A Sto n e A r c h Law O f f i c e P u b l i c at i o n

T h r ow
Away
yo u r
Will
a n d Avo i d t h e
P r o b at e T r ap :
R e vo c a b l e
T r u sts f o r
Fa m i ly E stat e
Planning

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T h r ow Away yo u r W i l l a n d Avo i d t h e P r o b at e T r ap : R e vo c a b l e T r u sts f o r Fa m i ly E stat e P l a n n i n g

Thank you for opening this book!

Ta b l e o f Co n t e n ts
We at Stone Arch Law Office work
to provide security for families I . I n t r o d u c t i o n : W h at i s e stat e p l a n n i n g? . . . . . . 2
who want to ensure their loved
II . W h at i s P r o b at e ? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
ones are cared-for. We took
III . W h y d o E stat e P l a n s Hav e to G o
careful consideration when we
T h r o u g h P r o b at e ?...............................................10
wrote this; we hope it is a useful
guide to help you understand your IV. W h at i s a T r u st ? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 4

estate planning options. If you V. W h at i s a R e vo c a b l e T r u st ? . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 6

have questions after you read this VI . S o w h y h av e a R e vo c a b l e T r u st ? . . . . . . . . . . . . . . . . . . 2 0
or would like to schedule a free
VII . R e vo c a b l e T r u sts v. W i l l s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2
phone call consultation, please
VIII . A n A lt e r n at i v e f o r C e r ta i n C l i e n ts :
don’t hesitate to contact us
T r a n s f e r o n D e at h D e e d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
online at StoneArchLaw.com
I X . W h o S h o u l d Hav e a R e vo c a b l e T r u st ? . . . . . . . . 2 6
or by phone at 612.345.7496.
X . W h at ’ s N e xt ? T h e Sto n e A r c h Law
O f f i c e P r o c e s s ...................................................30
X I . W e a r e H e r e to H e l p ! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
© Bobeedy Photography

Disclaimer: This publication is not legal advice. This publication makes statements in general
terms which may not apply to your specific situation; to obtain legal advice, you should
contact a qualified attorney who can work with you through your own unique circumstances.

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 [I]
WHAT IS ESTATE PLANNING?
When people think of estate planning, they often think of a long,
intimidating meeting with a stodgy lawyer who will grimly place
their final wishes on paper, to be carried out by the same stodgy
attorney during a mysterious “reading of the will” ceremony in
a book- and mahogany-lined office while narrating the wishes
of the dearly departed. While there may be a grain of truth in this
old-timey, ceremonious drafting of planning documents, fortunately,
times have changed.

The planning process should involve an attorney who specializes

in estate planning, but today’s estate planning process is more likely
to focus on family and life values as well as how to minimize (or at
least control) the administrative work involved in making sure your
© Bobeedy Photography

wishes and values are realized.

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 And perhaps the biggest question of all, if I were to die, how can
I make sure these wishes are carried out quickly, with minimum
expense­—and privately—within my family?

The questions can be endless. Fortunately, a skilled attorney will

guide you through everything you need to know for your particular
situation. This publication covers one important aspect of your plan
in particular: Should you worry about skipping probate, and if so,
what is the best way to do that?

© Bobeedy Photography
Estate planning is the process of taking your thoughts and values and

© Bobeedy Photography
combining them into a plan that ensures the right property goes to
the right people, the right way, at the right time. There is no “correct”
way to distribute your property, but there are certainly wrong ways
and certain things you need to take into consideration. For example,
is the person or persons to whom you are leaving your inheritance
E stat e p l a n n i n g i s t h e p r o c e s s o f ta k i n g
(a child, a sibling) responsible enough to manage wealth without yo u r t h o u g h ts a n d va lu e s a n d co m b i n i n g
assistance? By the way, minor children (or grandchildren, nieces, t h e m i n to a p l a n t h at e n s u r e s t h e right
nephews, etc.) should never receive property outright; it should property goes to the right people, the
almost always be held in a trust (more on this later) for their benefit. right way, at t h e r i g h t t i m e .

