White Bear Lake, Minnesota Estate Planning Law Blog

If you are like many in Minnesota, you have not wanted to think about the possibility of your parent needing long-term care. Perhaps you assumed you would be able to take care of your parent in the later years or honor his or her wishes to remain at home. Unfortunately, if you are noticing your loved one declining in physical or mental health, you may be realizing neither of these is a viable option.

You may assume your parent will rely on Medicaid at some point to fund the services he or she will need. Medicaid is means-based; to qualify for Medicaid in Minnesota, your parent may have no more than $3,000 in assets, although it varies from state to state. You may want to assist your parent by distributing some of those assets to other family members. However, each state also has a look-back period, and asset transfers that fall within that period may result in penalties. There are other options.

These days, you may transfer many of your larger assets to loved ones upon your death without them even going through probate. Beneficiary designations, transfer-on-death accounts and pay-on-death accounts allow you to pass on retirement accounts, investment accounts and deposit accounts to one or more beneficiaries directly.

This may leave only your house that would need to go through probate upon your death. Fortunately, even this asset can pass to a loved one directly. Even so, as with most things in life, downsides exist, which means you need to weigh the pros and cons carefully.

Like many Minnesota residents, you probably know that you need a will. Otherwise, the state gets to decide where your assets go after you pass away. However, a will is not the only estate-planning document you can use to provide for your family after your death.

Have you considered a revocable living trust? This and other types of trusts are not only for the rich and famous. Depending on your family circumstances, a living trust could provide the best way for you to provide for your family after your death.

Thinking about death is generally an unpleasant experience, so it likely comes as no surprise that many people in Minnesota avoid estate planning. However, death is unavoidable, so it only makes sense to create a well-thought-out estate plan in preparation for it. Creating this type of plan is paramount for ensuring that your assets end up in the intended hands.