Estate Planning for College Students and Young Adults: Why It Matters and How to Get Started

Estate planning might seem like a topic reserved for older adults or those with significant wealth, but it’s actually a crucial step for everyone, including college students and young adults.

While it’s easy to think of estate planning as something to worry about later in life, the reality is that unexpected events can happen at any age. By taking a few simple steps now, young adults can help assure that a specific person can manage their affairs if an urgent matter arises.

Why Estate Planning is Important for Young Adults

1. Unexpected Events Happen: No one likes to think about the possibility of accidents or serious illnesses, but they can occur at any age. Having an estate plan ensures that your wishes are followed and your loved ones are protected if something happens to you.
2. International Travel: These days, young adults are traveling more than ever. One one hand, this can be a wonderful experience and opportunity for growth. On the other hand, strange things can happen. Having critical estate planning documents in place can reduce stress and anxiety.
3. Financial Assets: Even if you don’t have a significant amount of wealth, you might have savings, a car, or other valuable assets. Estate planning helps you determine what will happen to these possessions.
4. Digital Assets: Young adults often have extensive digital footprints, including social media accounts, online banking, and digital purchases. An estate plan can outline what should happen to these digital assets.
5. Healthcare Decisions: If you’re unable to make medical decisions for yourself, having a healthcare directive in place ensures that someone you trust can make those decisions on your behalf.

Essential Estate Planning Documents for Young Adults

1. Last Will and Testament: This document outlines how you want your assets distributed after your death. It can also designate a guardian for any minor children and name an executor to manage your estate.
2. Durable Power of Attorney: This allows someone you trust to handle your financial affairs if you become incapacitated. They can pay bills, manage bank accounts, and handle other financial matters.
3. Healthcare Power of Attorney: This document designates someone to make medical decisions on your behalf if you’re unable to do so. It ensures that your healthcare wishes are respected.
4. Living Will: A living will, or advance directive, specifies your wishes for end-of-life care. It can include your preferences for life-sustaining treatment, pain management, and other medical interventions.
5. HIPAA Authorization: This form allows healthcare providers to share your medical information with the individuals you specify. Without it, your loved ones might face difficulties in accessing your health information.

Steps to Start Estate Planning

1. Take Inventory of Your Assets: List all your financial accounts, properties, and valuable possessions. Don’t forget digital assets, such as social media accounts, email accounts, and online subscriptions.
2. Choose Your Beneficiaries: Decide who will receive your assets. This can be family members, friends, or even charitable organizations.
3. Select Trusted Individuals: Choose someone reliable to be your power of attorney and healthcare proxy. These individuals will have significant responsibilities, so pick people you trust.
4. Consult an Attorney: While you can create some documents on your own, consulting with an estate planning attorney ensures that your plan complies with state laws and fully protects your interests. This could be especially important for young college students who reside in Minnesota and enrolled in an out-of-state school. Or, vice versa.
5. Communicate Your Wishes: Make sure your loved ones know about your estate plan and where to find important documents. Communication is key to avoiding confusion and ensuring your wishes are followed.

Common Misconceptions About Estate Planning

1. “I’m too young to need an estate plan.”: Estate planning is not about age; it’s about being prepared for the unexpected. Young adults can benefit just as much from having an estate plan as older individuals.
2. “I don’t have enough assets to need an estate plan.”: Estate planning is about more than just distributing wealth. It includes making healthcare decisions, managing digital assets, and ensuring your wishes are followed.
3. “It’s too complicated and expensive.”: While some aspects of estate planning can be complex, there are many simple steps you can take on your own. Basic documents like wills and powers of attorney are affordable to create.

Benefits of Early Estate Planning

1. Peace of Mind: Knowing that you have a plan in place can give you peace of mind, allowing you to focus on other aspects of your life without worrying about the future.
2. Protection for Loved Ones: Estate planning protects your loved ones from having to make difficult decisions during stressful times. It also prevents potential conflicts among family members.
3. Control Over Your Future: By planning now, you retain control over your future. You decide who manages your affairs, who receives your assets, and how your healthcare is handled.

College Student Estate Planning

Estate planning is an essential task that should not be overlooked by young adults. It’s about being proactive and taking control of your future.

By creating a simple estate plan, you can protect your assets, ensure your healthcare wishes are respected, and provide peace of mind for yourself and your loved ones.

Don’t wait until it’s too late—start your estate planning today and secure your future.

Homestead limits can be an asset protection tool, as it can protect homeowners from liability and creditors. There are far better estate planning tools to protect assets. But, sometimes we need to slow down and review the basics.

I call homesteading a basic tool because it was created by statute and generally with limited effort. For those new to asset protection, homestead exemption limits refers to the restrictions imposed on the size and value of property that can qualify for this rule.

The concept is rooted in the idea of providing a certain level of protection for a family’s primary residence, known as the homestead, from financial challenges. That said, every state has a different rule and limit.

Homesteading Limits are Jurisdiction Specific

In many jurisdictions, there are specific limits on the acreage and assessed value of a property to be eligible for homestead exemption. These limits vary widely depending on local laws and regulations. For this reason, a trust can offer far more advantages.

Nonetheless, limits can vary widely, and it’s crucial for homeowners to be aware of the applicable rules in their jurisdiction.

Best States for Homesteading Limits

Some of the stronger states with the highest homesteading exemptions include:

• Florida
• Iowa
• Kansas
• Massachusetts

• Minnesota
• Oklahoma
• South Dakota
• Texas

Worst States for Homesteading Limits

Some of the weaker state limits include the following:

• Arkansas
• Delaware
• Indiana
• Kentucky

• Maryland
• Michigan
• New Jersey
• Ohio
• West Virginia
• Pennsylvania
• Tennessee
• Virginia

Asset Protection Tools Versus A Homestead Designation

Like I mentioned earlier, there are many estate planning tools that can help families protect their assets above and beyond a homestead limit.

Asset protection tools are crucial for safeguarding wealth and minimizing financial risks. Diverse strategies and instruments exist to shield assets from potential threats such as lawsuits, creditors, and economic downturns.

Trusts, including revocable and irrevocable trusts, offer a flexible means to manage and protect assets. Limited liability entities like LLCs and corporations provide a legal barrier, shielding personal assets from business liabilities.

Also, insurance policies, including life, umbrella, and liability insurance, play a vital role in risk mitigation. Understanding and strategically employing these asset protection tools is essential for

Updating a will is much like gardening.  Focus on each plant as it pertains to the entire garden. Attack weeds as you see them, and never underestimate the power of care.  In terms of an estate planning document, here are a few reasons why a will should be revisited, reviewed, and or revised: 

• Changes in Minnesota Law,
• Changes in Federal Law,
• Family Births or Adoptions
• Injuries, health problems, or deaths to an agent or Personal Representative,
• Aging with new ideas and thoughts,
• Retirement from the Military,
• Change in finances or assets.

More Reasons to Amend a Will

• Restructuring tax allocations,
• Adding or amending a trust,
• The purchase of life insurance or more sophisticated financial products,
• Marital changes or the death of a spouse,
• Fallout with friends or family,
• International travel,
• A change to agents, beneficiaries, and guardians,
• Moving to a new residence.

Simple Will in Minnesota: An Introduction

A simple will in Minnesota is hardly simple. Some legal professionals call a simple will a basic will. Either way, the idea is to provide an outright disposition of property, while naming a specific personal representative.

Both a single person and married couple can utilize a basic will to address their planning goals. On the other hand, having children or an interesting family dynamic is a greater reason to avoid simplifying your planning needs.

Basic Functions of a Simple Will in Minnesota

The basic functions of a simplified will is mostly timing and money. In other words, time is of the essence and financial resources are limited.

Key Elements of a Simple Will

Of course, every lawyer drafting a simple will may approach this type of document differently. Nonetheless, this law office will include a revocation clause for past implemented documents, identify a guardian of a minor child, and outline the executors or personal representative.

Revocation Clause for a Simple Will in Minnesota

Every will should have a revocation clause. In other words, a clause that revokes any and all previous wills. Hopefully the reason for this is obvious. If not, the point of making this an expressed clause is to reduce litigation.

Naming a Guardian in a Will

Naming a guardian in a will is crucial for ensuring the welfare of minor children. It provides clarity and legal validity, avoiding potential disputes over custody.

By specifying a trusted individual, parents can ensure their children are cared for by someone familiar with their values and wishes. This decision allows parents to consider various factors such as parenting style, religious beliefs, and financial stability.

Moreover, it offers peace of mind in unforeseen circumstances, assuring continuity of care. Overall, naming a guardian in a will offers a concrete plan for the well-being and upbringing of children, providing a crucial safeguard for their future.

Personal Representatives For a Simple Will

Assuming a basic or simple will in Minnesota is utilized, the next matter is generally designating as the personal representative.  A personal representative is the person you has an opportunity to administer an estate upon seeking a Probate Court’s approval.

