Wills and Trusts in Minnesota

Estate planning is not just for the wealthy. Anyone who owns property, has children, or cares about what happens to their assets after they die should have a plan in place. Without one, Minnesota law decides who gets your property and who raises your children — and those decisions may not reflect your wishes.

A basic estate plan typically includes a will, and may also include one or more trusts, a durable power of attorney, and a health care directive. Together, these documents give you control over your assets and your care — both during your lifetime and after.

A will (formally called a Last Will and Testament) is a legal document that expresses your wishes about how your property should be distributed after you die. It can also name a guardian for your minor children — one of the most important decisions a parent can make.

In your will, you name an executor (called a personal representative in Minnesota) — the person responsible for carrying out your wishes, paying your debts, and distributing your estate. Choosing a trustworthy and organized personal representative is an important part of the process.

A will only controls assets that are part of your probate estate. Assets that pass by beneficiary designation — such as life insurance, retirement accounts, and payable-on-death bank accounts — or assets held in joint tenancy pass outside the will, regardless of what the will says.

To be valid in Minnesota, a will must be in writing, signed by the person making it (the testator), and witnessed by at least two people who sign the will in the testator's presence. The testator must be at least 18 years old and of sound mind at the time of signing.

Handwritten (holographic) wills are not valid in Minnesota unless they meet the same formal requirements as a typed will. A will that does not meet these requirements may be challenged or disregarded entirely.

If you die without a will in Minnesota, you die "intestate." Your assets will be distributed according to Minnesota's intestacy laws — a fixed formula based on family relationships. Your spouse, children, parents, and siblings may all have claims, in a specific order set by statute.

Intestacy can produce results you would never have chosen. An unmarried partner receives nothing. A child from a prior relationship may receive a share that conflicts with your intentions. And if you have minor children, a court — not you — will decide who raises them.

A trust is a legal arrangement in which one person (the trustee) holds and manages assets for the benefit of another (the beneficiary). The person who creates the trust is called the grantor or settlor. In many living trusts, the grantor, trustee, and beneficiary are initially the same person.

Trusts can serve many purposes: avoiding probate, managing assets for minor children or beneficiaries with special needs, reducing estate taxes, protecting assets from creditors, or simply providing more detailed control over how and when assets are distributed.

A revocable living trust is created during your lifetime and can be changed or revoked at any time while you are alive and competent. You typically serve as your own trustee and retain full control of the assets in the trust. When you die, a successor trustee takes over and distributes the assets according to the trust's terms — without going through probate.

The primary advantage of a revocable living trust is probate avoidance. Assets held in the trust pass directly to beneficiaries, which can save time, reduce costs, and keep your affairs private. A revocable trust does not, however, protect assets from creditors during your lifetime or reduce estate taxes on its own.

If you have minor children, a trust is often the best way to manage assets you leave for them. Without a trust, a court-supervised conservatorship may be required to hold and manage assets until the child turns 18 — at which point they receive everything outright, regardless of maturity.

A trust lets you specify the age or conditions under which your children receive their inheritance, name a trustee you trust to manage the funds responsibly, and provide guidance on how the money should be used — for education, health care, housing, and other needs.

An estate plan is not a one-time task. Major life events — marriage, divorce, the birth of a child, the death of a beneficiary or named executor, a significant change in assets, or a move to a new state — can all affect whether your existing documents still reflect your wishes. Reviewing your plan every few years and after major life changes is good practice.