Will vs Trust in Minnesota: Which Do I Need?
- Mitch Zweber
- Oct 2
- 16 min read
Updated: 24 hours ago
What’s the difference between a will vs. trust in Minnesota?
A will does not avoid probate. This matters because probate in Minnesota is public. A trust, on the other hand, can keep your affairs private and avoid probate. A trust clearly outlines who gets what, who’s in charge, and who steps in if needed.
A trust offers privacy and greater control. Not everyone needs a trust, but everyone needs a will.
Mike Zweber is a financial professional focusing on portfolio management, retirement planning, estate planning, and goal funding. His approach to financial planning is holistic, addressing each client's needs, goals, and aspirations to build an individualized plan to pursue financial success. He believes in educating clients to empower them to make confident financial decisions.
Everyone Needs a Will, But You May Not Need a Trust
Choosing between a will vs trust in Minnesota can be confusing, especially if you're new to estate planning.
Both legal tools are useful, but serve very different purposes.
A will is a legal document that outlines how your assets should be distributed after your death. A will also allows you to name guardians for minor children. Meanwhile, a trust can take effect during your lifetime. A trust can avoid probate, provide privacy, and offer more control over how and when your assets are distributed. Some trusts can also provide tax benefits.
For many people, a will is enough. While for others, a will and trust may be the better option. For those with a complex mix of assets or a blended family, a will and trust may be preferable.
To be clear: a will is still essential.
At the very least, everyone should have a will that clearly states their intentions, beneficiaries on their accounts, a healthcare directive, and a power of attorney (POA). You don’t need a complex estate to need these documents. A trust may or may not be necessary, but a will provides a foundation for your estate plan and ensures your wishes are legally recognized.
The key is having the right documents in place so the people you trust can act on your behalf.
This post covers the most common (and critical) questions Minnesotans have when preparing their estates. But it's not a substitute for working with a professional. (Particularly if you have a complex estate or a blended family.)
Table of Contents
Key Points
A will does not avoid probate.
Probate is public, which is why some people choose a trust for privacy.
Even with a simple estate, you need a will to state your intentions clearly.
Estate planning is more than just a will or a trust. At a minimum, you need named beneficiaries, a will, a healthcare directive, and a power of attorney.
Trusts are more complex and expensive, and only worth it in certain situations.
Irrevocable trusts can reduce estate taxes.
Special needs trusts ensure long-term care for dependents.
Laws vary by state, so it’s critical to work with someone familiar with Minnesota rules.
Wills and trusts are not “set it and forget it,” and should be reviewed annually.
Attorneys handle the legal drafting of wills and trusts while financial advisors help with planning, positioning assets, and integrating tax strategy and insurance.
Who Needs a Will in Minnesota?
Every adult in Minnesota should have a will.
Yes, surprisingly, only 46% of US adults actually have a will.
A will is essential because it aims to ensure your assets pass to the people or causes you care about instead of being decided by the state. Without a will, Minnesota’s intestacy laws determine who inherits your assets, which may not reflect your wishes.
Even wealthy families with trusts still need a will, because it covers assets not placed in the trust and allows you to name guardians for minor children.
A will is the foundation of any estate plan.
When Should You Consider a Trust in Minnesota?
A trust is a legal arrangement that's useful when privacy, control, or tax strategy matters.
For wealthy Minnesotans, a trust may be essential. Since trusts keep your estate out of probate, which is public in Minnesota, families with substantial assets often choose to set up a trust. Privacy is important when you're passing along generational wealth.
Trusts allow you to set rules about who receives your assets and when. They can also lower estate tax exposure in Minnesota. You might consider a trust if:
Your net worth is $3M+, and you want to minimize estate taxes.
You own property in multiple states.
You want to avoid probate and keep your affairs private.
You have children or grandchildren and want to control distributions over time.
You have a child with special needs who will require long-term financial support.
You’re concerned about asset preservation or remarriage issues.
You have a blended family and want to ensure that assets are distributed according to your wishes.
Minnesota's estate tax exemption is $3M per person.
Once your estate or taxable assets exceed Minnesota's exemption, your estate will be taxed at progressive estate tax rates ranging from 13% to 16%. A trust may be useful as it can help with tax planning, privacy, control, and complexity that the simple structures can’t handle.
TRUST EXAMPLE:
Imagine a Minnesota couple in their late 70s with $10 million in assets.