Free Forms and Services for a Simple Will in Minnesota

It is the opinion of this law office that utilizing free forms and services for a simple will in Minnesota is setting up an estate for massive problems.

Fill In the Blank Forms

Using a fill-in-the-blank will template may seem convenient, but it often leads to significant drawbacks. Firstly, such templates lack customization, failing to address individual circumstances and specific wishes adequately. Legal nuances and requirements vary widely by jurisdiction, rendering generic forms potentially invalid or insufficient.

Also, they often overlook crucial clauses for contingencies like simultaneous death or incapacitation, leaving estates vulnerable to complications or disputes. Additionally, DIY wills offer no legal guidance, increasing the risk of errors or omissions that could invalidate the document or lead to unintended consequences.

Ultimately, relying on a fill-in-the-blank will poses substantial risks to estate planning effectiveness and legal validity.

Free or Pro Bono Simple Will

I cannot tell you how many times I have been approached by police officers, fire fighters, EMT, and members of the armed forces asking me to review their Wills for Heroes or local JAG office, only to find massive errors.

While pro bono wills aim to provide legal assistance to those in need, they often come with significant drawbacks. Limited resources and time constraints may result in rushed or incomplete documents, lacking thorough consideration of individual circumstances.

Lawyers offering pro bono services might lack expertise in estate planning, increasing the risk of errors or oversights that could render the will invalid or lead to unintended consequences.

Furthermore, without proper compensation, there may be little incentive for attorneys to dedicate sufficient attention to pro bono cases, potentially compromising the quality of service provided. Overall, pro bono wills may fall short in ensuring comprehensive and effective estate planning.

Lawyer for a Simple Will in Minnesota

If you are looking for legal advisement and help with a simple will in Minnesota, this law office follows the same protocol for each and every planning document. So, whether you have a high net worth, come from modest means, or have little to nothing, the process is the same.

Thus, if you need help weighing the pros and cons of a simple will in Minnesota, you found the right place.

DIY wills are great for families looking to create problems for their spouse, children, and everybody in-between. Event better, DIY wills can make law firms rich and may encourage loved ones to run in the opposite direction.

Of course, you can fix your own car and finish that plumbing job. Electric work and taxes, no problem. These types of matters provide immediate signals on your success. A will does not tell us whether it was successful or not until we are dead and a probate judge is reviewing the document.

Indeed, you can buy a book and create your own estate plan. That aside, here are a few issues to think about about:

1. Lack of legal knowledge: A will is a legal document that must meet specific legal requirements. Unless you have a legal background, you may not be familiar with the legal language and formalities required in creating a valid will.
2. Complexity of assets: If your assets are complex, such as owning a house, owning a business, or investments, you may need professional help to ensure they are properly accounted for and distributed.
3. Family dynamics: If you have a complicated family situation, such as blended families, ex-spouses, or estranged relatives, you may need professional guidance to ensure your will is drafted in a way that clearly reflects your wishes and avoids potential conflicts. In other words, DIY wills for different family dynamics is not a strong move.
4. Tax implications: In Minnesota, we have certain tax issues that impact nobody except those who die with Minnesota assets. As a result, you should consider tax implications when drafting your will. A professional can provide guidance on how to minimize taxes and maximize the value of your estate.
5. Errors and omissions: Even a small mistake or omission in your will can have significant consequences. A professional can help you avoid errors and ensure your will accurately reflects your intentions.
6. Changing laws and regulations: Laws and regulations surrounding wills and estates can change over time. A professional can ensure your will is up-to-date with any changes in the law.

Overall, seeking professional feedback before deciding to engage the DIY wills strategy is more prudent that assuming otherwise. Further, seeking advise can offer peace of mind that your wishes will be accurately reflected and can help prevent potential legal disputes among your loved ones.

Hurricane estate planning in a pinch might mean expeditiously:

• Making sure your loved ones are in a safe place;
• Addressing care for your pets;
• Gathering needed medicines and medical supplies;
• Filling a storage container with drinkable water;
• Taking exterior photos of your real property;
• Taking interior photos of your tangible property;
• Gathering your home computers and power cords;
• Finding a hard copy of your online usernames and passwords.

Additional Important Documents to Gather

Other important documents to gather in preparation of a hurricane includes:

• Driver’s License
• Passports
• Marriage License
• Birth Certificates
• Financial Documents
• Tax Filings
• Insurance Records
• Medical Records
• Motor Vehicle Titles
• Real Estate Documents
• Military Records (DD214)
• Family Photos
• Estate Planning Portfolio

Of course, there are many more action items when preparing for a hurricane. That aside, hurricane estate planning strategies is a great opportunity to weigh the pros and cons of storing documents in the Clo

Inflation protection within an estate plan starts here. To begin, consider this brain teaser. How many cookies can you buy with ten dollars? If you are like me, the State Fair Cookie Test is likely the wrong sample type because of the infrequence of the event. That aside, perhaps you already reached this conclusion: prices always seem to rise. This is true for cookies, cars, and commodities.

Allow me to take the cookie test a little further. Assuming you selected the best person possible to manage your cookie supply, would you want them to make decisions on an empty stomach or defer to a hand selected baker with knowledge about ingredients and time?

Again, using cookies as an analogy, a revocable trust can require our trusted circle to act prudently. As an alternative, a trust can also be drafted in such a way that demands a trustee to seek advice from a more qualified professional.

Really, it depends a lot on the trustee’s skills and background. Perhaps your trustee is up to date on iBonds and treasury notes, so you might not have a cookie problem.

On the other hand, what about the back- up trustee? Are you equally as confident? For this reason, I like the drafting strategy of giving the trustee an option for support. Even better, I like the idea of a Grantor selecting a professional for their trustee, long before the professional is ever needed.

Therefore, inflation planning starts during the drafting process.

Laws impact estates and plans, but which one applies first? For those keeping track, we have local ordinances, Minnesota statutes, Minnesota Rules, a State Constitution, Federal Codes, Federal Regulations, U.S. Constitution, administrative opinions, letters, and court decisions, and a handful of other rules and laws.

Also, we have made up rules created by financial institutions, third-party administrators, and employers too. The point is this: we have a lot of laws and most of them impact an estate. So, what should we do?

As the laws around us become more and more complicated, perhaps simplifying our life is the strongest response to an abundance of regulations. Of course, simplifying is different for each family.

For some, this means having a conversation about what to do with an inherited IRA. For others, this means restricting financial temptations.

Another strong response includes a purposeful plan that was designed with triggers and conditions.

For example, if I die with significant wealth, whether that means my family cashed-in on a life insurance policy or otherwise, I want a document that triggers protection from certain taxation. Or, if I suffer from a heart-attack and succumb to a permanent disability, I want my documents to trigger an opportunity for care that alleviates stress.

Really though, the best answer to so many laws impacting an estate is a reminder about control. We can make choices today that will have a positive impact on our future. Even better, our choices teach younger generations about serving and protecting our family

Until recently, estate planning for a nuclear war seemed unrealistic. As wars develop and nuclear weapons are threatened, one cannot help but consider their worst case scenario. Believe it or not, this is a topic that most military families have already thought about. Nonetheless, let’s address a handful of issues specific to estate planning for a nuclear event.

The Best Time to Estate Plan

Obviously, timing is everything. When it feels like time is on our side, planning can move in stages. In other words, the sense of urgency is different in our 20’s versus our 50’s. Nonetheless, as our timing transitions to an urgent need, panic and stress can negatively impact our decisions.

Likely, planning our affairs during a nuclear war will feel similar to a health scare. On the other hand, nuclear war is neither inevitable or reversible. Thus, all of us can avoid a timing issue by planning when we appear to feel good, versus waiting until the end.

Luckily, the planning element can intercept nuclear war when the plan is already in place. After timing, there is still an issue that needs attention.

Document Storage Prior to a Nuclear War

Again, we need to make the assumption that a plan was created. Next, where should we store completed documents? Unfortunately, this is a very personal issue many families are unsure of. As a result, lets address a some of the pros and the cons.

First, locking our documents into the cloud because of nuclear war threat, without having a distribution plan can cause significant damage. We are already seeing this play out with bitcoin.

Second, which is equally problematic from an estate planning perspective, is the risk of duplicating documents. For example, imagine having a hard copy and a copy stored in the cloud. Then, imagine becoming cognitively impaired and using your favorite marking pen to revise the hard copy, while doing nothing with the digital version. Well, this creates a problem. In fact, it creates a major problem.

Again though, document storage, estate planning, and introducing a risk for nuclear war is going to take on a different meaning for every person. Perhaps the person in Minneapolis, Minnesota is thinking they are at risk, while the family farm near Funkly, Minnesota thinks otherwise.

