Messick Law, PLLC FindLaw IM Template 2026-11-10T20:09:41Z https://www.messicklaw.com/feed/atom/ WordPress /wp-content/uploads/sites/1603369/2022/12/messick_favicon.png On Behalf of Messick Law, PLLC <![CDATA[Received a Copy of a Loved One’s Trust? You May Have Only 120 Days to Challenge It]]> https://www.messicklaw.com/?p=49572 2026-10-14T07:17:33Z 2026-10-16T07:16:25Z When someone dies with a revocable living trust, family members often receive a copy of the trust in the mail along with a letter from the trustee. That letter may start a short clock. Under Minn. Stat. § 501C.0605, a person who wants to contest the validity of a revocable trust must sue by the earlier of two dates: three years after the settlor's death, or 120 days after the trustee sent a copy of the trust instrument and the required notice.
The notice has specific content. It must tell the recipient that the settlor has died and the trust exists, identify the trustee and where to reach them, and state the deadline for bringing a challenge. Minnesota amended the statute effective August 1, 2025, to require that the notice state the settlor's death. A letter that omits a required element may not trigger the 120-day deadline, and a trustee who relies on a defective notice may face a later challenge.
The common grounds for a trust contest are lack of capacity, undue influence, fraud, and improper execution. These claims often arise when a late-life amendment shifts the estate toward one child, a caregiver, or a new spouse. Building that case takes time: medical records, financial records, the drafting attorney's file, and witness interviews. Four months passes quickly, especially during the grief and logistics that follow a death.
Trustees should know the statute protects them too. After the settlor's death, a trustee may distribute trust property under the trust's terms without liability, unless the trustee knows of a pending contest or a potential contestant gave written warning and filed suit within 60 days afterward. If a trust is later found invalid, beneficiaries may have to return distributions to the extent the invalidity applies. Sending a proper notice early is often the most effective way a trustee can limit risk and move administration forward.
If you have received a trust and a trustee's letter, note the date it was sent and get advice promptly, even if you hope to resolve the matter without litigation. Many trust disputes settle through negotiation or mediation, but preserving the right to sue is what gives those discussions leverage. Messick Law represents beneficiaries and trustees in Minnesota trust and estate disputes, and our attorneys also serve as mediators in these cases.
This article is general information, not legal advice. Reading it does not create an attorney-client relationship.
]]> On Behalf of Messick Law, PLLC <![CDATA[$15 Million Federal, $3 Million Minnesota: Why the Estate Tax Gap Still Matters]]> https://www.messicklaw.com/?p=49570 2026-10-14T07:16:18Z 2026-10-15T07:15:06Z The federal estate tax now reaches very few families. The One Big Beautiful Bill Act, signed in July 2025, set the federal exemption at $15 million per person for 2026, indexed for inflation going forward. A married couple can shelter about $30 million. Minnesota did not follow. The Minnesota estate tax exemption remains $3 million per person in 2026, with rates from 13% to 16% on the amount above it. Bills to raise or repeal the Minnesota tax have been introduced, but none has passed.
The $3 million threshold catches more families than people expect. A paid-off home, retirement accounts, life insurance proceeds, and a farm or cabin can cross it quickly. Life insurance counts toward the estate if the decedent owned the policy. Retirement accounts count at full value, even though income tax is still owed on withdrawals. Nonresidents who own Minnesota real estate, such as a lake cabin, can also owe Minnesota estate tax on that property.
Two Minnesota rules make planning especially important for married couples. First, Minnesota does not recognize federal "portability." If the first spouse leaves everything outright to the survivor, the first spouse's $3 million Minnesota exemption is lost. A properly drafted credit shelter (bypass) trust preserves it, which can save a couple several hundred thousand dollars in Minnesota tax. Second, Minnesota has no gift tax, but taxable gifts made within three years of death are added back to the Minnesota taxable estate. Deathbed gifting does not work.
Many Minnesota estate plans were written when the federal exemption was far lower and the federal tax was the main concern. Those plans may use formula clauses that now push assets into the wrong trust, or no longer make sense at all. Others were written for small estates that have since grown. Year-end is a natural checkpoint: review asset values, beneficiary designations, how the cabin or farm is titled, and whether your trust still divides assets the way you intend.
The federal headline is good news, but Minnesota residents still plan around a $3 million line. Messick Law helps Minnesota families review and update estate plans with both taxes in mind.
This article is general information, not legal or tax advice. Reading it does not create an attorney-client relationship.
]]> On Behalf of Messick Law, PLLC <![CDATA[Minnesota Now Allows Electronic Trusts, Powers of Attorney, and Health Care Directives]]> https://www.messicklaw.com/?p=49568 2026-10-14T07:14:53Z 2026-10-14T07:14:53Z As of August 1, 2026, Minnesotans can sign trusts, powers of attorney, health care directives, and many guardianship and probate documents electronically. The Legislature adopted the Uniform Electronic Estate Planning Documents Act this spring (2026 Minn. Laws ch. 45, codified at Minn. Stat. ch. 533). It builds on the 2023 law that already allowed electronic wills. Together, the two laws mean nearly every core estate planning document can now exist in digital form.
The new law does three practical things. First, a document cannot be rejected just because it is electronic or signed electronically. Second, witnesses and notaries may participate through "electronic presence," meaning real-time audio and video communication that is substantially the same as being in the same room. Third, anyone may print a paper copy of an electronic document and certify, under penalty of perjury, that it is accurate. That certified copy carries the same effect as the original, which matters when a bank, title company, or hospital asks for paper.
The law does not require anyone to go digital. Paper documents remain fully valid, and many clients will still prefer a traditional signing. It also does not override other laws that require a particular form, and it does not loosen the substantive rules. A power of attorney still has to meet Minnesota's statutory requirements, and a health care directive still has to be properly witnessed or notarized. An electronic document signed under pressure, or by someone who lacks capacity, is just as vulnerable to challenge as a paper one.
For families, the biggest benefits are access and speed. An adult child in another state can witness or sign remotely. An agent can produce a power of attorney from a phone at the bank counter. A health care directive can travel with a patient between facilities. The risks are also new: where the authoritative version is stored, who controls the login, and whether institutions will accept it on day one. Expect some banks and care facilities to lag behind the statute.
If you signed your estate plan years ago, this is a good moment to review it, whether or not you want electronic copies. Ask your attorney how your documents are stored, how your agents will access them, and whether a certified paper copy should be kept with your records. Messick Law prepares and updates trusts, powers of attorney, and health care directives for families throughout Minnesota.
This article is general information, not legal advice. Reading it does not create an attorney-client relationship.
]]> On Behalf of Messick Law, PLLC <![CDATA[What are the potential pitfalls of DIY estate planning? ]]> https://www.messicklaw.com/?p=49412 2026-09-01T00:44:45Z 2026-09-02T00:43:59Z Your will may not meet state rules A valid will depends on proper signing and witnessing. In Minnesota, the law generally requires you to sign your will. Another person may sign in your conscious presence and at your direction. At least two witnesses must also sign within a reasonable time after observing the signing or your acknowledgment of the signature or will. A form that fails to satisfy these rules could face a validity dispute. An estate planning attorney can prepare documents that follow state requirements and address your specific wishes.

