Archive for Family Business

Keeping the Family Peace with Your Estate Plan

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How can you increase the odds that your children won’t fight over the family assets after your death?

Children don’t always fight after their parents’ deaths. However, family fights happen more often than you might think.

Below are some steps that you can take to help reduce the odds of a fight breaking out. » Read more..

Should You Have a Will or a Trust?

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Whether a Will or a Revocable Living Trust is best for you depends on your goals and situation.

An estate planning lawyer can help you review the pros and cons of each based on your needs and desires.

A Revocable Living Trust is more flexible than a Will, and may help married persons avoid Minnesota’s estate tax. However, a Revocable Living Trust is more expensive to set up, and requires you to proactively assign various assets to your Trust for your Trust to work properly. » Read more..

Estate Planning is About Life as much as Death

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Thoughtful estate planning may help you build the size of your estate, rather than just focusing on what happens to your money and other possessions after you die.

A proper estate plan typically includes typical documents such as a Will and possibly a Trust, but there’s more. » Read more..

Life Insurance & Closely Held Businesses

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A dilemma for “asset rich, cash poor” closely held businesses in Minnesota is finding the cash to pay estate taxes and other expenses when a business owner dies without jeopardizing the ability to pass an intact business to the owner’s children.

One potential solution to this liquidity problem is to set up an irrevocable life insurance trust (“ILIT”) to own a life insurance policy on the business owner’s life. » Read more..

12 Reasons Why You Need a Will

There are at least 12 reasons why Minnesotans need a Will. 

Reason #1: Keep control. The Minnesota Legislature has established a plan in state law for what happens to your assets if you do not have a Will. That plan may be contrary to your wishes, and may not be the best for your family. You are in control if you create a Will. » Read more..

Does Your Estate Plan Suit Your Life Stage?

What you need for an estate plan varies with each life stage or milestone. Here are some examples of estate plan considerations for Minnesotans at various ages and life stages/milestones:

Age 18: If you are a young adult you should have a Health Care Directive and Durable Power of Attorney because incapacity can strike at any time. The Health Care Directive will enable your hand-picked agent to make decisions regarding your body, and the Durable Power of Attorney will enable your hand-picked representative to handle your financial affairs. » Read more..

When Should You Consider a Revocable Living Trust?

You don’t need to be a millionaire to benefit from a Revocable Living Trust. Regardless of your wealth, a Revocable Living Trust should be considered when you:

Want the opportunity to avoid probate. Probate is required in Minnesota if you own $50,000 or more in assets in your name alone at your death, or you own real estate in your name alone. Any assets held in the name of your Revocable Living Trust are not counted toward the $50,000 figure that triggers a probate action.  Probate costs money and takes time. » Read more..

Passing the Family Business to Your Kids Isn’t Simple

Finding a way to hand-off your family business to your kids without stirring up family discord isn’t easy.

If you have 3 children, equal joint ownership of the family business may not work well if only one child works in the business. » Read more..

Pros and Cons of Revocable Living Trusts in Minnesota

There are several “pros” and some “cons” for Minnesotans to consider when deciding whether to establish a Revocable Living Trust. For many, the pros outweigh the cons. » Read more..

Estate Planning is as Much About Life as Death

Thoughtful estate planning can help you build the size of your estate, rather than just focusing on what happens to your money and other possessions after you die.

A good estate plan is more than just the estate planning documents that you receive from your estate planning attorney. And, it is more than avoiding probate and minimizing estate taxes.   » Read more..