Revocable living trusts are a powerful and flexible estate planning tool in Minnesota. They are used to determine who will oversee your assets and where your assets will go upon your death. These trusts are customized to your family situation and may include family support trusts or disclaimer trusts/marital trusts.
How the Living Trust Works
A living trust is simply one that a person establishes while they are still alive. They are also called inter-vivos trusts. Inter-vivos is Latin for “while alive” or “between the living.” They can be either revocable or irrevocable.
The advantages of trusts in your estate planning portfolio are numerous. One is they allow you to transfer your property to the trust but still have access to it. The advantage of revocable inter-vivos trusts is they can also be changed, amended, or revoked while you are alive and have decision-making capacity.
Many people use a revocable inter-vivos trust rather than a will because they allow them to use and control their assets but determine how assets will be distributed after their death. When compared to a will, a revocable living trust provides additional benefits during life and upon death.
Trusts give you privacy. Whereas a will requires probate, a revocable inter-vivos trust is a private agreement that is enforced without the inconvenience and expense of probate. Any assets properly funded into the revocable living trust will stay out of probate saving your family a significant amount of time and money following your death.
If you own land in another state, a revocable inter-vivos trust might help you escape a probate proceeding on that property in the other state. So, if you have a vacation spot on a lake in South Dakota, for example, you might be able to avoid probate in South Dakota.
A trust will not protect you from estate tax in Minnesota. But there are ways to avoid estate taxes, for example, when passing assets from a spouse to a surviving spouse. To consider your options, it is a good idea to speak with an attorney well-versed in estate planning and elder law.
How a Revocable Living Trust is Created
The basics of establishing a trust require the following:
The estate planning and elder law attorneys of Bolt Hoffer Boyd Law Firm are available to help you determine whether a trust is right for you, and, if so, to customize a revocable living trust for your situation. Call us at (763) 406-7000 to discuss your needs today.