The new COVID 19 law for unemployment benefits was finally posted online. For those inquiring about benefits and looking for a source of truth, please consider Chapter 71, HF No. 4531 along with other unemployment laws and rules.
For those trying to determine the difference between a rule and a law, consider starting here.
COVID19 Aid Bill is the rule that helps people and families acquire unemployment benefits as a result of the corona virus.
In my line of work, the best place to start is the text of the rule. The Governor’s speech was nice, but not helpful until the rule gets published.
I agree, waiting for the text of the rule or bill is stressful. That said, once the stimulus package or rule is published, many of the questions and concerns being felt by unemployed workers, employees, independent contractors, and gig workers will hopefully get answered.
As health care needs evolve—whether due to aging, a medical diagnosis, or unexpected life events—so too must your estate planning documents.
From health care directives to durable powers of attorney and living wills, having up-to-date estate documents is essential to ensure your medical wishes are honored and your loved ones are protected. Failing to revise these documents regularly can leave you vulnerable during times when decisions must be made quickly and accurately.
In today’s complex medical and legal landscape, your estate plan should reflect your current health status, trusted decision-makers, and personal values.
Estate Planning
Updating healthcare planning documents like your advance health care directive, HIPAA release forms, and living will ensures your voice is heard—even if you’re unable to speak for yourself.
It also provides clarity and peace of mind for family members, reducing confusion or potential disputes during medical emergencies.
All people, are encouraged to immediately review their healthcare related documents. This is especially true for people 60 and over or with a chronic underlying condition. Health care documents include: living will, DNR, health care proxy, and HIPAA releases.
In many instances in the past, an agent would be in the hospital with the individual who appointed them, document in hand when prepared to act.
Given quarantines and the need for social isolation this may not only be impractical, but may not be permitted.
Language should be expressly added to all healthcare related documents wherein the person executing the document expressly authorizes the agent to give directions by telephone, text, facetime, web conference, email and other forms of communication.
Corona unemployment claims are here and my first regret is the amount of time it took to share the following. For those who recently contacted me about job loss as a result of artificial intelligence, the COV-19 virus is more imminent. As a result, lets jump right in.
In general, there are 5 outcomes that many employees and workers will want to consider. I will discuss these outcomes below. But, before an outcome can be assessed, lets first consider the present.
The first issue is whether or not wages have ended. If wages already ended, then the feedback described below is important.
On the other hand, if wages have not ended, the idea of seeking or filing a claim for unemployment benefits today is probably more about fear. Because fear can be debilitating, please go your best to manage it accordingly.
Every worker and employee trying to prepare for future corona unemployment claims should consider reading the eligibility conditions under Minnesota statute 268.085 as their first step towards the unknown.
Very likely, hourly employees will be the first group of corona unemployment claims.
That aside, there is hope. There is hope inside Federal and State governments granting benefits through disaster assistance programs.
Here in Minnesota, there is hope too, especially after an applicant or hourly worker meets the one week grace period found here.
But, a word of caution. Each and every person applying for benefits should take scrupulous notes to reduce the risk of a future audit. Why do I say this in a time of need? Because your future self is counting on it.
To date, I am still seeing the residual impacts of unemployment audits from claims dating back to the 2007-2008 recession. If you or a loved one fell into this circle of appeals, then you already know the issues. For those managing this for the first time, consider reading on.
For the workers and employees receiving a salary, lost wages probably isn’t the first sign that an unemployment claim is imminent. Instead, I forsee salaried employees being asked to stay home, perform under different conditions, or take a paid leave of absence.
For the salary employee who is told otherwise, then perhaps the cards are aligning for a layoff. If such is the case, future corona unemployment claims will hinge on whether the the layoff was today or sometime in the future. This sounds strange, so hear me out.
Present and future layoffs his will get tricky because many workers and employees will get trapped by the shear emotion attached to industries getting destroyed.
In unemployment world, a layoff comes when workers are told to go home. Leaving early before the ship sinks is usually a recipe for problems.
Because every situation will be different, hopefully the majority of salary employees are able to acquire clear statements from their employer and affirm their layoff as a discharge.
Mentally, very few people view a layoff as a discharge, but the distinction matter. This matters because of the term “discharge” and its application under Minnesota statute 268.095.
