Estate Planning Services

Estate planning is more than Wills and Trusts. It is the process of setting up your assets and accounts in a way to pass to your heirs as efficiently as possible at your death. Whether you have a simple estate or a large, complicated estate, it is important you plan for how your assets pass at your death. Getting your affairs in order is a gift to your family. One of the primary uses of Trusts is to avoid probate. Any assets owned by a Trust avoid probate at your death. Probate is a court process to review your Will (if you have one) and ensure it is legal, and to officially appoint your personal representative (executor). If you have no Will, Minnesota law directs where your assets will pass at death. Probates in Minnesota are not as time-consuming and expensive as in other states, but avoiding a probate can simplify the work your family needs to do when you die. Wills are the directions for your probate. Unless a Will is probated, it has no legal effect. Whoever you name in your Will as personal representative cannot act unless the court has officially appointed him or her. A Will is essential, however, if you have minor children and want to name guardians if both parents die. In addition, your Will can contain a trust to manage your children's inheritance until they reach a certain age. Jill will review your assets and accounts, as well as your family situation and your wishes. She will ensure your assets are properly owned and your beneficiary designations are correct. In most cases, your beneficiary designations (on life insurance, retirement accounts, and other accounts) override the instructions in your Will. Estate planning is not a fill-in-the-blank process. Each client has unique family circumstances. What is right for your neighbor may not be right for you. While Trusts are a helpful estate planning tool, not everybody needs a Trust. In many cases, there are easier and less expensive ways to accomplish a client's estate planning wishes than doing a Trust. Jill will discuss all your estate planning options, the pros and cons of each option, and the costs of each option.

Estate planning includes not only planning for death, but also planning for the possibility of incapacity. Any person, of any age, could deal with incapacity due to an accident or sudden illness. If you suddenly became incapacitated, who would make medical decisions for you? Who would pay your bills and ensure your finances were properly handled? It is essential that you choose trusted and responsible persons to carry out these roles for you. Planning for incapacity is as important as planning for death. A financial Power of Attorney allows you to designate one or more trusted persons to handle your finances for you. A Health Care Directive allows you to designate one or more persons to make medical decisions for you, if your doctor decides you are not able to make those decisions. If you fail to set up a financial Power of Attorney and Health Care Directive ahead of time and then suddenly become incapacitated, your family may be forced into court to do a guardianship and conservatorship. In most situations, a carefully drafted Power of Attorney and a Health Care Directive can avoid the need for involving the court. Jill will talk with you about planning for incapacity and ensure your documents are carefully worded to reflect your wishes and avoid misuse of your funds.

Elder Law includes estate planning and planning for incapacity, but it is much more than that. Elder Law involves dealing with laws and government programs that apply to older people (and that age can vary, based on the program). Elder Law often involves Medicaid (called Medical Assistance in Minnesota), a federal program which pays for long-term care costs if you are eligible. Long-term care can include care in your home, assisted living, memory care or nursing home. Medicaid has rules about how much assets you can own. A married couple where one person needs care can keep far more assets than can a single person. Jill can advise you how the Medicaid laws apply to your situation. If you want to transfer assets to protect them from being depleted on care costs, Jill will discuss the advantages and disadvantages of doing that. Jill can assist you in applying for Medicaid and appealing a denial of benefits. The Medicaid rules are complex, with many nuances and exceptions. Sometimes, elder law involves suspected exploitation or abuse of the older person. In other cases, a family or spouse might need advice on handling a loved one with Dementia who is still living at home. Now and then, a spouse might want to consider whether a dissolution of the marriage is the right step for protecting assets. Some families need assistance with issues involving the their loved one's care facility. Jill can help you navigate these difficult situations to find salutations that, ideally, avoid the court system.

