Category: Trusts and Succession Planning

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.

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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.

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.

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 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:

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.