Corona unemployment claims are going to be tricky. In general, there are 5 likely outcomes:
Unfortunately, there will be the problem of misrepresentation. Unemployment benefits get tied to taxes paid by employers. For this reason, there will be a percentage of claims tied to fabricated misconduct. Hopefully, this gets caught early on.
In general, I like to see applicants complete their application for benefits with a specific purpose: helping Minnesota’s claim office to decide in favor of awarding benefits.
Then, the name of the game turns to remaining eligible, assessing payments that delay awards, and seeking new employment opportunities.
In the meantime, for those put in the position of filing an unemployment appeal impacted by the coronavirus, be proactive in your process.
Coronavirus or COVD-19 is serious. From an estate planning perspective, I encourage families, especially the young and old, to prepare for any outbreak, not just a #CoronavirusOutbreak 🤢. This goes for our frontlines too.
One’s health is most critical. For this reason, I like the idea of putting documents in place such that loved ones can act on my behalf. This starts with:
Of course, preparation is critical for everybody. However, assisting one’s family to offer support starts with attention to our frontlines.
This includes our:
Be prepared and stay safe 🙏
Eligible Designated Beneficiary or EDB is a term created by the SECURE Act under IRS rule 401(a)(9).
An EDB is a person who has lifetime distribution opportunities to an Individual Retirement Account or IRA. Because this new rule set changes required minimum distribution rules, an EDB designation is significant.
In general, an Eligible Designated Beneficiary is a:
Because this term modifies the rules where a person dies before distributions from an IRA are completed, this new rule impacts both the young and old.
Where is the SECURE Act is trending on the internet. Why? Because finding the text to this new law is nearly impossible to find online.
Even worse, the general public is left with editorial feedback on the rule change without having an accurate resource to read the law for themselves.
Luckily, there is an answer.
Currently, a better way to find a copy of the SECURE Act is to review a congressional report called 165 Cong. Rec. H 10386.
Another way of finding information about this update to our tax code is by looking at any of these federal reports:
As a reminder, this new law is a fancy way of saying our IRS rules and statues were updated.
In the future, and hopefully sooner than later, everyone will be able to access an updated 26 U.S. Code 26, the chapter of laws devoted to the Internal Revenue Code, using free resources online. This will be significant for families and Eligible Designated Beneficiaries.
In the meantime, the best way to find the SECURE Act is to utilize paid legal subscriptions.
On the other hand, another option and a highly unutilized resources is visiting local law libraries open to the general public.
A living trust shouldn’t feel like algebra. If you are considering a Living Trust or want to know more about what it means and how it works, then consider my simplified definition.
In general, this type of estate planning tool is a piece of paper that is controlled while we are alive. In other words, a document that allows flexibility.
When we die or become incapacitated, a living trust turns into an irrevocable trust. So, getting the living trust language right the first time is important.
If you need help addressing the good, the bad, and the in-between of this tool, you found the right place.
Estate Planning Attorney
I see a lot of people who are fearful that a trust makes life more complicated. And, I see a lot of families get scared off by fancy names like a conduit trust, grantor trust, a see through trust, or even a “complex” trust.
For now, keep it simple. Just like there are hundreds of different makes and models of cars, there are an infinite number of trusts and types. Every trust is different because every person is different.
Now is not the time to turn back. Remember, this is about keeping this simple and down to one sentence versus outlining everything that you should write.
Generally, a living trust and a revocable trust are one in the same. However, they don’t have to be. A living trust that is revocable too is a piece of paper that allows a person to terminate or end the trust.
In Minnesota, a living trust and an inter vivos trust are the same. A living person who is at least 18 years of age creates a trust during their lifetime. The trust document be revocable or irrevocable, simple or otherwise.
In Minnesota, there are many reasons why a person or couple create a living trust. As a reminder, the reasons are different for every person and family.
In no particular order, a person entertains a living trust to:
Indeed, there are more reasons for having a living trust. However, the reasons are generally specific to each person and family.
Brain donation is turning into a big topic for military veterans with various battlefield injuries like PTSD and CTE. Some military veterans are doing it as a way to continue their service of others, while other vets want clarity for their family members.
Regardless, there is a right way and a wrong way to donate one’s brain or any body part for that matter. Unfortunately, military veterans are acquiring bad information.
If military veterans take the advice in published articles outlined in the American Legion, military veterans in Minnesota might not get what they expected. And, online web designations are making matters worse.
Luckily, there is an answer.