Your beneficiary forms can conflict with your will

A will may not control every asset. Life insurance and retirement accounts typically pass to the people named on their beneficiary forms. If your will leaves an individual retirement account  (IRA) to your daughter but its outdated form names someone else, the designation will usually control who receives the account.

Your trust may hold nothing

Creating a trust document does not automatically place property inside it. You generally need to transfer or retitle the intended assets. If you own that house or account in your name alone, leaving it outside the trust may subject it to probate.

Generic terms could create uncertainty

A fixed template might not account for a blended family, a child with disabilities or a beneficiary who is still a minor. Vague or incomplete terms could leave relatives with different views of your intent. That uncertainty may lead to delay, expense or litigation.

Your plan may overlook incapacity

Estate planning also covers financial and health decisions if illness leaves you unable to make them. Since a will takes effect at death, it may not provide that protection during your lifetime. Without suitable powers of attorney and a health care directive, your family might need court involvement.

How professional planning can protect your intentions

DIY documents can appear complete while leaving technical gaps hidden. Those gaps could affect control of your property and create work for the people you hoped to protect. An attorney can review your assets, family structure and long-term goals. Tailored legal help may also offer a chance to coordinate each document and designation, which is typically the safer way to preserve your instructions.]]> On Behalf of Messick Law, PLLC <![CDATA[Do your children need to know what they will inherit?]]> https://www.messicklaw.com/?p=49377 2026-08-26T21:29:34Z 2026-08-25T21:29:20Z Why do parents choose to share their inheritance plans? Sharing inheritance details can reduce misunderstandings later. When children understand your plans, they are less likely to dispute your estate after you pass. Open conversations also give children time to prepare financially. For example, knowing they will receive a family home helps them plan for property taxes and upkeep. In addition, transparency can strengthen trust within your family.

