A trust is a powerful estate planning tool that can be used for a variety of purposes. Trusts can be used to bypass the probate process, transfer your property to your beneficiaries, and protect assets from your beneficiaries’ creditors. They can also help you plan for incapacity and allow you to remain in control of how your wealth is managed and distributed. Some trusts also offer crucial tax advantages, allowing you to minimize the estate tax burden for your loved ones.

At The Law Shop Minnesota, our experienced trusts and estates attorney team can provide you with the legal counsel you need to establish a customized trust that aligns with your estate planning objectives. We will advise you regarding your options and help you create a plan that allows you to carry out your wishes and protect your family’s legacy.

Customizing Your Estate Plan with Trusts

Trusts are flexible and are specifically tailored to meet your unique personal goals, financial objectives, and family circumstances. There are a variety of trusts that can be incorporated into a comprehensive estate plan, including the following:

  • Revocable living trust: A revocable living trust offers flexibility to make changes at any point during your lifetime. These trusts are commonly used to avoid the lengthy and costly probate process and to pass your assets on to your beneficiaries in a customized manner. Because your assets remain part of your estate with this type of trust, it does not offer tax benefits to your estate.
  • Marital trust: A marital trust plan uses individual or joint revocable living trusts for the spouses to ensure the surviving spouse is provided for during their lifetime, with the remaining assets going to designated beneficiaries, such as children from a prior marriage. Importantly, due to the $3 Million non-portable estate tax exemption in Minnesota, a well designed and properly executed marital trust plan can offer important estate tax efficiencies for spouses.
  • Irrevocable trust: An irrevocable trust is one that cannot be revoked or amended once created. Because the assets titled in the name of the trust are removed from the grantor’s estate, these trusts are often used to reduce estate taxes for estates exceeding Minnesota’s $3 Million non-portable estate tax exemption. They are also often used as gift trusts (known as “Crummey Trusts”) for individuals such as young immediate or extended family members. With careful advanced planning, they can sometimes be used to shield your own assets from creditors and lawsuits.
  • Testamentary trust: A testamentary trust is created through the words in a last will and testament and only goes into effect upon the grantor’s passing. This can allow you to remain in control of how your assets are distributed, either as one lump sum or in installments over time to your beneficiaries. Testamentary trusts usually have to go through the probate process, so they are not the ideal choice for grantors who have the ability to plan ahead. Instead, they are best suited for last minute planning when a grantor does not have the benefit of time to plan.
  • Special needs trust: A special needs trust can allow you to provide for a loved one with a disability without disqualifying them from eligibility for government benefits.
  • Charitable trust: A charitable lead trust can allow you to provide for a charity you wish to support, while leaving the remainder to non-charitable beneficiaries. Similarly, a charitable remainder trust can be structured to provide for non-charitable beneficiaries first, with the remaining assets distributed to your charity of choice. Such trusts can allow for charitable tax deductions from your income taxes or your estate taxes, depending on how the trusts are designed.
  • Medicaid asset protection trust (MAPT): A MAPT shields your assets from Medicaid’s strict income limits, allowing you to qualify for these benefits when you need them while preserving your legacy. Significant advanced planning (usually, at least 5 years before you would need Medicaid benefits) is required for such trusts.
  • Pet trust: A pet trust is an estate planning vehicle that can allow you to ensure your pet is properly cared for in the event of your incapacity or after your passing.

At The Law Shop Minnesota, our trusts and estates attorney team is committed to helping you create a customized trust plan that will give you the peace of mind you need, knowing that your wishes will be carried out. Providing personalized attention and tailored legal services, we will take the time to understand your intentions and assist you with achieving your objectives.

Trust Administration

Trust administration is the process of managing and distributing the assets held in the trust in accordance with the grantor’s instructions. There can be a variety of complex tasks associated with trust administration. A trustee is typically responsible for:

  • Identifying and valuing the trust assets
  • Safeguarding the trust assets
  • Creating investment strategies for the trust assets
  • Filing the necessary tax returns
  • Communicating with the beneficiaries
  • Providing accountings

At The Law Shop Minnesota, our trusts and estates attorney team provides counsel to trustees for trust administration matters to help ensure they comply with the terms of the trust and adhere to state law. We offer trustees the guidance they need regarding their role and responsibilities, and can help them avoid pitfalls. Our attorneys also represent trust beneficiaries to help ensure they understand their rights and receive the distributions to which they are entitled.

Contact an Experienced Minnesota Trusts and Estates Attorney

If you are considering using a trust as part of your estate plan, the trusts and estates attorneys at The Law Shop Minnesota can help. With offices in St. Paul and Edina, we are committed to providing knowledgeable counsel and high-quality estate planning services for clients throughout the state. We also offer Zoom consultation for convenient, accessible legal support. Contact us online or call ((651) 344-6100 to learn more about how we can assist you with creating a trust that will secure your legacy.