Category: Estate Administration

Navigate estate administration with confidence. This blog category covers insights on probate, wills, executor duties, asset distribution, and legal requirements. Stay informed with the latest updates, best practices, and step-by-step guidance to simplify the estate settlement process.

  • Help, I Lost my Will

    Help, I Lost my Will

    Every once in a while, somebody will tell me “I lost my will”.  The next question I often get is “what should I do”?

    Well, I think the answer is obvious.  Look in the last place it was placed.  Unfortunately, when we cannot remember, others might start to question our sound mind.

    As a result, I believe time is of the essence and drafting a new will is a necessity (ASAP).

    Lost Will and Its Impact on a New Will

    Generally, the impact of a lost will on a new will is negligible when testators add a revocation clause to their new will.  In other words, a clause that revokes any and all previously formulated wills.

    Assuming the revocation clause is drafted properly, problems can be significantly reduced.

    Have you Seen my Lost Will?

    With the exception of asking the person who drafted it, asking others about the location of a lost will might create more problems.  First, it puts others on alert for diminished capacity.  Second, the threat of a lost will doesn’t negate or prevent the formation of a new will.

    Thus, I hope you find your lost will.  On the other hand, don’t put off the opportunity to enter into a new will, when we still have time!

  • Who Profits the Most when You to Die Without a Plan?

    Who Profits the Most when You to Die Without a Plan?

    Take a guess who profits the most when you die without a plan.  Yes, failing to make a plan might actually generate more revenue for attorneys and your family.

    So yes, die without a plan makes life better for everybody except  your family.

    On the other hand, I believe making choices today can be the saving grace for a happy family.” 

    Here are a few ways you help your family:

    • Giving them permission to transfer your stuff before entering a nursing home,
    • Picking a back-up guardian for your child,
    • Helping them determine whether you should be buried or cremated,
    • Picking a quarterback to facilitate your estate,
    • Picking a back-up quarterback to handle your estate,
    • Helping your family identify heirlooms (like wedding rings),
    • Identifying a home for your pets, and
    • Everything else.

    Of course, if your family member didn’t have a plan, Minnesota protects families from unreasonable probate costs.

    Die Without a Plan

    In case it isn’t obvious, no, I do not want you to die without a plan.  In fact, I think we can offer tremendous value to our families (small and large) when we give them help.

    Thus, please share this with others if you agree.

  • 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.

  • Fist Fights over Cranky Creditor Probate Claims

    Fist Fights over Cranky Creditor Probate Claims

    Creditor Probate Claims are likely one of the biggest stresses a family will encounter.  Luckily, our Minnesota laws have tried to sort through the mess by helping us rank or prioritize creditor claims.

    Without question, the grieving process is painful on its own.  If part of your stress is trying to sort through Creditor Probate Claims, use the law to your family’s advantage.

    Imagine if…

    If you put every creditor in a room and asked them who wanted a dollar from your loved one’s estate, who would jump first?  Yes, if you allowed every creditor to line-up and argue why they should get paid, Creditor Probate Claims would turn into fist fights.

    Because Minnesota probate law 524.3-805 ranks which creditor will get paid first and which creditor will get paid last, fist fights are less likely.

    Creditor Probate Claims – 1st Priority

    Whom ever was responsible for writing Minnesota statute 524.3-805, they identified court fees, court costs, accountants, and attorney’s as the group of entities having the first priority over every creditor.  Yes, this is true even if a creditor has a lien.

    2nd Priority of Creditor Probate Claims

    Would you believe the average cost of a funeral in more than $7,000?  The second group of creditors having more rights than other creditors goes to funeral expenses.

    Likely, our legislators made it this way to encourage funeral homes to help lay to rest those who are insolvent or in need.

    The IRS wants their cut too

    The third ranking creditor is the IRS.  If you are connecting the dots, the government has purposely identified those with a 1st priority of creditor probate claims so there is an incentive to assure our federal income taxes are properly paid.

    I am sure those in power would encourage a better solution.  As it stands now, this is our system.

    Medical Bills

    Generally, medical bills are closely related to a person who has recently passed.  Creditor probate claims for medical bills are 4th and 5th place with a distinction being medical bills for the care of the decedent during the year immediately preceding death.