The husband has always managed the finances, but they both want to make things easier for their three adult children and eight grandchildren. They own a primary residence in Minnetonka, a family cabin up north, and a winter property in Florida.
Without a trust, the estate would face probate in both Minnesota and Florida, adding cost, delay, and public exposure.
In this case, the couple could use a revocable living trust to consolidate their assets and avoid multiple probates. To address taxes, they could also use a credit shelter trust (bypass trust). Minnesota’s estate tax exemption is $3M per spouse, but unlike the federal system, Minnesota doesn’t allow “portability.”
Without planning, one spouse’s exemption can be wasted.
With a credit shelter trust, they could lock in both exemptions for a total of $6 million shielded from the Minnesota estate tax. That means only $4M of their $10M estate would be subject to Minnesota’s estate tax, reducing the taxable estate by $3M.
What are the Differences Between Wills and Trusts in Minnesota?
A will directs who inherits your assets, while a trust controls how and when assets are managed and passed on.
A will must go through probate, which is a court-supervised process. In Minnesota, that process is public. It becomes a matter of public record, including details about your assets and debts. A trust avoids probate and keeps your estate private.
A will is simpler and less expensive to set up, but it offers less control. A trust requires more work up front, but it allows you to manage taxes, control timing of distributions, and provide specific instructions that last long after you’re gone.
Pros and Cons of Wills and Trusts
Both wills and trusts play a role, but they work differently.
A will is simpler and cheaper to set up, but it goes through probate, which in Minnesota is public. A trust avoids probate and offers more control, but it requires more work and expense up front. Here’s a quick side-by-side:
Attribute | Wills | Trusts |
Privacy | Public through probate | Private, avoids probate |
Cost | Lower upfront | Higher upfront |
Control | Simple instructions at death | Detailed rules about timing and use of assets |
Taxes | Doesn’t reduce estate taxes | Can reduce estate taxes with certain structures |
Flexibility | Easy to change | Harder to change, especially irrevocable trusts |
Coverage | Covers assets in your name | Covers assets you move into the trust |
Costs of Wills and Trusts in Minnesota
Wills are less expensive to set up, but trusts may save more in the long run if you have substantial assets.
A simple will may cost a few hundred dollars if it’s basic, or a few thousand dollars if an attorney is involved. A trust usually costs more, often several thousand dollars, because it requires more legal work and more time to set up properly.
But the long-term savings can be significant if your estate is large.
With a trust, you pay more up front, but your heirs save time, money, and stress by avoiding probate and, in some cases, reducing estate taxes.
When a Will May Be Enough
Sometimes a will alone can cover your needs. A will may be enough if:
Your estate is under Minnesota’s $3M estate tax threshold.
You don’t own property in multiple states.
You don’t have minor children who need long-term financial support.
You aren’t concerned about keeping your estate private.
You want a simpler, lower-cost option, and your main goal is to make sure assets pass to loved ones.
In these cases, you can protect your family with a will, along with beneficiaries listed on accounts, a healthcare directive, and a power of attorney.
When a Trust May Be the Right Choice
A trust gives you privacy, control, and protection that a will alone can’t provide.
Trusts may be a good choice for wealthy Minnesotans who want control over how and when their assets are used. A trust may be beneficial if:
You want to control how assets are distributed to children or grandchildren over time.
You have minor children who need long-term financial support if something happens to you.
You want to protect assets from creditors, lawsuits, or remarriage situations.
You want to plan for incapacity so someone can manage your assets if you can’t.
You own property in more than one state and want to avoid multiple probate processes.
You want to reduce estate taxes through advanced strategies like irrevocable trusts.
A trust can solve problems that a simple will cannot, especially when wealth, family needs, or privacy are priorities. Just remember that even if you set up a trust, you still need a will.
How Does a Trust Help to Avoid Probate?
A lot of people assume that having a will means you avoid probate, but that’s not the case.
A will still goes through probate, and probate is public. That means your assets, debts, and distributions can all become part of the public record. For many families, privacy is the main reason they choose a trust. If you want to keep your family’s affairs private and out of the public record, you need a trust.
In Minnesota, probate can take months or even more than a year, depending on the size of the estate. It also comes with court costs, attorney fees, and the administrative burden of filing paperwork.
With a properly funded trust, your assets transfer directly to your beneficiaries without going through probate court. That means faster access to money, less stress for your family, and lower costs in the long run.