As it stands right now, making a pledge to donate a brain through an online website like CLF or VA-BU-CLF isn’t good enough. There are four significant reasons why:
The process for military veterans wishing to donate their organs is a similar process as those who do not. Use a formal document that complies with Minnesota Chapter 525A and clearly express one’s wishes.
Expressed wishes sometimes show up inside a health care directive.
Other times, the details of an organ donation are outlined in a specific organ designation form.
Ideal practices may include:
For military veterans wishing to make a brain donation, I like to see contingency plans that favors other family members. Unfortunately, many military families cannot predict the future needs of a relative or grandchild.
Donating a brain today sounds great. But, what if a future grandchild needs a kidney, liver, or cornea? Certainly, every organ donation should allow for other needs, just in case.
For these reasons and the rules governed under Minnesota Chapter 525A, a brain donation is not as simple as making an online web designation. Instead, include this type of designation to a personalized estate plan.
RMD is an acronym for “Required Minimum Distribution”. RMD is a fancy term used to describe rules on time and money impacting retirement plans. In other words, how much money must a person take from their retirement product in any given year?
Absolutely, RMD is important from an estate planning perspective too. But, if this is your first time addressing this, let us start slow.
Rules and laws for RMD requirements come in two flavors:
Really, you already started, so there is that. Now, let us add a second piece. What are the rules?
What makes a rule easier to follow are those that are written down. Rules spoken about as if everybody knew them are unfair. Why? Because most people have never read RMD laws.
Luckily, you are different and took it upon yourself to start reading about Required Minimum Distributions because you want to know how it impacts your retirement, spouse, and adult children. Thus, good for you!
Like I mentioned earlier, I like rules that are written down.
Here is a short, but not complete list of laws and rules that apply to RMD requirements:
On the other hand, if you are looking for the specific law when everything started, you can begin your search with P.L. 99-514.
From an estate planning perspective, RMD rules and laws are important for our trustees, beneficiaries, spouses, and us as owners of accounts.
Certainly, leaning on professionals makes sense because these rules have long term impacts. On the other hand, these rules are important because they impact our money and tax bill.
For this reason, I believe individuals and families willing to spend time to create a personal RMD roadmap are helping their trustees, spouses, and children in the long run.
Christmas layoffs feel horrible, which is why I wanted to identify six reasons why things will not be as bad as you think.
After grief, the step following a layoff is seeking unemployment benefits. If this is your first time approaching this problem, please consider these six points as you begin your search for employment.
Unemployment Help
If a job must end, being laid off is the best involuntary reason for work to end.
Of course, when a job transition is blurred between a layoff, quit, or termination, this is generally where people seeking unemployment benefits make errors in their application process.
That aside, when a worker with certainty experiences a Christmas layoff, generally speaking, that person has far more advantages from an unemployment perspective versus any other type of job loss.
The second reason being laid off during the holiday season is the best time for a layoff is given the opportunities for part-time work.
Many people scoff at this. After all, they want a full-time job. However, the idea of adding part-time work to one’s job search process is intended to buying time. More on this in a second.
But first, if you are an upper level manager or executive, perhaps you are now turned off by my reference to part-time employment. Part time jobs do not downgrade careers. And, nobody needs to know. That said, upper level employees encounter a different set of issues, which I discuss in other posts.
Back to buying time. What I mean is the process of finding part-time work with the intent of delaying the payment of benefits under Statute 268.085.
Why would a person want to do this? Here are three reasons:
Again, part-time work opportunities are abundant around the holidays versus the summer months.
Over the last few years, the summer months generally see a higher unemployment rate than our winter months. My source of truth stems from the seasonally adjusted unemployment statistics published by MN DEED.
If this doesn’t convince you that the best layoff is a Christmas Layoff, then consider my third reason.
Working with unemployed employees at all levels, it is my experience that summer layoffs are worse. I believe this is the case because there are fewer opportunities for short-term or temporary jobs.
Look, workers and employees who are able and willing, are going to find work. The best job might not come along right away, but eventually, it must.
Yes, the job search process at 45, 55, and 65 feels icky. For that matter, the job search process at 25 and 35 feels icky too. But, the job search process is not impossible. Just different than the last time you were looking for a job.
Even better, laid-off workers in Minnesota can collect unemployment benefits for 26 straight weeks. When things get bad, our Government has the option to extend unemployment benefits even future. This isn’t guaranteed, but it helps.
