Becoming a parent changes the way you see the world. You hold your child for the first time and feel something entirely new. That feeling comes with a question that will not leave you alone: if something happened to you, would your children be okay?
Many Minnesota parents start with a will; that instinct is a sound one since a will documents your wishes and gives the court direction. However, for families with young children, a will has real limits.
Where a will may leave your family exposed
In Minnesota, a will typically goes through probate before your family receives assets governed by the will. Probate is a court process; it takes time, costs money and plays out in public records that anyone can access.
In addition, state law does not allow minor children to manage inherited property directly. Without an estate plan that addresses this, a court steps in to appoint a conservator to oversee those assets which adds time, cost and stress to an already difficult situation.
How a trust steps in where a will steps back
A revocable living trust works alongside a will to fill the gaps that matter most as a parent of young children, and you may find that a trust offers a level of control a will does not provide on its own. Here are five reasons a trust often makes sense for families in your situation:
- It sidesteps Minnesota probate: Assets properly transferred into a trust pass directly to your children without court involvement, saving time and money.
- It keeps the court out of your children’s inheritance: You name a trustee you know and trust, keeping that decision out of a judge’s hands.
- It lets you set the terms: You control the age and terms of distribution, including the option to delay distribution beyond age 18 when children reach legal adulthood.
- It protects your family’s privacy: A trust never becomes part of the public record the way a will does.
- It covers incapacity as well as death: A revocable trust can manage your assets on your family’s behalf if you become unable to do so.
A trust puts you in control at every stage of the plan.
Give them more than love: Give them a plan
A will and a trust work best as a team. Together, they give your children a complete layer of protection.
Every family’s financial picture is different, and an estate planning attorney familiar with Minnesota law can help you determine which combination of documents fits your family’s needs. The earlier that plan is in place, the stronger the protection it provides.
