Virtus Law PLLC

05/28/2026

Wills and living trusts are two of the most fundamental estate planning documents. While both accomplish the same primary objective in an estate plan of directing the distributions of your money and property to your desired beneficiaries after you pass away, a revocable living trust, often referred to simply as a living trust, provides added flexibility and functionality, including incapacity planning.

There are three roles under a revocable living trust:

• The person who creates the trust, called the trustmaker, grantor, or trustor
• The person who manages the trust and the accounts and property it owns, known as the trustee
• The person who receives money and property from the trust, called the beneficiary

Before setting up a revocable living trust, you should understand what you can—and cannot—do in your dual role as trustmaker and trustee.

The Living Trust While You Are Alive:

After creating a trust, as the trustmaker, you must retitle accounts and property that you want to be transferred to the trust—such as real estate, financial accounts, stocks, and bonds— from your name to the trust’s name. Even after this transfer, as trustee, you retain control over them and will manage them for your benefit throughout your lifetime while you have capacity.

Any time before your death, while you are mentally capable of managing your affairs, you have the legal authority to alter, amend, or even revoke the living trust as the trustmaker. However, because it is your trust and you retain control over the trust’s accounts and property, there are some things you cannot do.

• You cannot use the trust to shield or protect accounts and property from your creditors.
• You cannot avoid paying taxes on income earned by the trust. Because no separate tax identification number is required for trust income, income on the trust’s accounts and property must be reported on your personal tax return.
• You cannot perform trust-related business, like making investments, taking disbursements, and paying taxes, individually. You will need to sign as the trustee instead of as an individual.

The Living Trust After You Die (or Become Incapacitated):

This brings us to the next phase of a revocable trust: the time after your death or incapacitation. When you pass away or suffer from incapacity, a successor trustee of your choosing takes over trust administration per the instructions you provide in the trust document.

Depending on the trust’s terms, the successor trustee may be responsible for managing the trust’s accounts and property for an extended period on behalf of the beneficiaries and terminating the trust and distributing its money and property to the beneficiaries. If you become incapacitated, the successor trustee can serve in this role for as long as you are unable to manage your affairs.

Many revocable trusts will close within a few years of the trustmaker’s death. Still, some may remain open for years, such as those holding accounts and property for a minor beneficiary until they hit a certain age or milestone, as specified by you in the trust agreement. In either case, it is a good idea to name a backup successor trustee if something happens to the original successor trustee and they can no longer serve.

Schedule a call at (612) 888-1000.

Minneapolis-based law firm focused on Estate Planning, Asset Protection, Business Law, and Corporate Strategy. Trusted legal partners for families and privately held businesses.

05/27/2026

Estate Planning and Home Security: Protecting What Matters Most

Estate planning is about more than passing down money and property—it’s about protecting your loved ones and giving yourself peace of mind. While we can’t control the future, we can decide who will take care of our affairs and how our assets will be managed when the time comes.

Interestingly, more Americans have home security systems than estate plans. But having one without the other could leave your estate—and your loved ones—vulnerable. If your home isn’t protected now, there may be nothing to pass on later.

Sadly, moments of loss or incapacity can become opportunities for testate plan. Whether you're away temporarily or have passed on, it ensures that trusted individuals can respond to emergencies and keep your property safe.

If you've already given access to a house sitter, friend, or neighbor, remember that your legal representatives such as your trustee, personal representative, or power of attorney—may also need access to your security system. Depending on your system (keypad, mobile app, or 24/7 monitoring), be sure to document login credentials and contact information for whoever should receive alerts in your absence.

Even small oversights—like forgetting to provide access—can cause big issues later. That’s why a will is just the beginning. A complete, thoughtful estate plan should include your digital accounts, home security system, and personal logins.heft or misuse. A home security system can serve as an added layer of protection, especially when included in your estate plan. Whether you're away temporarily or have passed on, it ensures that trusted individuals can respond to emergencies and keep your property safe.

