Community Property Trusts Create Tax Savings

Posted on October 23, 2018
Category: Estate Planning
To schedule a planning session click here. Many people know that when you inherit something, that is inherited tax free. Married couples face a different issue. They each own only half of assets. So this means that in separate property states, like Minnesota, only half of the taxes in an asset are saved at death for jointly owned property. Community property states don’t have this issue. There is an estate planning technique that allows residents

What is an Irrevocable Life Insurance Trust

Posted on September 23, 2018
Category: Estate Planning
What is an Irrevocable Life Insurance Trust? This type of trust is used to deal with the Estate Tax in many estate plans. The death benefit is not included in your estate. That way the insurance company pays the estate tax because the death benefit isn’t taxable. Life insurance can also be a very valuable asset. Cash value can get pretty significant. In Minnesota, only a little over $9,000 is protected from creditors. Once it
How should you handle your retirement accounts in your estate plan? Click here to schedule a planning session. One of the largest assets that most people have are their retirement accounts. Whether this is an IRA, 401K, SImple, or any of the other types of qualified accounts. These accounts get special tax treatment.  They are able to grow tax deferred until you retire. Once you take the money out, they are taxed at the ordinary

Should I give money outright?

Posted on September 7, 2018
Category: Estate Planning
Should you give money outright to your heirs? Everyone that makes an estate plan faces this question. There are many ways to give an inheritance. Some people give it to their heirs in stages. This could mean half at age 25 and the rest at 30.  The combinations are as endless as your imagination. Some leave the money in a trust, but let the heirs take the money out at will.  Others make it only

Should I have a Will or a Trust?

Posted on August 24, 2018
Category: Estate Planning
Should I have a Will or a Trust? This is one of the most common estate planning questions that I am asked. This question really comes down to control. How much control over your legacy do you want? Many people don’t even realize that their will creates trusts.  If your will does anything other than immediately give all of your assets to your heirs, it likely creates a trust called a testamentary trust. Click here

What are Death Taxes?

Posted on August 16, 2018
Category: Estate Planning, Tax
Click here to schedule a planning session. What are death taxes?  That is a very common question that I get in my Estate Planning practice.  Death taxes are commonly also called the Estate Tax.  This is the only tax that happens only when you die.  There are other taxes that might occur when you die like the Generation Skipping Transfer Tax, but that tax can also apply during life.  So the death tax is generally

Incapacity Planning

Posted on August 9, 2018
Category: Asset Protection, Estate Planning
Incapacity Planning is a topic that sneaks up on people.  It is a vital part of any Estate Plan.  Most people are familiar with the concept of Probate. You normally think of this as something that could happen to you when you die.  It is also something that most of my clients tell me they want to avoid.  What you don’t often hear much about is the fact that you can go through Probate while

Do you really want to avoid Probate?

Posted on August 2, 2018
Category: Estate Planning
Do you really want to avoid Probate? Many clients list avoiding probate as a goal of their estate plan.  The trust is that probate is very easy to avoid. Almost everything today has a beneficiary designation. Houses have transfer on death.  Bank accounts have pay on death.  In Minnesota, even your car has a transfer on death now.  Is probate avoidance really your goal though? Most likely, when you say probate avoidance, you mean court

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