Dunlap & Seeger, P.A.
schedule a consultation 507-316-0628
We Know You
We work with local clients and clients throughout the country who are looking to continue to build a sense of community in Rochester.

Trusts: beyond the basics

Trusts may seem like the inevitable choice for people in Minnesota who are considering their estate planning alternatives. In fact, a trust is a tool that has many advantages and disadvantages, and the key to making this option beneficial is finding the type that best suits the circumstances. 

Findlaw notes that a trust is revocable when the trustmaker remains in control of the funds during his or her lifetime. It is irrevocable if the assets are not accessible after they are transferred to the trust. Further, some trusts are set up to assist beneficiaries in specific situations. For example, a person who has disabilities can only receive government benefits if his or her income is below a certain level. If the assets are in a special needs trust, a monthly allotment may be made that allows the disabled person to qualify for the help he or she needs. 

A person who is concerned that creditors may make claims to funds may be able to prevent this through a trust. Creditors cannot access anything in an asset protection trust. This type is irrevocable, but has a time limit on it. At the end of the specified period, the trust ends and the trustmaker regains control over the assets. A spendthrift trust prevents a beneficiary from selling his or her interest in the trust as well as keeping access of the funds out of the hands of creditors.

CNN Money explains that trusts can be funded by a life insurance policy if a person chooses to make the trust the beneficiary of the insurance money. The funds would then be administered for heirs by the trustee. If a trustmaker does not want to make his or her immediate heirs the beneficiaries of the trust, it is possible to create a generation-skipping trust, or a qualified terminable interest property trust. Other types of trusts are designed specifically to avoid estate and gift taxes, and to bypass probate.

No Comments

Leave a comment
Comment Information

Contact Us Today Our lawyers listen carefully to your goals and concerns while helping you obtain the best results possible. Call 507-316-0628 or fill out the form to email our team.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Dunlap & Seeger, P.A.
30 3rd Street SE
Rochester, MN 55904

Toll Free: 800-636-2689
Phone: 507-316-0628
Fax: 507-288-9342
Rochester Law Office Map