A probate is needed in Minnesota if a person dies with more than $75,000 in accounts with no joint owner or beneficiaries. If the decedent owned any real estate in his or her name solely (or as a tenant in common with other owners), a probate is needed no matter the value of the real estate. Probate is, for the most part, a paperwork process with the court. Most probates do not require a court hearing. Creditors are given four months to file their claims with the estate. If the decedent had a Will, the court will review and approve it. If there was no Will, the probate assets will pass to family members as Minnesota law sets forth. Even if a probate is unnecessary, the family has work to do: clean out the house or apartment; divide up the personal property; fill out beneficiary claim forms for life insurance, retirement accounts or investments; sell the car; and pay the bills. If the decedent had assets or accounts owned by a Trust, then the Trustee (the person in charge) must follow the instructions in the Trust about selling assets, paying bills and distributing the remaining funds. This process is called a Trust Administration. Jill works with families to determine if a probate is needed and, if so, she guides the personal representative in their duties. In some cases, Jill represents a family member who has concerns about whether the personal representative is acting correctly. She gives advice to Trustees, ensuring they fulfil their fiduciary duty in carrying out the Trust. Jill helps families with beneficiary paperwork and clearing Transfer on Death Deeds. Whether a person's estate is simple or complicated, Jill works with the family to carry out the loved one's wishes as quickly and efficiently as possible.

Jill works with families to avoid court-ordered guardianships and/or conservatorships whenever possible. A guardianship is when a court appoints someone to have authority over 'the person' of another person. A guardianship covers matters such as medical decisions or where a person lives. A conservatorship is when the courts appoints someone to have authority over the finances of another person. Guardianships and conservatorships take rights away from people and must be used only when less restrictive methods of helping the person have failed. The legal system discourages the use of these proceedings except when there is clear evidence of it being necessary to protect the person and/or their assets. Preparing financial Powers of Attorney and Health Care Directives ahead of time, before you become incapacitated, are essential steps in minimising the need for future court proceedings. Certain situations, however, may clearly warrant a guardianship or conservatorship. Jill believes the court system should be the last resort for families trying to help a loved one with cognitive impairment or other health issues which interfere with decision-making. Special Needs Trusts If a person with a disability has money in excess of the limits allowed by SSI or Medicaid, the person (or certain other persons on their behalf) may set up a Special Needs Trust. The excess funds can be put in the Special Needs Trust and used in ways that enhance the quality of life for the person with the disability, while staying eligible for SSI and Medicaid. If a family member wishes to give a gift or leave an inheritance to a person with a disability, the family member can set up a Supplemental Needs Trust. It is very similar to the Special Needs Trust except the Trust is being funded with money belonging to the family member. These Trusts, along with ABLE accounts, are wonderful tools that allow a person with a disability to take vacations or buy adaptive equipment or enjoy a professional sporting event, without losing the public assistance benefits they rely on for food and shelter. However, these Trusts are strictly regulated and the Trustee must be careful about how the money is used and keep excellent records. Jill prepares Special Needs Trusts and Supplemental Needs Trusts, as well as advising Trustees on their duties. In addition, Jill provides advice about alternatives to these Trusts, including how to properly spend down instead of using a Special Needs Trust or using a purely discretionary trust instead of a Supplemental Needs Trust.

If a person with a disability has money in excess of the limits allowed by SSI or Medicaid, the person (or certain other persons on their behalf) may set up a Special Needs Trust. The excess funds can be put in the Special Needs Trust and used in ways that enhance the quality of life for the person with the disability, while staying eligible for SSI and Medicaid. If a family member wishes to give a gift or leave an inheritance to a person with a disability, the family member can set up a Supplemental Needs Trust. It is very similar to the Special Needs Trust except the Trust is being funded with money belonging to the family member. These Trusts, along with ABLE accounts, are wonderful tools that allow a person with a disability to take vacations or buy adaptive equipment or enjoy a professional sporting event, without losing the public assistance benefits they rely on for food and shelter. However, these Trusts are strictly regulated and the Trustee must be careful about how the money is used and keep excellent records. Jill prepares Special Needs Trusts and Supplemental Needs Trusts, as well as advising Trustees on their duties. In addition, Jill provides advice about alternatives to these Trusts, including how to properly spend down instead of using a Special Needs Trust or using a purely discretionary trust instead of a Supplemental Needs Trust.