What Are the Tax Benefits of Trusts in Minnesota?
In some cases, there are tax benefits to having a trust in Minnesota.
For example, an irrevocable trust can move assets out of your name and reduce your estate’s tax exposure. There are also trusts designed for specific needs, like special needs trusts that ensure long-term care for a child or dependent. Trusts are tools, and the right type depends on your situation.
These are a few examples of how trusts can be used to minimize taxes:
1. Irrevocable trusts can move assets out of your estate
When you place assets into an irrevocable trust, they’re no longer legally yours. That means they don’t count toward your taxable estate at death. For a Minnesotan with, say, $7M in assets, moving $2M into a trust could reduce the estate below the $3M per spouse threshold when combined with other strategies.
2. Credit shelter (bypass) trusts for couples
Minnesota allows each spouse a $3M exemption. If one spouse dies and leaves everything outright to the survivor, the first exemption is wasted. A credit shelter trust (also called a bypass trust) locks in the first spouse’s $3M exemption so both exemptions can be used. That effectively doubles the amount to $6M for a couple.
3. Generation-skipping and gifting strategies
Some trusts allow you to transfer assets for the benefit of children or grandchildren while using up lifetime gift tax exemptions. These reduce the size of your estate over time, lowering Minnesota estate taxes at death.
4. Charitable trusts
Charitable remainder or charitable lead trusts allow you to support a cause while removing assets from your taxable estate. This reduces the Minnesota estate tax owed and can provide income tax deductions during life.
What Are the Downsides of a Trust?
While trusts offer privacy, control, and tax advantages, they also cost more to set up.
In Minnesota, a trust often costs several thousand dollars to establish, compared to a will that may cost much less. You also need to retitle assets into the trust, which can be time-consuming. And while revocable trusts are flexible, irrevocable trusts are harder to change. In addition, there may be ongoing costs to maintaining the trust.
For some families, the cost and complexity may outweigh the benefits.
Why You Still Need a Will Even with a Trust
A will covers what your trust doesn’t.
A will acts as a safety net for any assets not transferred into your trust. It also lets you name guardians for minor children, which is something a trust cannot do.
Without a will, assets left outside your trust may be distributed under Minnesota’s intestacy laws, which might not match your wishes.
Why Healthcare Directives and Powers of Attorney Matter
Estate planning isn’t just about who gets your assets.
It’s also about who makes decisions if you can’t. A healthcare directive spells out your wishes if you’re unable to speak for yourself. It covers whether you want to be resuscitated or kept on life support. A power of attorney ensures that if you’re incapacitated, someone you trust can step in to pay bills, access accounts, and keep things running.
Without these, decisions may be made for you that don’t reflect your wishes.
Common Questions
What happens if you die without a will in Minnesota?
If you die without a will, Minnesota law decides who gets your assets.
This process is called intestacy. Spouses and children inherit first, but the state’s formula may not match your wishes. For example, if you have a spouse and children. Your spouse will inherit the first $225,000 of your estate as well as half the balance.
Sources:
What are the different types of legal wills in MN?
In Minnesota, a will ensures that your wishes are followed instead of leaving the state to decide. There are a few main types:
Simple will: the most common, used to outline who inherits assets.
Testamentary trust will: creates a trust upon your death, often for children.
Self-proving will: includes notarized affidavits so the court doesn’t need to contact witnesses later.
Holographic will: handwritten wills, which Minnesota does not generally recognize unless they meet strict standards.
Most wealthy families in Minnesota use a simple or testamentary trust will, often combined with a revocable living trust, to make sure their estate plan is both legal and practical.
At what net worth do you need a trust?
There’s no single number, but in Minnesota, the state estate tax exemption is $3 million per person.
Families above this level often benefit from trusts to reduce estate taxes, avoid probate, and add control. Privacy, multi-state property, or minor children may also make a trust worthwhile.
Who should you choose as the trustee or executor of your estate?
Choose someone you trust completely, who is organized and financially responsible.
This could be a family member, close friend, or a professional, like a corporate trustee. The person should be able to handle paperwork, follow instructions, and communicate clearly with beneficiaries while keeping your wishes first.
Can you change or update a trust once it is created?
Yes, if it’s a revocable trust, you can make changes during your lifetime.
You can update beneficiaries, replace trustees, or adjust instructions. Irrevocable trusts are much harder to change. That’s why you should set them up carefully with an attorney and only when they serve a specific purpose.