Is a beneficiary at risk of being taken advantage of by scammers, or

perhaps worse, unsavory family members? Are there tax implications
in giving someone a gift? What happens if one of the people you are
giving money to gets divorced or sued? Who should be in charge
of the whole thing? Who should be a backup in that person does not
want to be in charge?
© Philip Reinhardt

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 [II]
WHAT IS PROBATE?
Probate is the administrative court proceeding that protects the
rights of a person who has died as well as the rights of that person’s
family and heirs during the distribution of the estate. Depending on
the debts, assets, and family members of the person who died, the
court will apply varying levels of supervision to ensure that rules are
followed and rights are protected.

If a person dies without any estate planning documents such as a

Will, the court will use Minnesota’s back-up rules­—called the intestacy
statutes—to administer the estate. If a person creates and properly
executes a Will before they die, the court will instead use the Will
document to administer the estate. A Will document controls probate
and has the ability to overwrite many of the “default” rules. There is
often a misconception that a Will avoids probate; it does not. But it
does cause probate to happen using the rules you have created rather
than the rules created by the legislature.

You may have heard family or friends mention the nightmare that
is the probate court system. It conjures up images of sky-high court
costs, incredible attorney fees, creditor fights and family disagreements,
estranged children knocking on the door and long-lost cousins
holding out their hands for a piece of the estate.

Again, there is a grain of truth in these discussions; the probate court

P r o b at e i s t h e a d m i n i st r at i v e co u r t p r o c e e d i n g
system is state-specific, and is treated differently in every state in the
t h at p r ot e c ts t h e r i g h ts o f a p e r s o n w h o h a s
© Cara Lemmage Photographs

country. Some states have fees that are governed by statute or have
d i e d a s w e l l a s t h e r i g h ts o f t h at p e r s o n ’ s fa m i ly
a n d h e i r s d u r i n g t h e d i st r i b u t i o n o f t h e e stat e . more aggressive administrative requirements, so probate proceedings
in certain states (such as California, New York, or Florida) can cost
tens of thousands of dollars.
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a W i l l i s l i t e r a l ly a co u r t d o c u m e n t
p r e pa r e d i n a dva n c e — h o p e f u l ly
w e l l i n a dva n c e ! — o f d e at h .
Fortunately, Minnesota’s probate system is not the nightmare
that you may find elsewhere in the country, but that does
not necessarily mean it is easy. A straight-forward “informal”
probate proceeding in Minnesota will still typically cost thousands
of dollars in legal, court and administrative fees. If it’s a small
estate with just one beneficiary, it could cost a few thousand
dollars, while a complex estate with multiple family members,
© Philip Reinhardt
real estate parcels, and business assets could cost tens of
thousands of dollars.
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Price aside, even a “simple” probate can be cumbersome, and often
those engaging in estate planning wish to minimize or altogether
eliminate the need for the process after they die. Along with the
expense:
• Probate is time consuming. Every county in Minnesota is different
and some are more efficient than others. But the personal
representative (“executor”) can’t do anything at all until he or she
is authorized to do so by the court system. Depending on the
estate and the county courts, this can take a long time. It is not
unusual for family members to continue to pay the bills and other
expenses for their parents’ home out-of-pocket while waiting
for this authorization to filter its way through the probate court
system. For some estates and some counties, this could take a
month. For others, it can take years.
• Probate is public. Our court system is a miracle of our free
government. One reason for this is its transparency; it is a publicly
accessible system. This applies to the probate court as well,
of course, and documents submitted to the court system are
available publicly. This includes all court documents, such as a
Will (a Will is literally a court document prepared in advance—
hopefully well in advance!—of death). Any family who is leaving
assets to young children, to those with substance abuse or other
concerns, or who wishes to keep their financial plans private
should have some concerns with
these details being made public.
[III]
Why does an estate have to go through probate?
Probate exists to protect the rights of the person who has died, as
well as to protect the rights of heirs and creditors of an estate. To help
illustrate this, let’s compare a Will to a contract. If there is a dispute
or disagreement with a contract, typically all of those who signed the
contract are available to argue on their own behalf, speak their point
of view, and hire their own attorney. With a Will of course, this is not
the case. The person who created the Will has died, leaving behind
people to be cared-for and property to be distributed, possibly with
bills to be paid and assets to sell.

