Category: Estate Planning

Plan for the future with expert estate planning insights. This blog category covers wills, trusts, probate, power of attorney, asset protection, and tax strategies. Stay informed with the latest legal updates to secure legacy and protect loved ones.

  • Estate Planning for College Students and Young Adults

    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.

  • Trust Lawyers Near Me

    What Is a Trust Lawyer?

    Trust lawyers near , whether in Minnesota or otherwise, play a pivotal role in navigating the complex terrain of estate planning and asset management. If you are looking for a trust attorney, you found the right place.

    As an introduction to trusts, the goal of meeting with an attorney practicing in this area is determining if the fit is right. If so, the lawyer you select can help you prioritize a trust type or purpose. Then, drafting and formalizing the trust, funding the trust, and administering it. Sometimes, there is a need to modify a trust document. Either way, this law office services these needs.

    Role of a Trust Attorney

    Being a trust lawyer, legal issues and matters often overlap. This includes real property, family dynamics, business succession, family farms, special needs, preserving veteran benefits, insurance, disabilities, tax issues, transfers, and many additional economic and fiduciary issues.

    Whether crafting revocable or irrevocable trusts, charitable trusts, or special needs trusts, a trust trust lawyer provides personalized solutions tailored to a specific trust purpose.

    Audio From a Trust Lawyer

    Here is a simple message from a Trust Lawyer near:

    Lawyer for a Trust and a Will

    In every case, a lawyer drafting a trust is going to advise a person or family to include a will. When a person or family has a revocable trust, a there is a special type of will called a Pour Over Will. This specialized will type serves as a crucial component of an estate plan.

    A pour over will ensures that any assets not previously transferred into the trust during the individual’s lifetime are “poured over” into the trust upon their death. Essentially, the pour-over will acts as a safety net. It captures any overlooked or newly acquired assets. Also, it directs the assets into the trust for distribution according to the individual’s wishes.

    An attorney drafting a trust and will, is doing so to maintain the integrity and efficiency of the trust. This planning strategy provides continuity by ensuring that all assets, regardless of their nature or timing of acquisition, are ultimately governed by the provisions of the trust.

    This streamlined approach simplifies the administration process for the executor and facilitates the seamless transfer of assets to designated beneficiaries. Further, it minimizes the risk of costly probate proceedings and ensuring the fulfillment of the individual’s estate planning objectives.

    Services Offered

    Estate Planning

    Estate planning is a comprehensive process. It involves making arrangements for the management and distribution of one’s assets and affairs in the event of death or incapacitation. It encompasses a range of legal and financial strategies tailored to individual circumstances and goals.

    At its core, estate planning aims to protect assets, minimize tax liabilities, and ensure the smooth transfer of wealth to chosen beneficiaries. This may involve drafting wills, establishing trusts, designating powers of attorney, and creating advance directives for healthcare decisions.

    Estate planning is not solely about wealth transfer; it also addresses broader considerations. For example, guardianship for minor children, charitable giving, and end-of-life care preferences. By carefully crafting an estate plan, individuals maintain control. Even better, it provides loved ones’ with security of values and priorities.

    Moreover, effective estate planning can alleviate family disputes, streamline the probate process, and provide peace of mind.

    Trust Administration and Probate

    The administration of a trust and court process like probate, manage the affairs of a deceased person in two distinct processes. Both involve settling a deceased person’s estate, each with its own procedures and implications.

    Trust administration typically occurs when assets are held in a trust and bypass probate. A trustee, appointed by the trust creator, manages and distributes these assets according to the trust’s terms. This process is often more private, efficient, and cost-effective compared to probate.

    In contrast, probate is the court-supervised process of distributing assets. Without a properly funded trust, a court must make certain validations.

    While trust administration and probate serve similar purposes—settling a decedent’s affairs and distributing assets—they differ significantly in their procedures, timelines, and costs. Trust administration tends to be smoother and less time-consuming, while probate can be more complex and expensive, often involving court proceedings and potential disputes among heirs.

