021 is expected to live until their 86th season. Meaning, a 75 year old person might expect to have 8 more years of life than younger generations.
Of course, what this means to each person and family is going to be different. However, this is something to keep an eye on in the planning process.
Living wills in Minnesota can be tricky. For better or worse, there is a suggested form. Under Minnesota statute 145B.04, there is a standard form that is supposed to help people express their wishes when or if they become terminally ill. Unfortunately, the statute requires strict compliance that often creates a host of other issues.
Take a hard look at the statute for living wills. Minnesota’s standard form creates lots of lines and spaces. When filled out incorrectly, these lines and spaces cause problems for families and doctors.
The biggest risk for anybody using the suggested form is the risk of contradiction. In other words, filling out the suggested form may contradict other significant documents like a health care directive, an organ donation card, or even worse, a power of attorney designation.
On the other hand, when a living will is drafted alongside other life planning documents, living wills can answer lots of significant questions.
Pros and Cons for Living Wills
Identify a proxy or person who can carry out another person’s wishes;
Appoint a guardian;
Express wishes for organ donations;
Answer questions about life sustaining treatments; and
A host of other issues related to terminal conditions.
Likewise, living wills have negatives too, which can include:
Blurring the lines of healthcare agents and living will proxies;
Creating risk for contradiction between other estate planning tools;
Provide an opportunity for unclear directives; and
A host of other issues.
Again, living wills serve a tremendous purpose. Because Minnesota law makes a distinction between healthcare directives and living wills, the bigger concern is addressing conflict and unintended consequences.
Thus, draft, check, and revisit every estate planning document to prevent contradictions.
Unemployment acronyms for benefits in Minnesota are getting out of hand. Here is why. Minnesota uses a combination of numbers and letters that makes little sense.
At a minimum, abbreviations should use letters that are easily recognizable. For example, MN for Minnesota. The reason that acronyms or UI codes are critical is because they help applicants understand the rule set assigned to their case. Unfortunately, this isn’t the case with Minnesota’s UI system. Not so in Minnesota.
“DUA or disaster unemployment assistance is another acronym that means PUA”
Minnesota’s online benefit system uses specific letters that align with an unemployment law assigned to an applicant’s case. For this reason, knowing the code can be extremely helpful.
Most applicants logging into their online system do not recognize this issue because it isn’t noticeable unless you are purposely seeking it out.
6 Categories of UI Acronyms
In general, there are six categories of benefit programs in Minnesota. Here are the unemployment acronyms for each category:
Regular State Unemployment Insurance (STUI)
Emergency Unemployment Compensation (EUC)
Disaster Unemployment Assistance (DUA)
Trade Readjustment Assistance (TRA)
Alternative Trade Adjustment Assistance (ATAA)
Inactive Program Types
Regular State Unemployment Insurance
Prior to COVID-19, most benefit claims were considered regular insurance benefits and identified as STUI or Standard Unemployment Insurance.
Really, this category is the default benefit category. Because of the Pandemic, lots of applicants have miscategorized claims.
In other words, lots of persons applied for benefits for reasons related to COVID and incorrectly had their case identified as STUI. Thus, knowing and seeing this as an issue can be extremely helpful.
Emergency Unemployment Compensation
The unemployment acronym E024 is another way of saying Pandemic Emergency Unemployment Compensation or PEUC. Wow, that may look really confusing, but it is worth knowing.
PEUC is confusing because the UI Office in Minnesota, in their infinite wisdom created three different codes to identify the same thing.
EUC = Emergency Unemployment Compensation
E024 and PEUC = Pandemic Emergency Unemployment Compensation.
For somebody just trying to collect their benefits and move onto their job search process, this confusion can add stress. However, the key takeaway is the following: PEUC is not the same thing as Pandemic Unemployment Assistance.
Disaster Unemployment Assistance
DUA or disaster unemployment assistance means PUA. Pandemic Unemployment Assistance (PUA) is the process of applying for benefits because a job ended as a result of COVID-19.
To make things even more interesting, the unemployment system also uses D002 to mean PUA. As a summary, this is what applicants may see inside their account:
DUA = Disaster Unemployment Assistance
D002 or PUA = Pandemic Unemployment Assistance
Trade Readjustment Assistance (TRA)
TAA and TRA benefits is an unemployment code that most applicants will not encounter. Nonetheless, here are the acronyms to know:
BSIC = Basic Trade Readjustment Allowance
ADDL = Additional Trade Readjustment Allowance
RMDL = Remedial Trade Readjustment Allowance
CMPL = Completion Trade Readjustment Allowance
Alternative Trade Adjustment Assistance (ATAA)
Alternative Trade Adjustment Assistance is an unemployment program limited to a select group of individuals. In general, this benefit is a wage subsidy for applicants 50 years of age and older and they do not earn more than $50,000.