Cloud Storage During a Nuclear War

When adding online storage and the threat of nuclear war to the estate planning process, here are a handful of issues to consider:

• What happens if a Nuclear War destroys everything, including family members?
• Does the Company offering cloud storage have a backup storage site in a remote location?
• Will a remote professional or family member know about the service provider chosen as the cloud provider?
• Is there a password recovery process after a customer dies?
• If the person dies, does the back-up plan die too?

Unfortunately, a family that chooses cloud storage for their estate planning documents may need to reexamine these issue as a war develops. Therefore, when circumstances change, plans change.

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:

• Surviving spouse to an employee or owner of an individual retirement account,
• A Child of an IRA owner who has not reached the age of majority,
• A beneficiary who is also disabled under rule 72(m)(7),
• A chronically ill person within the meaning of section 7702B(c)(2), and
• An individual who is not more than 10 years younger than the employee or owner of a retirement plan.

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.

Death certificates in Minnesota are easy to acquire and creates a security risk. Yes, just about anybody can obtain a copy of the certificate by mail, fax, and on-line. Unfortunately, this means bad guys can get them too.

A person can spend their whole live keeping their information private. Then, upon their death, that same person exposes their:

• Date of Birth,
• Social Security Number,
• Full Name,
• Mariage,
• Place of Birth,
• Residence,
• And list of other private information for for a small fee of $13.

Estate Planning

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Stolen Identities from Death Certificates

Of course, Minnesota goes out of their way to protect privacy. For example, there are a bunch of forms that need to be filled out in order to obtain a copy of the Death Certificate.

On the other hand, bad guys lie.

After A Loved One Dies

Because this issue keeps me up at night, I like to see spouses, adult personal representatives, or trustees immediately upon the death of their loved one to do the following:

• Give notice of death to the Social Security Administration,
• Provide notice of death to the IRS,
• Give notice of death to Minnesota’s Department of Revenue,
• If the loved one was a Veteran, give notice to the Veterans Administration, and
• Purchase online security protection.

Why So Fast?

Literally, giving notices and purchasing online security protection needs to happen days after a person dies. Here is why. As soon as an obituary is posted, the whole world will know about the death.

Yes, obituaries are wonderful tools to share stories and the like. But, obits and death certificates in Minnesota are the feeding ground for identity theft.

Change to an estate plan happens for many reasons. Many people wait until it is to late. Luckily, Minnesota laws support a change to an estate plan when the the grantor or testator is of a sound mind. Assuming this is true, there is no better time than the present.

That said, here are a few reasons why people make revisions to their estates:

• Births or Adoptions,
• Deaths,
• Divorces to Guardians or Personal Representatives,
• Marriages,
• New feelings towards Guardians, Trustees, and Personal Representatives,
• An increase in the composition of an estate or an expected inheritance,
• Updates to state residence, and
• Changes in Minnesota or Federal laws. 

When to Think about Change?

Look, many of us see a doctor once a year. Many of us see a dentist a couple times a year. Many of us meet with our accountant once per year. Well, revisiting our long term affairs requires our attention too.

The holiday season is a great time to reconnect with extended family. But, I like the idea of doing a deep dive on one’s estate plan around the same time we file our tax returns. For some this is far too late. For others, it is just right.

As a result, trust that distant voice. The right time is right now.

What does a $550 Million Dollar will look like? Well, we found out a short while ago when the will of Jeffrey Epstein was filed in the Superior Court in the United States Virgin Islands.

A few key points we can take away from this document:

• A last will and testament is a public document,
• The names of the people identified inside a will become public, and
• Picking an executor or personal representative without discussing it with them prior can have detrimental effects.

Luckily, the process you take can be different and even more importantly, better.

Should you update your estate?  Making an update to your estate probably ranks lower than buying backpacks and looking up your child’s school bus route, but it might be more important than other fall tasks.

Here are 3 reasons why I think September is a great month to update an estate.

Immunizations are Up to Date #3

Very likely, you took your child, young and old, for their pre-school physical.  Whether they received immunizations or a sign off to play sports, taking them to the doctor in August made sense.  But, did you think about the person who might be required to take your child to the doctor if you the parent were sick?

Yes, it is easy to point a finger at the other parent as a back-up.  But, I like the idea of thinking through who is third in command.  Sometimes, this is Grandma or Grandpa.  Other times, it is an Uncle or Aunt.  Either way, delegating partial parental authority is an issue for every estate plan.  Update your estate because your recent doctor office visit triggered your thought process.

MEA Weekend Is Out of Site #2

Before you get excited about a five-day weekend in October, consider this.  Hitting the road or skies is a common for many families with school aged children.  Between now and then, you will travel maybe 2,000 miles by car, have 45 family dinners, and engage 20 separate dates of planned activities.  Certainly, nothing will go wrong.

But, if something does indeed go wrong, updating your estate to include a guardian that you believe will be a better your previous choice is an important edit.

Update Your Estate Plan Because It is the Right Thing to Do #1

I wish I could take a softer position, but everywhere I look, people are dying.  Quite frankly, it has me second guessing nearly everything.  Maybe MEA is the perfect opportunity to make up for a lost family outing.  Or, should I focus on something else, like a home improvement project?

In my humble opinion, parents can do it all.  Edits or updates to an estate plan are not nearly as difficult as we think and likely more important than windows.  For this reason, making an update to your estate plan is the right thing to do, along with everything else you have planned.  Why?  Because Parents always seem to find a 💗way.

Thinking about taxes on a sunny summer day?  Me too! In fact, I wish more people were as proactive as yourself.

Today, my goal is two-fold:  reduce the risk of bad stuff happening to our estates and  reminding my readers that the they should be asking questions.  I say this because being able to recall issues to bring to the attention of an estate planning attorney or Certified Public Accountant might end up saving you or your family from a huge headache or a financial loss.

Before we start talking about taxes, consider this:  individuals and families are still trying to unpack the rules under the “Tax Cuts and Job Act“, which was the most recent tax bill passed by our Federal Government.  With the summer months, many have put this info aside.  Luckily, you are different.

Of the 2️⃣7️⃣5️⃣ amendments to the #Tax bill passed in December ⛄️, the rules impacting our estates 🏡 the most included: doubling ⬆️ the estate and gift 🎁 tax exemption and repealing contribution restrictions on Individual Retirement Accounts. 👍

Thus, I wanted to quickly highlight a handful of issues some of my Clients are seeing.

Tax Benefits For Families And Individuals

(Sec. 11021) This section temporarily increases the standard deduction to $24,000 for married individuals filing a joint return, to $18,000 for head-of-household filers, and to $12,000 for all other taxpayers. The amount of the standard deduction is indexed for inflation after 2018 using the chained CPI.

Taxes and Increases In Estate And Gift Taxes

(Sec. 11061) This section doubles the estate and gift tax exemption amount for decedents dying or gifts made after December 31, 2017, and before January 1, 2026, by increasing the basic exclusion amount from $5 million to $10 million. (Under current law, the amount is indexed for inflation occurring after 2011.)

Taxes and Retirement Plans

(Sec. 13611) This section repeals the rule that allows Individual Retirement Arrangement (IRA) contributions to one type of IRA (traditional or Roth) to be recharacterized as a contribution to the other type of IRA.

(Sec. 13612) This section increases the limit on accruals that is required for length of service award plans (LOSAPs) for bona fide volunteers to be exempt from treatment as a deferred compensation plan.

(Under current law, plans paying solely length of service awards to bona fide volunteers or their beneficiaries on the account of firefighting and prevention services, emergency medical services, and ambulance services performed by the volunteers are not treated as deferred compensation plans if they meet certain requirements. One of the requirements is a limit on the aggregate amount of length of service awards that may accrue with respect to any year of service for any bona fide volunteer.)

The bill modifies the limit on accruals to: (1) increase the limit from $3,000 to $6,000; and(2) provide for a cost-of-living adjustment to the limit after 2017.

Taxes on a Hot Summer Day

As you can see, taxes and a hot summer day go hand-in-hand.  If you disagree, then know this:  half the battle of finding tax opportunities is knowing which questions or issues to address with your personal advisor.

Problems with estates vary from garden variety to huge conflicts.  Even for a perfectly planned estate, a problem can arise.  In my experience, an estate plan generally fails because of poor communication or capacity.

Luckily, proactive families have an opportunity to reduce conflict. Consider this.

Problems with Estates: First Truth

The first truth is as follows.  Problems and risks can rarely be reduced to zero. 

When I think about an estate, I like the idea of finding people I trust to manage my affairs when I am in need.

Whether this includes family members or paid professionals, I want to make this easy for my family.

Second Truth of an Estate

Money and children can be a common stress, but people are the real problem.  Lying, cheating, and stealing are bad.  Greed, envy and pride are equally bad. 

I believe the strongest response to an irrational family member or friend or whomever is having a plan that was created as a plan of mercy.