If you've already given access to a house sitter, friend, or neighbor, remember that your legal representatives such as your trustee, personal representative, or power of attorney—may also need access to your security system. Depending on your system (keypad, mobile app, or 24/7 monitoring), be sure to document login credentials and contact information for whoever should receive alerts in your absence.

Even small oversights—like forgetting to provide access—can cause big issues later. That’s why a will is just the beginning. A complete, thoughtful estate plan should include your digital accounts, home security system, and personal logins.

Our legal team can help you build a plan that covers it all, down to the last detail. Reach out today to ensure your estate is protected from every angle.

Call us at (612) 888-1000 to schedule your consultation.

05/21/2026

Your retirement account may be one of the most valuable things you own. Many people consider naming their children as the beneficiaries of these accounts because they think it is a way of easily transferring their wealth if something happens to them. However, there are some factors that make this type of transfer more complicated than you may think, especially if your child is a minor.

Can a Minor Be Named Individually as a Beneficiary?

Yes, you can name your minor child as the beneficiary of your retirement account or as the contingent beneficiary who would receive it if the primary beneficiary you have named on the account dies before you pass away. However, if your child is a minor when you die and they inherit your retirement account, a court may have to appoint a guardian or conservator to handle any money distributed to the child from the account. This will take time and money, and the guardian or conservator the court chooses may not be the person you would have chosen. You can avoid this by proactively naming a conservator or guardian for your minor child in your will.

Should You Name a Trust as a Beneficiary of the Retirement Account and Your Child as the Beneficiary of the Trust?

Another option is to create a trust for your child and to name the trust as the beneficiary of your retirement account. This option can work for see-through trusts that meet certain criteria under the law and allow the applicable beneficiaries of the trust to be treated as the beneficiary of your retirement account. There are two types of see-through trusts you can consider: conduit trusts and accumulation trusts.

Conduit Trust:
A conduit trust requires all required minimum distributions (RMDs) made from the retirement account to the trust to be distributed to the child (or used for the child’s benefit) as soon as the trust receives it. The trust will provide asset protection and tax deferral for the funds that remain in the actual retirement account. In addition, the terms of the trust can ensure that once the child reaches the age of majority in your state, they will not be able to simply withdraw the entire balance remaining in the retirement account all at once.

The trustee can also have discretion to withdraw funds from the retirement account in addition to the RMDs, which would then be distributed to or for the benefit of the child, but these decisions about additional withdrawals will be made by the trustee, rather than the child. Although the remaining balance must still be full distributed to the child by the end of the calendar year in which the child turns thirty-one, until that time, the conduit trust will provide asset protection, tax deferral, and additional time for your child to mature and learn how to handle the money responsibly before receiving a potentially large sum of money.

Accumulation Trust:
An accumulation trust, unlike a conduit trust, provides the trustee with the discretion to decide whether to pay out the RMDs to the child (or for the child’s benefit) from the retirement account or to retain the funds in the trust. As a result, the full amount of the funds distributed from the retirement account to the trust can stay in the trust and can potentially be protected from claims made by outside creditors.

An accumulation trust will enable you to ensure that the funds are not distributed to your child sooner than necessary or desired and that the child does not gain access to the entire amount in your retirement account as young as eighteen. However, the funds must still be fully withdrawn from the retirement account by the end of the calendar year in which your child turns thirty-one. Any funds retained by the trust instead of distributed to your child will be taxed at the much higher tax rates applicable to trusts rather than the lower rate that is likely to be applicable to your child.

We Can Help:
There are pros and cons for each option, and the one that best for you and your child will depend on your unique circumstances and goals. We can help you think through whether asset protection, tax minimization, or another goal should be your priority. If you already have made your minor child a beneficiary of your retirement account or have set up a trust as the beneficiary of your retirement plan for the benefit of your children, it is important to review and update your beneficiary designations and your trust if needed. Some recent changes in the rules that govern these important accounts will have a big impact on when the funds must be distributed—and may necessitate a change in your plan.

Please call us and set up an appointment at (612) 888-1000 so we can help you think through the best plan for your retirement accounts, as well as any other estate planning concerns.

