Estate Planning

“I just need a simple will.”  It’s a phrase estate planning attorneys hear practically every other day.   From the client’s perspective, there’s no reason to do anything complicated, especially if it might lead to higher legal fees.  Unfortunately, what may appear to be a “simple” estate is all too often rife with complications that, if not addressed during the planning process, can create a nightmare for you and your heirs at some point in the future. 

4 Legal Documents To Amend After Your Divorce

The high divorce rate in Minneapolis & St. Paul and beyond has some interesting ramifications for estate planning lawyers.  While your will, trust, and medical directives may not be the first things that come to mind during the often heart-wrenching process of divorce, they are something that truly needs to be considered.

‘Til Death Do Us Part

You undoubtedly meant this vow seriously when you made it, but we all know that circumstances change.  Unfortunately, if you don’t make it happen, your will and other Minnesota estate planning documents do not change automatically.  It may seem obvious that you would not want your ex-spouse to be the executor of your will or to handle the dispersal of your assets, but if that’s what your will directs, then that is exactly what must legally happen.

Even if you haven’t been married for years, if your will, healthcare directives, power of attorney, etc. still list your ex in an authority position, then he or she is still designated to take on that role.  This can become quite tricky in situations where the divorce was not amicable. 

Another problem can arise if the ex-spouse remarries.  If you haven’t updated your estate planning documents after the divorce, then it’s likely that your former spouse, rather than your children, will still be the main beneficiary.  If he or she has remarried and then passes away, your assets could possibly pass to the new spouse and his or her children!  This is not a scenario that many parents want to consider, but it definitely happens.

The Big Four

Even as the ink is drying on the divorce decree, it is in your best interest to update at least these four estate planning documents:

• Last Will and Testament – Again, you likely don’t want your ex-spouse to be in charge of your affairs upon your death.  It is a good idea to name a new executor and rethink who your beneficiaries should be.  If you have any trusts set up, it is time to amend them, as well.
• Powers of Attorney – These types of legal documents determine who will be in charge of things such as your finances should you become unable to take care of them yourself.  Many people would shudder at the very idea of their exes having control over paying their bills, meeting their living expenses, etc.  The power of attorney gives the named party significant financial power, and it is generally wise to revoke that as soon as possible.
• Healthcare Directives – Your healthcare directives name the party who you have designated to make medical decisions on your behalf if you are not able to do so yourself.  Your ex-spouse would be responsible for making life-or-death decisions for you. 
• Beneficiary Designations – Most insurance policies, bank accounts, etc. include the designation of a beneficiary.  This is the person who receives all or some of the money from that policy or account upon your death.  It is easy to forget about these things, but if you don’t update them after the divorce, your money will legally belong to your ex-spouse.

If you live in Plymouth, Wayzata, Minneapolis or the surrounding suburbs  then you will want to work with a local estate planning lawyer upon your divorce to ensure that you are getting your affairs set up to match your new life.  Give our office a call to ensure your documents are properly amended and your post-divorce ducks are in a row.

Critical Estate Planning Considerations for Single Adults In Minnesota Without Children

When we typically think of estate planning, we see grandma and grandpa putting together a will and possibly setting up some trusts for the following generations. It’s all about providing for our offspring, right?

Not necessarily. Even if you are single and/or have no children, a will or trust should still be in your plans. Why? Because estate planning is really about YOU.

While it is absolutely advisable for married people or those with children to work with a wills and trusts lawyer, it is actually just as important for single adults, as well.

In fact, there are times when it’s almost more important for singletons. After all, when a married person suffers a major illness, it’s usually pretty clear who will take on medical and financial responsibility. The water gets a bit murkier for unmarried individuals.

If you were to suddenly become incapacitated, who would make your medical decisions for you? If you haven’t worked with an estate planning attorney, the answer to this question becomes quite complicated. Possibly your parents would be called in to determine how your medical care should proceed. Maybe it would be a sibling. Most likely, it would not be your best friend or your significant other or whomever you would choose. Even if your parent or sibling would be your first choice, that doesn’t mean that the courts would agree without having your express wishes legally documented.

