One powerful aspect of estate planning in Minnesota is a trust. In most cases, a valid trust will help prevent probate when settling an estate. A trust allows you to protect and manage the distribution of your property. If you are interested in establishing a Trust in Minnesota, then our lawyers are here to help.
Minnesota Trust Planning
When you establish a trust in Minnesota, you are naming a trustee who will have legal title to your property. A trustee will have control over all of the property within the trust. One of the main advantages of a trust is that it helps to avoid the probate process, which can be costly and time consuming. A living trust can also allow you to maintain full control over your assets and property while still determining who will inherit the property upon your death.
It’s important to note that a trust does not replace a will, but it does add protection for your heirs and devisees. No matter what type of trust you have established, it’s a good idea to also have a will to make sure that your entire estate will be settled according to your wishes. A will can also serve to establish a trust for any assets that were not specifically named in any living trusts you created.
types of trusts
Revocable Living Trusts
If you are looking for an option that allows you to maintain control of your assets, a revocable living trust might be the perfect solution. Revocable living trusts are the most popular type of trusts in Minnesota.
Irrevocable Living Trusts
Once an irrevocable living trust is established, it cannot be modified or discontinued. While this might make some people feel uncomfortable because of the seeming inflexibility, it often can be a good solution in certain situations.
A charitable trust is an effective way for an individual to make charitable giving part of an estate plan. When you establish a charitable trust, you designate the property and assets that you would like to pass on to a given charity.
It’s no secret that many Minnesotans enjoy a weekend retreat to their cabins and vacation homes. For many families in Minnesota, a cabin is an important piece of the family, and may have been around for generations. In order to protect this property for generations to come, you might consider a cabin trust.
Life Insurance Trusts
When you establish a life insurance trust in Minnesota, the trust becomes the owner of the policies. This transfer of ownership typically means that the policies will not be included in the required taxation of your assets.
One of the biggest concerns of estate planning is the potential tax implication involved in transferring property. While estate taxes can be quite high, there are steps you can take to help minimize, or even eliminate, these taxes. For married couples, one powerful estate planning tool is a bypass trust.
Special Needs Trusts
In the state of Minnesota, a special needs trust is used to establish specific benefits for a disabled person under the age of 65. With a special needs trust, you can ensure that a disabled loved one has financial protection to cover his or her needs after you die.
If you are looking to establish, or change, a trust in Minnesota, our lawyers are here to help you through the process. Our Minneapolis attorneys create a number of different trusts. For a free consultation, contact the Brown Law Offices, P.A. today at 763-323-6555.