Trusts serve many needs in estate planning, offering solutions for various situations. In Minnesota, trusts can help protect assets, avoid probate and ensure your wishes are carried out after you’re gone. Whether you’re a parent, business owner or someone with specific desires for your estate, a trust might be the right tool for you.
Who might benefit from setting up a trust?
Many people in Minnesota can gain advantages from setting up a trust. For example, a father might establish a trust to fund a child’s education. Trust offers benefits to certain individuals, including:
Heirs
Trusts are commonly used to give assets and estate to family members like children or grandchildren. The trust can specify exactly how and when these assets should be distributed and they can also help avoid probate.
Individuals who need a strategic financial tool
Trusts can also serve as a strategic financial planning tool, offering protection from creditors and lawsuits while helping to minimize tax obligations. However, under Minnesota law, a trust cannot be used to avoid payment for long-term care services if the individual is receiving Medicaid.
Individuals with special needs
For families with a special needs member, a special needs trust offers financial assistance without jeopardizing their eligibility for government aid. This ensures they have the resources they need without losing essential assistance.
Those needing asset management
If you’re concerned about someone’s ability to manage money, a trust can be used to manage assets for them. This is helpful for minors or anyone who lacks financial expertise. The trustee will handle the assets responsibly, ensuring they are used wisely.
People with specific wishes
If you have specific wishes for how your assets should be used after you’re gone, a trust can help. This can be useful for specific wishes, such as pet care, consistent charitable donations or ensuring certain events occur before your assets are distributed.
Business owners
If you own a business, a trust can help transfer ownership to family members or other parties. This can be done while maintaining some control and potentially reducing tax liability. It’s a smart way to ensure your business continues to thrive under new leadership.
How an estate planning attorney can help
An estate planning attorney can be a valuable resource when considering a trust. They can help you determine if a trust is right for your situation and which type would best meet your needs. These lawyers understand Minnesota’s specific laws and can ensure your trust is set up correctly.
Trusts can benefit many people in Minnesota, from parents to business owners to charitable individuals. While they can be complex, they’re powerful tools for managing your estate. If you think a trust might be right for you, consider talking to an estate planning attorney.
