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..
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As the names imply, a Revocable Living Trust exists during your lifetime whereas a Testamentary Trust becomes effective only upon your death. » Read more..
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..
The upfront costs of creating a Revocable Living Trust is almost certain to be higher than creating a Will, but a Revocable Living Trust may be cheaper in the end. Why? The Revocable Living Trust typically avoids the time and expense of probate. » Read more..
Keeping the beloved Minnesota cabin in the family is an oft-heard goal that is frequently addressed by placing the cabin in a revocable living trust or by setting up a limited liability company (LLC) to own the cabin.
Another common goal is to avoid potential future ownership of the revered family cabin by outsiders — i.e., the creditors or divorcing spouses of the next generation of family members. Blocking disputes among next-generation owners from forcing a sale of the cabin, through a court “partition” action, may also be a priority. » Read more..
Setting up a Revocable Living Trust is a good first step to avoiding probate, but it is only a first step.
You still must transfer the title of your assets to the trustee of your Revocable Living Trust.
Even if you’ve already transferred title to some of your assets, the key is whether you’ve properly done so with enough of your assets. » Read more..
Your estate plan — like your car — needs a tune-up occasionally.
If you don’t get that tune-up, either your estate planning goals may not be met, and/or you may be paying hundreds — if not thousands — more for legal services and/or other costs than would have been the case if you had timely asked a lawyer to review your estate plan and suggest necessary adjustments based on current laws and your current goals. » Read more..
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..
Yes! First, your trustee only has authority over your financial assets that are held in your Revocable Trust, and chances are not all of your financial assets are in your Revocable Trust. » Read more..