    Minnesota is in 6th Place

    Yes, the sixth ranking creditor is Minnesota.  In other words, any tax owed to Minnesota’s Department of Revenue is deemed less important than the expenses listed above.

    Creditor Probate Claims for everybody else

    Everybody else is left to 7th place.  Of course this is where lien prioritization and secured transactions become relevant.  However, lien prioritization is a topic for a different post.

    Again, if you or your family needs help with creditor probate claims, please contact this law office for help.

  • Are you sure You Picked the Right Personal Representative?

    Are you sure You Picked the Right Personal Representative?

    What does a Personal Representative in Minnesota do?

    Well, I am glad you asked.  A Personal Representative in Minnesota has many jobs.  Whether a person seeks their position through the court process or they were selected within a Will, every PR is responsible for the rules.

    If you were not selected as the Personal Representative, do not be disappointed.  Maybe just maybe you get appointed down the road.

    Regardless of your role, offering support to the deceased person’s family and friends is critical.

    Personal Representative in Minnesota:  When?

    A Personal Representative in Minnesota can only serve after somebody dies.  A personal rep or executor isn’t technically responsible for anything until the death of their loved one.

    On the other hand, a person serving as a trustee or attorney-in-fact might have responsibilities outside the scope of a PR.

    Duties of a Personal Representative

    Under Minnesota rule 524.3-703, you will find an outline of duties and responsibilities imposed on a Personal Representative in Minnesota.

    The first and the most important duty of a Personal Representative is a fiduciary duty.  This means the Personal Representative in Minnesota is observing the standards of care in dealing with the estate assets.

    Also, the Personal Representative in Minnesota has the duty to settle and distribute the estate of the loved one in accordance of the terms of a Will submitted for probate.

    In other words, actions taken by a Personal Representative is governed by an applicable law, the terms of the Will, and any order granted by a Probate Court.

    I Don’t Want to be a Personal Representative

    Yes, Minnesota law recognizes a Personal Representative may not want the above referenced duties and responsibilities and or the PR  may feel like they do not have specific knowledge in order to serve in this capacity.

    Do not despair.  The goal of an executor or PR is to facilitate an estate.  Likewise, Minnesota law says a Personal Representative shall not be surcharged for acts of administration or distribution if the conduct in question was authorized at the time.

    Protection for a Personal Representative

    Lets keep this simple.  An executor’s job is to divide up stuff and distribute it accordingly.  Generally, a Personal Representative in Minnesota is protected from any surcharged acts of administration or distribution provided the acts were authorized at the time they occurred.

    What should an Executor Do First?

    If the PR is slow to the mix, then a creditor might jump in first.  Thus, an executor either has to educate themselves on the probate process and acquire support.

  • First 2 Steps for an Informal Probate Minnesota

    First 2 Steps for an Informal Probate Minnesota

    The informal probate Minnesota process is different in every County.  Even though this topic can take a lot of twists and turns, do not despair.

    First step to the informal probate Minnesota process

    Every informal probate Minnesota process should start by identifying a point person.  The point person, also called a personal representative, is the person in charge of forms, notices, filings, administration, etc.

    Yes, as long as the person is 18 years of age or older, the point person can be a spouse, child, parent, friend, sibling, or any person willing to accept the job.

    Do you need a Will to complete the informal probate Minnesota process?

    No, a will does not exclude you from seeking the informal probate Minnesota process.

    On the other hand, if your loved one had a will, the informal probate process in Hennepin County should be much easier because the first step of seeking a point person will likely be satisfied.

    What if nobody is willing to volunteer?

    Keep this in mind, a creditor or any person claiming to have an interest can ask to be the point person or personal representative.

    As a result, do your very best to pick a person to assist in this process. 

    Second step in the informal probate Minnesota process

    The second step in seeking the informal probate Minnesota process is registering for e-filing.  What?

    Yes, the point person (if they handle this process without help from a lawyer) should consider registering for the e-filing process.  Unfortunately, the e-filing process in Hennepin County is mandatory

    Where to find forms for the informal probate Minnesota process

    If you are looking for forms to help you with the informal probate Minnesota process, consider these three resources:

    1.  Minnesota’s law library,
    2. Minnesota’s Court Forms website, or
    3. You can buy forms from Miller Davis Company.

    What information is needed for an informal probate Minnesota proceeding?