Of course, this isn’t always possible, but it certainly helps.  Even more significant, problems with estates can be reduced with fancy legal clauses like eliminating a person from a plan if they decide to pursue a claim in bad faith or attaching attorney fees.  Perhaps punitive on their face, but effective.

Third Truth and Types of Issues

When I meet with a person or family, I like the idea of understanding the goal of seeking help or advisement from an attorney. 

During the course of the estate planning process, here are a few problems most folks want to avoid:

• Can my will or trust get contested?
• Was my trust properly funded?
• Were documents signed under duress or without a sound mind?
• Fiduciary conflicts and errors.
• Failed steps by a personal representative.
• Business or cabin assets fell apart.
• Beneficiaries were forgotten or omitted.
• An abuse of power exhibited by a family member.
• Ownership issues with a beneficiary form.
• Non-traditional family dynamics.
• And or other stresses/issues.

Again, every person and family has a different dynamic. The idea behind human planning is to reduce a conflict.

Brain injuries are scary for a lot of reasons, but this week especially.  Like you, I lost control of my emotions after I read a news article today about a newborn hit in the head by a softball.

Yesterday, I read about a soccer icon in his seventies who suffered a brain hemorrhage.  A week before that, I read bout a professional baseball player in his thirties who suffered a brain injury so severe, he was called a walking miracle.

As I reflect on these events, all I can think about is the impact a brain issue might have on my family too.

Even though it is my job to help people plan for the unexpected, these stories still hit home.  Whether these were random events or purposely presented by a higher power, it is a reminder how vulnerable we really are.

Advent is a special season for many Christian families.

As you prepare for your celebration, here are four (4) quick tips you can apply to your estate plan.

If you find these tips to be helpful during this holiday season, please share with your congregation.

Advent Tip #4: Connect the Past with the Present

Certainly, gathering for a celebration like Christmas is a fun event.  Your family’s legacy requires passing your knowledge and symbols onto the next generation.  For some, this includes pictures.  For others, this includes scrapbooks, heirlooms, and collections.

Thus, connect past advent seasons with the present by adding a special ornament to your Christmas tree.

Advent Tip #3: Recipes Are Underutilized

A lot of people cannot wait to ask me how to pass their mother’s wedding ring onto the next generation when Grandma’s famous pie crust made more people smile.

I agree, passing along jewelry is important.  But, it isn’t everything.  In my experience, tasting an old family recipe can have a greater impact on the family as a whole.

Thus, during this holiday season, I challenge you to track down an old family recipe and add it to your estate plan.

Advent Tip #2:  Share With Others

Giving our time can mean more than making a gift of cash.  Of course, you already know this, but when we are gone, time no longer matters.

Personally, I think sharing a percentage of our estate with a charitable group is far more advantageous than identifying a specific gift or dollar amount.  Here are a few other charitable examples.  Otherwise, every situation and person is different.

Thus, if you are accustomed to sharing with others, then perhaps now is a good time to add a sharing clause limited to a specific percentage to an estate plan.

Advent Tip #1:  Take Care of Yourself

Christmas is a wonderful time to give.  But, advent is a season of preparation too.  As you prepare, consider locking down a plan for yourself too.

Thus, if you need help with your plan, please contact me directly.

Dying  with no will makes sense for some, but does it really?  Recently, I met with a person who didn’t want a will because they couldn’t identify who should receive their stuff.  This particular person was unmarried and had no children.

As much as I dislike the government telling me how to divide up my property, Minnesota has an estate distribution law when a person dies with no will.  The law that may apply in a situation like this Minnesota statute 524.2-103.  In my practice, I call this the “I cannot make up my mind” law.

Yes, it is perfectly reasonable to have doubt or change one’s mind.  Other times, people lean on charity or grant their affairs to a specific organization.  If it helps, take a look at what a good-hearted individual did in Afton.

Anyways, there is no right or wrong answer.  On the other hand, having an answer is better than having Minnesota apply the “I cannot make up my mind” law.

Crisis mode is different for every family.  Minus the few who handle illness and death with ease, a crisis can cause panic and confusion.  I believe in helping our loved ones with the following process:

• Create a loud colored binder for every member of the family
• Place each binder on an accessible shelf
• Use when needed.

Crisis Mode:  Loud Colored Binder

Some of my favorite loud colored binders are yellow, lime green, orange and red.  The idea is simple.

Look for my yellow binder…it is near my bed“

or

My social security card is in my orange binder“

In other words, I believe folks need an identifiable spot that keeps our most important documents.

Crisis Mode:  Binder for Every Family Member

In all honesty, I am being picky.  But, as people (young and old), everybody has a different plan.  Even when our plan is the same as our spouse, the plan is still unique to us as a person.

For this reason, I like the idea of maintaining a file for each person.  This might include:

• Birth Certificate
• Social Security Card
• Marriage Certificate
• Health Care Directive
• Power of Attorney
• Will

• Standby Guardian Authorization
• Beneficiary Forms
• Trust Documents
• Veterans Forms
• Divorce Decree
• Funeral Directive

Again, everybody’s binder will be different.  The whole idea of having an organized spot for each family member is this: when a crisis hits, nobody wants to drag around documents that do not pertain to our loved one.

Crisis Mode:  Use When Needed

Unfortunately, I am speaking from personal experience.  When something goes wrong or a person is unexpectedly in the hospital, it is difficult to think clearly.  Even worse, a lot of family members fail at finding a specific document without tearing apart a home.

In my experience, this can be avoided by talking and planning.  Thus, I like the idea of having a binder that is accessible when needed and organized accordingly.  

In one of my recent community education classes, I was asked to rank my favorite estate documents.  Thus, here we go…

Really though, I think the issue was more about money than actual estate documents.

In other words, if I had a limited budget and I needed to use my resources wisely, which documents would I desperately need?  Minus my first reaction – all of them, here are my thoughts:

Estate Documents Ranked #5 – Revocable Trust

Because a trust document is a lengthy and tedious process, I am ranking trust documents number five verses number one.  But, their effectiveness is off the charts.

A long long time ago, people started using wills to make sure their stuff was passed along easily and effectively.  Those days are gone.  Today, one of the most effective tools is a revocable trust.  Your grandparent’s estate planning methods are out of date.  If you are a grandparent, making an update can make holiday gatherings fun again.

My point is this:  because a trust helps families reduce the risk of probate and it grants a trustee an opportunity to manage our affairs while we are still alive, I believe a trust is absolutely one of the best documents in any plan.

#4 – Transfer on Death Deed

My fourth estate documents ranked are transfer on death deeds or TODD.  In practice, this document is awesome because it instantly transfers property titles to another person or beneficiary.  Sometimes, eve more than one beneficiary.

On the other hand, drafting a legal description and using the right conveyance form makes this process difficult for families needing help.

Nonetheless, because this type of document trumps a will and our number one asset is often a home, I ranked transfer on death deeds higher than a traditional will.

#3 – Health Care Directive

When I am sick or unable to talk for myself, I like the idea of making sure my loved can make health decisions on my behalf.  Luckily, a health care directive or living will can do just that.

I am in favor of making sure my affairs are straight when I am dead, so the burden imposed on my family is less.  But, I like the idea of focusing on my own well being while I am alive.  This is especially true when I introduced to an unexpected emergency.

Thus, I like the idea of ranking living wills as my third favorite estate planning document.

#2 – Power of Attorney

A lot of people are surprised when their spouse cannot make certain transactions on behalf of their partner, without being granted a power of attorney.  Luckily, this risk can be accounted for by using a free form linked below.

Yes, one of the most powerful documents we can put our signature on is a Power of Attorney form.  Some people are scared of this.  Others, use it to their advantage.  Obviously, every person is different and they should seek advisement exclusive to their situation.  That said, it is worth the effort of reviewing what this type of document might look like.

Since Minnesota introduced a free power of attorney form, I encourage many folks to select their attorney-in-fact wisely, while ensuring certain household events are easily cared for:  house payment, buying groceries, assessing my checking account, etc.

Even more significant, a power of attorney can be used if or when I am incapacitated, which puts me at ease.

#1 – Beneficiary Forms

My number one estate documents ranked are beneficiary forms attached to financial accounts (IRA, 401K, 403b, etc.).  Usually, these types of documents are readily available, are easy to fill out and offer instant relief.

In many circumstances, a beneficiary form will trump directions outlined in a will or trust.  Because they are so effective, anybody failing to update their beneficiary form is creating a huge mess or forcing their family to seek relief in probate court.

In addition, I like the idea of gathering copies of my beneficiary forms and having them available.  In other words, I keep copies of beneficiary forms with my other important documents.  In theory, this will help my loved ones with an easier transition upon my demise.

