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Estate Planning

Newsworthy Category

Estate Taxes Still an Issue

With the federal estate tax beginning for estates in excess of $5.4 million, most families no longer concern themselves with avoiding the imposition of this tax.  However, Minnesota residences or non-residences with Minnesota property still face Minnesota taxes for estates that exceed $1.6 million.  Do not assume that estate planning is no longer necessary simply because of the size of the federal exemption. There are a number of planning opportunities for families to avoid or minimize Minnesota estate tax. For more information on Estate Taxes and Estate Planning, contact Steve Fink at Farrish Johnson Law Office. This webpage contains general...
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Changes to Medical Assistance Recovery

In 1967, Minnesota instituted a medical assistance (MA) estate recovery program.  The program authorized counties to recover the cost paid for MA services received by a deceased person.  In June of 2016, new legislation was passed which limits the number of MA services that can be recovered by the counties. The new legislation limits the number of MA services which are recoverable against an estate if the decedent received MA services on or after January 1, 2014. Specifically, recovery is limited to cost of Long Term Care (LTC) that a decedent received from January 1, 2014 to the present. LTC...
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Estate Planning–Revocable Trusts

A revocable living trust allows the maker of the trust (Settlor) to make changes to the trust during his or her lifetime.  A revocable trust usually directs the trustee to pay all income to the Settlor for life and pay the trust assets to the main person after the Settlor’s death.  Revocable living trusts often avoid a lengthy probate process but they don’t necessarily shelter assets from federal or state taxes. If you have a revocable living trust which holds title to your home, care must be taken to check with your county tax department to make sure you are...
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Estate Planning–Not Just for the Wealthy

Prince’s death is now being overshadowed by his apparent lack of a will.  Prince’s sister filed a Petition for the Appointment of Special Administrator for the artist’s estate stating she had no knowledge of a will and no reason to believe Prince had one. The absence of estate planning means Prince’s estate could be embroiled in legal disputes for years to come.  Proper estate planning not only minimizes tax liability, but also ensures the decedent’s wishes are carried out. Having a proper will and estate plan determines what will happen with your assets and property when you die and planning for tax...
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