Inactive Programs in Minnesota
Finally, the following list of acronyms are those that were formerly used by the unemployment office.
Even though most of these programs were used between the years 2007 and 2009, they usually come up during an audit or overpayment.
D001 = Disaster Unemployment Assistance
E001 = Ainsworth Lumber Company extension
E002 = Clearwater County extension
E003 = Kanabec County extension
E004 = Ainsworth Lumber Company extension
E006 = Federal Emergency Unemployment Compensation Tier One
E007 = Federal Emergency Unemployment Compensation Tier Two
E008 = Special State Emergency Unemployment Compensation
E009 = Federal Emergency Unemployment Compensation Tier One
E010 = Federal Emergency Unemployment Compensation Tier Two
E011 = Federal-State Extended Benefits
E012 = Federal Emergency Unemployment Compensation Tier Two
E013 = Federal Emergency Unemployment Compensation Tier Three
E014 = Federal-State Extended Benefits
E015 = Federal-State Extended Benefits
E016 = Special State Extended Unemployment Insurance
E017 = Federal Emergency Unemployment Compensation Tier One
E018 = Federal Emergency Unemployment Compensation Tier One
E019 = State Additional Benefits – Lockout
E020 = Federal Emergency Unemployment Compensation Tier One
PUA mistakes are showing up by the dozens. Even though I am hopeful that there is relief to be had, these issues are causing tremendous stress amongst the unemployed.
The problem is applicants near and afar do not know how to correct PUA mistakes created by Minnesota’s Unemployment Office.
This is a problem that dates back many months when people applied for unemployment benefits when the COVID-19 pandemic started. During the early stages of this process, applicants were pushed towards the wrong online application.
Now, applicants are appealing issues they didn’t imagine and told their account has an overpayment. Luckily, there might be an answer.
Without getting overly technical, Unemployment Insurance Program Letter NO. 16-20 offers guidance.
As stated in the UI letter, Minnesota must identify individuals who are potentially eligible for PUA and provide them with written notification of their potential entitlement. This includes applicants who were found ineligible as far back as January 2020. This is significant for any person managing an overpayment due to PUA mistakes.
With PUA mistakes running ramped, the good news is that after an applicant is disqualified from regular unemployment benefits, the PUA process supports backdated claims. On the other hand, time is of the essence.
Covered Individual is a point of contention for unemployed people seeking pandemic unemployment assistance or PUA benefits. Sure, receiving money today sounds great. However, things may go horribly wrong down the road. Here is why.
Pandemic unemployment assistance benefits feels easy. And, politicians from both sides are saying things to put people at ease. But, the devil is in the details.
The details come from a federal law called 15 USCS § 9021, which is a rule that tells us about Pandemic Unemployment Assistance. The key phrase inside this rule is “covered individual”.
In other words, people who meet the definition of covered individuals are eligible for PUA. Those who do not meet the definition are likely ineligible or weighing an opportunity to appeal a decision.
Who Is A Covered Individual?
Those that are more likely to have an easier time with the unemployment office are individuals or covered individuals who meets elements under 15 USCS § 9021.
In other words, this means a person who was:
Diagnosed with COVID-19,
A member of a household impacted by COVID-19,
Care for a family member impacted by COVID-19,
A person who lost childcare or is supporting a child that is not able to attend school,
An individual who cannot go to their place of work,
Workers who anticipated starting a job that was impacted by COVID-19, or
A person who’s place of work was closed due to a government mandate.
Of course, there are a lot more opportunities for covered individuals than those highlighted above. That said, our self-employed workers, business owners, independent contractors, and gig workers are most at risk of being denied benefits. Then, the process turns onto appeal strategies.
PUA Overpayments Will Start Again
Right now, it feels like everybody is being told that they are eligible for benefits. Once our unemployment office moves onto the second stage of claims, overpayments will again be a hot issue. After all, these types of issues came up in 2007 too.
For those that have followed me in the past, it was in 2007 that I sometimes used my 900 lb gorilla analogy. But, this doesn’t mean the end is near.
