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Lots of info on this page…
If you feel overwhelmed, please reach out so we can talk through your questions.
Overview
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I hate the phrase “estate-planning” - it feels entirely money-focused…
What we will do is ‘contingency planning’ - with an eye towards caring for your loved ones if something happens to you.
These aren’t pleasant topics, but making these plans can make a huge difference to your loved ones. I’m happy to help.
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Nope - you don’t have to.
Minnesota has default plans for people who don’t create these documents.
The downside with the default plan is that courts, rather than you, make decisions for you (and these could impact your young children).
(Another downside to the default plan is the expense and hassle of “probate”.)
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The documents we create can make a huge difference in the lives of your children.
First, if you have young children, you can name a legal guardian.
Second, we can create Child Trusts to protect their inheritance. A Child Trust has two important functions:
Instead of receiving 100% of their inheritance on their 18th birthday, you can extend that timeframe so they receive 1/3 at age 21, 1/3 at 25, and the rest at 30 (or another timeframe of your choosing).
You name someone to safeguard the inheritance and approve spending. This “trustee” works in concert with the guardian to ensure the inheritance is used effectively to benefit your child and improve their life.
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As a dog-parent myself, I’ve spent alot of time figuring out how best to incorporate beloved pets into estate-planning documents.
Pets are in a weird spot, because legally they’re treated as property. But we can name a guardian to care for your pets and you can allocate money for their continued care.
Additionally, Minnesota allows you to create and fund a “Pet Trust” - naming a trustee who oversees spending to benefit your pets.
The Will
the foundational document
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This “last will and testament” is your final testimony of your wishes.
Honestly, I think it’s amazing how our legal system honors the wishes of people who’ve died - it’s an awesome power - and it can make such a difference for those you leave behind.
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By having a valid Will, you opt out of Minnesota’s default plans - and you ensure that your wishes are honored instead.
Depending on your circumstances, this could involve:
naming a guardian to care for your young children;
choosing a guardian to care for your pets;
deciding who should inherit your assets;
specifying relatives who you want to disinherit;
gifting heirlooms and mementos to people who will value them; and/or
sending a final message to your loved ones.
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Kinda sorta…
You and your spouse/partner can have Wills that are nearly identical - but each person needs their own Will.
Living Trust
avoid the hassle and expense of probate
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A Living Trust is a supplement to a Will that allows you to arrange your assets while you’re alive in order to avoid the expense and hassle of probate.
Probate can eat up 3-5% of your assets, so that’s a big motivator for many.
I like focus on the kindness aspect of using a Living Trust. By arranging your assets while you’re alive, your loved ones are spared the yuck of dealing with probate.
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Probate is our legal system’s mechanism for gathering and then distributing your assets.
Because it’s an actual judicial proceeding (with a judge and lawyers…), probate is an expensive process that few people enjoy - and it often eats up 3-5% of your assets.**
Certain assets don’t go through probate (e.g., life insurance and retirement accounts) - and this includes assets inside a Living Trust.
After you create a Living Trust and properly arrange all of your assets, there’s nothing left that must go through probate. :)
**Minnesota has a simplified probate for small estates - I can help you determine if simplified probate will likely be an option for you.
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Nope - the Living Trust is entirely optional.
Health Care Directive
ensuring your health care wishes are followed
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The Health Care Directive has two functions:
You authorize someone to be your health care agent. Your agent makes medical decisions (with help from your care team) if/when you’re unable to make your own decisions.
You create health care instructions. You can create extensive end-of-life instructions, but I’ve boiled it down to a handful of really essential items (things like pain, CPR, assisted breathing, etc.).
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Goes without saying, but choose someone you trust.
Your agent might need to decide when or whether to remove life support services - so I think it’s smart to choose someone who has similar beliefs about end-of-life care.
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Health care instructions tend to be depressing - but I think they’re so important.
If you’re in a coma, someone you love will be tasked with a thankless job - by writing these instructions, you can help them know with certainty that they’re doing the right thing for you. (And if you have opinionated relatives, it might help shut those people up.)
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Yes.
If you’re 18 or older, you should have a valid health care directive.
Some people think “Oh, I’m young and healthy…” but car accidents and illnesses can surprise us suddenly.
This document is such a kindness to your loved ones.
Durable Power of Attorney
authorizing someone to handle finances
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A power of attorney authorizes someone you trust to handle financial matters for you.
Anything you can do with your money or your assets, your financial agent can do too (sometimes you’ll see this person called “attorney-in-fact”).
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A “durable” power of attorney remains effective even if you become incapacitated.
The power of attorney I create for you will contain this “durable” language.
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Because the future has infinite possibilities, a power of attorney is the best way to ensure that someone you trust has the authority to act for you.
That said, this power of this document is sometimes abused (when you read stories about a little old lady whose son stole all the money…).
We can mitigate that risk by naming multiple people to act as your agent - and requiring them to act together to make changes.