TAKE CARE OF YOUR ESTATE PLANNING
TO CREATE A POSITIVE LEGACY
At 360 Financial, we are here to help you with your big-picture planning and wealth management needs in Minnesota. Estate planning is a critical part of your big-picture plan.
As financial advisors, we guide our clients through their estate planning process by ensuring everything aligns with their big-picture plan. It’s essential to work with a team that will guide you through the entire process when doing your estate planning,
Based in Minnesota, with clients across the United States, we specialize in helping successful people pursue their financial goals through our wealth management, financial planning, and estate planning services.
HOW YOUR FINANCIAL ADVISOR SHOULD HELP WITH ESTATE PLANNING
Your financial advisor can help you navigate many critical elements of planning, including estate planning. One of the ways your financial advisor can help is by educating you on the essential documents that everyone should have drafted, such as wills, health care directives, and powers of attorney.
Your financial advisor can also help educate you on trusts and their pros and cons, although they can’t provide legal advice. Your financial advisor should work directly with your attorney to make sure that your beneficiaries and assets are titled correctly in alignment with your estate plan.
Finally, as your life changes and needs evolve, your financial advisor should help you determine when it may be necessary to reach out to your attorney to update your estate plan.
HOW TO CHOOSE AN ESTATE PLANNING ATTORNEY
Choosing an estate planning attorney is a critical step in the process. And like every profession, skills and specializations may vary dramatically from one attorney to the next. As with anything, referrals are a great way to narrow your search, but credentials are also necessary.
You will want to ensure the attorney you choose specializes in estate planning and has sufficient experience. Additionally, attorneys that work as a team can be beneficial as there are other attorneys with whom they can discuss the best strategy in a given scenario. Especially when a situation is more complex or less common, working with a team of attorneys may be best.
Finally, your financial advisor likely has a network of recommended attorneys for clients and can provide guidance and client feedback on their experience with a particular attorney.
How to Put Together Your Estate Planning Team
Your estate planning “team” should typically include your estate planning attorney, your CPA/tax advisor, your insurance agent, and your financial advisor. An estate planning checklist will include your will, beneficiary designations, medical power of attorney, financial power of attorney, identification documents, titles and property deeds, digital assets, and funeral plans.
ESTATE PLANNING IN MINNESOTA
It is essential to know that Minnesota has a $3 million estate exemption before your estate is taxable at the state level. Also, it’s important to understand that the exemption amount is not portable between husband and wife. Either you use your exemption, or you don’t, but your spouse will not be able to use your unused exemption amount like they can on the federal level.
In addition, Minnesota does not have a gift law, which means you can gift an unlimited amount of assets (unlike at the federal level). However, there is a three-year lookback rule for lifetime gifts, which means you can’t just gift all your assets on your deathbed, and these assets would be treated as though you still owned them.
However, it is essential to know that gifted assets maintain their cost basis and do not receive the “step-up” in basis upon death. For example, if you gift a $400,000 family cabin that you purchased for $100,000 in 1990, there would be a $300,000 taxable gain (plus any appreciation or depreciation post-gift) when/if sold. Alternatively, passing this same cabin upon death would qualify it for a step-up in basis, so the receiving party would only have taxable gains upon sale if the value of the property were higher than the value on the day of death ($400,000 in this example).
Schedule a 15-minute Call
If you want to work with a financial planning team that cares about your happiness and future, please schedule a call with one of 360 Financial’s planners. You can schedule a 15-minute introductory call to ask questions and find out how we can help you.
Schedule a 15-Minute Call27 YEARS OF FINANCIAL PLANNING AND WEALTH MANAGEMENT IN MINNESOTA
At 360 Financial, Your Big Picture Plan is Our Priority
The 360 Financial team includes seven advisors with more than 200 years of combined experience as wealth managers, financial advisors, and planners with CFP®’s (Certified Financial Planner™), MBA, CLTC, and fiduciary investment credentials.
The advisor team specializes in investment and asset management, cash and debt flow planning, college planning, risk management, insurance planning, estate planning, retirement and income planning, business planning, and tax strategies.
The 360 team also includes operations, IT, and marketing departments. The operations department assists clients and advisors with all service requests, including account opening, account funding, transfers, beneficiary updates, movement of money, 401(k)/qualified plan transfers, etc.
The IT department supports our secure and compliant data server, software, and all hardware technology to protect all information.
The marketing department supports and maintains the 360 experience, including communications, events, and community impact.
ESTATE PLANNING SERVICES
At 360 Financial, we aim to take care of every single client like they’re our family. But as an independent firm, we aim to offer services that the big-name firms don’t generally provide. We provide outstanding service and personalized big picture planning.
360 Financial’s Estate Planning Guidance Includes:
- Will Planning
- Tax and income tax strategy
- Updating significant life changes (marriage, death, divorce)
- Beneficiary designations and contingent beneficiary
- Insurance plan and retirement fund distributions
- Disability/Long-term care
Organization and Review:
- Personal Wills
- Healthcare Representatives
- Financial Power of Attorney
- Medical Power of Attorney
- Joint meetings with your attorney
Organization (but not limited to):
- Birth certificates
- Social security cards
- Marriage, divorce, and death certificates
- Beneficiary designations and contingent beneficiary
- Titles to property, etc.
Digital Assets Location Checklist (such as, but not limited to):
- Social media accounts
- Emails
- Digital files
- Online access websites, etc.