Because the person who created the Will is not available to ensure
their wishes are carried out, someone must be appointed to do so on
their behalf. If there is no Will, then the default rules (the “intestacy
statutes”) are used to determine who should be in charge. If the
person who died has created a Will, then the Will “overwrites” the
intestacy statutes and the default rules are replaced with the rules
spelled out in the Will document. A personal representative (“executor”
or “PR”) can be chosen by the client, as well as a backup or two if that
person is unable to act. The PR is responsible for the payment of bills,
tracking down assets, signing documents, determining values of and
selling real estate or other property, and being the “voice” of the estate
during any disputes. Through this administrative process, the court will
supervise the payment of debts and distributions of property.
© Philip Reinhardt

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But not all estates have to go through probate; some estates do not
have enough property to warrant supervision by the court system or
otherwise are so straight-forward that no probate proceedings are
needed. Your estate must go through the probate process if:
1) You own real estate that is or will one day be owned individually.
2) You have personal property (cars, boats, bank accounts without
beneficiary designations) worth more than $75,000, in total.
3) Your Will document needs to be “proven” because of trusts or
charitable donations.
Let’s take a look at these three reasons more in detail.
You own real estate that is or will be owned individually. You may
own a home, rental property, or family cabin. If you are the sole
individual owner of your property (there are no joint owners and the
property is not owned by a company or a trust), then at your death,
the property must go to probate court in order to be retitled into the
name of your heirs or whomever is getting your property by intestacy
or by your Will document.
If you own property as a joint tenant, then at your death, the property
goes automatically to the surviving joint owner(s) and there is
no need for probate. Of course, eventually there will only be one
remaining owner alive . . . this person now owns the real estate as a
sole, individual owner, and this property will go through probate at
this person’s death.
You have personal property worth more than $75,000, in total.
Personal property (cars, boats, RVs, bank accounts that do not have
pay-on-death beneficiary designations added to them) is subject to
probate, but with an exception: If the total amount of the property
is less than $75,000, probate will not be needed. For example, if you
have a $20,000 bank account that does not have a pay-on-death
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beneficiary designation and a $25,000 car, you will not go through
probate due to personal property requirements, and your estate can
be collected with a “small estate affidavit” prepared by an attorney. If
you have a $50,000 car and a $50,000 bank account (or a $100,000
RV, or an $80,000 bank account, or any other combination of
personal property adding up to $75,000 or more), a probate will be
required for distribution of these assets.
Your Will document needs to be “proven.”
The word “probate” means “to prove.” Sometimes a Will document
must go through the probate process because there is some reason—
other than assets— that causes the Will to have to be “verified” as
being a true and valid document. Examples of this are when there are
notice requirements, such as those that must be given to the state
when a Will contains charitable gifts, or when a trust is created for a
minor or adult child, spouse, or other person. Trusts created by Will
documents, called testamentary trusts, are of course only effective if
the Will is valid; sometimes the probate court is needed to make sure
this is the case.
Fortunately, the public court system is not the only way to make
sure your family is cared-for. Instead of directing your assets towards
the court system for public administration, you can instead direct
your assets away from the public court system and towards a private
arrangement that can be administered within your family.
This arrangement is called a revocable trust.
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[IV]
What is a Trust?
A trust, by definition, is a fiduciary arrangement whereby one person
(a “trustee”) is able to hold property and manage it for the benefit
of another person (a “beneficiary”). The academics behind this
relationship can get pretty detailed, but for now, think of a trust as a
private entity that can hold property; that property must be managed
according to the rules you set out in a private written agreement
(the “trust agreement”), which must be followed by the trustee. If
the trustee does not follow these instructions, the beneficiary has
the right to force compliance through the court, and the trustee can
be personally liable.

Trusts are used for countless purposes. Some are used to manage
property for minor beneficiaries or beneficiaries who are vulnerable
due to poor judgment or substance abuse concerns. Some trusts are
used to minimize estate taxes, or to hold assets outside of an estate
to protect from creditors. Some trusts are used to care for aging
spouses and some are used to help a special needs child to receive
an inheritance without becoming disqualified from receiving public
medical and care benefits. Often, trusts are used simply to keep
private family matters private. Trust can be irrevocable or revocable;
read on to learn the difference!

