A Minnesota Trust attorney uses trusts or business entities to accomplish a person’s goals and minimize taxes.
Minnesota law and U.S. tax law recognize a whole host of trust and entity types. Of course, the tax treatment depends on the type of trust or entity. Tax rules and regulations are promulgated for the various trust types, which often leads to confusion for those unfamiliar with trusts.
A Minnesota trust attorney can advise you on the proper trust or entity to use for your particular circumstances and financial situation. Examples include
|2503(c) Trust for Minors
Charitable Lead Trust
Charitable Remainder Trust (CRT)
Credit Shelter Trust
Family LP (for holding investments or real estate)
|Generation-Skipping Tax (GST)
Grantor Retained Annuity Trust (GRAT)
Grantor Retained Unitrust (GRUT)
Intentionally Defective Grantor Trust (IDGT)
Irrevocable Grantor Trust
Irrevocable Life Insurance Trust (ILIT)
|Life Insurance Trust
Marital Deduction Trust
Planning for the Family Cabin
Qualified Personal Residence Trust (QPRT)
Qualified Terminable Interest Property Trust (QTIP)
Real Estate Trust
Spousal Lifetime Access Trust (SLAT)
Total Return Trust
You are welcome to contact us to meet with a trust attorney to prepare an estate plan customized for your circumstances, to accomplish your objectives and minimize taxes. Or attend one of our Free Wills and Living Trusts Seminars.
A grantor trust creates a fake but legal person to protect and manage your wealth in order to preserve it for your heirs. The beneficiaries could be anyone or anything that may receive all or part of a person’s wealth after death.
An irrevocable living children’s trust is designed to give the trustor control over how their assets are given to their children. The trustor has significant control over how the trust will be distributed to the beneficiaries after their death.
A trust manages the distribution of your assets. It is created by the transfer of property by the owner to another person (trustee). A living trust is created while the person establishing the trust is still alive.
Before 1997, a self-settled asset protection trust was only possible outside the United States. These trusts had a spendthrift clause that protected the assets in the trust from the creditors of the beneficiaries. Therefore, no matter what problems with debt, bankruptcy or any other financial problems the beneficiary has in the future, their creditors will not be able access the assets in the trust.
The spendthrift clause states that if a beneficiary signs over part of all of what they will receive from a trust to a third party, the trustee is obligated not to honor that agreement. While they will still distribute the assets to the beneficiary, they will not distribute it directly to the third party.
Generally, this type of trust is used in order to avoid estate tax. In this case a will is written that gives to a trust the amount up to the estate-tax exemption and the rest is given to the spouse tax free. Even if the amount put in the trust grows it continues to be tax free.
With an irrevocable life insurance trust, your life insurance is removed from your taxable estate to help pay estate costs or to give your heirs cash for a variety of purposes. By doing this the owner of the life insurance surrenders their control over the insurance policy.
With an irrevocable trust, the person putting assets into the trust (trustor) is giving up their control over them. The only way to change this type of trust is to get permission from the beneficiaries.
Different from most other trusts, Marital Deduction Trusts arranges for the managing of the assets for the remaining spouse after the death of the other.
The main difference with a revocable trust is exactly what the name describes, with it the trustee is able to revoke the trust at any time. Therefore the trustee is able to maintain control of everything in the trust.
We have prepared an entire article on Uniform Fiduciaries: Uniform Fiduciaries Act.
Learn more by attending one of our Free Wills and Living Trusts Seminars.