You may want to give gifts to your loved ones while you are still alive, and this can be done in a tax efficient manner through the utilization of 529 plans. It is a bit challenging to utilize gifting as a tax efficiency strategy because of the existence of the federal gift tax. This levy…
When you are planning for retirement you should be fully cognizant of the limitations of the Social Security program. Studies are consistently showing that a significant percentage of the baby boomers who are approaching the typical retirement age are not financially prepared. You may be among those who assume that Social Security will be enough,…
Medicaid is generally thought of as the program that is in place to help people who are impoverished with health care expenses. However, Medicaid has become the de facto long-term care insurer in the United States whether it was intended to be or not. Most of the senior citizens who are receiving long-term care have…
It can come as a shock when you find out that Medicare will not pay for an extended stay in a nursing home or a long-term care community. What would you do if you were faced with long-term care expenses during the latter portion of your life? Most senior citizens who are receiving long-term care…
When you’re looking ahead toward the senior years that lie ahead, you should evaluate what you will face. Retirement is something that is not going to fall into your lap. You have to plan ahead carefully to be able to enjoy Minnesota retirement in comfort. Some people don’t take retirement planning seriously enough because they…
Someone who is mentally impaired, whether from age or infirmity, may start to show signs of needing assistance in their personal affairs. If, for example, your parent or loved one starts leaving food cooking on the stove, getting lost when away from home, forgetting to eat or take their medication, it is probably time to…
When the time comes for you to decide whether someone you love needs someone else to take control of their personal affairs, it helps to understand what a guardianship and conservatorship in Minnesota mean. A guardianship or conservatorship is established through a legal proceeding when the court appoints a person (a conservator or guardian) to…
There are some rather disturbing things that can take place in the shadows, and one of them is elder financial abuse. This has become an enormous problem in the United States, with annual losses being placed in the vicinity of $2.9 billion according to the MetLife Mature Market Institute. While this estimate may be accurate,…
When you are positioning yourself financially for the future, you are naturally going to have questions about government programs that you have heard about. These would typically include Medicaid and Medicare. Because the names are similar, understanding what each respective program accomplishes can be confusing. With this in mind let’s look at the differences. Medicare…
Elder law attorneys help people who are concerned about assisted living costs. This is a matter that everyone should indeed be thinking about. Lifespans are increasing, and as you get older it becomes more and more likely that you will need help with your activities of daily living. In fact, according to government statistics, the…
Among those in the estate planning community, the subject of long-term care costs is frequently discussed. If you haven’t looked into the current state of these costs, you are probably in for a surprise. According to the MetLife Mature Market Institute’s 2012 survey the cost for a month residing in an assisted-living community in America…
Case Study: Tom Clancy Tom Clancy was a prolific scrivener of action novels. Upon his death at age 66, he left a substantial estate. His Will divided his estate into three shares – one share to his wife, one share for his wife to use during her life (with the remainder to go the daughter…
Fans of Young Frankenstein, Blazing Saddles, The Producers, and Willy Wonka were saddened by the death of Gene Wilder. Unlike others who die from Alzheimer’s disease, the comedian’s death was attributable entirely to this deadly disease. The fact is that Alzheimer’s disease is the real cause of death of millions of people, causing a slow…
If someone dies leaving a will, it does not automatically mean that there is no need for probate. The determining factor is how the assets were held as of the date of death. When is probate unnecessary? There is generally no need for probate if a person dies and: the person owns no real property…
Probate Probate is the legal process of settling an estate after a person has died. A petition must be filed with the court and a personal representative must be appointed to administer the deceased estate. Often, the term probate is used to refer to the entire process of “probating” an estate. In this context, it…
Ground-Breaking Study Good news, dog owners. Science has confirmed what we have known all along. Dogs are able to understand individual words and intonations much like us. Until this ground-breaking study, scientists thought that humans were the only species capable of separating what was said from how it was said. But after sticking six border collies,…
What is a guardian? A guardian is appointed by the court to make personal decisions for a ward. The guardian has authority to make decisions on behalf of the person about such things as where to live, medical decisions, training, and education. What is a ward? Wards are minors or incapacitated adults who have a…
This is an important question in estate planning because many instruments become active when the person who executed it becomes incapacitated. The reverse is also true. There are many instruments that cannot be created if the person trying to execute the instrument is incapacitated. Determining an individual’s capacity or incapacity can be a very difficult…
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Minnesota estate planning attorneys often advise clients who are in possession of a great deal of wealth. It is very important to understand the lay of the land thoroughly if you are engaged in the process of estate planning as a high net worth individual. With this in mind, we would like to explain the…
Section 2704 of the Internal Revenue Code was enacted to limit the discounts available to certain transfers of limited partnership or limited liability company ownership interests among family members. Section 2704(a) deals with lapsing rights. An example of a lapsing right might be an LLC in which the parents own the voting shares and the…
Estate executors, personal representatives and trustees should pay the tax debts of an estate before they distribute assets, as illustrated by one recent U.S. District Court case. The court found that an estate’s co-executors and the individuals who received distributions from the estate were personally liable — more than a decade later — for repaying…
The Challenge For family business owners, estate planning can be a challenge. Often, most if not all of their wealth is tied up in their companies, which creates a conflict between the desire to transfer ownership to the next generation and the desire to stay in control. One potential solution is to recapitalize the business…
David Bowie died on January 10, 2016, just two days after the release of his final album, Blackstar. The last song on the album, “I Can’t Give Everything Away,” seems prophetic both in its title and its initial verse. “I know something is very wrong.” News stories estimate Bowie’s estate at $100 million. His legal…
The U.S. Tax Court has held that the value of investment assets that a decedent transferred to a limited partnership had to be included in the value of her estate. Reason: She kept control of the funds after she transferred them and had no reason to create the partnership aside from the tax benefits. The court…
If you’re like most people, you’ve probably delegated estate planning to the realm of things to be done “someday.” Most people dislike confronting their own mortality, but proper estate planning accomplishes two major objectives — it ensures that your wealth is distributed according to your wishes and it can reduce the payment of federal and…
You may be uncomfortable at the thought of discussing your estate with your loved ones. But failing to do so could result in disagreements and conflicts when the details are revealed after your death. Discussing your plans in advance gives you a chance to explain: The distribution of your estate. Why you made certain decisions. You…
There are instances when heirs are not happy with the terms of a person’s will. When that is the case and the executor submits the will to probate, the heirs may file objections to the submission of the will. Four reasons for a challenge can be: 1) Improper execution This objection is usually rebutted more easily…
Imagine that a trust is established with insurance proceeds for the benefit of a minor child Billy after his parents are killed in an accident, with Uncle Theodore as Trustee. Theodore cannot use the insurance proceeds to buy a new boat or to pay of Theodore’s student loan debt. If Theodore violates that rule, what…
Family Cabin LLCs & Trusts While a family cabin is often filled with happy memories, conflict can arise when the cabin’s owner dies. Now comes the time to plan future ownership and responsibilities. If the cabin has been gifted to the former owner’s children, as often is the case, it is not uncommon for disagreements to…