What are the risks of sharing too much information?

On the other hand, sharing too much can create complications. Some children may start depending on an expected inheritance before they receive it. This can reduce their motivation to build their own financial stability. Conflict can also arise when children feel the division of assets is unfair. Knowing too much too soon can create tension that your family did not expect.

Does the asset type affect what you should share?

If your estate includes a family business, think about whether your children are prepared to take over that responsibility. Real estate is another consideration, as it comes with ongoing costs like property taxes and maintenance that heirs need to plan for. Reviewing what your estate includes can help you determine how much information your children genuinely need to know ahead of time.

What does Minnesota require when it comes to disclosure?

Minnesota law does not require you to tell your children what they will inherit during your lifetime. Your will and trust documents remain private until you pass away or a trust becomes irrevocable. At that point, disclosure rules apply. Trustees must keep beneficiaries reasonably informed about the trust and its administration. Additionally, a personal representative managing an estate must provide certain information to heirs. At either stage, your children gain legal rights to this information as beneficiaries.

How can you balance openness and privacy in your estate plan?

A balanced approach often works well for most families. For instance, some parents choose to share general intentions without disclosing specific dollar amounts. This allows children to feel included without knowing every detail. Consider the maturity level of children, family relationships and the complexity of the estate.

Protecting your family from future conflict

Financial matters can create lasting tension within families. Approaching this decision with your family's harmony in mind is a good starting point. Whether you choose to share or keep details private, being intentional about your choice matters. A clear estate plan can reduce the chances of confusion and conflict later on.]]> On Behalf of Messick Law, PLLC <![CDATA[Child custody in Minnesota: Legal and physical custody explained]]> https://www.messicklaw.com/?p=49406 2026-08-26T21:28:49Z 2026-07-17T21:28:35Z Legal custody: Decision-making authority Legal custody gives a parent the right to make important decisions about a child's life. These decisions cover education, medical care and religious upbringing. Minnesota courts frequently award joint legal custody, meaning both parents share this authority. In some cases, a court may grant sole legal custody when ongoing conflict makes cooperation impossible.

Physical custody: Where children live

Physical custody determines where the child lives and who handles daily caregiving. The parent with sole physical custody serves as the primary caregiver. Joint physical custody, allows your child to spend regular time in both homes. This arrangement does not always require an equal split of time. Physical and legal custody often go together, but not always.

How courts make custody decisions

Minnesota courts apply the best interests of the child standard when deciding custody. Judges weigh the following factors:
  • Each parent's ability to provide a stable home
  • The child's bond with each parent
  • How well the child has adjusted to home, school and community
Courts also consider any history of domestic abuse. A finding of domestic abuse creates a presumption against awarding joint custody to the abusive parent. The safety and well-being of your child remain the court's top priority.

The child's preference in custody decisions

There is no set age requirement under Minnesota law. However, the child must show sufficient maturity for their preference to carry weight. A judge evaluates whether the preference reflects genuine reasoning. Ultimately, the court is not bound by the child's wishes. The preference is just one factor in the overall determination.

Modifying an existing custody order

Family circumstances do not always stay the same. Minnesota law allows a parent to request a modification when a substantial change in circumstances has occurred. Common reasons include a parent relocating or a major shift in the child's needs. The requesting parent must also show that the change serves the child's best interests.

Knowing your rights as a parent

Minnesota custody law gives both parents a meaningful role in their child's life. Understanding how the custody process works can help you make informed decisions at every stage. The more you know about your rights, the better prepared you are to protect your child's future.]]> On Behalf of Messick Law, PLLC <![CDATA[Your checklist for forming a new business in Minnesota ]]> https://www.messicklaw.com/?p=49407 2026-08-26T21:28:00Z 2026-06-20T21:27:41Z Choose a suitable business structure Compare how each entity treats liability, taxes, management and ownership. If you create a registered entity, your selection may determine which formation document you file. It can also influence the internal agreement you use.

