MN Wealth Transfer Planning

The death of a loved one is the ultimate in loss and emotional pain. The burden of that pain is needlessly multiplied if there is no plan in place to administer and protect the family’s finances.

A good estate plan is a literally gift to your family in easing the burden of administering and distributing your estate. Thoughtful estate planning can reduce or even eliminate the costs of probate. More importantly, estate planning can reduce the risk that your family will lose control and privacy of your affairs to the probate court.
Wealth transfer planning can reduce taxes. Through the thoughtful use of trusts and other wealth transfer tools, you can empower trusted family members to seamlessly control, manage, and continue the operation of unique family assets such as a business or beloved family cabin. Assets can be passed on in different ways at death and the good news is that through wealth transfer planning you can choose that method.

Last Will & Testament

The traditional and most common method of transferring wealth at death is the “Last Will and Testament.” Wills do not govern the transfer of property held in joint tenancy or assets with beneficiary designations. In order to be effective, the must invoke the probate court’s jurisdiction at death. Many individuals choose other wealth transfer methods to avoid court costs and administrative delays as well as to preserve privacy.

MN Beneficiary Designations

Some assets, such as life insurance policies, retirement accounts and insurance policies can pass automatically at death by virtue of a simple beneficiary designation. While expedient, beneficiary designations are inflexible, requiring immediate transfer even when such a transfer might lead to undesired results. Moreover, beneficiary designations are rarely updated as often as family changes warrant.

Jointly Held Property or Joint Tenancy Minnesota

“Joint Tenancy with Rights of Survivorship” enables property to pass automatically to the surviving “joint tenant.” However, when only one tenant remains, the asset will eventually be subject to probate upon that person’s death. Some individuals have concluded that adding another joint tenant will continue the “non-probate” descent of the property. But this strategy comes with a high price tag. Continued joint tenancy may result in increased capital gains exposure, as well as the risk of loss to the other joint tenant’s creditors.

Living Trusts MN

A Revocable Living Trust provides a comprehensive alternative to other wealth transfer methods. It funnels all types of assets to the intended beneficiaries, without court intervention, unnecessary capital gains exposure, or the risk of loss to the beneficiaries’ creditors. It can also provide for more contingency planning than beneficiary designations, and can provide for the continuation of a protective trust long after the initial trust-maker has passed away.