    Trust Attorney in Minnesota

    You found a trust attorney in Minnesota. When I meet with a potential client, I do so by phone, email, video, and one-on-one. If you live or work in the Twin Cities, great!  Otherwise, where you live is not a roadblock, as this law office serves Clients in all areas of the world.

    Again, this law office serves individuals and families with issues specific to a trust, near and afar. So, whether you are limited to a cell phone or reside in Minnesota, this law office is prepared to hear more about your planning goals or the administration of a trust already established.

    Edina, Bloomington, Woodbury, Eden Prairie, St. Louis Park, Hopkins, Minnetonka, Minneapolis, Burnsville, Eagan, Plymouth, Wayzata, Blain, Anoka, Prior Lake, Chanhassen, and nearly ever city in-between.

    Trust Planning Lawyer in Edina, Minnesota

    If you’re seeking a trust lawyer in Edina, MN, consider scheduling consultations to discuss your specific needs and gauge compatibility. A skilled trust lawyer near you should offer personalized advice, transparent communication, and a commitment to protecting your assets and legacy.

    By choosing a trusted local attorney, you can navigate the complexities of estate planning with confidence and peace of mind.

    Lawyer for Trusts Near Edina, Minnesota

    Contact a Trust Lawyer

    Contacting a trust attorney about a consultation is as simple as completing the form below. Thus, if you are looking for personalized guidance, this law office looks forward to the opportunity to meet with you.

    No attorney-client relationship is formed by contacting this law office. If you contact IAJ Law, LLC by phone, text, social media, e-mail or through any other means, you may not necessarily receive a response.

  • Power of Attorney Is Dangerously Powerful

    Power of Attorney Is Dangerously Powerful

    A power of attorney in Minnesota is the process of using a piece of paper to grant another person powers. These powers are significant.

    Families use a power of attorney form as a supplement to other estate planning documents, like a revocable trust, to provide for and manage life when things go wrong or as life changes.

    When Do the Powers Start?

    There are two different times when POA documents can start. The first is immediately and the second is in the future. Being able to pick when you want a Power of Attorney form to start is an important ability.

    Of course, whenever families are given choices, it can be difficult to decide which is best. In my experience, a person already knows. In other words, ask whether you trust the person you are considering as an attorney-in-fact. Then, review their personal attributes and tendencies.

    Advantages of an Immediate Power

    The immediate activation of a power of attorney provides swift and seamless delegation of authority. Also, it offers a crucial advantages in various scenarios.

    This proactive approach ensures a smooth transition of decision-making power, especially in situations where prompt action is essential.

    For instance, in the event of a sudden illness, business transaction, or travel, having the power of attorney take effect immediately allows the appointed agent to act promptly on the principal’s behalf, addressing urgent matters without delay.

    Further, this immediate activation proves beneficial in financial and legal matters. This enables timely execution of contracts, property transactions, and other time-sensitive affairs.

    Also, It simplifies administrative processes and eliminates potential delays. An action that is contingent on a triggering event is sometimes far to cumbersome.

    Overall, the immediate start of a power of attorney streamlines decision-making, promoting efficiency and responsiveness to the principal’s needs.

    Springing Powers for a Power of Attorney

    Now, sometimes families formalizing their estate planning documents want a delay. This is called a springing power.

    A springing power of attorney offers several distinct advantages, providing a flexible and safeguarded approach to managing one’s affairs.

    Unlike a regular power of attorney that takes effect immediately upon execution, a springing power of attorney “springs” into action only under specific conditions outlined by the principal.

    This delayed activation allows individuals to retain control over their affairs. For some, there are tax reasons why this is important. For others, waiting until a triggering event, such as incapacitation or illness, just makes sense.

    One primary advantage is the preservation of autonomy. With a springing power of attorney, individuals maintain decision-making authority over their financial, legal, and healthcare matters until they are unable or unwilling to handle them. This feature is particularly valuable for those concerned about potential abuse or misuse of power.

    Additionally, the springing power of attorney enhances privacy by ensuring that the appointed agent steps in only when necessary. This prevents unnecessary intrusion into the principal’s affairs during periods of competence and independence.