05/19/2026

We all plan for “just-in-case” scenarios. When packing for our week-long vacation, we throw in a rain jacket even though the weather forecast is sunny just in case. When planning for the future, it is also important to consider what will happen just in case one of your loved ones becomes disabled.

We tend to think that disability is something that affects otherpeople. But approximately 61 million adults in the United States live with a disability that is one in four adults. And more than one in four twenty-year-olds will become disabled before reaching retirement age. Disability is unpredictable, and accidents or serious physical or mental conditions, such as cancer or mental illness, can happen to anyone at any age.

If a loved one becomes disabled, they may need to rely on financial assistance from government programs such as Medicaid or Social Security Disability Insurance.

Unfortunately, a monetary gift or inheritance from you may disqualify this loved one from receiving these public benefits.

In this situation, your well-meaning gift could become more of a curse than a blessing.

To avoid the possibility that a disabled loved one will lose government benefits because they have too much money, you may want to consider setting up a standby supplemental needs trust as part of your estate plan.

The terms of a supplemental needs trust provide that the trust’s money and property are only available to supplement the government benefits a beneficiary may be receiving.

Therefore, the trust’s money and property are not included as available resources when determining a beneficiary’s eligibility for government benefits.

A “standby” supplemental needs trust does just what its name implies: the supplemental needs trust is not created automatically but is on standby and comes into existence only if a beneficiary is disabled at the time of your death or, depending on the applicable state’s eligibility rules, becomes disabled at a later date but before the trust has been fully distributed.

Since no one knows what the future holds, nearly every estate plan could benefit from including standby supplemental needs trust provisions. If the standby supplemental needs trust is not needed at the time of your death, then the trust will not come into existence. But it does not hurt to include it—just in case. To schedule an appointment with one of our estate planning attorneys, contact us at (612) 888-1000.

05/14/2026

As a single individual, you may feel overwhelmed when thinking about who will step in to make decisions for you if you become unable to do so yourself, and who will receive your money and property when you pass away. While you may consider your parents or siblings, depending on whether they are living and the nature of your relationship, they may not be an option. Having an estate plan is essential to ensure that your wishes are carried out during your lifetime and after your death.

There may come a time when you need someone to handle financial transactions or make medical decisions on your behalf. Without a well-prepared estate plan, the court will step in and appoint someone to make these important decisions for you.

Agent Under a Financial Power of Attorney:

The agent under a financial power of attorney is the individual authorized to carry out financial transactions such as signing checks or opening a bank account—on your behalf. The duration and scope of the agent’s authority are defined within the document. If you do not have a family member or friend you trust to manage your financial affairs, you can hire a professional to assist you.

Agent Under a Medical Power of Attorney:

If you are unable to communicate or make medical decisions, someone else will need to do so on your behalf. By properly naming this person in a medical directive, you retain control over who will make these critical decisions, rather than leaving the choice to a judge.

What Happens Without an Estate Plan?

If you do not have an estate plan in place, your states intestacy statute will determine who receives your money and property and the amount each legal heir will inherit. Intestacy laws vary by state, but generally, assets are distributed first to a surviving spouse, then to descendants, parents, siblings, and nieces and nephews, depending on who survives you.

If you have a life insurance policy or a qualified retirement plan (such as a 401(k) or IRA), be sure to designate the appropriate beneficiary or beneficiaries. Failure to do so can cause the proceeds to be distributed according to default rules, potentially requiring probate and triggering unintended income tax consequences.

Completing your estate plan allows you to take control by providing clear instructions about what should happen during your life and after your death. Reach out to us today to learn how we can help ensure that your legacy is protected and that the people and causes you care about are provided for.

To schedule an appointment, call us at (612) 888-1000

05/12/2026

What happens when someone is no longer able to care for themselves? You may have already faced this situation with a loved one: mom or dad need more assistance as they grow older. However, the person in need still has rights. Not just anyone can take over their lives or their finances. They may need a guardianship or a conservatorship.

