Southern Minnesota Estate Planning Attorney
For many who are ready to begin the estate planning process, they often think it involves simply creating a will. However, while a will is important, there often much more involved in the estate planning process. One option that you have is to create a revocable trust, but just the mere mention of a trust makes most families think they are something that only the ultra rich really needs. That’s simply not true. While a revocable trust might not be right in every family’s situation, if any of the circumstances below describe your family, it may be worth considering creating a revocable trust with the help of your estate planning attorney.
Property Owned in Multiple States
You may live in Wanamingo, but even if you own a small cabin over that Wisconsin border, your heirs will have to go through probate twice – Once in Minnesota and again for property in Wisconsin. A revocable trust with assets held in the trust can negate this completely so the family doesn’t have to endure probate in two states, saving both money and time.
Serious Illness on the Horizon
Often a serious illness can just spring up on you. However, if you have already been diagnosed with an illness that may cause you to become incapacitated later, having your assets in a revocable trust can make sure that everything still runs while you focus on healing and without your management. You don’t need to appoint someone to handle your affairs with the right trust set up. Furthermore, since you can change the trust later if you return to health and would prefer to begin managing your own affairs again, you don’t need to worry about relinquishing control being permanent.
One of the less common pieces of knowledge about probate is that it is on public record. This means that anyone can access potentially sensitive information once a will is filed with probate court. However, assets and information held within a revocable trust are not made public, which helps protect your family’s privacy.
Protecting Assets for Beneficiaries from Their Creditors
Everyone who makes an estate plan wants to see their assets go to their heirs after they pass away. Unfortunately, sometimes inheritance can fall victim to an heir’s creditors. If this could be a potential problem, a revocable trust can help protect those assets. Unlike assets passed down through a will, a beneficiary’s creditors cannot make claims against an asset held in a revocable trust. This means it is your beneficiaries that receive the benefits and not anyone else.
A Complex Number of Assets
This is where revocable trusts come in handy for the incredibly wealthy. If you have a large number of assets, dividing them up without a trust can be complicated at best. Instead of leaving your heirs to divide up investment accounts, stocks, real estate, and even smaller high value items like art, you can place it in a revocable trust where everything is managed and divided among the heirs.
Is a Revocable Trust Right for Your Estate Plan?
If any of the above situations applies to your family, then it strongly behooves you to consider a revocable trust as part of your estate plan. Trusts are common tools used by wealthy clients to reduce estate tax, but even middle class families can benefit from their use.
If you are beginning the estate planning process in Minnesota, contact us today. The Hero, Jorstad & Jacobsen can help you examine your family’s unique circumstances to help guide you on if a trust is right for you as well as help you plan to the fullest to help prepare your estate for after you are gone.