And what about your finances? If you are unable to take care of your finances for a period of time, who do you think will do so? The answer to that is: whomever the courts say. Again, it could be a parent, a sibling, some other relative, or even a court-appointed individual.

Finally, what will become of your things if you should unexpectedly pass away? Who would have legal rights to your belongings, to your home, to your pets? You may think you know the answers, but without clearly outlining your wishes with a Minneapolis wills and trusts attorney, you have very little control over the matter.

A single adult without children does not need to worry about creating guardianships and trusts to provide for his or her offspring, but it’s certainly a good idea to look out for yourself. Some of the basic legal documents any single person should have include:

• A will to determine what will become of your assets in the event of your death.
• A power of attorney for healthcare (in Minnesota we refer to this as a Health Care Directive) to name the person you want making medical decisions on your behalf.
• A living will (included in a Health Care Directive) to clearly explain your wishes regarding medical procedures and life support.
• A durable power of attorney for financial matters to name the person you feel should be responsible for your money if you are incapacitated.
• A revocable living trust to centralize management of assets if you become incapacitated and keep your assets out of probate if you should pass away.

These documents are crucial in ensuring that your wishes are met and that you have control over your future. As a wills and trusts attorney located in the western suburbs (Wayzata, Minnetonka, Maple Grove, Plymouth, St. Louis Park area) of Minneapolis and St. Paul, I can easily get you on the path to having these affairs in order.

Plymouth and Maple Grove, MN Guardianship Attorney Explains How to Physically and Financially Protect Your Children If Something Happens To You

Parents in Minneapolis/St. Paul and surrounding suburbs rely on a lot of outside help when it comes to raising their children.  From family members to school systems to friends who pass on advice and hand-me-downs, it really does take a village to raise a child.  When it comes to estate planning, however, it is up to you to determine what is best for your minor children.

As an estate planning attorney, I recommend that all parents who have children under 18 make planning a priority.  No one wants to consider the idea that they will not be able to raise their kids, but the unforeseen does happen.  By putting a plan into place while you are young and healthy, you can help determine your children’s future, even if you aren’t able to play the role in it that you had hoped.

For example, if you were to die or become somehow incapacitated, who would you choose to care for your child or children?  In many cases, the surviving parent is the obvious choice.  But, considering the fact that the family will be going through a particularly difficult time and that the parental responsibilities will now fall to one person, it may be beneficial to go a step further.  To do this, more Minnesota families are choosing to create an estate plan that provides for more financial support of both the children and the spouse.  In doing so, that caregiver can be relieved of some of the burden of working and raising the children.

The children may also benefit from psychological counseling.  As a part of the estate plan, some parents set up a strategy for providing therapy for the kids as they deal with the loss of a parent.  This can also be provided for the surviving spouse.

In cases where both parents are killed or where one parent is already absent from the child’s life, setting up a guardianship is a must.  This allows you to determine who in your “village” will be responsible for the continued upbringing of your children.  Your estate plan may offer financial support to this person as well as trusts that provide for the children and that they can ulitmately access when they reach a certain age.  That said, it is acceptable to place a different person in charge of financial responsibilities.  An estate planning attorney will walk through the options with you in order to find a solution that best fits your situation.

When it comes to finances, it is also a good idea to consider what kinds of restrictions you might want to place on your children’s access to inheritance.  Some parents make access contingent upon certain goals such as age, education, and behavior.  Simply allowing access to a trust when a child reaches 18 may not always be the best approach due to inexperience and pressure from others.

Again, an estate planning attorney is well versed in the options available to parents who wish to plan for their minor children.  Choosing an attorney focused in this area of law in Minneapolis ensures that your estate plan is legal and meets the criteria of the local courts.

Minnesota Estate Planning Tips for Blended Families

It is clear to Minneapolis and St. Paul area estate planning attorneys that the modern American family comes in all shapes, sizes, colors, and configurations.  This creates unique circumstances when creating wills and trusts, writing prenuptial agreements and putting long-term care plans in place.