Estate Documents Ranked – Honorable Mentions

Of course, there are many other resources that families and veterans should consider when creating an estate plan.  Thus, here are a few resources and documents that folks are using:

• Minnesota’s Attorney General’s feedback on Estate Planning
• Pour Over Will
• Funeral Directive
• Certificate of Trust
• Standby Guardian for a Child

When a person says they want to leave everything “to my estate” [their estate], they are often surprised to find out that this is a broken plan.

I know folks do not read my posts to get the third degree.  But, this is serious stuff.

Instead, I encourage my Clients to pick specific beneficiaries, use a will and identify a quarterback to administer an estate.  

If you are wondering about the quarterback process for an estate plan, please take one of my upcoming classes.
The alternative is this: telling the whole world that we don’t care and we want our remaining savings spent on creditors and probate costs.  

Even if you you only have $100, wow…how nice would it be to pass that money onto a grandchild versus Comcast.

To My Estate is Not a Beneficiary

The reason “to my estate” is not a beneficiary is because it doesn’t identify specific heirs or decedents.

The idea behind picking a beneficiary is to offer precision so our Court System isn’t required to guess or use laws that contradict our intentions.  

The idea of protecting against dead beneficiaries is the process of dying testate (the opposite of dying intestate).

My Will Versus My Estate

Beneficiary forms and wills do a great job of helping loved ones administer our stuff.  Whether folks use the per stirpes method or a different process, doing so can really take the pressure off of a probate court and loved ones.

What Does To My Estate Feel Like?

Again, I don’t mean to be critical, but I think this post calls for it.  Stating “to my estate” is lazy.  In my experience, people telling their bankers and financial advisors they want to leave their account in a hodgepodge mess is literally being one step away from doing something wonderful for our loved ones.

Land registration is always the first issue when I draft a Transfer on Death Deed (TODD) in Minnesota.

Finding this information is very simple.  But, it is still a very significant step.

Land Registration Basics

Lets keep this simple.  Every piece of land (home, business, farm, rural, residence, etc.) is different and unique.  In theory, every piece of land or parcel is registered within the County it sits.

Luckily, all of us can visit our local County headquarters and acquire information on any piece of property inside the county.  In general, I look for written documentation showing the following:

• Is a property titled Abstract or Torrens or something else,
• Does a property have any attached or recorded liens, and
• Acquiring the correct legal description.

In addition to other requirements, the above pieces of information are critical for every TODD.

Why Land Registration Matters

The above information matters because the transfer on death deed conveyance forms in Minnesota require the above information.

Because a death deed is a document that speaks on our behalf when we die, getting this information correct is of critical importance.

Abstract or Torrens in Minnesota

From an estate planning perspective, the advantages of property being titled under the Abstract system versus the Torrens system is moot.  Instead, unequivocally knowing which one applies to a person’s property is the primary objective.

As I mentioned above, we can find out very easily by:

• Contacting the Recorder’s Office within a specific County, and
• Acquiring paper records verifying the land registration system.

For those tempted to look on the internet or ask their neighbors, don’t do it.  Information on County websites are consistently wrong.  And, it is not uncommon for side by side properties being titled differently too (sorry Richfield).

Land Registration is Always the First Issue

Personally, I believe land registration is always the first issue because it requires work to verify.

In my experience, putting in this work helps find answers to the various other questions necessary to complete a MN transfer on death deed.

Failing to put in the work puts the whole process in jeopardy.

Parental authority forms come in waves.  As you and your child celebrate another school year, very likely summer activities and groups will ask you for authorization forms.

Authorization forms from a school or camp protect that specific entity.

On the other hand, a Delegation of Parental Authority Form (DOPA) can protect you and your child.

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What is a Delegation of Parental Authority Form (DOPA)?

Basically, this form helps another adult identified by a parent to care for a child, including:

• Taking a child to the doctor,
• Dropping them off at school,
• Picking-up a child from school.

Who Should Have a Delegation of Parental Authority Form?

Personally, I think everybody who has a child should have a DOPA.  But, here are examples of other situations when a parental authority form can be very helpful:

• Single parents,
• Parents who travel for their job,
• Parents fearful of going to jail,
• Parents who fear immigration issues, and
• Any parent concerned with day-to-day activities.

Minnesota is being ProActive

Likely, none of your friends will know this.  But, Minnesota has been very proactive with delegation forms.  In fact, we as residents can have the DMV add information to our drivers license.

In other words, if we are involved in an emergency accident, our drivers license can help others identify a temporary guardian for our children.

What I Include on a Minnesota DOPA

When I draft a DOPA on behalf of a parent or family, I like to make sure the following information is easily identified:

• School Name and Location
• Doctor Contact Information
• Food Allergies
• Medial Insurance Issues
• List of Weekly Activities

Of course, these types of contacts change on a regular basis.  But, having a starting point can be critical for the stand-by guardian.

Free Delegation of Parental Authority Forms

Even better, there are free resources available to help parents and families with their Delegation of Parental Authority Form.

• Law Help
• MN Statute

Not surprising, I believe these types of forms should be specifically drafted to help a specific family and their concerns.  But, it is nice to know that free options exist too.

Bank records for a “typical” estate plan can be as as simple as gathering statements.  But, the bank we use on a daily basis is hardly the problem.

Instead, it’s the checking account opened 20 years ago that people never use, that causes the biggest problems.

Luckily, I think most people can help their families in 3 easy steps.

Bank Records in 3 Easy Steps

I know the following steps are easy.  Certainly, I am not trying to insult your intelligence.  Unfortunately, very few people take time to straighten their affairs, which was the intent behind this article.

Anyways, here are the 3 easy steps I wish more people would engage:

3. Gather bank statements and place them in a folder housing important documents.  

2. Closing Unused Accounts

1. Identifying a beneficiary for Pay on Death (“POD”)

Gathering Bank Statements

Because so many people are getting bank statements by e-mail, acquiring hard copies of records is very difficult.  In the probate process, there are 3 elements beneficiaries and personal representatives need from their deceased loved ones:

• Name of bank
• Account number, and
• Routing number.

As you might suspect, obtaining a password and username to an e-mail account can become more cumbersome than obtaining bank records.  This is true because banks generally have phone numbers and people answering their phones.  On the other hand, e-mail services do not.

Thus, gather bank statements.

Closing Unused Accounts

Remember the bank account you opened to acquire a car loan?  Or, that bank account you opened when you lived in a different city?  Well, close them.  Right now…call the bank and take the initiative to close the account.

Here is the problem.  Family members can spend thousands of dollars on the probate process for an account holding peanuts.

Thus, make life easy on loved ones and close unused bank accounts.

Pay on Death (“POD”)

For smaller estates, I love the efficiency of identifying a beneficiaries and making the account pay on death.  Unfortunately, this still isn’t enough because PODs can go wrong.  Horribly wrong.

Ideally, I encourage families to fund their revocable trust with any and all bank accounts.  If this isn’t feasible, then using bank records to draft a proper POD beneficiary form is highly recommended.

I wish you and your family the very best.

Are you going to die without a will? Does it matter?  Will it matter once we check into Heaven?

Likely, the person at the pearly gate will not care whether we have a will.  But, our children will.

Failing to plan means your affairs will be left to the government.

I believe every person should reduce guessing and stress by deciding to die with a will.

What happens in Minnesota if we die without a will?

If a person dies without a will, their family is stuck with Minnesota’s probate plan.  Minnesota’s plan is called intestacy.  This means which Minnesota law will determine who receives all or a portion of the estate.  More significantly, Minnesota’s guardian laws will determine who becomes the next parent to our children.

Also, a Creditor can take control of the assets before a loved one…even before our own spouse.

Like you, I am not ready to die.  But, just in case I get hit by a bus – there is a plan in place to help loved ones (spouse, children, grandchildren and pets).  Thus, the laws that apply will play a significant role.

What laws apply when we die without a will?

In Minnesota, a family trying to manage an estate for a person who died without a will be forced to utilize Minnesota’s uniform probate code.  The probate laws and rules determine whether our affairs get decided through an informal or formal process.

First step after a person dies

In every case, the firs step is always the same:  what about the spouse and children.  When we put a plan in place, the guessing and time commitment can get eliminated or reduced to a minimal process.

The next step after a person dies

The next step entails picking an ideal personal representative and preparing for either an informal probate or formal probate process.

Before you die without a will

I get it – this is a difficult thing to think about.  Luckily, we have a choice before things get worse or impossible to manage.

Estate planning is a wonderful thing.  But, who can focus on an estate when the NBA lottery is unfolding?

If you are like me, seeing the cards for each franchise and pick is exciting for about a minute.  After that, reality sets in.

Luckily, estate planning is a lot different than the NBA lottery.  Oh sure, a lottery can be exhilarating, but then, normal day stuff takes over.