    Every application seeking approval for the informal probate Minnesota process needs the following information, which is outlined in Minnesota rule 524.3-301:

    • An outline why you have an interest,
    • Name, birth-date, and records for the person who died,
    • If the person who died had a spouse or children, the application will require their contact information,
    • A statement on why the County you selected is appropriate,
    • Information concerning creditors (if known).

    Who approves or denies an application for informal probate in Minnesota?

    An application for an informal probate proceeding is accepted or approved by the County’s registrar.

    If approved, the personal representative or point person can proceed with other duties and responsibilities associated with an informal probate process.

    Final thoughts

    Again, if you need help with this process, contact this law office for help.

  • Due On Sale Clause can Trigger Balloon Payments

    Due On Sale Clause can Trigger Balloon Payments

    Does a due on sale clause within a mortgage in Minnesota impact an estate plan?

    Individuals and families wishing to fund a trust or use a transfer on death deed can reduce their risk of accelerating balloon payments by reviewing their mortgage and lending documents.

    Unfortunately, every mortgage is different because mortgages are created by hundreds and thousands of financial companies. Nonetheless, here is a brief outline of the issues to consider.

    What is a due on sale clause?

    First, what the heck is a due on sale or acceleration clause?  To keep it simple, this type of clause is a condition found within a mortgage or contract for deed. In general, the clause requires full payment of a mortgage upon the occurrence of certain events.

    Also, the National Housing Act helps define balloon payments as they apply to a mortgage under rule 1701j.3. As you can see, this law gives mortgage companies and lenders certain opportunities to seek money from a buyer if any or part of their property is sold or transferred without the lender’s written consent.

    Whether you feel protected from local homestead rules or not, you can plan for your largest asset. The hard part is finding it or confirming a mortgage does not have a due on sale clause.  Sometimes, a mortgage document will use big bold headings to help.

    Where will you find the acceleration clause?

    When in doubt, I always read the mortgage.  If you misplaced your mortgage, you coud:

    1.  Visit the recorder’s office and ask for a copy of the recorded document; or
    2. Ask the lending company for a courtesy copy.

    Minnesota definition of a due on sale clause

    Minnesota has a chapter of statutes devoted to mortgages.  If you are looking for help falling to sleep, look at Chapter 47.  The rules specifically apply to financial corporations.

    On the other hand, Minnesota statute ‌47.20 speaks to the lending authority of a bank.  As a starter, most case law in Minnesota devoted to the discussion of a due on sale clause in a mortgage utilize subdivision 6 and 6a.

    Exceptions to a due on sale clause

    Every situation is different and unique.  Assuming a piece of real estate is a person’s primary residence and they do not live in a housing complex, there are likely many exceptions to the acceleration of a balloon payment. Specifically, these exceptions can be found under the National Housing Act.

    Other significant cases

    Unfortunately, lenders and homeowners sometimes disagree on the terms of a due on sale clause. Here are a handful of notable cases to consider, as we try to define what will happen or not happen with a due on sale clause:   Viereck v. Peoples Sav. & Loan Ass’n, 343 N.W.2d 30 (Minn. 1984),  Akopyan v. Wells Fargo Home Mortgage, Inc., Cal.App. 2 Dist., April 4, 2013, and a United States Supreme Court case called Cuomo v. Clearing House Ass’n, L.L.C., 129 S.Ct. 2710.  

    Therefore, before you fund a trust or transfer a piece of property using a transfer on death deed (TODD), make sure you know what, how and why.

  • 8 Ways to Avoid Probate in Minnesota

    8 Ways to Avoid Probate in Minnesota

    Yes, you can avoid probate in Minnesota.  On the other hand, you can encourage probate too.  Being dead does not remove you from probate hell.  Instead, it only makes it worse.

    Luckily, I believe you and I can help our families avoid the probate process for our estate by doing three simple things:

    • Create a revocable trust,
    • Update beneficiary forms, and
    • Communicate with family.

    Avoid Probate in MN by Chance

    Yes, you can find books at the library that help describe multiple ways to avoid probate.  One option often described is the process of adding a beneficiary or Pay on Death (POD) to a checking account.

    If this process makes you feel better, then fantastic.  Unfortunately, people often add their spouse or children.  This is unfortunate because if our loved one dies or becomes incapacitated in the same car accident, our loved ones are likely forced into probate.

    Thus, trying to avoid probate by selecting a loved one by chance does not really avoid probate.

