Archive for Trusts

Must I Have a Will?

Skipping the writing of a Will may harmfully disrupt family dynamics, may result in distributions that you didn’t want or intend, and may increase the costs of settling your estate.

A Will, properly executed under Minnesota law, is your legal instruction to your survivors as to how you want your estate divvied up after you die.

If you don’t have a Will, Minnesota law has a plan for you, which you may not like. » Read more..

Must I Give My Kids an Inheritance?

Will your kids think less of you if they don’t inherit anything from you at your death? Will you feel guilty if you don’t – or can’t — provide them with an inheritance?

Inheritance of any size is a windfall for the children who receive it given that they most likely didn’t do anything to earn it.

Some wealthy parents don’t want their children to inherit more than a fraction of their estate out of concern that their children may not use it wisely or may develop bad habits.

Other parents may be concerned that health care costs, and the living expenses associated with living longer than past generations, may make it unlikely that the parents will have any money left to give to their children. » Read more..

Estate Planning for Blended Families

Second marriages – particularly when each spouse has kids from a prior marriage – are fraught with complications that heighten the need for careful estate planning.

When there’s been only one marriage, and when all of the children are the children of both parents, a typical scenario in Minnesota is as follows: The parent who dies first transfers all of his or her assets to the surviving parent. When the surviving parent also dies, their children share any assets that remain.

However, parents in 2nd marriages have worries regarding the transfer of their wealth that differ from 1st marriage situations. » Read more..

Will My Step-Children Inherit?

If you want your step-children to inherit, you need to specify that wish in your Minnesota Will or Revocable Living Trust.

If you don’t do so, then only your blood relatives or adopted children will inherit.

Without a Will (and assuming that you have no surviving spouse), your children inherit in equal shares under Minnesota law. No provision is provided for step-children. » Read more..

Benefits of Estate Planning

Let’s admit it: We care about how we are remembered after death, and also about what happens to our lifetime accumulation of financial and other assets.

Thus, it’s foolhardy to think that we can keep putting off estate planning on the premise that death is still a long ways away, or that everything will somehow work out (miraculously) according to our wishes if we do nothing. » Read more..

Estate Planning is About Life as much as Death

legacy - isolated word in vintage letterpress wood type

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..

Trusts Aren’t Just for Millionaires

Trust Doc 2You don’t need to be a millionaire or billionaire to benefit from a Revocable Living Trust.

A key benefit of a Revocable Living Trust is to control the ages at which your children receive their inheritance. Without a trust, sons and daughters as young as 18 years of age receive full distribution of their inheritance in Minnesota once your estate is settled. » Read more..

Revocable Living Trusts v. Testamentary Trusts

Trust Doc 2Which is better – a Revocable Living Trust or a Testamentary Trust? What’s the difference between them?

As the names imply, a Revocable Living Trust exists during your lifetime whereas a Testamentary Trust becomes effective only upon your death. » Read more..

Amending a Will v. Amending a Trust

Will docProcedures for making changes to your Minnesota Will differ from making changes to your Revocable Trust.

Even the terms describing amendments to these documents are different. An amendment to your Will is called a “Codicil” whereas an amendment to your Revocable Trust is called an “Amendment”. » Read more..

Is an Estate Plan Necessary?

estate-planThe sentiment – “I don’t care what happens after I die because, after all, I’ll be gone.” – typically doesn’t work well in reality.

Creating a well-thought-out estate plan is really your last gift to your family. Without such a plan, your relatives may be cursing you for the unnecessary mess that you left behind rather than having sufficient time to grieve your death and navigate ways to cope without you. » Read more..