Vander Sanden & Crow, LLC

111 3rd Avenue South, Suite 110, Minneapolis, MN 55401
Phone: 612-332-9555 Fax: 612-370-0375

Estate Planning

Providing a detailed plan for your assets at the time of your death is one of the most important and responsible things you can do to help your loved ones at a very stressful time. In addition to it being a sound financial and personal decision, having a professionally prepared estate plan gives you peace of mind about your future.

Many individuals and families put off discussing their estate plan. There never seems to be enough time to prioritize making a will, health care directive, power of attorney or trust. However, some simple estate planning can protect you and family from unnecessary financial burden and uncertainty at the time of your death.

Vander Sanden & Crow, LLC is a law firm that specializes in estate planning. We believe that estate plans are as individual as the people and families they represent. As a small law firm we have the ability to get to know our clients, and the knowledge and skills to help them plan for their future. We are committed to assisting each client, and customizing a plan to meet their personal goals.

Basic Definitions

Will: A document that provides for the outright distribution of a person’s estate at the time of their death.
Probate: A proceeding needed to transfer title to assets that were held in the decedent’s name.
Decedent: The person who has died.
Beneficiary: Any person or entity who is to receive assets or profits from an estate, a trust, an insurance policy or any instrument in which there is distribution.
Intestacy: Rules that govern if someone dies without a will. It is the estate plan created for individuals without a will by the state.
Trust: An entity created to hold assets for the benefit of certain persons or entities, with a trustee managing the trust (and often holding title on behalf of the trust).

Intervivos Trust: Type of trust created during life.
Testatmentary Trust: Type of trust commences upon the decedent’s death. This type of trust does not avoid probate.
Revocable Trust: You may change (revoke) this trust at any point.
Irrevocable Trust: This type of trust cannot ordinarily be changed.

Grantor/ Trustor/ Settlor/ Donor: Names used to refer to the individual who creates the trust.
Trustee: The person who manages the trust. The trustee has a legal duty to protect the assets of the trust and make certain that the purposes of the trust, as stated in the trust document, are carried out. A trustee has the highest fiduciary duty under the law.
Executor: The person appointed to administer the estate of a person who has died leaving a will which nominates that person. The executor must insure that the person's desires expressed in the will are carried out. Practical responsibilities include gathering up and protecting the assets of the estate, obtaining information in regard to all beneficiaries named in the will and any other potential heirs, collecting and arranging for payment of debts of the estate, approving or disapproving creditor's claims, making sure estate taxes are calculated, forms filed, and tax payments made, and in all ways assist the attorney for the estate (which the executor can select).

Basic Will

A will is the most common form of estate planning. A will is an executed document that provides instruction for the distribution of a person’s personal property after their death.

Health Care Directive - Living Will

A health care directive is a document that instructions your doctors or loved ones about your wishes for your health in any situation where you could not make the decisions for yourself. This includes times when you are incapacitated, but also end of life issues and your wishes for how you would want your body to be handled after death. A health care directive is an incredibly important part of estate planning. Anyone who has watched the news in the law few months knows that family does not always agree about how you would want to proceed in regards to your health decisions. Having a current and strong health care directive as a part of your estate plan is one of the most important and loving things you can do for your family. Vander Sanden & Crow, LLC can help you sort through all of the issues included in a health care directive and write a health care directive that will protect you and your loved ones.

Power of Attorney

A power of attorney is a legal document that allows you to assign another individual the power to act as you in financial situations. It gives your “attorney” the ability to sign checks for you, access your bank accounts and other financial institutions. This document is very helpful in a situation where you may be incapacitated for a short period of time, and need someone you trust to pay your bills, move money from one account to another or just maintain your financial security. This is a key part of any estate plan.

Basic Trust Law

A trust is defined, in Minnesota, in the Restatement (Second) of Trusts §2 as: “a fiduciary relationship with respect to property, subjecting the person by whom the title to property is held to equitable duties to deal with the property for the benefit of another, which arises as a result of a manifestation of an intent to create it.” This basically means that Trusts are the process by which the grantor transfers legal ownership to a person or institution (called the trustee) to manage the property for the benefit of another person (called the beneficiary).

There are five essential elements for most trusts. They are:

The settlor or trustor: This is the person who has the intent to create the trust.
The Trustee: The person who holds title to the trust property. It is not essential to identify the trustee to create a trust, and a trust will not fail for a lack of trustee. The law will appoint a trustee if necessary.

Who can be a trustee?

Any individual 18 years old or older.
Any bank or trust company chartered by the United States in Minnesota. Minn. Stat. §48A.11
A bank or trust company chartered by Minnesota with sufficient capital. Minn. Stat. §48A.07.
Any bank or trust association chartered by another state or a national bank with its principal office in another state may not act as a trustee of a trust created by a resident of Minnesota unless such other state allows a Minnesota bank to act as trustee of a trust within its jurisdiction.
A nonprofit corporation can be a trustee of a trust “where the corporation or a related organization has a vested or contingent interest in the Trust.” Minn. Stat. §317A.161, subd. 23.
A settlor can be a trustee of an inter vivos trust of his or her creation and of his or her own property. Minn. Stat. §501B.13. See Bingen v. First Trust Co. of St. Paul, 103 F.2d 260 (C. C. A. 1939); In re Marshall’s Estate, 179 Minn. 233, 228 N.W. 920 (1930).

The Beneficiary: Every trust must have a beneficiary. A beneficiary is the person that will receive the payment or benefit of the money that is held in trust. When a trust is created not all of the future beneficiaries may be known. Also, a person may not become a beneficiary until a certain event (like a death) takes place and the trust goes into effect. However, although not all of the beneficiaries may be known, and they may change, at least one beneficiary must exist for a trust to be valid.
The Trust Res: this is the trust asset. Every trust must be funded with some kind of asset such as real estate, personal tangible or intangible property just as long as it is transferable by the settlor and it is in existence at the creation of the trust.
The manifestation of intent to create a trust: The settlor must intend to create a trust.

Basic Estate Planning Considerations

Each individual can have distinct estate planning needs and concerns. However, there are usually a few things each person should consider when planning their estate:

How do you want your property to be distributed after your death?
Do you want to provide for your children during your lifetime? After your death? Both?
Do you wish to leave any portion of your estate to a charity, church or other non-profit organization?
What are the tax consequences of your estate planning?
How would you like your estate to be distributed if none of your family survives you?
Do you want directions as to what you want or do not want if you are in a terminal condition?
Do you want to donate any organs upon your death?
Do you have tangible personal property that you wish to leave to specific individuals? ie: your favorite ring to your daughter?

Vander Sanden & Crow, LLC will help you sort through all of the different and varying types of estate plans in order to find the perfect fit for you and your family. You can trust Vander Sanden & Crow, LLC to work with you and help you obtain your goals.

No information you obtain from this web site is legal advice, nor is it intended to be. You should consult an attorney for individualized advice regarding your own situation. No attorney-client relationship is formed by viewing this web site.