These items are organized into one LifeWealth organizer for you to keep in a safe location and reviewed annually.
360 Financial’s Wealth Management and Financial Planning Services Include:
- Meaning-of-life questions on life goals, money, and values alignment
- Comprehensive & long-range wealth management & financial planning
- Education planning & funding (college planning)
- Estate & estate tax planning
- Generational wealth
- Investment advice & management
- Philanthropic planning & charitable giving
- Retirement goals & planning
- Risk management
- Specialist referrals
- Tax planning & strategies
*You are under no obligation to use the services of any of the outside professionals referred, and may choose any qualified professional to provide services. These entities and their services are not affiliated with LPL Financial and 360 Financial.
COMMON QUESTIONS
While we’re not attorneys here at 360 Financial, we can give you some brief guidance on these common questions.
Can I do my own estate planning?
Yes, many people do their own estate planning. Unfortunately, these good intentions can end up with disastrous results, including time delays in settling the estate, family in-fighting over the estate, costs, and potentially taxes. Therefore, given the complexities, nuances, sensitivity, and ever-changing laws, we suggest professional help. A qualified attorney has been through many scenarios, dealt with multiple personalities, and had the expertise and experience to provide real-life success and pitfalls learned by going through the process and can help guide you. They will also be able to draft documents needed to facilitate the process. Additionally, a qualified wealth advisor can provide guidance and analysis and work with your attorney to structure a plan to meet your wishes in alignment with your bigger picture life goals.
How long does probate take in Minnesota?
Settling an estate in Minnesota will depend on several factors. Some of those factors include the location of the parties, number of beneficiaries, complexity of assets, will or no will, trust or no trust, and if there are contested decisions. Simple estates can be resolved in 3 months, whereas complex estates may take 18 months or longer. A good rule of thumb is to expect the probate process to take 12 months.
How do you avoid probate in Minnesota?
According to the Minnesota Attorney General, if your estate is worth $75,000 or less, your heirs may be able to collect the property without going to court by using an Affidavit for Collection of Personal Property, avoiding probate. Additionally, taking steps to title assets as payable on death, jointly-held, or in the name of a trust may help limit the assets in your individual name and subject to probate. For example, titling your home, family cabin, individual investment assets, and savings in the name of trust may help to facilitate the transfer of assets upon death and avoid or simplify the probate process.
Does an estate have to go through probate in Minnesota?
According to the Minnesota Attorney General, if your estate is worth more than $75,000, your heirs must go through probate. However, taking steps to title assets as payable on death, jointly-held, or in the name of a trust may help limit the assets in your individual name and subject to probate. For example, titling your home, family cabin, individual investment assets, and savings in the name of trust may help to facilitate the transfer of assets upon death and avoid or simplify the probate process.
What is the threshold for probate in Minnesota?
An estate worth $75,000 or more (including real estate).2
What triggers probate in Minnesota?
Probate is the legal process of settling your estate in court after you die. Your personal representative is responsible for starting the process by filing an application with the probate court. If you have no will or did not name a personal representative, the court will appoint one for you.
Do you need a lawyer to make a will in Minnesota?
No. A person making a will must be a legal adult aged 18 or older and of sound mind to execute a valid will. Additionally, three requirements must be met; 1) the will must be in writing, 2) the will must be signed, and 3) the will must be witnessed (by two witnesses). It is essential to know that in Minnesota, a will to be in writing means a typed or printed will. Handwritten wills are generally not considered valid under Minnesota law. Although you do not need an attorney to make a will in Minnesota, we suggest working with a professional to ensure you do it right and your wishes are met. A will represents your final legacy, and it’s worth the value of hiring an attorney’s expertise to carry out these last wishes.
How is an estate divided without a will in Minnesota?
If you die without a will in Minnesota, your estate will be divided by the laws of intestate succession. According to the laws of intestate succession, there are multiple ways depending on personal situation of how assets may be divided. Factors include if you are married or not married, if you have children or no children, or if you are married and your spouse has children from a different relationship.
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WHERE TO FIND 360 FINANCIAL IN MINNESOTA
At 360 Financial, we work with clients throughout Minnesota and the USA. While we’re based in Wayzata, just outside of Minneapolis. However, we also love working with business owners and other successful entrepreneurs who may be living a location-free lifestyle or are out of state.
Directions and Map to 360 Financial
BASIC ESTATE PLANNING FACTS
Regardless of your net worth, everyone should have an estate plan. Typically, this should include a will, health care directive, and power of attorney. The estate plan may also include various trusts. You’ll want to make sure your assets are titled correctly and beneficiaries are in alignment with your wishes.
An estate plan will ensure your wishes are met and go a long way to maintaining family harmony in the long term. It would be best if you detailed your wishes in writing instead of having your heirs battle it in court.
It’s common to see families pulled apart by poorly constructed estate plans, including the ones that say “it will never happen to us.” One of the most significant pieces of advice we can provide is to make sure everyone in the family knows the plan and why. This information allows you to explain your thinking and rationale and put everything on the table so your family can ask questions and you can answer them. This knowledge will support your incredible legacy and allow you the best chance at maintaining family harmony.
Schedule a 15-minute Call
Click here to schedule an introductory call with one of 360 Financial’s advisors.
Find out how we can help you with your financial goals.
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