SETTING UP A TRUST IN MINNESOTA
Setting up a Trust is something that should be handled by a highly-qualified Minnesota-licensed Estate Attorney who specializes in Estate Planning & setting up trusts. There are many state, federal and tax implications involved.
Once the trust is set up, it must be funded. This means that assets including real property need to be retitled into the trust as opposed to the name of an individual. Often this is done through financial institutions and recorded in the county where the property is located.
With the help of a Minnesota Estate Attorney, setting up and funding living trusts, family trusts, revocable and irrevocable trusts is not complicated.
SETTING UP TRUSTS
MINNESOTA LIVING TRUSTS
You've probably heard of many different types and names for trusts. Maybe you're wondering what is the different between a Living Trust and a Testamentary Trust. Perhaps you'd like to know what differentiates an irrevocable trust from a revocable trust. Metropolitan Law Group PA is here to help you navigate through all of the difficult legalese.
A Living Trust is just as it sounds: a trust that is created during the Settlor's life. These types of trusts are ideal as trusts to avoid probate. The assets that are transferred into the trust are then no longer probateable meaning they will not be distributed by a judge in probate court. A Living Trust can also be useful for small business succession planning. If a small business owner passes without a plan, the assets of the business will need to go through the probate process with a judge overlooking each and every day-to-day decision, leadership and so forth. Naturally, this can bleed the business of its worth and diminish distributions to beneficiaries. On the other hand, if the assets of the business are titled into a trust, the business can pass seemlessly to designated successors and continue to run without any court involvement.
A Testamentary Trust is a trust that takes affect after the Settlor passes.
A Revocable Trust is a trust whose terms can be changed over the course of the Settlor's lifetime. This means that assets may be retitled into the trust and if necessary, they can be pulled out of the trust once retitled into the trust. This also means that agents such as disignated Trustees and beneficiaries can be substituted and/or altered throughout the Settlor's life. Only after the Settlor passes, does the trust become irrevocable.
An Irrevocable Trust is a trust whose terms cannot be changed. Once the trust is created and the assets retitled into an irrevocable trust, no amendments and/or alterations can be made to the trust.
FAMILY TRUSTS & TAX AND CREDIT SHELTERS IN MN
A Family Trust can also be referred to as a Credit Shelter Trust, or a Tax Shelter Trust.
A Family Trust is useful when a married couple wants to take advantage of Minnesota and federal spousal estate tax exemption. A Credit Shelter Trust can preserve wealth of the family for future generations while minimizing estate taxes.