For this reason, I want to quickly identify 5 ways estate planning and the 2017 NBA lottery are different:

5. Nobody other than my family, needs to know the plan (or pick).

4. We can make choices without the permission of government (commissioner) rules.

3. We are not dependent on ping-pong balls (lottery)  to decide our fate.

2. We can make different choices than our family members (or other NBA teams).

1. None of us can guarantee we will be here on June 22, 2017 ( date for the NBA draft).

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

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

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

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

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

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

Joint Tenancy to Avoid Probate

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

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

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

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

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

Transfer Your House and Avoid Probate by using a TODD

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

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

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

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

Transfer Your House and Avoid Probate with a Trust

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

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

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

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

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

Leaving It Up To Chance

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

Money and cost is always important.

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

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

In no particular order, here are the 5 ways:

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

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

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

Registered Will:  Bad Idea

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

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

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

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

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

Registered Will:  Good Idea

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

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

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

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

Register my Will in Minnesota

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

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

Otherwise, I wish you the very best.

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

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

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

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

Minnesota Bequests: Necessity

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

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

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

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

Minnesota Bequest:  Cash Gift

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

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

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

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

Minnesota Bequest:  Sentimental Value

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

Some of my favorite sentimental gifts include:

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

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

Minnesota Bequest: Pets

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

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

MN Bequests: Organs

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

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

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

Final Thoughts

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

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

Love is a powerful act.  Planning your estate and affairs is an act of affection and serves as an example to future generations.

Unfortunately, people are afraid to address their demise. Personally, I find the nursing home, tax collector, and the boogie man to far more scary.

Estate planning is not just about preparing for the inevitable; it’s about ensuring that your hard-earned assets are distributed according to your wishes, minimizing tax liabilities, and providing for your loved ones. In this blog post, we’ll explore the key reasons why estate planning is crucial and how our experienced team can guide you through the process to secure your family’s future.

Protecting Your Loved Ones

One of the primary goals of estate planning is to safeguard the financial well-being of your loved ones. Without a clear plan in place, your assets may be subject to probate, a lengthy and expensive legal process that can significantly delay the distribution of your estate.

By creating a comprehensive estate plan, you can ensure that your family members are provided for without unnecessary complications.

Minimizing Tax Liabilities

Estate taxes can erode a significant portion of your estate if not properly managed. Our expert team will work with you to identify strategies to minimize tax liabilities, allowing you to pass on more of your assets to your heirs.

From establishing trusts to taking advantage of tax exemptions, tailor a plan to maximize the wealth you leave behind.

Preserving Family Harmony With Love

Estate disputes can strain family relationships, leading to long-lasting rifts. A well-crafted estate plan can help prevent conflicts by clearly outlining your wishes and intentions.

By addressing potential sources of disagreement proactively, you can foster harmony among your heirs and ensure a smoother transition of assets.

Ensuring Business Continuity

Do you love your business? If you own a business, estate planning is essential to ensure its seamless continuity after your passing. Without a proper succession plan, your business may face uncertainty, potentially leading to financial instability.

This law office helps families develop strategies to facilitate a smooth transition of business ownership, protecting both your legacy and the livelihoods of those depending on the business. Again, an example of love for those relying on your business entity as a source of income.

An Act of Love for Special Needs

If you have dependents with special needs, estate planning becomes even more critical. Our team understands the unique challenges faced by families with special needs members and can help you establish trusts and financial arrangements to provide ongoing support while maintaining eligibility for government assistance programs.

Adapting to Life’s Changes

Life is dynamic, and circumstances change. Our approach to estate planning is not a one-size-fits-all solution. We’ll work closely with you to ensure your plan evolves with your life, accommodating changes such as marriages, births, and career developments.

Each decision is difficult.  Decisions made out of love are always worth pursing.  Thus, have faith in your process.

Wills for Military Veterans in Minnesota are much easier to write when the Veteran is alive.

Unfortunately, veterans who pass without a will introduce a different challenge.  Lets skip past these challenges and get straight to the point.  Why having a will before you deploy is a must.

Wills for Military Veterans: Reasons

Whether you are an E-2 or an O-8, here are a handful of reasons why you need to jump on this process:

1. To identify a specific person as a guardian for a child.
2. You love your spouse.
3. You dislike an ex.
4. Your spouse, parent, sibling or friend would make a better personal representative than a creditor.
5. Dividing up your bank accounts and property amongst your family becomes much easier.
6. In case your significant other is pregnant.
7. Your children are depending on you.
8. Reduce Probate Problems.

Seems straight forward, right?  If you want to get fancy, having a will that pours into a revocable trust is even better because it helps reduce probate all together.

Wills for Military Veterans: Supporting Documents

If my last paragraph doesn’t make sense, no worries.  Call me and we can talk it through together.

Going forward, here are a few other documents current and past Military Veterans should check out:

• Power of Attorney
• Health Care Directive
• Funeral Directive

Keep your will safe.  That seems like good advice, but how on earth can you keep a will safe when we are surrounded by bad things.

After a quick review of common fears, I will share the one place people fail to think about.

Seriously, what are you afraid of?  Flood?  Fire?  Going to the Emergency Room?

Here are a few common suggestions on where people like to keep their wills:

• Safe deposit box,
• With an attorney,
• At home, or
• Recorded with the County.

Keeping your Will Safe from Fire

Being afraid of fire is natural, just not very likely.  Obviously, having your house burn down and having your estate plan destroyed is horrible.  On the other hand, you will likely live to tell about it.

In the year 2013, Minnesota saw 26 fatalities due to fire.  Even though I am familiar with a specific person perishing in a house fire, 26 people out of 5 million Minnesotans is a low risk (.0000052 %).

Will Safe inside a Safe Deposit Box

I agree, a safe deposit box can be a low-cost location for an estate plan.  The problem I run into with safe deposit boxes includes:

• Nobody knew a box exists,
• Forgotten locations,
• Keys are lost,
• Family members are not added to the list of patrons who are granted access.

In my experience, one stroke or car accident can make the Bermuda Triangle look more accessible than a safe deposit box.

Is your Will Safe with an Attorney?

No, do not keep your will with your lawyer.  This has nothing to do with trust.  Your lawyer’s office is susceptible to fire too.  And, your attorney might die before you.

Even though I trust myself more than any other person walking the planet, keeping a will safe with an attorney is an outdated practice.

Keeping your Will with the County

If you are unfamiliar with your County’s property department, you can visit them at for a few dollars, record a will.

A long time ago, this was a great idea because our life expectancy was short and people didn’t entertain implementing a revocable trust.  Now, this old way of doing things seems ridiculous.

First, I dislike the idea of exposing my will to the general public.  Second, I want the option of looking at my will from time to time so I know whether I need to make updates.  Third, I want my loved ones to have access to my important papers without involving the government.

Is my Will Safe at Home?

This is going to blow your mind, but I think a thief is more likely to steal money and electronics versus my will.  Even if somebody stole my will, I can make a new one.

Also, don’t hide your will so nobody can find it.  Instead, pick a spot that is sure to get noticed like your drawer or book shelf.

As of today, I encourage most of my Clients to keep their important estate planning documents in two spots:

• Inside an unlocked fire proof box, and
• The one place described below.

** TIP:  You can put other important papers inside your fire-proof box, like insurance policies, birth certificates, passports, marriage licenses and your DD 214 ***

Is my Will Safe: One Place People Fail to Think About

The one place people fail to think about is actually two of three places:

• MyCloud, and
• iCloud or
• Google Drive or
• DropBox.

Older generations are deathly afraid of storing their estate plan in the Cloud.  I will let you do your own research, but the MyCloud product is not stored in the Cloud and generally accessible anywhere you go and shareable with your loved ones.

Whether you like Apple products or not, our own FBI spent $1.3 million dollars to break into one iPhone.  As of today, I really like Apple’s policies specific to iCloud storage and think this is a credible response to the fears identified above.

Google Drive also appears to be a strong method for keeping a will safe.  Here is why:  a person can set up their Google Drive to contact specific people if their account is not used for xyz days.  In other words, if I had a Google Drive and I didn’t access it for 120 days, I can set up a process to give my loved ones access to my Google Drive account.  On the other hand, I think Google’s policy on document access could be must stronger.

Personally, I think using MyCloud along with a secondary online source is a strong response to the issues described above.

Keeping my Will Safe is a Full-Time Job

Certainly, our lives are always evolving and nobody can predict the future.  My usual response is keeping hard copies in a fire proof box and an electronic version within a secure network.

One thing remains a constant:  only you can assess which methods are best for you and your family.

Are you looking to edit your will in Minnesota?  Great!  Here we go…

First, let’s acknowledge having a Will in Minnesota is better than dyeing with no will.

That being said, there are significant risks when you want to edit your will in Minnesota.

Why do you wan to edit your will in Minnesota?

If you need to edit your will in Minnesota, likely you had a change in your family.  A second reason to edit a will is because there was a new rule or law.