A t r u st, by d e f i n i t i o n , i s a f i d u c i a ry a r r a n g e m e n t
w h e r e by o n e p e r s o n ( a “ t r u st e e ” ) i s a b l e to h o l d
property and manage it for the benefit of another
p e r s o n ( a “ b e n e f i c i a ry ”).
© Philip Reinhardt

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[V]
What is a Revocable Trust?
a r e vo c a b l e t r u st ’ s p r i m a ry u s e i s a s a will
replac e m ent . W h at e v e r yo u wo u l d h av e d o n e
i n yo u r W i l l , yo u c a n d o i n a r e vo c a b l e t r u st.

A good place to begin discussing what a revocable trust is, is to first

discuss what a revocable trust is not. A revocable trust is very different
than an irrevocable trust.

An irrevocable trust is just that . . . irrevocable. Once created, the

trust cannot be revoked or changed (though sometimes this can
be achieved with an order by a judge). The trust is its own separate
entity, has its own tax identification number, and files its own tax
returns. It is separate from your or anyone else’s estate, and is often
used to protect a child or spouse from creditors, certain types of
taxation, or from the beneficiary’s own poor judgment. Once property
is placed under the care of the trustee, the person who created the trust
permanently loses control of that property for their own purposes.
Irrevocable trusts are inflexible, expensive, and are only created for
very specific situations. They should only be created with the help
of an attorney who is highly familiar with Minnesota trust law.

A revocable trust is . . . revocable. It can be revoked and amended

at any time, just like a Will (and it generally costs about the same to
have an attorney amend a revocable trust as it would cost to amend
a Will document). In fact, a revocable trust’s primary use is as a will
replacement. Whatever you would
have done in your Will, you can do
in a revocable trust.
© Vitaliy Shmatchenko

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A revocable trust is:
• Amendable. Just like a Will document, a revocable trust can be
amended at any time. It is of course recommended that you do this
with an attorney and follow best practices for drafting and execution!

• Revocable. A revocable trust can be “cancelled” or terminated by

you at any time, just like a Will document. You can decide at any
time that you no longer wish to use the trust and you can tear up the
governing document (though this is generally not recommended).

• An “open” entity. You can put assets, such as real estate “in” a trust
any time you wish. You can also take the assets out at any time. This
happens most often with the family home; you might choose to
place your home in a trust so that it can be administered free of the
probate court. Many years later, when it comes time to downsize to
a condominium, you can freely sell the house “out” of the trust . . .
and then put your new condominium in it.
© Mon Bus UK
A revocable trust is not:
• A tax shelter. A revocable trust is a “pass-through” entity for tax
purposes. There are no tax advantages to placing property into
a revocable trust; any income “passes-through” the trust to your
own tax identification number. By the same token, there are no tax
disadvantages; your accountant does not need to know that you
have a revocable trust because it makes no differences for your taxes.

• A shelter from creditors. There is a misconception that if you

place all of your assets into a trust, you cannot be sued because
you don’t technically “own” your property anymore — the trust
owns it instead. This is not true. Remember, a revocable trust is an
“open” entity. You can add or remove property any time you wish;
so can the bankruptcy court. A revocable trust does not have any
effect on claims from nursing homes, long term care facilities, or
state-administered Medical Assistance claims.
© Jovan Mandic

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[VI]
So Why Have a Revocable Trust?
Your Will document controls the probate process. But that only
applies to assets that must go through probate; some assets get to
skip probate completely:
• Joint assets. If you own your home with a spouse or other person,
and that home is titled as “joint tenants,” then at the death of the
first owner the home will transfer to the joint owner (the “joint
tenant”) without the need for probate. Of course, now the home is
owned individually since one of the joint tenants has died. At the
death of the surviving joint tenant, a probate would be required to

© Rosario Manzo
re-title the home. The same concept applies to other joint assets,
such as bank accounts and cars.