There is always potential for conflict when it comes to estate planning in general, but the added element of a blended family can compound problems.  For this reason, it’s a great idea for anyone in a blended family or non-traditional relationship to discuss their options with an Twin Cities area estate planning attorney to ensure you are planning with such complexities in mind. 

In preparing for this conversation and its outcome, it makes sense to consider the following:

1. What role will your new spouse play in your estate?  What role will your children play?  Those who are married later in life may choose to leave their entire estate to their biological children, while the spouse does the same.  In other situations, both spouses may choose to leave their assets to the surviving spouse or to do a combination of both.  Of course, many step-parents choose to consider their non-biological children in the estate planning process as well.
2. It may seem unlikely now, but there is potential for a spouse who receives your assets to disinherit your biological children.  To avoid this, beneficiaries (and their inheritance) should be clearly and legally outlined in your will.  Likewise, children could move to disinherit the new spouse, so this provision will also protect him or her.
3. Use your will to make your wishes known when it comes to the inheritance of specific assets.  Your estate planning attorney can help you to identify what these are, as it is very easy to overlook a particular asset, not realizing it holds value (monetary or sentimental).
4. To remove concerns regarding what a spouse, child, or step-child might do should you be unable to oversee your own finances, work with the estate planning attorney to set up a living trust, powers of attorney, and other legal documentation before they become necessary.
5. Review any retirement accounts, mutual funds, insurance policies, etc. to ensure they are kept up to date as your familial status changes.  For example, you may need to remove a former spouse in favor of your current one, add step-children as beneficiaries, or amend your beneficiaries with the birth of a new child.

Probably the most important aspect of making these choices is to ensure they truly reflect your preferences and wishes, as well as applicable laws here in Minnesota.  Because there are a number of special considerations in these types of situations, be sure to choose an estate planning attorney who has significant experience working with blended families.

Here at StoneLAW, PLLC, we are happy to work with you and your extended family to ensure your have the right plans in place should the unthinkable happen.  Just call 763-231-7884 and ask to schedule a free consultation to discuss your blended family situation.

The Role of a Trust Administrator in the state of Minnesota

As a lawyer with extensive trust administration experience in Minnesota, I have seen that the death of a loved one, particularly if the deceased is a spouse or parent, is one of the most difficult periods in a person’s life.

At a time when the survivor is already struggling with loss and grief, the administration of the deceased’s trust can be an overwhelming and daunting task. That is why many beneficiary/trustees choose to “leave things the way they are” and ultimately take no action regarding the administration of their loved one’s estate. This is especially true if the trustee is the same person as the beneficiary.

Again, the  sheer magnitude of everything going on  is one reason for this, but beneficiaries/trustees also hesitate to administer their loved one’s estate out of fear they will encounter expensive legal costs, endless probate, or tax situations they may not be equipped to handle. Whatever the reason, people have been known to delay for months, or even years. Unfortunately, most of these beneficiary/trustees are unaware of the legal and fiduciary responsibilities of their position.

As a trust lawyer in the Twin Cities of Minneapolis and St. Paul, part of my job is making sure my client is thoroughly informed about what to realistically expect from the trust. Most clients appreciate that assets held in trust are much easier to administer and distribute after death than through the probate process, but they also need to know that the successor trustee is required by law to do many things before the distribution of assets can occur. 

As the requirements and obligations for trust administration can vary from state to state, it is important to be conscious of the role and the responsibilities for the beneficiary/trustee in the state of Minnesota.  Duties include, but are not limited to the following:

• Notifying beneficiaries
• Valuation and Liquidation of Assets
• Paying Debts and Taxes of the Trust
• Filing Tax Returns
• Distribution of Remainder of the Assets to Beneficiaries   

Additionally, it is compulsory for the trustee to follow the accounting and reporting requirements of the state and courts, and to be responsible for defending the trust against all claims of creditors or excluded heirs. Although the trustee may be unacquainted with all of these duties, an experienced trust lawyer knows exactly what is involved and can prepare forms and guide the administrator through the process.