On the other hand, editing your current will can impose severe risks and bring more problems than you likely have time to worry about.  For this reason, I think starting from scratch is the preferable method.

However, some people are stuck in their ways and still want to edit their will and risk contradiction or ambiguity.  Thus, here we go.

Edit your will in Minnesota using a codicil

A “codicil” in Minnesota is a supplement or addition to a will.  This means a person is not disposing or terminating their will, but modifying it.

Yes, a person can edit a will in Minnesota by implementing a “codicil.”  The formalities of a codicil are the same as creating a new will.

Because the process is the same, making a new will can be much less risky.  

Other problems with editing your will in Minnesota include…

• People loose their will,
• Family members didn’t know there was a codicil,
• A codicil contradicts a statement in the will,
• The codicil make things less clear, or
• Your codicil was written under duress or a different mental state.

What should you do first if you want to edit your will in Minnesota?

If you are considering whether or not you want to edit your will in Minnesota and how to proceed, best practices suggests seeking help from an estate lawyer and starting from scratch.

Otherwise, creating a supplement to your will or looking to edit your will in Minnesota might cause issues or adversely alter your intentions.

TODDS or transfer on death deeds are fantastically inexpensive. When used correctly, these types of documents are fantastic for Minnesota families looking to reduce the risk of probate.

For those looking for online resources, the Minnesota law that govern this method of transferring real property begins within statute 507.071.

That said, because mistakes with land and beneficiary issues can compound, here are a few drafting issues that need to be taken into consideration:

• Titling
• Abstract versus Torrens questions, and
• Identifying the strongest Legal Description.

Help with a Transfer on Death Deed

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What is a Transfer on Death Deed in MN?

A transfer on death deed, also called a “TOD deed” or “TODD” is a piece of paper that explains who should get your real estate (or house) on your death without the need of seeking approval from a probate court.

For a document of this nature to be effective, a transfer on death deed must be completed and recorded in the County where the property is located.

Can a Minnesota TODD transfer a piece of property to more than one person?

Yes, a TODD can transfer real estate to more than one person or entity (like a charity or church).

For example, a mother can use a transfer on death deed in Minnesota to transfer the family cabin in equal shares to her three children.  Each child is a grantee beneficiary.

The possibilities for a TODD can be as creative or exotic as your estate requires.  On the other hand, the more extreme a TODD becomes, the more likely a different transferring tool should be considered.

What can go wrong with a Transfer on Death Deed?

A few detailed examples how or why a TODD can go wrong includes the following:

• An incorrect legal description,
• A grantee beneficiary dies before the owner of the property dies,
• If the owners of a property were married, the remaining spouse fails to file an Affidavit of Survivorship,
• Names of the beneficiaries are misspelled,
• The person filling out the form uses the wrong form,
• A person fails to record the document,
• A person accidentally revokes the deed,
• The grantor fails to consider estate taxes,
• The grantor does not have each document notarized and witnessed correctly, and etc.

Where to find forms for a Transfer on Death Deed

If a person has the time, consider visiting your local recorder’s office. As an alternative, consider reviewing this list of forms.

What happens when a TODD is recorded in Minnesota?

The County’s recorder office charges a fee to file a transfer on death deed.

A TODD does not kick into effect until the owner of the real estate dies.  In other words, a transfer on death deed is not effective nor does  anything happen when it is recorded.

Instead, the property does not change hands until the owner or grantors die.  If the grantor dies and the document was valid, the property transfers to the designated recipient.

The easy way to avoid Minnesota probate is to never die.  No, seriously – if you never die, then probate will not be an option.

On the other hand, if you think you might die someday, grab an adult beverage before you read the next line: nobody can avoid probate 100%.  Instead, our goal is to reduce the risk of probate.

Now, I know what you are thinking….your friends told you they have a revocable trust and they are going to avoid the headache they experienced when their parents died.

I agree, a trust is an excellent way to reduce the risk of making your family stress over the probate process.

On the other hand, there are generally three reasons why your trust will not necessarily help your family avoid Minnesota probate:

• You forgot to fund an asset (maybe you decided to make a purchase in your 70’s or 80’s),
• Pain-in-the butt family members, or
• Creditors (like hospitals, nursing homes or credit card companies).

Avoid Minnesota Probate the Cheap Way

In a class I teach, I stress one sure strategy on the cheap end (meaning it should not cost you any money) to reduce the risk of probate in MN: make sure your financial accounts have beneficiaries.

For example, if you have a bank account, please please please make sure you identify a beneficiary to acquire your account when you die.  In my experience, most banks call this type of beneficiary a POD or Pay on Death.

Of course, I prefer transferring a bank account into a trust, but we are talking about the cheap way, not the right way.

In case you are stuck on who to choose, let me give you some fantastic examples:

• Your spouse,
• Children, or
• The cable company.

I admit, naming the cable company is crazy talk.  That said, it is crazy how many people fail at naming a beneficiary.  Thus, get it done and come back to my article.

Avoid Minnesota Probate Another Way

Just because you saved money in a retirement account doesn’t mean you need a heavy-duty financial planner to name a beneficiary for your 401(k) or 403(b).

Of course, if your beneficiary dies at the same time you die (in a car accident) or you want to assist your spouse and children in making the transfer of your retirement account a little easier, likely a revocable trust is strong option.

As you muster up time to think this through, please please please contact the financial institution holding your account and name a beneficiary for your retirement accounts too.

Avoid Minnesota Probate the Drastic Way

A popular method to avoid Minnesota probate is to create a trust and inside the trust have a clause that looks like this:

If any person or entity challenges my revocable trust and they lose, their interest in my estate will be expressly disinherited

Of course, there are better ways to do reduce the risk of having your estate challenged.  None the less, this is one of many different options.

Avoid Minnesota Probate the Right Way

It wasn’t by accident that I chose a picture of people sharing a beverage with one another while sharing a laugh.  In my experience, the strongest way to avoid Minnesota probate is to create a plan and share it verbally with your loved ones.

For example, share with your elderly parents who will be taking care of your children if you die and what to do first in case of an emergency.

Or, maybe this means sharing with your spouse tha your power of attorney document is kept on the book shelf or your health care directive identifies a list of medications you take on a regular basis.

The bottom line:  talk about your plan as if you were going to die someday versus pretending everybody else other than you is doomed for a bad day.

Pets in your will you say? As a pet owner myself, pets are significant to a family and those caring for them. As a result, being creative with their care and long-term planning is a must.

Unfortunately, our estate laws treat pets as property, versus the loveable family members they really might be. This means having a plan for your pets is a legitimate planning goal.

Naming Pets In Your Estate

The preferred method of assuring your pet is cared for is the process of creating a “pet trust.”

From a practical perspective, this means creating a trust for your larger assets and including a specific claws (or clauses) exclusive to your pets. Ideally, the section takes into account the Trust Act.

On the other hand, a will can certainly be another method of caring for a cat or dog. But, animals needing care for medical issues or maintenance will likely benefit more from an owner deciding in favor of a pet trust versus other planning tools.

Pet Trust Claws

Obviously, nobody knows your furry friend better than you. But, there are many animal owners who forget the significance of adding a photograph to their trust, addressing feeding schedules, being clear on which veterinarian is desired, etc. In other words, a pet trust should be drafted in a way that is exclusive to your animals.

Also, an article of the trust can allocate money to the needs of your cat or dog. For example, suppose you have your animals groomed once per month and it costs $70 dollars per grooming.  If your dog or cat was expected to live for 8 years, then ideally your pet trust would be funded accordingly.

Now, this doesn’t necessarily mean having $6,720 dollars readily available ($70 x 12 x 8). But this does might mean gifting a motor vehicle to the pet guardian selected that takes into account the maintenance of your four legged friend. Again, creativity is the name of the game when considering placing pets in your will.

Guardians Named In Your Trust

Money aside, selecting the best animal guardian in your will or trust means addressing this issue before it comes up. In other words, ask your friends and family members. Ask them whether they would be willing to care for your pet is highly encouraged.

As the saying goes, an ounce of prevention is worth a pound of cure. Unless you ask, you may never know whether the person you selected is allergic to hair or physically unable to care for more than themselves. Thus, asking questions or interviewing potential guardians is a strong proactive move.

Are There Other Options

Yes, there are other options versus naming pets in your will. Whether you are considering a will, a trust, or want to leave a charitable contribution to an animal friendly organization, I think we all agree that our furry friends are family.

Picking a standby guardian is hard.  I believe every parent stresses over the care of their child.

Thinking about a situation where you are unconscious or dead quadruples this stress.

Luckily, parents can:

• Designate a standby parent,
• Identify an alternate or backup to their first pick, and
• Select which triggering events will allow for a standby to step in.