Instead, the idea of sharing this feedback is to make others aware that the rules are unclear and likely will require adjudication. When they do, applicants seeking unemployment benefits have
Separate trusts are good for some and bad for others. The issue is whether a trust should hold an exclusive asset like a retirement benefit or included as part of an aggregate?
Really, the issue depends on answers to a handful of questions:
An all encompassing trust that commingle assets can stink. First, doing so can be difficult for the trustee to pin down whether a distribution came from one asset or another. Second, the trust agreement must be clear on distributions.
From the perspective of Trustees and Trust Administrators, putting all assets into one trust probably isn’t ideal. That said, the terms of the trust is going to be the most important factor in reducing administrative nightmares.
Are Separate Trusts Worth It?
On the other hand, separate trusts might not be the best response either. Although there isn’t necessarily a set level where dividing retirement benefits from other assets is ideal, long-term costs should be addressed.
This is especially true when the beneficiaries are minors and the Grantor or Donor cannot predict the long-term needs for each child.
For some, a family pot trust may be a better option than having a separate trust.
One of Many Goals for Retirement Benefits
One size does not fit all. And, each family should put their own goals and needs first.
Families considering one trust or weighing separate trusts have an important job. The job is putting loved ones first and making decisions on their behalf while there is still time.
Unfortunately, these types of decisions are layered with tax issues and finding the best path for an Eligible Designated Beneficiary.
Registered agents have a specific purpose when specified for a business. The purpose of an agent in the business world is to complete service of process.
When creating an estate plan, this the goal is to assure clarity.
Simple so far, but a little more complicated as we start delegating business roles inside an estate plan. From an estate administration perspective, the question that usually follows is whether a trustee or successor trustee can serve as an agent too. This question is often asked because Minnesota’s online business formation forms calls for a declaration.
Certainly, a business can be organized by a person. But, entity or person that serves as an agent is slightly more complicated.
Minnesota’s rules for a Limited Liability Company broadly define the term “person” to mean:
An individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, government or governmental subdivision, agency, or instrumentality, or any other legal or commercial entity.
On the other hand, a registered agent for a business entity is likely limited to a natural person residing in Minnesota, a domestic corporation, or limited liability company, or a foreign corporation or foreign limited liability company authorized to transact business in Minnesota.
Trustees and successor trustees know this because of Minnesota statute 5.36. According to the plain language of this rule, it appears trustees and successor trustees cannot not serve as a registered agent. On the other hand, the natural person, who also happens to be a trustee too, can serve.
Unfortunately, this is where the line between trustees and agents acting through a power of attorney or durable power of attorney can become blurred. In other words, preventing contradictions inside trust documents, while also delegating responsibility outside a trust is a significant goal in the estate planning process.
Trust types in Minnesota are nearly endless. Whether you are set on a revocable trust or an irrevocable trust, there are far more than two trust types in Minnesota.
Always clarify the intended purpose of the trust. Then, picking a trust type is easier. The trust purpose is dependent on needs, the property being transferred, and the beneficiary. If you do not know the ideal purpose for your trust, seek help weighing the pros and cons.
A trust is a document or legal instrument establishing the terms and conditions of our property, which is a legal arrangement where a trustee holds and manages assets on behalf of a beneficiary or beneficiaries.
There are several types of trust documents, each with their own specific requirements and purposes.
A trust is a promise made by another person. The promise is exclusive to holding property safe on behalf of a beneficiary. The person making the promise is called a Trustee.
The Trustee is given access to the property by a person called a Grantor. In many cases, the Grantor and Trustee are the same person. That is, until the Trustee is no longer able to manage their promise. Ideally, the promise is expressed and described in written format.
What makes a trust complicated is the fact that there are many types of trusts. In fact, there are more than 100 different types of trusts.
The trust type is often specific to the Grantor, intentions for the Beneficiary, and a host of other planning goals. For example, a trust can be used to avoid probate and navigate estate taxes.
Also, a trust can be used to reduce stress when considering long term care, like a nursing home or skilled nursing facility.
Other times, a trust is used to manage their business affairs, real estate, a family cabin, and protect their assets from creditors or a former spouse. Additional trust types might involve special needs, titled property, military veteran matters, and or agriculture.
Before you start focusing on selecting the right type of trust(s) that fit you and your goals, consider reviewing other frequently asked questions herein or attending an upcoming seminar to learn more.
