Electronic Will Act
Effective August 1, 2023, the Uniform Electronic Wills Act (Act) has been adopted by State of Minnesota. This Act has significant ramifications for Minnesotans seeking to adopt an estate plan. Prior to the adoption, Minnesota required a physical signature for a Will to be valid. Although for the past decade or so, many legal and financial documents were considered valid when signed or notarized electronically, the execution of a Will was the exception, until now. The new law authorizes the creation, witnessing and notarization of wills electronically. The Act defines an Electronic Will as “a will or codicil that (i)... Read More
Estate Tax Exemption Changes for 2024
The federal estate and gift tax exemption continues to increase. For the tax year 2024, the estate/gift exemption is $13,610,000 per individual or $27,220,000 for a married couple. The top tax rate for estate taxes remains at 40%. The federal estate tax provisions still include the concept of “portability”. Portability allows a married couple to double the estate tax exclusion. For 2024, married couples are able to protect $27,220,000 without incurring federal estate tax. However, absent action by Congress, the estate tax rates are scheduled to sunset on January 1, 2026. At sunset, the estate tax exemption will revert to... Read More
What is the difference between Probate and Non-probate Assets?
As an estate planning attorney, one of the most common misconceptions I hear is, “I have a Will, so my family will avoid a probate proceeding.” This is simply not the case. Having a Will alone will not keep your estate from going before a probate court. A Will simply allows you to direct how your assets are dispersed and who gets them. Whether or not an estate will be probated depends on what assets the decedent (the person who has died) owns at the time of death and how they owned them. Assets that are left only in the... Read More
How Often Should I Update My Estate Plan?
Having an estate plan is an important step that everyone should contemplate. It allows you to direct where your hard-earned and cherished assets go, ultimately deciding who gets them and when and how they will inherit. A question I often get asked is, “How often should I update my Will or Trust document?” In typical lawyer fashion, the short answer is, it depends on your individual situation. However, your estate planning documents should be reviewed every so often, roughly every 3–7 years. Here are some instances in which an update or review of your estate plan should be considered: 1.)... Read More
You Have Inherited Farmland. Now What?
Inheriting farmland can be more complicated than simply receiving the title to the real estate. Inherited farmland can take many forms including from a lifetime gift, or estate, or a trust. Considerations may differ depending on whether you have inherited farmland outright or in and entity such as a Trust, Corporation, or LLC. Although Minnesota has no inheritance tax, the farmland in a Trust or Estate may be subject to an Estate Tax or Gift Tax depending on how it was received. Additionally, whether the land can be designated as Homestead will determine your real estate tax obligations. You... Read More
Court of Appeals protects specific gifts of real property from an estate.
On December 12, 2022, in In re Estate of Zych, the court of appeals held that the “personal representative of an estate may not sell real property that the testator has specifically devised by will.” Stanley Zych left his farmland to four sons, certificates of deposit to three daughters, and the remainder of his property was left to all seven children. Prior to his death, several of his assets were mismanaged for over a decade by three of his children. As a result of the mismanagement, the district court found that the three children owed significant sums to the estate,... Read More
COVID-19 Virus Concerns Trigger Estate Planning Questions
Do I need a living will or healthcare directive? Should I have a power of attorney in place? Does my will or trust need to be updated? These are some of the questions people are asking in the wake of growing concerns over the COVID-19 outbreak. Changes in the size and nature of your estate, your familial structure and family relations, as well as changes in the law are just few examples of events that can drastically and materially affect an outdated comprehensive estate plan. Under normal circumstances, these concerns are not top of the mind. But a global health... Read More
Contesting a Will
A will is an official legal document. Simply disliking the results of a will is not enough to justify a valid challenge to a will. Wills can be contested for a variety valid reasons including mental incapacity, undue influence, fraud, duress, and improper witnessing. Grounds for contesting a will. 1. Lacking Capacity The person who created the will did not have the testamentary capacity. If the testator is suffering from a serious mental impairment at the time the will was created, there may be a valid argument for contesting it. The test is to determine whether the person fully understood... Read More
50+ Lifestyle Expo–TODAY!
Stop by and visit Farrish Johnson attorney Paul Moosbrugger at the 50+ Lifestyle Expo in the Mankato Civic Center from 9am to 2pm TODAY!
It’s April 2019…Do You Know What Your Estate Plan Is?
As the Spring Season enters full swing, it is a good time to do spring cleaning, to plant the garden and trim the bushes, to address home improvement projects that have been neglected, and for many, to dust off their Estate Planning Documents for a regular review. The average person’s financial, familial and legal circumstances are constantly in flux. Over time, these changes can call for the need to revisit and potentially revise one’s estate plan. Changes in the size and nature of your estate, your familial structure and family relations, as well as changes in the law are just... Read More