In Minnesota, estate planning is a vital part of asset protection. The plan reduces the time in which the estate spends in probate court. It helps beneficiaries acquire assets faster. The following are FAQs about estate planning answered by an attorney in Walker MN.
What is Included in an Estate Plan?
An estate plan consists of four basic concepts. The will or irrevocable trust identifies what family members receive designated assets. An agreement is created to explain the status of the estate owner’s assets. For example, they identify how an outstanding debt is settled when they die. Finally, the owner identifies all their final wishes.
When are Changes Most Likely to Occur?
Certain life events warrant the need for changes. They include marriage or divorce, the birth or adoption of a child, and significant increases or decreases in the estate’s value. If the estate owner sells a property or moves, they modify the plan. Additionally, they must address changes in taxes due to a new location.
Who is Involved in a Trust?
Three parties are involved in an irrevocable trust. First, the estate owner acts as the creator. Next, they assign a trustee to manage all assets and properties transferred into the trust. Finally, the beneficiary acquires the trust and accumulated assets after the owner dies.
How Does the Absence of a Will Impact an Estate Negatively?
An estate without a will spends more time in probate. First, the absence of a will leaves major decisions up to the state. If creditors place a lien against the estate, they are more likely to collect. If a guardian isn’t assigned for minor children, they could become wards of the state and end up in an orphanage. The will also designates who receives their assets. If they don’t have a clear next of kin, the state decides how their assets and properties are distributed and to who.
In Minnesota, estate owners avoid the loss of five percent of their total worth with an estate plan. This percentage is seized when the estate enters probate. If they don’t take proper precautions, the process generates further losses for their beneficiaries. Estate owners who need an Attorney in Walker MN, contact us for more info.