How often should you review your will or trust?
Review your documents every three to five years, or sooner after major life events like marriage, divorce, children, or big financial changes.
Laws also change, including Minnesota estate tax rules. Regular reviews make sure your plan still reflects your wishes and protects your family the way you intend.
How long does it take to set up a will or a trust in Minnesota?
A simple will can often be completed in a few weeks with an attorney.
Trusts usually take longer because assets must be transferred into the trust. Depending on complexity, this process may take a few months. The time spent up front saves your family effort later.
What are Minnesota’s will witness requirements?
In Minnesota, a will must be signed by you and witnessed by two people.
The witnesses must also sign the will in your presence. They should be adults who are not inheriting anything under the will. This ensures the will is valid and can be accepted by the court.
Does a will need to be notarized in Minnesota?
No, notarization is not required for a will to be valid in Minnesota.
However, you can add a notarized affidavit, making it a “self-proving will.” This simplifies probate because the court doesn’t need to contact the witnesses later. Without notarization, the will is still legally valid.
What is a self-proving will in Minnesota?
A self-proving will includes a notarized affidavit signed by you and your witnesses.
This extra step confirms the will was executed properly and avoids needing witness testimony during probate. It makes the probate process faster and easier for your family. This is optional but recommended for most people.
Do wills and trusts need to be filed with the court in Minnesota?
Wills must be filed with the probate court after death.
Trusts do not go through probate and generally don’t get filed with the court, which is why they provide privacy. This is one of the key benefits of using a trust for families that want to keep matters confidential.
Is estate planning the same across all states?
No, laws vary from state to state.
What applies in Minnesota might not be the same in Wisconsin or North Dakota. That’s why it’s critical to work with an attorney who knows the laws in your state and can make sure your estate plan is drafted correctly.
Is a will or trust the same thing as an estate plan?
One common misconception I hear is that once someone has a will or a trust, they think they’re done with estate planning.
But a will or trust only addresses part of the picture. Estate planning also means looking at how your assets are positioned, how they’ll be taxed, and how your family or beneficiaries will be affected. That’s where working with both an attorney and a financial advisor makes a difference.
With the right team in place, you’ll have a comprehensive plan that takes every aspect of your family and financial life into consideration.
Is estate planning “set it and forget it”?
Estate planning isn’t a one-and-done activity.
Life changes. Kids grow up. Laws change, and your goals shift.
For example, maybe you set up your will or trust when your children were minors. What happens when they’re adults? Or maybe tax laws change, or the wording in your documents needs to be updated.
A will or trust you created at age 40 may not be right at 55. That’s why these documents should be reviewed regularly to make sure they still align with your life and your intentions.
Do I need an attorney and a financial advisor for estate planning?
An attorney drafts your legal documents, like wills and trusts.
My role as a financial advisor is to help you position your assets, think through how they’ll pass to the next generation, and build strategies around taxes, insurance, and risk.
Estate planning works best when the advisor and attorney are both part of the conversation, bringing their expertise together to preserve your wealth and your wishes.
How to Decide If You Need a Trust or Not
A trust isn't always necessary.
The right estate planning tools depend on your situation. A will may be enough if you want a simple way to distribute assets at death. A trust adds ongoing management, privacy, and control.
A trust is useful if you want to set conditions for children or grandchildren, protect assets, or avoid probate.
Trusts are also valuable if your estate is above Minnesota’s $3 million tax threshold or you own property in more than one state. The key is matching the right estate planning tools to your family’s needs so your wishes are carried out smoothly.
And remember, that everyone needs an estate plan. Whether you have $1M or $30M, you need to work with your financial advisor and attorney to create a thoughtful estate plan that covers all the bases.
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About the Author
Mitch Zweber
Mitch is a financial professional focusing on portfolio management, retirement planning, estate planning, and goal funding. His approach to financial planning is holistic, addressing each client's needs, goals, and aspirations to build an individualized plan to pursue financial success.
He believes in educating clients to empower them to make confident financial decisions. What excites Mitch most about his job is meeting new clients and contributing
to their pursuit of financial success. He finds it very rewarding to see clients accomplish their short‐term and long‐term financial goals.
Before joining 360, Mitch sharpened his skills at Wells Fargo as a Senior Wealth Management Banker and as a financial advisor at Prudential Financial.
His educational background includes a BBA in Business Management from the University of Wisconsin‐Whitewater.
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