Select and clear your business name

Choose a name that meets state rules. Then search the Secretary of State’s records before filing. A sole proprietor or partnership operating under a name that does not identify its owners may need to register and publish an assumed name.

File the correct formation document

A limited liability company (LLC) files articles of organization, while a corporation files articles of incorporation. When you file either document, you also designate a Minnesota registered office with a complete street address. The state and other parties may use that location for official notices. In Minnesota, either domestic filing currently costs $135 by mail or $155 online or in person. This process can create your entity but may not resolve every internal concern. An operating agreement, partnership agreement or corporate bylaws may define voting rights, management duties and exit terms. For example, your agreement might explain what happens if one founder wants to sell.

Arrange tax and financial accounts

Apply for an employer identification number when federal rules require one. Your activities could also call for a state tax ID, payroll accounts or sales tax registration. As you open these accounts, keep company money separate from personal funds. This separation may support tax reporting and may help preserve an LLC’s or corporation’s liability protection.

Check licenses and recurring duties

Review state, county and city rules for licenses, zoning and industry permits. Beyond permits and local rules, most registered entities need to file an annual renewal by Dec. 31 to remain active. Add that date to your calendar with other reporting deadlines.

Business structures and where they may fit

No single entity can suit every venture. A closer look at common choices may clarify their differences. Some of your options include:
  • Sole proprietorship: This business form may suit you as the only owner, but you remain personally responsible for business debts.
  • General partnership: You and at least one co-owner can divide control, but each partner may face personal liability for partnership debts.
  • Limited liability company: An LLC may offer flexible management while generally shielding your personal assets from company debts.
  • Corporation: This separate entity might match your company if you plan to seek investors or issue shares.
Your goals, tax position and growth plans can influence which form fits your company. They may also shape how you divide authority and handle ownership changes.

How a solid foundation may support your launch

Your entity choice, internal agreements and compliance plan form your company’s framework. These decisions can affect liability, taxation, financing and later ownership changes. Careful planning may reduce disputes and keep your company compliant as it grows. An attorney can explain how your structure affects your rights and draft an agreement that reflects how you plan to operate. An accountant may address tax classification and recordkeeping so your legal and financial plans work together.]]> On Behalf of Messick Law, PLLC <![CDATA[Can you keep your inheritance out of your divorce settlement?]]> https://www.messicklaw.com/?p=49302 2026-08-26T21:27:06Z 2026-05-11T21:26:49Z Many people assume that an inheritance will automatically remain separate property during a divorce, but the reality is more complicated. While inheritances are often treated differently than marital income or assets, how they are handled after receipt can determine whether they stay protected in the event of a divorce or become part of a divorce settlement. In general, an inheritance received by one spouse alone is considered separate property, even if the inheritance at issue is received during the marriage. This means it is not automatically subject to division in a divorce. A problem generally arises, however, when inherited assets are mixed with marital funds or used in ways that blur the line between separate and marital property. This is commonly referred to as the commingling trap.

Understanding commingling and why it matters 

Commingling often occurs when inherited money is deposited into a joint bank account, used to pay shared household expenses or invested in jointly titled property. For example, placing inherited funds into a joint savings account and then using that account to pay everyday bills can make it difficult to trace which portion of the money was inherited and which came from marital income. Similarly, using an inheritance as a down payment on a jointly owned home may convert at least part of an inheritance into marital property. Once commingling occurs, inheritance may lose its separate character under the law. Courts often look at intent, documentation and the ability to trace funds when determining whether an asset remains separate. If records clearly show where the inherited funds went and how they were used, some portion may still be protected. However, poor recordkeeping or extensive mixing of funds can make it harder to preserve that distinction. If an inheritance has already been commingled, it is not necessarily lost. Tracing is one possible remedy. A spouse may be able to demonstrate, through bank statements, transaction histories and financial records, that certain assets originated from an inheritance. In some cases, courts may recognize a separate property interest or provide reimbursement to the inheriting spouse. Another option involves agreements between spouses. Postnuptial agreements can sometimes clarify how an inheritance will be treated moving forward, even if commingling has occurred. These agreements must meet legal requirements to be enforceable, but they can provide clarity. The best way to keep an inheritance out of a divorce settlement is proactive planning. When that isn’t possible, speaking with a skilled legal team about the ins and outs of a particular concern can help.]]> On Behalf of Messick Law, PLLC <![CDATA[New Federal Reporting Requirement for Residential Real Estate Transfers: What You Need to Know]]> https://www.messicklaw.com/?p=49316 2026-04-08T21:17:15Z 2026-04-08T21:16:17Z What the Rule Requires The rule requires certain professionals involved in residential real estate closings to file a Real Estate Report with FinCEN when a non-financed (all-cash) transfer of residential property occurs and the buyer is a legal entity or trust. These reports are similar in purpose to existing geographic targeting orders, but now apply nationally and on a permanent basis. Covered professionals — called "reporting persons" under the rule — include settlement agents, title insurance agents, escrow agents, attorneys, and others who perform specific functions at closing. A cascading system determines who among them bears the reporting obligation for a given transaction.