• Beneficiary Designations. Most people today have at least one
account with a financial institution that is governed by a private
agreement. These private agreements generally allow for the
account owner to designate a pay-on-death (POD) beneficiary; at
the death of the account owner, the private agreement states that
the funds will be distributed to the POD beneficiary directly. There
is likely some paperwork involved, but POD accounts governed
by a private agreement will skip the probate process completely,
assuming the funds are being distributed to an adult with the
capacity to make their own financial decisions. An example of this
is life insurance; at the death of the insured, the (competent, adult)
beneficiary of the policy will complete some paperwork and send
it to the life insurance company. The proceeds of the policy will
be paid directly to the beneficiary. No probate, no lawyers. Private
agreements skip probate.
That is worth repeating: Private agreements skip probate. So, what
if you could place all of your assets under a private agreement . . .
wouldn’t all those assets be controlled by the private agreement, and
skip the entire probate process?
Yes!
Think of a revocable trust as a “Ziplock” bag. While you are alive, the
trust is “open.” You can put things in it and take things out any time
you wish. You can amend it or revoke it. But at death, the “bag” zips
shut and now it is an irrevocable trust. It can’t be changed, it can’t be
revoked; the only way to get assets out of it is to follow the private
agreement that governs the trust. By ensuring that your assets end
up in the revocable trust— a private entity — you also ensure that the
assets are governed by the private agreement that governs the trust
— the trust document.

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[VII]
Revocable Trusts versus Wills.
The administrative work does not necessary end with the signing
of the documents; remember, a revocable trust only controls the
things that end up in it. If you want to skip probate, then the assets
that are subject to the probate court, such as real estate, must be
So, the primary advantage of a revocable trust is that it causes the
owned or otherwise directed into the trust. If you create a trust but
assets held within it to skip the probate process. A less expensive,
don’t put your house in the trust, your estate will still have to go
more private, and faster administration of an estate is often very
through probate. This also applies to assets you acquire in the future;
desirable, and many (if not most) families have this as a primary goal
it is a common mistake for people with a revocable trust to sell their
of their estate plan. That said, revocable trusts are not always the
home and buy a new one, then fail to place the new property in the
perfect answer. Which is better for you, a revocable trust or a Will plan?
trust. Your property, including the property you buy or inherit in the
A Will-based estate plan, as a rule, requires less administrative work up future, needs to be added to the trust if you wish to avoid probate.
front. Assets do not need to be retitled, fewer beneficiary designations There are ongoing administrative requirements of a revocable trust
may need to be updated, and any legal advice associated with the that you do not necessarily find with a Will-based estate plan.
drafting of the document is likely to be less involved. Real estate
Generally speaking, an estate plan that uses a Will document is:
does not need to be directed into a trust, and it doesn’t matter how
• Simpler to create;
many businesses or homes a person owns; the estate will eventually
• Less expensive up-front;
end up in probate regardless, so there is no need to be proactive in
• Simpler to administer during life.
redirecting the flow of assets at death. From a lifetime administrative
perspective, Will plans are often easier. Of course, as we have seen, the after-death benefits of a revocable
trust plan may outweigh these initial benefits of a Will-based plan.
For this reason, Will-based estate plans are typically less expensive
to create than a revocable trust-based plan. Less time spent drafting
documents and directing assets means attorney costs are lower. Of
course, the fees for the eventual probate administration will likely
more than make up this difference, but it is no small thing to have
to write a larger “lawyer check” up-front.

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[VIII]
An Alternative for Certain Clients:
get along well. For this reason, for a gift of property to three or four
adult children, a transfer on death deed is almost never the solution.

