Minnesota estate planning is important for everyone, but especially those who have large estates or non-traditional family structures. For these families, more than a simple will and health care directive/living will are needed. Segal Duffek Moen PLLC handles all manner of estate planning for numerous needs and special circumstances. Below, we briefly address some more advanced estate planning topics that may be of interest to some of our clients.
Qualified Personal Residence Trust
A Qualified Personal Residence Trust (QPRT) places your place of residence in a trust to preserve it for your beneficiaries, who are named in the trust, but allows you to continue to live in it until your death. This allows you to give away the property to family or loved ones at a considerable discount, freeze its value for estate taxes but still have a place to live. Upon your death, the property passes to your beneficiaries free of additional estate or gift taxes.
Irrevocable Life Insurance Trust
An Irrevocable Life Insurance Trust (ILIT) is created for the specific purpose of owning your life insurance policy and protecting the proceeds from excessive taxation. The policy is held in trust apart from your estate, which shields it from estate taxes. The proceeds can be used to pay debts, final expenses or provide income to a surviving spouse or other beneficiaries.
Family Limited Partnerships
A Family Limited Partnership (FLP) is a form of a limited partnership formed among members of your family. These partnerships are for the purpose of protecting assets from excessive taxation or harm from creditors. An FLP allows you to retain control over the transferred assets while enjoying them and preserving them for your loved ones. All assets transferred into the FLP reduce the value of your estate, and the estate taxes owed by your heirs upon your death. An FLP is a great legal vehicle to transfer wealth to your beneficiaries while still retaining control of the primary assets.
Segal Duffek Moen PLLC can assist you with these and other advanced estate planning needs in Minnesota. Call our Minneapolis office at 952-358-7400 and schedule an estate planning consultation today.