Twin Cities: (651) 501-5608

Central Minnesota: (218) 839-5610

8 Reasons to Consider Keeping It in Trust

Often, clients just want assets distributed outright to their beneficiaries. This can make sense, in some circumstances. However, there are many circumstances in which it may not make sense. Some of these circumstances, the clients can foresee. Some of them, they may not foresee.

  1. Beneficiary is a minor at time of distribution
  2. Beneficiary lacks money management skills
  3. Beneficiary is a spendthrift
  4. Beneficiary has or may have creditors in the future
  5. Beneficiary may have a taxable estate at their death (state or federal)
  6. Beneficiary may get divorced in the future
  7. Beneficiary has or will have special needs
  8. Beneficiary is or may be incarcerated in the future

We discuss these 8 circumstances with our clients to determine if any of them apply to any of the clients’ beneficiaries. Often, clients don’t think about all the things that might suggest the assets should be left in trust.

Most clients know that if the beneficiary may be sued, that the assets would be better left in trust. However, clients may not know that if the beneficiary might be incarcerated, the assets might be better in trust.

If assets are left in a fully discretionary trust with a third-party trustee, these obligations may be avoided. For some of the other circumstances above, less restrictive trusts might suffice. For example, in order to keep the assets out of the beneficiary’s taxable estate, the beneficiary could even be the trustee, as long as they had an ascertainable standard for distributions.

How can I decide if a Trust is right for me?

Call today to schedule your complimentary estate planning consultation with Ed Matthews.

Ed Matthews is one of only a few attorneys in the state of Minnesota who is also a currently licensed Certified Public Accountant (CPA). Ed graduated summa cum laude from William Mitchell College of Law in 2003, where he served as Executive Editor of the Law Review.  He is a former Minnesota Supreme Court law clerk.  Perhaps, most importantly, he does not practice probate!  Instead, he has dedicated his life to helping Minnesota families avoid probate and protect their hard-earned assets.

To schedule a complimentary consultation with Ed Matthews, call (651) 501-5608.

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