This issue varies significantly based upon where you live. In Minnesota, unlike some other jurisdictions, the probate avoidance opportunity doesn’t always rise to the level of necessity. The benefits of avoiding probate include: not incurring the time delay, avoiding the expense of court filing fees or attorney’s fees for opening the probate and administering the […]
Disclaimer Planning for Non-Tax Purposes
November 20, 2013
Jamie Held previously discussed how disclaimer planning can be useful in incorporating flexibility in uncertain tax situations, and Jen Santini discussed how to properly disclaim a bequest under MN and federal law. This post focuses on a different aspect: how disclaimer planning can be useful for non-tax purposes. Disclaimers in General To review, disclaimers can […]
Beneficiary Designations and Estate Planning for Retirement Accounts
October 7, 2013
One of the most commonly overlooked items I see in client’s estate plans and during probate administrations is retirement accounts and their beneficiary designations. I think this has to do with the cumbersome nature of updating beneficiary designations. You call the plan administrator or custodian who sends you paperwork with tiny print and all sorts […]
Who Cares If Stretch IRAs Are Eliminated?
August 29, 2013
Only wealthy people benefit from the “loophole” anyways. Retirement plans were never intended to be an estate planning tool. It won’t impact me. I don’t care. These are some of the comments in the press right now regarding proposed legislation to end the ability of heirs to take inherited IRAs out over their life expectancies […]
Avoiding Power of Attorney Abuse
July 26, 2013
In a previous post I spelled out the basics of the changes made to Minnesota’s Statutory Short Form Power of Attorney that will take effect January 1, 2014. As I mentioned, many of these changes were made to address the potential for abuse. Indeed, a Power of Attorney document gives broad and sweeping powers to […]
Effect of Homicide on an Estate Plan
July 3, 2013
Every now and again clients ask what happens when someone murders someone for an inheritance. Can the murderer inherit from the victim’s estate? The simple answer is: No. If the potential beneficiary of certain assets murders the decedent, he or she is denied inheriting from the decedent’s estate – including both probate and non-probate assets. […]
Spendthrift Trusts: Sometimes it’s What You Don’t Give That Matters Most
June 5, 2013
Nowhere are you more generous than with your family. Whether you are saving for your children’s education, helping with the purchase of a first car, or helping to plan a wedding, your family is first in your mind and in your heart. This generosity often plays out in perhaps the most tangible way when planning […]
Implementing a No-Contest Clause
May 30, 2013
Many people realize when creating a will the possibility that a beneficiary could contest their wishes if an uneven or unexpected distribution takes place. When creating a will, some may wish to favor one beneficiary over another, while others may wish to benefit a non-profit or charity instead of a familial beneficiary. The most likely […]
Domestic Asset Protection Trusts
May 22, 2013
Often, clients ask if there is way to shelter their assets from creditors. In Minnesota, the short answer is: no. However, in a handful of states, there is a trust that could allow for someone to shelter their assets from potential creditors – or at least, minimize what the creditors could obtain. While we have […]
5 Quick Tips for Trustees on Upholding Fiduciary Duties & Avoiding Conflicts
May 20, 2013
Serving as a trustee is not to be taken lightly. This is because in the context of trusts and estates, a fiduciary relationship exists between the trustee (a/k/a fiduciary) who holds and keeps a property interest for the benefit of one or more other people (a/k/a the beneficiaries). A fiduciary relationship has both legal and […]
Taking the “Maybe’s” and “What If’s” out of life insurance planning…
March 25, 2013
Did you know that well over half (up to 80% according to some sources) of all life insurance policies issued, lapse prior to the insured’s death? Most policies are designed, purchased, placed and funded with the expectation that at death (an unknown time), the life insurance proceeds (a known amount) would be paid to a […]