What Property Is Covered

The rule covers residential real property, including single-family homes, townhouses, condominiums, cooperatives, and buildings designed for occupancy by one to four families. Mixed-use properties with a residential component are included. Certain undeveloped land is also covered if the buyer intends to build a one-to-four-family structure on it.

Key Points Buyers and Sellers Should Know

There is no minimum sale price threshold. Low-value transfers, and even gifts where no money changes hands, are reportable if the other criteria are met. The rule is triggered by the nature of the buyer — a legal entity or trust — not by the dollar amount of the transaction. Reporting persons must collect identifying information about the transaction, the property, the transferee entity or trust, and the beneficial owners of that entity. This includes taxpayer identification numbers and, in some cases, passport numbers.

Why This Matters

If you are purchasing residential real estate through an LLC, corporation, partnership, or trust, expect your closing attorney or title company to ask for detailed ownership and identification information. Failing to provide accurate information can create compliance problems for the professionals involved — and potentially legal exposure for buyers who provide false or misleading details.

Questions?

If you have questions about how this rule affects a pending transaction or how to structure a real estate acquisition, contact Messick Law, PLLC. We counsel clients on real estate transactions, trust and estate matters, and related litigation throughout Minnesota.]]> On Behalf of Messick Law, PLLC <![CDATA[Gray divorce and the “Social Security trap”]]> https://www.messicklaw.com/?p=49300 2026-08-26T21:26:05Z 2026-03-15T21:25:51Z Gray divorce, the term often used to describe divorce after age 50, tends to inspire a distinct set of financial challenges that younger couples rarely face. For example, the “Social Security trap,” wherein the timing of a divorce can permanently affect benefits and long-term retirement security, can be a pressing concern in a gray divorce scenario.  For many spouses, especially those who have earned less and/or who have spent years out of the workforce, Social Security benefits based on a former spouse’s work record can be a critical source of retirement income. In general, a divorced spouse may be eligible to claim benefits based on an ex-spouse’s earnings if the marriage lasted at least ten years. This eligibility does not reduce the other spouse’s benefits, but it can provide meaningful financial support later in life.

Why does timing matter when it comes to Social Security benefits?

The Social Security trap typically unfolds when couples divorce just short of that ten-year mark or finalize a divorce without understanding how close they are to eligibility. A marriage that ends at nine years and eleven months does not qualify, and the lost opportunity cannot be recovered later. For someone in their late 50s or early 60s, missing that threshold can significantly reduce lifetime income and force reliance on lesser personal benefits. Timing also affects when benefits can be claimed. Divorced spouses may be able to claim based on a former spouse’s record once they reach the eligible age, even if the ex-spouse has not yet claimed benefits, as long as certain conditions are met. Divorcing too early or without coordinating retirement planning can limit flexibility and shorten the window for strategic claiming. Gray divorce also often raises concerns about retirement longevity. Assets that once supported one household must now stretch across two. Health care costs, long-term care needs and inflation typically pose greater risks later in life, leaving less room to recover from financial missteps. A poorly timed divorce can magnify these pressures, especially if one spouse lacks sufficient savings or earning capacity to rebuild. Another issue involves remarriage. If a divorced spouse remarries before a certain age, eligibility for benefits based on a former spouse’s record may be lost. Understanding how remarriage interacts with Social Security rules is, therefore, important before making long-term decisions. The Social Security trap highlights why the timing of a gray divorce case matters. Working with a skilled legal team that understands retirement planning can help couples navigate divorce after 50 with greater awareness, protect future income and minimize their risk of outliving their resources.]]>