In addition, a transfer on death deed is not the appropriate tool when

giving assets to minors or when there are contingencies that a person
Transfer on Death Deeds
wishes to place on ownership of the property (granting a right of
There is another alternative that we haven’t discussed yet: a Transfer
first refusal, creating age requirements for the use of ownership of
on Death Deed. Occasionally, a family will have an estate plan that
property, placing timelines or other conditions on the sale).
is so straight-forward that a revocable trust plan may be overkill. For
estate plans that give all assets to a spouse, and then at the death of Transfer on death deeds may be appropriate when:
the spouse (or when there is no spouse), directly to one or two adult • The estate plan is very straight forward and
children who are responsible, get along, and have great heads on their • There are no estate tax concerns and
shoulders, there is another option: a transfer on death deed. • There are only one or two adult children and
• If married, the children’s marriages are stable and
A transfer on death deed is, literally, a pay on death designation for
• The adult children get along very well and
your house. A special deed is prepared and properly recorded with
• There is no desire to create “backups” if something happens
the proper county that says, at the death of the owners of the home,
to one child and
the home will transfer to an individual or entity directly, probate-free.
• There are no concerns with adult children handling the proceeds
Transfer on death deeds are inexpensive to create and can be useful
of the home responsibly and
for families who have very simple estates.
• There are no concerns with coordinating multiple signatures
A word of caution: a transfer on death deed should only be used for the sale of the home and
when the recipients of the home get along. A house is not a liquid • There are no contingencies or conditions for ownership.
asset, so unlike a cash account or retirement account, it can’t be
Under any other circumstances, a transfer on death deed is not
divided fifty-fifty to a couple of adult children. The individuals who
appropriate. If a transfer on death deed is used, it should be created
receive the property at the death of the owners will have to agree
as a supplement to a Will, with the usual appropriate attention given
on how to use it, whether to sell it and for how much, how to pay for
to other concerns, such as incapacity planning (health care directives,
the maintenance and upkeep while a sale is pending, etc. Not only
powers of attorney, etc.). If there are virtually any complexities in the
that; in Minnesota, the spouse of a property owner must also sign off
estate, then you should either consider a well-drafted Will plan that
on the sales paperwork. This means that if a family gives a home, via
can be administered by probate, or a revocable trust plan that can
transfer on death deed, to their two adult children, four signatures
be administered probate-free.
(both children and their spouses) are required to sell the property.
Administratively, this is very often challenging — even for families that
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[IX]
Who Should Have a Revocable Trust?
Part of a successful estate plan is ensuring the plan you have is
appropriate for your family. Revocable trusts are sometimes sold
to the unwary as being a “one-size-fits-all” plan for all families in
all situations. In reality, this is just not the case; there are instances
when a revocable trust is “overkill” and a Will plan would be more

© Iakov Filimonov
appropriate. So, when is a revocable trust plan better than a Will plan?

There is no single reason why a revocable trust may be the better

option. Remember, a Will plan and a revocable trust plan ultimately
will do the same thing —
­ the Will accomplishes your goals by
controlling the probate process, a revocable trust accomplishes your
goals without the need for probate. There are, however, key reasons
why skipping probate may be desirable.
Your Family has Three or More Children. Remember from earlier
when we talked about transfer on death deeds? Transfer on death
deeds allow your home to skip probate and to pass directly to the
individuals you choose. This works well when you are giving the
home to one or two people in a very straight-forward manner. If you
are giving your estate to more than two people (such as when you
have more than two children or when your estate is going to multiple
beneficiaries, such as friends or other family members), then a transfer
on death deed is not the right tool for those wishing to avoid probate.
A revocable trust should be used instead.
Your children (or other heirs) will receive money in a testamentary
trust. When a Will document creates a trust for minor or adult
children, for a spouse, for estate tax management, or for any other
reason, the probate court must validate (“prove”) the Will. If you wish
to have your money or property managed for someone in a trust,
and if you create that trust in your Will document, then probate will
be required. A revocable trust estate plan can create these same
conditions, probate-free.
You have multiple parcels of real estate. It’s probably common
sense that the more property you have, the more work it will take
to administer that property. Multiple parcels of real estate (homes,
cabins, condos, vacation homes, timeshares, rental properties) will
require more work to inspect, appraise, negotiate, sell, or otherwise
divide among family members. Doing this privately with a revocable
trust will be simpler than doing this work under the supervision
of the probate court system.