    Avoid Probate in Minnesota by being Rich

    I cannot tell you how many times I am required to explain why a revocable trust is not exclusive to rich people.  If you are rich, I mean no disrespect.  If you are anything less than rich, please consider using a trust to help with:

    • Naming a long line of beneficiaries (just in case somebody dies while you least expected it),
    • Using your trust to identify a guardian for your children,
    • Giving your family valuable information like:
      • The code to your car door,
      • How to access your Facebook.com account,
      • The code to your cell phone,
      • Permission to enter your apartment, condo, or home, or
      • Anything else that might be useful while you proceed to the pearly gates.

    Please note, I am not trying to be funny or cute when describing value ways to avoid probate in Minnesota.  If you care about any person other than yourself, then helping your family and friends avoid the thousands and thousands of dollars generally required during the probate process is worth your time.

    Avoid Probate in Minnesota

    Here are some other fancy (or easy) ways to avoid probate:

    • Using a Transfer on Death Deed, and
    • Always naming more than one beneficiary.

    If you conduct enough research online, you might see people suggesting a beneficiary for your car or owning property via joint tenancy.  If you contact me directly, I will share more about why this is not necessarily the best strategy either.

    Final Thoughts about Avoiding Probate

    Anybody who tells you that you can avoid probate 100% is dead wrong.  Instead, the goal is to reduce the risk of probate and discouraging our pain in the butt family members (or creditors) from challenging our estates.

  • I Caught Minnesota Per Stirpes

    I Caught Minnesota Per Stirpes

    Minnesota per stirpes is not a disease.  Instead, it is a rule many people use in an estate plan to divide their stuff amongst children and grandchildren or maybe even nephews and nieces.

    In simple terms, this type of plan means we receive the inheritance from the person directly above us, had that person lived.

    Usually, the person directly above us is our parent or grandparent.  In practice, this can be confusing for estates and loved ones to grasp.  Especially if a family has experienced a divorce.

    Thus, I will  use the following chart to illustrate this process:

    Per Stirpes law in Minnesota

    Yes, a person can use many laws and documents to divide their property into an inheritance for specific people.  A process called “per stirpes” is one of many options a living person can use to divide their stuff.

    If you are in a rush, Minnesota’s per stirpes inheritance statute can be found here: 524.2-709.

    For those willing to stick it out, please allow me an opportunity to simply this Minnesota probate law and I encourage you to scroll up time-to-time and review the above graph.

    When is MN Per Stirpes Easy to Understand?

    If a person dies and they only have one child, this rule is easy.

    Likewise, if a person dies before all of their adult children die, the per stripes rule in MN is easy too.

    Unfortunately, easy is hardy the norm and I help people think through their estate in case something other than easy unfolds.

    Minnesota Per Stirpes: Assumption

    For this rule to make sense, lets assume:

    • You are dead,
    • Your spouse is dead,
    • And, you had three children,
    • Two of your children died before you,
    • And, you were blessed with many grandchildren.

    I agree, this is drastic, but not impossible.  If a person wants to understand or change their estate plan in Minnesota, simulating the inevitable is necessary.

    Minnesota Per Stirpes: My Share

    Next, I encourage people to look at their stuff in terms of a percentage.  For example, all of my personal and tangible property (“stuff”) including bank accounts, house, furniture, cars, lawnmowers, computers, and a tea collection.

    In total, I have stuff equalling 100%.  When a person receives my property in the form of an inheritance, they are getting a “share” of my stuff

    Minnesota Per Stirpes: Divide my Stuff

    Here is what people do not like about per stirpes: grandchildren can receive unequal shares while being equally related.

    Personally, I believe this approach is perfectly acceptable if our goal is to treat our children equally.  Again though, this approach is not for everybody.

    Now, if I had three children and they outlived me, the per stirpes rule in Minnesota says they all get 33% of my stuff.  If you live to the age of 90 and you take into consideration a person’s life expectancy, this scenario is unlikely.

    On the other hand, if two of my children die before me, their third (1/3 or 33% each) would get divided amongst their children (my grandchildren).  If my child does not have any children, then their 33.3% is redistributed amongst my living children.

    The Per Stirpes Example Above

    In my example above, my youngest child would get 33% of my stuff because they are alive.

