The Benefits of Setting up a Trust
April 29, 2013 | William F. HuefnerSetting up a trust can convey many estate planning benefits. However it’s important to set up the right trust for the right situation and to get a qualified estate lawyer to help you do the job correctly. Trusts can help you avoid probate because they name a beneficiary. If you’ll recall from our previous discussion on probate, assets with a living, named beneficiary rarely, if ever, have to go through probate. Trusts can also reduce the amount of estate taxes that a beneficiary might have to pay. However, you have to set up the trust correctly. There are different kinds of trusts with different rules governing them. An after-death trust actually does, for example, put your assets right back into probate. Those assets then go on to fund the trust. The after-death trust is administered by a trustee and may be overseen by the court. You may think there’s no good reason to use the after-death trust because of the probate process, but there are situations where it’s appropriate. In some cases it’s a good vehicle for transferring assets to minor children or for transferring assets to disabled adult children. Living trusts are created while you are still alive. You become the trustee, and someone you designate becomes the beneficiary. Revocable living trusts…
Read MoreHow Does Probate Work in Minnesota?
April 22, 2013 | William F. HuefnerProbate in Minnesota may seem a little mysterious, but it’s actually relatively straightforward. Here’s what you need to know. First, probate is just the process of settling the estate when you die. Popular fiction and television have often characterized it as a court’s attempt to make sure the state keeps as much of your property as possible, but that’s not actually what happens. In fact, probate can be as simple or as complicated as your documentation and your heirs make it. The first step is to determine what does and does not need to go through probate. Property that you already own with another person doesn’t go through probate, for example. If you and your spouse have a joint bank account and both of your names are on that bank account then the account probably won’t go through probate. Ownership of it and everything in it will simply pass to your spouse. Homes and businesses may transfer in the same way. However, an attorney may still need to oversee a title transfer that does need to be handled correctly. Property with living named beneficiaries also doesn’t go through probate. Retirement plans, annuities, and life insurance policies usually all have named beneficiaries who would simply receive the property. Estates worth $50,000 or less also…
Read MoreShould You Use Estate Planning Software?
April 15, 2013 | William F. HuefnerEstate planning software, like a do-it-yourself will template, can create a very problematic situation for your loved ones after you die. There are 5 primary reasons why you should steer clear of this option. Poor Asset Protection Tax laws are complicated, far more complicated than most software accounts for. If you want to make sure most of your estate stays in the hands of your family and not in the hands of Uncle Sam or Minnesota Revenue then you should steer clear of estate planning software. A good estate attorney can help you take advantage of tax laws to maximize the inheritance that you leave. Software Can’t Handle Common Issues Most people’s estates just aren’t as simple as they imagine. Situations that look straightforward on the surface aren’t straightforward in the eyes of the law. Do you need to set up provisions for a disabled adult child? Do you want your grandchildren to inherit – but not your living children? Are you trying to leave money to your stepchildren? Do you want to leave the entire estate to charity, cutting your family out of the process entirely? These are just examples of situations that are very common but which are too complicated for estate planning software to handle. Each of them needs the…
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