Question 1

What is estate planning?

Accepted Answer

Estate planning is a process allowing you to arrange how you want your assets to be managed and distributed upon your death. Sometimes, if you have limited assets, limited beneficiaries, and limited instructions on how to distribute your assets to the beneficiaries, planning is pretty straightforward. On the other hand, the more assets, the more beneficiaries, and the more instructions may require an estate plan that is more complex and varied.

Generally, there are two components of estate planning with one involving the legal aspects of it and the other involving the non-legal aspects of the plan. Your estate planning attorney can help with both. Legally speaking, your lawyer will review your personal and financial situation and create documents that address the latter. Non-legally speaking, your lawyer will develop an investment strategy for retirement purposes.

Question 2

What goes into an estate plan in Minneapolis, St. Paul area?

Accepted Answer

An estate plan will include the documents that accommodate your specific needs. It may involve some or all of the following:

Last will and testament
Living trust
Irrevocable trusts (e.g., life insurance trusts, gift trusts, special needs trust, charitable trust)
Conservatorship
Guardianships
Asset protection from divorce, creditors, others
Health care directives, including medical powers of attorney, living wills, health care proxy, do not resuscitate (DNR) or do not intubate (DNI) orders
Succession plan for business
Charitable planning

Question 3

What is probate?

Accepted Answer

Probate is the legal process of transferring the property from a deceased person’s estate to their heirs or beneficiaries. It is overseen by the local probate court.

Question 4

What happens if I die without a will in Minnesota?

Accepted Answer

Dying without a will means you die intestate. Your assets and belongings will get passed to your heirs according to your state’s intestacy laws.

Question 5

What happens to my will if I move to a new state?

Accepted Answer

In rare cases, the differences in state laws could make it invalid. More commonly, if you moved to a state that views marital property differently from your former state of residence, the change in laws could result in complications. It is wise to revisit your will with an attorney in your new state after moving.

Question 6

Do I need a lawyer to write my will?

Accepted Answer

While you do not need a lawyer to write a will, doing so is a considerable risk. A last will and testament that was not written by a lawyer or that was created using an online form are more likely to be challenged, deemed invalid, or leave significant assets unaccounted for, which can create confusion and unforeseen outcomes.

Question 7

Can you write a will if you have Alzheimer&#x27;s or dementia?

Accepted Answer

People need to have testamentary capacity to make a valid will. This often requires an understanding of the property being devised in the will, who is going to receive it, and the purpose and function of a will. People with Alzheimer’s or dementia may struggle with testamentary capacity. The best way to make sure they have a will in place is to hire a lawyer to help.

Question 8

Do I need a will if I have no children?

Accepted Answer

If you die without a will, your estate will pass to others through your state’s intestacy laws. If you have no children, then property will be disbursed to family members. If there are no heirs according to your state’s intestacy laws, then the state may acquire the property. So, even if you do not have children, you still need a will if you do not want the state to make decisions for you about who gets what from your estate.

Keep in mind you do not have to create a will to benefit only family. A will allows you to pass your estate in a way that will serve what matters most to you: this could be preserving the financial wellbeing of your partner, parents, or siblings, but also setting money aside for the care of a pet, or assisting a charitable organization aligned with your values.

Question 9

Does my will automatically change if I divorce?

Accepted Answer

No. It is crucial to update your will after getting a divorce so that your most recent wishes are reflected in it.

Question 10

Does my will automatically change if I have a child?

Accepted Answer

It depends on the language in the will. If your will specifies an action that will happen to unnamed offspring (for example: “All of my property equally to my children”), the interpretation would be different than if you made a specific bequest to a named child or children. You should always revisit your will after having a child.

Question 11

What is the difference between a will and a living will?

Accepted Answer

A will – also called a last will and testament – comes into effect when its creator dies and directs the executor on how to transfer the property in the estate. A living will, on the other hand, comes into effect when its creator is alive but incapacitated – it tells others what the creator’s preferences and medical decisions are regarding their healthcare.

Question 12

What is a trust?

Accepted Answer

A trust is a pool of assets that is set aside to be managed by a trustee, for the benefit of someone else, called the beneficiary.

Question 13

What is the purpose of a trust in Minneapolis, St. Paul area?

Accepted Answer

A trust sets aside some assets for a trustee to manage for the sake of a beneficiary. The assets set aside in the trust do not go through probate, simplifying and expediting its transfer out of the estate. The trustee must follow the instructions set out by the trust.

Question 14

Can I have both a will and a trust in Minneapolis, St. Paul area?

Accepted Answer

Yes. Many trusts are testamentary trusts, and are created in the decedent’s will. Lots of other trusts are made during the person’s life to set aside some assets outside of their will.

Question 15

Are trusts only for rich people in Minnesota with lots of assets?

Accepted Answer

No, trusts can be created by anyone who wants to set aside money for someone but who does not want to give them the money in a lump sum. They are especially common when the beneficiary is underage or is unable to manage their own affairs.

Question 16

What happens to jointly owned property when one spouse dies?

Accepted Answer

When spouses jointly own property and then one spouse passes away, the property is automatically passed to the surviving spouse. An example would be the marital home owned by both spouses.

Question 17

What is a guardian?

Accepted Answer

A guardian is a person who is responsible for someone else’s well-being. People often appoint a guardian for their underage children in their will or for their adult children with special needs. These legal guardians can make legal decisions on behalf of their charges, much like a parent.

Question 18

How can I designate a guardian for my children?

Accepted Answer

Naming a legal guardian for your underage children is a common provision in a will. You also have the ability to appoint a conservator for adult children who may be unable to make certain decisions.

If you do not appoint a legal guardian via a will, the court will appoint one upon your death. For this reason, it is important even if it seems like commonsense to make sure you designate a guardian in your will.

Question 19

How can we make sure our special needs child is cared for after we die?

Accepted Answer

A common way to ensure a special needs child continues to receive the care they need is to appoint a guardian for them and to create a trust fund in their name.

Question 20

How can I make sure my pet is cared for after I die?

Accepted Answer

A common way to care for pets after their owner passes away is to state in the will who is to care for the animal and then create a testamentary trust for the benefit of the pet.

Question 21

When do I need a power of attorney?

Accepted Answer

A power of attorney is essential for people who are unable to make important medical or financial decisions on their own behalf, usually because they are incapacitated or suffering from a medical condition. There are five types of powers of attorney, each with their own purpose:

Durable power of attorney
Medical power of attorney
General power of attorney
Limited (special) power of attorney
Springing power of attorney

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