    Because My oldest child and middle child are dead, their 33% share gets divided amongst their children (my grandchildren).

    This means the grandchildren of my oldest child would divide 33% of my stuff equally (or each would get half of 33%).  Because I love fractions, this equals approximately 16% or 1/6 for both of my G-O’s.

    Confused by MN Per Stirpes

    I know per stirpes is confusing if you do not work with inheritances on a regular basis.  If it helps, consider this.

    G-M would get 1/3 or 33% of my stuff while both G-O’s would get a lesser amount of 1/6 or 16% of my stuff.

    Again, some people like this idea while others do not.  What do you think?

    Minnesota Per Stirpes: Final Answer

    The final answer to the problem described above will not be the same for everybody.  For this reason, it is important to work through every conceivable possibility.

    For those who stuck with me, our Minnesota per stirpes law would conclude the following outcome for the situation described above:

    • Both of my G-O’s would get 16% of my stuff,
    • G-M would get 33% of my stuff, and
    • G-Y’s would get nothing because my Youngest Child would receive 33% of my stuff.
  • Over My Dead Body: Pay Back Your Inheritance

    Over My Dead Body: Pay Back Your Inheritance

    What if you had to pay back your inheritance?  Sounds crazy, right?  Well, not so fast.

    Recently, I came across a personal representative who completed an informal probate process on their own through the probate process in Hennepin County.  The person that died was their parent.

    During the this process, no will was found and the probate court divided the estate into three parts:  50% to the personal representative, 25% to a niece and 25% to a nephew.

    Unfortunately, a will was found AFTER the estate was closed.  Even worse, the will stated the personal representative (the parent’s child) should receive 100% of the estate, which was different than what had been previously provided.  Now what?

    Luckily, there are rules and laws in place to help facilitate this problem.

    Laws to pay back your inheritance

    In Minnesota, rule 524.3-1006 limits an ability to force or make another person pay back your inheritance if it has been more than one year after the estate was distributed or three years after the decedent’s death, which ever is “later”.

    This means Minnesota probate laws support not returning an inheritance if it was incorrectly paid only if the time periods have expired.

    Pay back your inheritance – exceptions

    On the other hand, a beneficiary might be compelled to pay back your inheritance for the following reasons:

    • You are within the three year time limit, or
    • A beneficiary engaged in fraud.

    Balance the value of your inheritance

    Another element I believe is very significant is the balance of relationships.  In other words, should the personal representative re-open the estate to “take” more money?

    In the above example, the personal representative was excited about finding their parent’s will because it meant their inheritance should have been $5,000 more.  Is an extra $5,000 worth engaging a lawyer, re-opening a probate case and using procedure to make beneficiaries pay back your inheritance worth it?

    Would your answer change if the gift increased to $10,000 or $50,000?

    Yes, these are difficult questions to answer and the dynamic of your family is a critical piece to consider.  In my opinion, there are multiple factors to consider, which makes every probate different.

    Do you need to pay back your inheritance?

    Please contact this law office if you need help with determining if you should pay back your inheritance.

  • Ten Years After He Died, A Trust Breach Occurred

    Ten Years After He Died, A Trust Breach Occurred

    Trust breach happens when your children decide to argue over semantics.  Would you rollover, in your grave, if your children sued one another ten (10) years later?

    Well, this actually happened in a case called In re: The Frank John Rodriguez Sr. Trust.  As unfortunate as it is when trustees are sued by beneficiaries, we can learn a lot from this public case.

    Really, I believe the punchline for the Rodriguez family comes down to cordial communications and unconditional love between siblings.  Unfortunately, it doesn’t appear either of these attributes existed.

    First lesson in preventing a trust breach

    In my experience, most if not all trustees are trying to do the right thing.  Sometimes this works out perfectly.  Other times, sibling rivalry kicks in and every decision gets scrutinized.

    Money is not the issue.  Instead, family dynamics is the controlling factor.  Not every family is equipped or able to handle a trust for an estate.  I have seen many examples where a parent’s estate should have been divided in equal shares.  Yes, you have a choice.

    What I am really trying to say is this:  you know your family better than me and I encourage every person to reflect and predict the behavior of their family members.  For example, ask yourself:

    • What might go wrong?
    • Do my children or their spouses disagree a lot?
    • Are they mentally strong enough to make black and white decisions?
    • Is there a good reason why equality of an inheritance is a bad idea?

