Tag Archive for life insurance

Estate Planning for Minnesota Newlyweds

Estate PlanLegal paperwork for the newly married shouldn’t stop with the Minnesota marriage license.

An important wedding gift to give yourselves, as newlyweds, is peace of mind that you’ve left your new spouse in the best situation possible should tragedy occur to one of you.

What steps foster that peace of mind? » Read more..

Naming Life Insurance Beneficiaries

Headline of Life Insurance for background

Chances are that you no longer remember whom you’ve named as the beneficiary of your life insurance policy. You should find out. Why? The beneficiaries that you listed with your life insurance company trump any beneficiary designations that you may have made via your Minnesota Will.

It’s also important that your loved ones know that you have a life insurance policy and where to find it.  Otherwise, the life insurance money may go unclaimed! » Read more..

Your Will Doesn’t Cover All Your Assets

Will docThe danger of thinking that your Will covers the transfer of all your assets at your death is that the distribution of your assets may not end up as you intended.

Your Minnesota Will covers only what is known as your “probate assets”. If your Will provides that each of your 3 children is to inherit one-third of your estate, each child will inherit one-third of your “probate assets” only.

Stated another way, the wording of your Will has no impact on assets that are considered “non-probate assets”, and your non-probate assets may be a significant portion of your estate. » Read more..

Where’s the Check for My Inheritance?

Wooden dice with question marks on it over white background

The checks for your inheritance may come in partial payments over many months, be tied up for years in a trust, or come within weeks. Or, there may be nothing left for you to inherit.

Much of the timing of the disbursement of your inheritance depends on the type and value of the deceased’s assets, the creditor claims against those assets, whether probate is required, and whether the deceased wanted your inheritance to be distributed outright to you or tied up in a trust for some period of time. » Read more..

Life Insurance & Closely Held Businesses

Headline of Life Insurance for background

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..

Don’t Confuse Probate Assets With Assets Subject to Estate Taxes

The value of the assets that you hold at your death is viewed two different ways: one way by the Probate Court and another way by taxing authorities. It’s easy to confuse the two versions. » Read more..

Basics of the Irrevocable Life Insurance Trust (ILIT)

If the proceeds from life insurance policies that you own, when combined with the value of your other assets, exceed the $1.4 million exemption from Minnesota’s estate tax for persons dying in 2015, then you may want to consider an Irrevocable Life Insurance Trust (ILIT). » Read more..

How Often Should You Check Your Beneficiary Designations?

Your beneficiary designations should be checked every time your situation changes because the beneficiary designations trump anything that you state in your Will or Trust.

Married? Divorced? Chances are you either want to add your new spouse, or delete the ex-spouse as your beneficiary. Don’t delay. An ex-spouse can collect your life insurance benefits at your death if he or she is still named as your beneficiary. » Read more..

Do Your Kids Know Where Your Assets Are?

For various reasons, you may not want your kids to know your financial affairs and other business while you’re still in control, but the day will come when they’ll need to know.

That day may come because you start showing signs of dementia and need their help, or it may be at your death. » Read more..