Personalized Legacy Planning With Well-Respected St. Cloud Trust Lawyers

In Minnesota, securing your legacy and protecting your family from a potentially costly, lengthy probate process often begins with the creation of a trust. Unlike a will, which enters the public record and can take months to years to resolve through probate courts, a trust is a private legal arrangement where a trustee holds legal title to assets for the benefit of heirs, keeping the details out of the public court record.

A trust allows you to manage distributions for heirs beyond the age of 18, ensuring they do not receive a lump sum before they are financially mature. A properly funded trust typically avoids the possible court oversight of probate and can help with a smoother transition of a family farm, business, or cabin. The court remains available to resolve disputes if they arise.

At Evenson Decker, P.A., our experience allows us to craft individual strategies that prioritize your privacy and specific goals. Creating a trust can help you keep your legacy private and avoid the probate process.

Your Legacy, Your Terms: Frequently Asked Questions About Trusts

Our firm’s longevity rests on a foundation of ethical representation and a personal approach to help you understand the complex details of Minnesota trust law. Having assisted thousands of individuals and businesses in protecting their futures, our attorneys at Evenson Decker, P.A., have the experience to offer the clear insights you need to safeguard your assets with confidence. For legal counsel about your specific questions, please contact us to schedule a consultation.

What are the different types of trusts?

Minnesota recognizes several types of trusts, each serving different purposes:

• Revocable living trust: The most common type, which you can change or cancel at any time during your life. It allows you to maintain control over your assets, but it may not necessarily protect you from creditor claims.
• Irrevocable trust: Once created, this cannot be easily changed or revoked. It is often used for tax planning or to protect assets from creditors. Irrevocable trusts may also protect assets from nursing home costs if funded at least five years prior to applying for Medical Assistance (Medicaid).
• Testamentary trust: Established by a provision in your Will, a testamentary trust is funded through the probate process after your passing incorporating specific provisions to address your assets.
• Special needs trust: Designed to provide for a person with a disability without disqualifying them from government benefits like SSI or Medical Assistance. It is funded with the disabled person’s money.
• Charitable trust: Established to benefit a specific charity or the public interest.

What cannot be included in a trust?

While most property can be placed in a trust, certain assets are generally excluded:

• Retirement accounts: You cannot retitle IRAs, 401(k)s, or 403(b)s into the name of the trust while you are alive without triggering significant tax penalties. However, you can name the trust as a beneficiary. Keep in mind that this too can result in a tax liability and a tax or financial professional should be consulted before making this change.
• Health savings accounts (HSAs) and MSAs: A trust cannot “own” HSAs or MSAs.
• Illegal assets: A trust cannot hold property that is illegal to possess or assets intended for an illegal purpose.
• Personal services: You cannot place a requirement for someone to perform a personal service into a trust as “property.”

Why should I use a trust instead of a will?

In Minnesota, many people choose a trust over a simple will for the following reasons:

• Avoiding probate: This is the primary reason. Probate in Minnesota can take a long time, sometimes years, and can be costly. Assets in a trust pass directly to beneficiaries without court involvement.
• Privacy: A will becomes a matter of public record once filed with the Minnesota courts. A trust remains a private document.
• Incapacity planning: A trust allows a successor trustee to manage your affairs if you become mentally or physically incapacitated. A Will only takes effect after death.
• Controlled distribution: A trust allows you to stagger distribution to beneficiaries; for example, giving a child a portion at age 25, then another at 30 and so on.
• Continuous management: Trusts are ideal for managing complex assets, such as a family cabin or a business, that require ongoing oversight after the owner’s death.

Let’s Talk About Trusts. Call Us For A Consultation Today.

Under Minnesota law, trusts are versatile tools used for estate planning and asset management. We invite you to send us an email or call our office in St. Cloud at 320-253-7130 to schedule a consultation to learn if a trust is right for your estate plan.