    Second lesson in preventing a trust breach

    The second lesson we can learn from the case above is the following rule:  a trustee must manage trust assets as a prudent investor, considering the purposes, terms, distribution requirements, and other circumstances of the trust.

    Yes, every person wishing to form a revocable trust should select their trustees wisely.  More importantly, a trust document should help the trustee.  Even from your grave, you can impact your family by helping them:

    • Identify trustworthy professionals or entities for assistance,
    • Allowing for a corporate trustee, and or
    • Leaving room for an error of judgement.

    Third lesson in preventing a trust breach

    The third lesson we can take from this case is the fact we as people can prevent or reduce the likelihood of a trust breach by engaging in open communications.

    Communication needs to extend beyond text messaging and Facebook postings.  I am talking about sitting down for an hour or two and working through details.  Those who need help can:

    • Retain an agent like an attorney,
    • Use mediators, and or
    • Choose a public setting to reduce tension.

    Getting back to the case above, Brother is upset with Sister.  If you have a sibling, perhaps you have experienced this too.  What makes this case unique is the issues being argued.  Here, Brother believed he received an offer from another person wishing to buy their dad’s property at twice the value.

    In my experience, an offer to purchase property works through a real estate agent and or the usage of a purchase agreement.  This case doesn’t appear to have either.

    Also, the Court does not explain why a firm offer failed to exist.  Even more significantly, my gut says Brother wanted conflict more than the sale of his dad’s house.  Additionally, contract law fails miserably and works against Brother.

    Fourth lesson in preventing a trust breach

    Certainly, we could find more, but the final lesson I believe goes without saying when working through a Minnesota trust breach is:  attend scheduled court hearings.

    Yes, Brother missed a court hearing.  When a person misses a court hearing, their goals sometimes turns into asking a court to start over.  Yes, a trust breach can start over under rule 60.02  upon asking a court to review:

    1. A mistake,
    2. Inadvertence,
    3. Surprise,
    4. Excusable neglect, or
    5. Any other reason justifying relief.

    Prevent trust breach in Minnesota

    I believe the best step is having a formal discussion to address issues and prevent trust breach.

    Please contact me if you want additional information.

  • What If Your Trustee Dies?

    What If Your Trustee Dies?

    What if your trustee dies?  Between you and me, I would much rather be in the position of worrying about a trustee dying versus your death.  Thus, perhaps working through the situation where the trustee dies is not as bad as it might first appear.

    If a trustee died and you need help, please contact this law office.

    If a trustee dies, who is the trustee?

    The first issue is determining who is the active trustee.  A trustee is similar to a personal representative discussed in previous postings.

    Generally, a person who is still alive and owner of a revocable trust is their own trustee.  In this situation, if a trustee dies, it is typically worrisome only if the trustee was your primary backup trustee.

    On the other hand, if the primary trustee dies, a properly drafted trust document will contain a list of backup trustees.

    Who can serve as a backup trustee?

    The backup trustee will typically be identified in the trust document.

    A backup trustee can be:

    • Spouse
    • A child 18 years of age or older
    • A family member,
    • Friend
    • Certified Public Accountant
    • Attorney
    • Investment Advisor
    • Private Trust Company
    • Bank with trust powers
    • Or, a combination of the persons identified above.

    What if your backup trustee dies?

    If the backup trustee dies, then hopefully the trust document provides a list of successor trustees.  This means the trust document outlines a backup to the backup.

    Yes, an option for people to assure security in their trustee selection is to attach conditions or resources to the assigned person.  For example, making it a requirement or duty that your trustee seek affirmation from a CPA or investment adviser.

    Another option is granting or assigning your bank or a trust company to manage your trust on your behalf.

    If my trustee dies, how many backups can you have?

    In Minnesota and to protect against a situation where a trustee dies, Clients at this law office are encouraged to identify as strong list of backup trustees.

    For Clients who do not have any living family members or do not like or trust their family members, one can choose a third party for support.  For example, it is very common for people to seek and identify a trustee like their CPA or a private company.

    On the other hand, if your trust document does not identify a backup or everybody on your list is no longer living, your beneficiaries are stuck seeking a Court for help.

    Help when a trustee dies

    If you need help amending a revocable trust to account for the death of a trustee or any related estate planning document, please contact this law office for help.