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You have real estate in multiple states. Probate is state-specific;
if you have a home in Minnesota, it will require a Minnesota probate
proceeding to re-title it (using the directions you provide in your Will
document). If you also have a cabin in Wisconsin, a second probate
will be required, using the Wisconsin probate system. These multiple
probates can really add up! Consider someone who also has a Florida
retirement home or a North Carolina timeshare; by consolidating
ownership into one revocable trust, probate in all states can be avoided.
Your property is going to many different people. You may not have
children, or you may be leaving money to people in addition to your
kids, such as grandchildren, nieces and nephews, or siblings. The more
people there are in your estate plan, the more administrative work
will be required to ensure your property is divided as it should be.
Not only that, financial institutions may not allow you to name more
than four or five people as pay-on-death beneficiaries. Instead, your
revocable trust can generally be named as receiving these assets at
death. Assets will then be divided among as many people as you wish,
under the directions provided in the trust document.
You have complex family relationships. How much information
about your family do you wish to be made public through the court
system? The distribution of wealth among children who do not get
along, the disinheritance of a family member, the nature and unequal
distributions to members of a blended family, the terms of a trust
created for a young or adult child . . . sometimes keeping family
matters within the family is the preferred choice.
You have charitable beneficiaries. Oftentimes a person will wish to
give a gift to their place of worship or other charity in their Will. Every
Minnesota county is different, but if you create a Will plan that gives
money to a charity, the state of Minnesota will often require notice of
28
this gift. This requires a probate proceeding; not only that, but some
counties require a formal probate proceeding which may require
multiple court hearings. This increases the cost of the probate process
substantially. Estate plans that give gifts to charities should consider
using a revocable trust instead of a Will document.
You have special needs children. Special Needs Trusts are beyond
the scope of this publication, but it is important to understand that for
children who receive needs-based public benefits due to a disability,
receiving an inheritance may disqualify that child from receiving
further benefits. The inheritance will then be spent on care, only to
have the child end up back on public benefits. Oftentimes this means
the inheritance money was used to pay for things that would have
been paid for anyway. Fortunately, there are special trusts that can be
created to shield a special needs child’s inheritance from disqualifying
the child from needs-based public benefits. A gift via Will to one of
these trusts — like all gifts that are given using Wills — becomes public
knowledge through the public probate court system. Many families
wish to keep gifts to their special needs child as a private family
matter, funding the Special Needs Trust privately with a revocable
trust estate plan.
You have any other desire for privacy, efficiency, and potential
cost savings. There are certainly families who fall into the category
of “none of the above!” Revocable trust planning avoids much of the
cost, time, and public administration
associated with the probate court
system. This can be important to any
family who is creating an estate plan.
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[X]
What’s Next? The Stone Arch Law Office Process
Step Two: Discuss Your Options
During your initial meeting, your attorney will provide education on
the estate planning tools available to you in a way that is visual and
easy to understand. You’ll discuss who should benefit from the gifts
Setting up the right estate plan for you and your family requires
you leave from your estate, how they will benefit, and when. Estate
the help of an attorney with the right mix of experience, efficiency,
planning is all about making sure the right people get the right things,
organization, and empathy. We help families ensure their loved-ones
in the right way, at the right time.
are cared for. And to make it as easy as possible, we have created
an easy, step-by-step process to walk you through these important At the end of this meeting, you and your attorney will reserve a time
decisions: to review your documents together over the phone. You’ll receive an
email or letter confirming this phone call date and time, highlighting
Step One: Set a Meeting With Your Attorney
where we are in the process, and reminding you of any open items
Contact our office to set up a FREE initial phone call, during which
that your attorney needs for your plan.
we’ll answer your questions about our process and go over a couple
of cost options based on your unique family situation. Together, we’ll
schedule a day and time to meet face-to-face, and once that date is
determined, you will receive a confirmation email or letter with the
date, time, and address of our office. To help you prepare for our
meeting, the confirmation email or letter will include a copy of our
estate planning questionnaire. Please do the absolute best you can to
complete this questionnaire. It is mostly concerned about the people
that are close to you as well as your important decision makers. It
also has some questions about assets, which can be covered more in
the meeting. If you get stuck, your attorney can talk through it at the
meeting, but the more of this document you can complete, the more
you’ll be able to talk about the things that are important to you during
your planning meeting.
© Philip Reinhardt

30 31
Step Three: Your Attorney Drafts the Documents
Your attorney will take your plan and get it on paper. This process can
take one- to two weeks, depending on the complexity of your plan
and other scheduling matters. Once on paper, your attorney will send
it to you via email or US Mail. Please note: reading legal documents
can feel intimidating and overwhelming; we will start by sending you
just the “highlights” of your plan – not your full estate plan. That is, the
specific pages to review in preparation for your review call. After you

© Wavebreak Media
review these highlights with your attorney during your phone call, you
can certainly request full copies of your documents. You will receive
your full documents at the final signing meeting, of course.