    Moreover, the springing mechanism provides a built-in safety net. It addresses the risk of premature activation by requiring a clear demonstration of the specified triggering event.

    The demonstration of an event is usually documented through the certification of a professional, like a medical doctor.

    The Magic Behind a Power of Attorney

    Every family and situation is different. Discover the secrets and benefits of the Power of Attorney by reviewing your goals and obtaining an unbiased opinion on timing. A durable POA might be the key to an empowered decision that can occur in the present.

    So, unlock the potential that an intentionally crafted document holds for your life’s journey. Your future self will thank you.

  • Federal Gift Tax Exemption

    Presently, the federal gift tax exemption is $13,610,000 per person or $27,220,000 for a married couple. This is scheduled to decrease on January 1, 2026, to about $7 million per person or $14 million for a married couple.

    This means there is a significant planning opportunity to use the current high exemption amount. This is important because many parties which to avoid paying an estate or gift tax of 40% on the transfer.  This planning opportunity will disappear after 2025 (unless Congress acts to change the law). 

    It is possible to create trusts that will ultimately benefit your chosen beneficiaries in a manner that is tax efficient. The idea is to protect them from future problems. for example, creditors and divorce. A trust allows for flexibility for the future.

    Tax Avoidance Techniques

    Estate tax avoidance involves employing legal strategies to minimize the impact of estate taxes on an individual’s wealth transfer to heirs upon death. Taking gift tax exemptions into account, various techniques exist to mitigate the estate tax burden. This ensures that a substantial portion of an individual’s assets passes on to beneficiaries.

    One commonly used approach is establishing a revocable living trust. This allows an individual to maintain control over their assets during their lifetime. Also, this helps avoid probate and potentially reducing the taxable estate. Tax avoidance techniques requires an analysis of gifting opportunities, which can be managed through a trust.

    Lifetime gifting is another effective technique, enabling individuals to transfer assets to heirs before death, thereby utilizing the annual gift tax exclusion and reducing the taxable estate.

    Utilizing the marital deduction is a fundamental method for married couples, allowing the unlimited transfer of assets between spouses without incurring estate taxes. Charitable giving also plays a role in estate tax planning, as donations to qualified charitable organizations may reduce the taxable estate while benefiting the community.

    Plan For Gift Taxes

    Single persons and families with an interest in using their current high estate and gift tax exemption amount must start their planning process, before this opportunity is taken away by Uncle Sam.

    This law office anticipates the rush for such estate planning will be quite high. As a result, consider this process before it is to late.

  • Updating A Will Is Like Gardening

    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.

  • DIY Wills For The Person Who Can Do Everything

    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.

  • Funding Your Trust With Intangible Property

    Funding your trust with Intangible property can be a smart strategy for managing these types of assets. A trust is a legal entity that allows an individual or entity to transfer property to a trustee. A trustee manages the property on behalf of the beneficiaries. This can be useful for intangible property, which can be difficult to manage and protect on one’s own.

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

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

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

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

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

  • Trust Types: More Than 100 Kinds of Trusts

    Trust Types in Minnesota are Endless

    Trust types in Minnesota are nearly endless. The first question to ask when picking a type of trust is to clarify the intended purpose. The trust purpose is dependent on needs, the property being transferred, and the beneficiary. Before going to far into the different types of trust documents, it makes sense defining what having a trust means.

    What Is a Trust?

    A trust is a document or legal instrument establishing the terms and conditions of our property, which is a legal arrangement where a trustee holds and manages assets on behalf of a beneficiary or beneficiaries. There are several types of trust documents, each with their own specific requirements and purposes.

    A trust is a promise made by another person to hold and keep safe, certain property on behalf of another person called a beneficiary.  The person making the promise is called a Trustee.  The Trustee is given access to the property by a person called a Grantor.  In many cases, the Grantor and Trustee are the same person until the Trustee is no longer able to manage their promise.  Ideally, the promise is expressed and described in written format. 

    What makes a trust complicated is the fact that there are many types of trusts.  In fact, there are more than 100 different types of trusts.  The trust type is often specific to the Grantor, intentions for the Beneficiary, and a host of other planning goals.   For example, a trust can be used to avoid probate and navigate estate taxes. 