Rules and Forms for a Standby Guardian

Yes, Minnesota has specific rules on the designation process.  The rules for a standby guardian are under Chapter 257B.

Also, Minnesota has a somewhat helpful form as a guideline, which you can find HERE.

Tips for selecting a standby guardian

In my opinion, here is a short list of tips and risks for selecting a standby guardian:

1. Select a guardian that doesn’t contradict your Will or Trust,
2. Do not force your standby guardian to blend your child’s money (your money),
3. Do not incorrectly complete a standardized form,
4. Communicate your desires with the primary and alternate backups,
5. Do not grant a different standby guardian for each child,
6. Acquire signatures from your standby, and
7. Have a guardian for a short-term conflict and a long-term conflict.

Can a Standby Guardian take my child to daycare?

Yes, a standby guardian can take your child to daycare in the event you are hurt or injured.  Likely though, you are confusing the goal of this form with a form for delegating parental rights.

In my experience, parents confuse the process of selecting a guardian with a different form often called a power of attorney for childcare (sometimes called a Delegation of Parental Authority).  Yes, a power of attorney for childcare is a different form and usually used in situations where grandparents help with:

• Medical care,
• Dental visits,
• Obtaining prescriptions,
• Daily activities.

Triggering events for a standby guardian

Earlier, I identified a term called triggering events.  Basically, a triggering event is a situation you select that gives the guardian a reason to step-in.  Absolutely, everybody has the potential of outlining a different list of triggering events specific to them and their family.

Here are a few examples:

• Your death,
• Unconscious,
• Being ill or sick,
• Both parents being unavailable,
• A parent is serving in the military, and
• Jail.

Other requirements to think about

In addition to other conditions under Chapter 257B, every form should include your:

• Intent,
• A list of conditions,
• The use of two witnesses,
• Signatures from both parents, and
• An acceptance from the guardian of your choice.

Need more help?

Please contact me directly if you find yourself needing help.

A painful estate plan is one that makes others cringe and shriek.  Very likely, you know what I mean.

If you do not, here are a few examples to get us going:

• The plan you made dates back to the 70’s,
• You re-married and failed to update your old plan,
• At the age of 80, you just now decided it was a good time to create a plan,
• Both executors of your Will are dead and you know it,
• The last time you reviewed your plan was the day you signed it, or
• You have twice as many grandchildren and half as many daughter/son-in-laws.

Reduce your Painful Estate Plan

Yes, you can reduce your painful estate plan by acknowledging it has flaws and making a change.

To be clear, I believe in reducing stress and anxiety for your loved ones and today is the day I want to make this point clear by associating pain with your outdated plan.

Yes, a painful estate plan is a bad habit you can change.

Timing of a painful estate plan is never good

Ideally, all of us would get a two-year window alarm before our time is up.  Unfortunately, very few of us get this luxury and those that do are generally unable to make decisions on their own behalf.

In my opinion, one of the best times of the year to begin the process of creating an estate plan is the same week a person begins their taxes.  If this doesn’t work, then anytime between May and December works too.

The most painful estate plan is…

Yes, the most painful estate plan is the plan that was never formalized or does not exist.  Quite frankly, I think this goes without saying.   Unfortunately, it is not very difficult to find examples where people failed.

Thus, please bring this topic up with those that you love and remind them to update their estate plan.

A funeral honor guard can be very tricky for families who are not familiar with this process.

Because I am confident my own spouse would be lost if required to make funeral arrangements that encompassed my VA benefits too, I developed a short outline to help other military families in Edina and the surrounding area.

Veteran Estate Planning

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Forms for a Funeral Honor Guard?

If your loved one never mentioned this, you heard it here first.  The VA requires a form for everything.  Here is what you will need to make sure a funeral guard and other funeral arrangements are affirmed for you and your family:

• Application for burial benefits: VA Form 21P-530
• Request specific funeral arrangements: VA Form 10-2065 
• Application for a US Flag to be used at the funeral service: VA Form 27-2008
• Headstone for a a Military Cemetery: VA Form 40-1330
• Headstone for a Private Cemetery: VA Form 40-1330M

What does a Funeral Honor Guard do?

Members of the military assigned to an Honor Guard refer to a funeral assignment as a “detail”. The easiest way to help yourself understand what a Funeral Honor Guard will do is by watching a short film here.

Generally, upon requesting an honor guard for a Veteran, the honor guard will (1) carry the casket or urn from its location to the burial spot, (2) present a folded US Flag, (3) provide a gun salute, (4) present bullet shells, and (5) play a closing musical honor.

How many people are part of the Honor Guard?

At a minimum, the honor guard for a funeral will have at least 2 people.  Larger honor guards can be much larger ranging from 4-8 people.  Right or wrong, military status impacts this element of the process.

It is important to note that  at least one of the persons in the honor guard will be from the same military branch as your loved one.  Some families do not see why this is significant.  Really though – it matters.

Should you bother seeking an Honor Guard?

As an attorney and Veteran, I hear a lot of families inquire whether it is even worth the hassle.  No, it isn’t a hassle.  Yes, it is well worth the time and effort.

I always encourage families to seek an honor guard for the funeral.  For one, your loved one earned it by serving our country.  Second, it is generally no cost.  Third, it is a privilege that usually exceeds everybody’s expectations.

Thus, go the extra mile and seek a Funeral Honor Guard.

Rules Granting an Honor Guard

There are two rules that apply to a funeral honor guard in Minnesota.  First, Minnesota statute 197.23 affirms the VA will pay for an honor guard.

Second, something called Public Law 106-65 is the federal rule that grants your Veteran and certain dependents an opportunity for a funeral honor guard in Minnesota.

Who manages the Funeral Honor Guard in Minnesota?

If you are seeking a funeral honor guard in Minnesota, the Department of Defense manages this process.  That said, the person or entity you should contact first is the funeral home.

However, the Department of Veterans Affairs (VA) National Cemetery Administration cemetery staff can also assist with arranging military funeral honors.

Likely, planning a funeral for your loved one is stressful enough.  Thus, make it easy on you and your family by delegating specifics to the funeral home.

Do you need help?

If you or your family need help or assistance with benefits and rights your loved one earned while serving in the Military, please contact this law office for help.

Funeral planning in Minnesota is a special process. Whether thought through in advance or addressed in a moment of need, funeral planning is different for every person and family.

Under Minnesota law, you may include directions regarding your funeral and burial in your will or in a special document you sign for that purpose. You may appoint a person who has authority to make arrangements after your death.

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How should I plan my funeral?

Some things to keep in mind when planning a funeral:

• Your budget and true desires should guide your choice of arrangements. You generally have the option of choosing cremation, burial in a cemetery plot, or burial in a mausoleum; and
• You may wish to involve several members of your family, close friends and/or clergy members when you make funeral arrangements.

Minnesota law and the federal Funeral Rule give you tools to control the cost of funerals. When you request funeral information, these laws require funeral directors to provide detailed, pre-purchase price information, including a “General

Price List” of all services offered that lists an effective date. Following the funeral arrangement, a detailed itemization, called the “Statement of Funeral Goods and Services Selected,” must be prepared.

There are many laws in place that protect consumers from deceptive practices by the funeral industry. For example, a funeral provider cannot require that you purchase a casket for cremation. A funeral provider cannot condition the purchase of one funeral service upon the purchase of another funeral good or service.

Further, it is against the law for funeral providers to charge a fee for handling, placing or setting a funeral good based upon the fact that the good was not purchased from that funeral provider.

How should I pay for my funeral?

You can make your own funeral arrangements before you die. You may set aside funds to pay for your funeral. One way to do this is to invest the needed amount of money, or put it in a bank account, making sure it will be accessible to family members upon your death. A second option is to prepay for funeral goods and services.

What safeguards exist for consumers who pay in advance?

To help safeguard prepaid funds, Minnesota law requires a funeral director or cemetery operator to place all prepaid funds in a trust account in a bank or other financial institution until the need for your funeral arises, and to advise you of the financial institution’s name and the trust account number.

Minnesota law allows you to make arrangements so that you can receive a full refund of all prepaid funds at any time before services are provided.

There are also safeguards in the law to ensure that funds are available for the long-term upkeep of cemeteries and mausoleums. Certain cemetery operators must place in trust 20 percent of funds received from the sale of cemetery lots and 10 percent of funds from the sale of mausoleum space. These “permanent care and improvement” trust accounts are to ensure the future care and maintenance of cemetery grounds and buildings.

Finally, the law requires annual reporting and record keeping for both “pre-need” and the “permanent care and improvement” trust funds:

• Licensed funeral directors must file an annual report disclosing the status of the pre-need trust fund with the State Commissioner of Health;
• Cemetery operators must file an annual report disclosing the status of the permanent care and improvement trust fund with their County Auditor; and
• The Minnesota Department of Health, Mortuary Science Section offers information and takes complaints on funeral goods and services.