That’s why for many people, having a lawyer who handles trust administration on their side makes this difficult time go more smoothly and eases the administrative burden of having to close out a loved one’s estate.   If you are now in this position and would like further information about how our firm can help you, please feel free to give our office a call and ask to schedule a complimentary consultation. 

StoneLAW Suggests Letting Your Teens Know Now About Their Inheritance

Depending on your family’s lifestyle, your teenage children may already have an idea of what would happen if you and your spouse were to pass away. They may not know the exact dollar amount of the money that they would inherit, but they probably have an idea of who they would live with and that they would receive most of your assets if something happened.

As a Minneapolis and St. Paul estates lawyer, I know that many parents feel this information is sufficient enough for their minor children.  But having an open discussion with your teen can prevent them from being angry or confused if you have decided that he or she will not have access to their inheritance until they are a few years past the age of majority, such as 25 or 30 years old.

It is common knowledge that inheritances are distributed at the age of 18 or 21, unless the parents have set up a trust that makes the teen wait. If a teen anticipates these funds at 18, but discovers that you have made them wait until 25, they might get the wrong idea and feel that you made the decision because you did not trust him or her. And with you not there to defend your decision, the teen could be upset and confused.

The best way that we at StoneLAW feel that you can avoid this anger or confusion is to sit down and have a frank discussion with your teen.

Talk to them about the following issues:

- The amount of money that he or she is to inherit (you may also ballpark this figure)

- The age you feel is appropriate for the inheritance (i.e., 21 or 25 years old, etc.)

- The age that the teen feels is appropriate

- How you want the money to be spent, for example on college or the down payment on a house

- Whether there are other stipulations besides age for receiving the money. For example, you can set it up so that the teen can receive the money at any age, as long as he or she has graduated from college.

Doing what you can to eliminate secrets or surprises from your estate plan can not only bring your family together while you are still living, but it can make the grieving process easier for your kids after you are gone.

Let an estate planning attorney at StoneLAW help you with these decisions by setting up a free consultation. Call us today at (763)231-7884 to schedule your appointment.  

Updating Your Will with an Estate Planning Attorney in the Twin Cities

As an estate planning attorney in Minneapolis, I commonly see people who understand the importance of the initial estate planning but then forget that they need to keep their wills and trusts up-to-date.  These documents aren’t something that should just be done once and then tucked into a safety deposit box never to be visited again.  Actually, there are several times in the course of your life that you need to dig out your wills and trusts and make changes.

• Marriage – Obviously, when you get married, you will have a new spouse to consider when it comes to things like inheritance, living wills, and powers of attorney.
• Divorce – If you don’t relish the thought of your ex receiving your estate, you may want to meet up with an estate planning attorney to make some changes.
• Children – The addition of a child should trigger a need to reevaluate your will and other documents.  Estate planning is often thought of as a way to care for your children after your death, and that can only be done if you keep your documents current with the birth of each child.
• Purchases – If you acquire new assets, whether in the form of real estate or something else of value, you will want to call your estate planning attorney to be sure it is covered in your will.
• Health – You may find that certain health conditions cause you to reconsider the wishes outlined in your living will.  This ensures that your loved ones and healthcare providers are apprised of your decisions.
• Insurance – Over the course of your insurance policy’s life, you may find that you want to change the terms, such as the type of coverage you have or the beneficiaries of your policy.  When changes like this occur, it is important to have an estate planning attorney reflect that in your legal documents.

An estate planning attorney will be current on federal, state, county, and city laws and will be able to guide you as you keep your wills and trusts up-to-date.  This protects you and your beneficiaries and can actually keep your will from being invalidated after your death.

So if it’s been awhile since you’ve updated your estate plan, I invite you to give our office a call and schedule a complimentary consultation to have your documents reviewed.  Simply call 612-867-6007 to get started.