    Also, a trust can be used to reduce stress when considering long term care, like a nursing home or skilled nursing facility.  Other times, a trust is used to manage their business affairs, real estate, a family cabin, and protect their assets from creditors or a former spouse.  Additional trust types might involve special needs, titled property, military veteran matters, and or agriculture. 

    Before you start focusing on selecting the right type of trust(s) that fit you and your goals, consider reviewing other frequently asked questions herein or attending an upcoming seminar to learn more. 

    Revocable Trust Types

    One common type of trust document is a revocable living trust. A revocable trust can be used by a single person, a married couple, and unmarried partners. This trust type allows the grantor(s) to maintain control over their assets while they are alive, and transfer them to a designated beneficiary upon death.

    There are many disposition options available for this trust type. Even better, it can be modified or revoked any time during the grantor’s lifetime. A Grantor has options regarding pre-residuary gifts for tangible personal property, real property, intangible personal property, pecuniary gifts, and of course, pets.

    In addition, this type of trust supports see-through options, single options, and separate trust options for a spouse, descendants, grandchildren, nieces, and nephews.

    Tax Planning Options for a Revocable Trust

    Tax planning for any kind of trust is an exclusive conversation. Indeed, there are opportunities for tax planning with every trust. Because Minnesota has an estate tax, tax planning is especially important.

    Nonetheless, tax planning for either a revocable or irrevocable trust types includes reviewing disclaimer options, credit shelter or marital deductions, seeking excess exemptions like the formation of a QTIP, Generation Skipping Transfers (GST), or optional direction for a deceased spouse’s unused exemption amounts (“DSUEA”). In all, tax planning for a revocable trust is a critical step.

    Irrevocable Trust Types

    Another trust type is an irrevocable trust. For families domiciled in Minnesota, this type of trust is used most often for life insurance. That said, this type of trust is also used with special needs, elderly care matters (shielding assets from nursing homes), veteran benefits, protecting assets from creditors, and installment sales and purchase agreements.

    Single Beneficiary Trust

    Another irrevocable trust type is a single beneficiary trust. This is a one named beneficiary for a period of years or for life. Several options are available for the term of the trust and the disposition of the remainder including several optional powers of appointment. Supplemental Needs Trust and “see-through” (accumulation/conduit) trust options are also available.

    Children’s Trust

    A children’s trust is not what you think. From an irrevocable persecutive, a children’s trust is when a grantor doesn’t retains a right to income or principal. This kind of trust can be either a grantor trust or a non-grantor trust. Also, this type of trust is often used for VA or Medicaid benefits, with the intent of making assets non-countable.

    Irrevocable Life Insurance Trust Types or ILIT

    Another opportunity in the trust selection process is weighing the pros and cons of an irrevocable life insurance trust (ILIT). This kind of trust holds assets other than (or in addition to) life insurance, including an “intentionally defective grantor trust” (or IDGT). Features of this kind include life insurance provisions intended to save on taxes, Crummey Powers, Installment Options, and contingent martial triggers.

    Testamentary Trusts in Minnesota

    A less common type of trust is created and administered using a will. In previous decades, testamentary options were very popular. Today, families see the conflict of forcing loved ones into a probate court process to form and facilitate their assets.

    For those deciding between a testamentary trust, this type of document is established through a will, and only takes effect after a person dies. It can be revocable or irrevocable, and is often used to provide for minor children or other beneficiaries who may not be able to manage their own assets. Again though, there are stronger options that allow for immediate impact versus waiting and seeking court approval.

    All this aside, each type of trust document requires careful consideration and expert legal advice to ensure that it meets the grantor’s needs and objectives.

    More Trust Types

    Here is list of various trust types to consider:

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

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

  • Downsizing For Future Trustees

    Downsizing

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

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

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

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

  • Spring Cleaning Your Estate Plan

    Spring Cleaning

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

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

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

    Spring Cleaning Checklist

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

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

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

  • Inflation Planning Within an Estate

    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, But Which One?

    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