Step Four: You Review your Documents With Your Attorney
Your attorney will conference together you, your spouse, or others
you wish to have present during your review call. The purpose of this
call is to re-review the over-arching goals of the plan and how you
will accomplish these goals. If you have changes to make or you have
changed your mind about who gets what or how much you are giving
to a person or charity, let your attorney know so your documents can
be updated; most changes are covered by our flat-fee pricing. Once
you are comfortable with what your documents say and what they do,
we will work with you to
find a time that works to
sign, notarize, and witness
your documents.
© Ranta Studio
Step Five: Signing the Documents
Just bring yourself, we’ll provide the rest. Your attorney will walk you
through the signing of your documents. We’ll provide the notary and
legal witnesses as necessary and we’ll answer any lingering questions
or follow-up with you on anything that is missing or that needs
additional research, if needed. If you wish, we will scan your original
signed documents to your client file before you leave, so you always
have a back-up. We will give you a three-ring binder containing your
original documents; please keep these in a safe place, either the
drawer where you keep important real estate or insurance papers
(this is where everyone will look first for your plan!) or a fire safe
or safe deposit box (as long as the safe deposit box has a backup
authorized signer . . . otherwise we may have to go through probate
just to get in the safe deposit box!)

32 33
 a pay-on-death beneficiary. You will be responsible for taking the
language provided by your attorney for these accounts to the account
servicer to update your pay-on-death beneficiaries. If the paperwork
is confusing or does not seem to allow you to name your trust, please
follow up with Stone Arch Law Office. Reasonable follow-up for any
titling issues is generally included in your fee. We want your plan to
work for you and are here to help you.

© Evgeny Atamanenko

© Nana Studio
Step Six: Funding your Trust
This is, arguably, the most important step. Remember: your revocable The Stone Arch Process:
trust only controls the things that end up in it. You will complete any
1. Call Stone Arch
Minnesota real estate deeds with your attorney at the signing meeting
2. Meet with attorney. Get questions
and these will be filed on your behalf. If you have property outside
answered and information
of Minnesota, your attorney at Stone Arch Law Office will happily
3. Attorney drafts document;
follow up with your preferred attorney in another state to ensure that
sends you the highlights
attorney has the information they need to complete a real estate deed
in that state. All real estate needs to be deeded in a manner that will 4. Phone call with attorney to

ensure it ends up in the trust. review highlights and what the

comprehensive plan will look like
During the signing meeting, your attorney will show you how to list
5. Signing meeting
cash accounts, bank accounts, brokerage accounts, life insurance,
6. Funding Your Plan
and retirement accounts in a way that will coordinate them with your
estate plan. Some of these accounts will need to name the trust as

34 35
[XI]
We Are Here to Help, Please Call Now!
We bring security to families and make difficult things easier. Call
us today and we’ll schedule a short FREE phone call with an attorney
to answer your questions and give you some cost options. Every
family is different and so is every estate plan. We would love to
help you with yours.

Call 612.345.7498 or visit StoneArchLaw.com to get started

or for more information. We are
committed to responding to your
message within eight business
hours, Monday through Friday.

Did you enjoy this book? Please

leave Stone Arch Law Office a Five
Star review on Google! We would
love to meet more people like you.

A publication of
Stone Arch Law Office, PLLC
© Iakov Filimonov

612.345.7496
StoneArchLaw.com

Copyright 2020

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 A Sto n e A r c h Law O f f i c e P u b l i c at i o n

CONTACT US
PHONE:
612-345-7496
ONLINE:
STONEARCHLAW.COM
HOURS:
Monday - Friday
8 am - 5 pm

STONE ARCH LAW OFFICE brings security to families and makes

difficult things easier. We are a Minnesota law firm with expertise
in trust, wills, estate planning, and trust and estate administration.
We help families ensure their loved-ones are cared for.

StoneArchLaw.com
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