Because laid-off workers are required to wait one week before collecting, this puts most people in the month of June before benefits will end. If my intuition is right, you are going to find a job long before June.
For those that disagree, might I suggest more positive thoughts. If this doesn’t convince you, then consider my fourth reason.
Most businesses and companies start over with their budget on January 1. This generally means companies are firm on growth projections and needs. In other words, new job postings are more likely to get posed in the new year. Also, this means an unemployed worker is less likely to hear “we have a hiring freeze“.
For the types of businesses that ramp up in the spring or summer, you are ahead of that curve too!
If this doesn’t convince you, then consider my fifth reason.
Collecting unemployment in January is better than collecting unemployment in October or November.
On their own behalf, some of my past Clients take it upon themselves to set aside their own tax deductions. When an applicant in Minnesota fills out their application for benefits, they will be asked whether they want taxes taken from their benefit.
Of course, this is a personal choice and requires feedback from a tax professional.
However, it is reassuring that the tax window for benefits after a Christmas layoff is pushed out a little further. Combine this with the hope of landing a new job in the months to come, I view this as a positive.
If this doesn’t convince you, then consider my sixth reason.
On a week by week basis, Minnesota pays the second most in unemployment benefits. In other words, I would rather be unemployed in Minnesota than 48 other States.
If you are curious, Massachusetts pays the most. If you have an hour, here is a cool website with additional UI data points.
I believe in Christmas Miracles. You are one phone call from making things turn around. Whether your miracle comes this week, in four months, or thereafter, today is the goal.
Nonetheless, I wish you and your family the very best during this holiday season.
Transfering a house into a revocable trust is the process of funding the trust. When this process goes bad, mortgage payments can balloon and property can end up in the wrong hands.
To reduce these risks, there are generally 4 issues needing review before a home is moved into a revocable trust.
Even though each issues is specific to the property itself, knowing what to ask may help homeowners make longevity decisions in favor of their spouse, children, or heirs. Sometimes, even pets.
Estate Planning
Five issues every family should consider before funding a revocable trust with their home include:
Perhaps i is obvious, but looking at the current deed of a property before moving a home into a revocable trust is an important step. Of course, there are others steps, but obtaining and reviewing the deed cannot be overlooked.
Reviewing the deed is important because the deed identifies the owner and legal description.
Then, these elements should be compared with other legal documents, like a marriage license or birth certificate or the County Recorder’s Office.
If either one of these elements are wrong, likely the deed should be corrected prior to a conveyance into a revocable trust.
The next issue is determining whether the mortgage itself, supports a transfer. This is important because of the risk concerning due on sale clause. If there is more than one mortgage, then each mortgage needs to be reviewed.
Defaulting on a mortgage for an unauthorized transfer or breaching a due on sale clause are scary scenarios to be avoided at all cost. Likely, this means involving the mortgage company and asking the lender for an approval to certain documents.
Even though there are protective rules like the Garn-St. Germain Depository Institutions Act of 1982, the rule doesn’t account for every situation.
Thus, double and triple checking the mortgage language before funding a revocable trust with a home is non negotiable.
Yes, transfering a house into a revocable trust can cause insurance problem or a lapse in coverage. The answer to this issue is also found within long winded insurance policies.
For this reason, inquiring with the homeowner’s insurance agent or asking the insurance company to add a trustee of the trust can prevent insurance problems.
Conveyance forms are specific pieces of paper used in Minnesota to track property transfers. Upon first glance, Minnesota has more than ten pages of possible forms. As a result, guessing is not an option.
When a revocable trust us funded with a home, many families weigh the pros and cons of a quit claim deed versus a warranty deed.
Other times, families forego a conveyance all together and seek out a Transfer on Death Deed (TODD).
As a result, transfering a home into an inter vivos trust requires reviewing which conveyance form is best.
Preventing a taxable event before transfering a residence into a revocable trust is a common goal. Before conveying real property into a trust, reviewing the tax consequences from the perspective of the Grantor, Trustee, and Beneficiary is a necessity.
Other issues to consider is the homestead creditor protection or property tax exemptions. Otherwise, here is another great resource created by the IRS.
Perhaps funding a revocable trust with a house looks daunting. That said, this is all about reducing risk.
From a practical perspective, taking prudent steps to prevent problems is easier than fixing problems.