Audio About Trust Types
Revocable Trust Types
One common type of trust document is a revocable living trust. A revocable trust can be used by a single person, a married couple, and unmarried partners. This trust type allows the grantor(s) to maintain control over their assets while they are alive, and transfer them to a designated beneficiary upon death.
There are many disposition options available for this trust type. Even better, it can be modified or revoked any time during the grantor’s lifetime. A Grantor has options regarding pre-residuary gifts for tangible personal property, real property, intangible personal property, pecuniary gifts, and of course, pets.
In addition, this type of trust supports see-through options, single options, and separate trust options for a spouse, descendants, grandchildren, nieces, and nephews.
Irrevocable Trust Types
An irrevocable trust is a legal arrangement where assets are transferred by the grantor into the trust, relinquishing ownership and control permanently.
Typically this type of planning document is used for asset protection and tax efficiency, and offering beneficiaries security and assurance of receiving designated assets according to the trust’s terms.
Single Beneficiary Trust
A common type of irrevocable trust is a single beneficiary trust. This is a one named beneficiary for a period of years or for life. Several options are available for the term of the trust and the disposition of the remainder including several optional powers of appointment. Supplemental Needs Trust and “see-through” (accumulation/conduit) trust options are also available.
Children’s Trust
A children’s trust is not what you think. From an irrevocable persecutive, a children’s trust is when a grantor doesn’t retains a right to income or principal. This kind of trust can be either a grantor trust or a non-grantor trust. with the intent of making assets non-countable, children trusts are used to protect assets when transitioning into a nursing care facility.
For families domiciled in Minnesota, this type of trust is used most often for life insurance. That said, this type of trust is also used with special needs, elderly care matters (shielding assets from nursing homes), veteran benefits, protecting assets from creditors, and installment sales and purchase agreements.
Irrevocable Life Insurance Trust or ILIT
Another opportunity is an irrevocable life insurance trust (ILIT). This kind of trust holds assets for life insurance. That said, a life insurance trust can hold more than insurance. Features of this kind include life insurance provisions intended to save on taxes, Crummey Powers, Installment Options, and contingent martial triggers.
Tax Planning Options for a Trust
Tax planning for any kind of trust is an exclusive conversation. Indeed, there are opportunities for tax planning with every trust. Because Minnesota has an estate tax, tax planning is especially important.
Nonetheless, tax planning for either a revocable or irrevocable trust types includes reviewing disclaimer options, credit shelter or marital deductions, seeking excess exemptions like the formation of a QTIP, Generation Skipping Transfers (GST), or optional direction for a deceased spouse’s unused exemption amounts (“DSUEA”). In all, tax planning is a critical step.
Testamentary Trusts in Minnesota
A less common type of trust is created and administered using a will. In previous decades, testamentary options were very popular. Today, families see the conflict of forcing loved ones into a probate court process to form and facilitate their assets.
For those deciding between a testamentary trust, this type of document is established through a will, and only takes effect after a person dies. It can be revocable or irrevocable, and is often used to provide for minor children or other beneficiaries who may not be able to manage their own assets. Additionally, there are stronger options. Other planning options allow for immediate impact versus waiting on court approval.
All this aside, each type of trust document requires careful consideration and expert legal advice to ensure that it meets the grantor’s needs and objectives.
More Minnesota Trust Types
Further, opportunities are endless, when working through the purpose of a trust and various estate planning needs. To assist with your research, here is list of various trust types worth considering:
Accumulation Trust
Active Trust
Alimony Trust
Animal Trust
Annuity 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
Children 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
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
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
Lawyer For Choosing a Trust Type
If you’re searching for a trust lawyer near you, consider contacting this law office for a free visionary meeting, such that you can share your goals and planning needs.
Twin Cities Trust Planning Attorney
I meet potential clients by phone, email, video, one-on-one, and through educational seminars. If you live or work in the Twin Cities, great! Do not allow where you live prevent you from contacting this law office for help.
This law office serves individuals and families near and afar. Even if you are limited to a cell phone, this law office can help. As a result, residing near Edina, St. Louis Park, Richfield, Eden Prairie, Bloomington, Minneapolis, Hopkins, Minnetonka, Saint Paul, Woodbury, Eagan, Burnsville, Plymouth, Blaine, Wayzata, or a city in-between, this law office is ready to field your inquiry.
Trust Planning Lawyer in Edina, Minnesota
Although located in Edina, MN, it is very common that an attorney from this law office to meet with Clients outside the Twin Cities area and in rural areas. After all, assets are often located in multiple counties and jurisdictions.