Typically, someone asks a Court to appoint a guardian to care for someone who needs help (the “ward”). Courts generally will only approve a guardianship if the Ward is too impaired. For example, an individual with just a little memory trouble usually won’t need a guardianship, while someone in the advanced stages of Alzheimer’s might.

The guardian’s duties relate to the ward’s care and comfort. For example, the guardian might make sure the ward has meals, goes to doctor appointments, and any other needs related to daily living. In addition, the guardian will take care of the ward’s personal effects like clothing and furniture.

One important thing to know is that during the guardianship, the court oversees the ward’s care. Every year, or as ordered by the judge, the guardian must file a report with the court.

A conservatorship is similar in that:

• A court becomes involved and appoints a conservator

• The ward is someone who needs assistance

• The conservator has specific responsibilities to the ward and the court.

However, conservatorships relate to the financial needs of the ward not the personal needs. The conservator will inventory the ward’s property, then file an annual accounting with the court. During the conservatorship, the conservator will pay to care for the ward’s property and pay the ward’s debts.

Guardianships and conservatorships can both be helpful but there is also a better alternative. Wouldn’t it be better to choose your own agent instead of having the court appoint one?

Wouldn't you rather have a say in the care of your loved one? A durable power of attorney or living trust gives the power back to you. This enables you to make sure your loved one is getting the best care possible.

We can help with this important process. You can reach us at (612) 888-1000.

05/07/2026

Estate Planning Isn’t Fun but Protecting Your Loved Ones Is Priceless

Let’s be honest… getting motivated to tackle your estate plan can feel about as exciting as scheduling a root canal. Most people don’t exactly look forward to talking about wills, trusts, and what happens “someday.” But here is the truth that matters even more than the discomfort. You want to make sure the people you love are protected.

Whether you have ten thousand dollars or ten million dollars, what you have matters and the way you plan for it matters even more.

Unfortunately, many families lose what should have been preserved simply because the planning never got done. You deserve better. Your loved ones deserve better.

And these common roadblocks should never stand in your way.

1. “I don't want to talk about death.”

No one enjoys conversations about death, dying, illness, money, or family conflict. Feeling uncomfortable is completely normal. But allowing a few minutes of discomfort to stop you from protecting everything you have worked hard for is a cost no family should have to pay.

A thoughtful estate plan is about love, clarity, and peace.

2. “This just isn’t a good time.”

The number one reason people delay estate planning is simple. Life is busy.

But the truth is that there will never be a perfect time.

What truly matters is taking the first step by calling our office, getting on the calendar, and finally getting it done. Your future will not wait. Your family should not have to either.

3. “I don’t understand any of this.”

Wills, trusts, beneficiary designations, financial structures, legal terms… yes, it is a lot. And yes, it can feel overwhelming.

But that is exactly why we are here.

We break everything down in simple, everyday language.

We explain concepts visually and walk at your pace. We never rush, we never overwhelm you, and we always make sure you feel confident with every decision you make.

Estate planning is not about being an expert. It is about having a guide you trust.

Your loved ones are worth the plan. Your peace of mind is worth the call.

You do not need to wait. You do not need to feel overwhelmed. You simply need a conversation that puts you in control.

Call us today at (612) 888 1000.

Let us protect what matters most together.

05/05/2026

If postsecondary education is in your family’s future, whether for your children, grandchildren, or other family members, consider including one of the following tools in your estate plan. It can be a excellent way to help provide for the education needs of your loved ones.

Irrevocable Gifting Trust:
Using either the annual gift tax exclusion or lifetime gift tax exemption, an irrevocable gifting trust holds and invests property for your chosen beneficiaries for a variety of purposes, not just education. If you want to use the annual gift tax exclusion to shelter gifts to the trust for gift tax purposes, you will need to include a Crummey power - a technique that allows your beneficiary to receive a gift that would not usually be eligible for gift tax exclusion but makes the gift eligible. Contact us for more information about this option.

Provision in a Revocable Living Trust:
If you already have an existing revocable living trust, including a provision for the payment of your child’s or grandchild’s education expenses can be an easy way to help even if you pass away before the education is completed. Upon your passing, the money will be available to be used as you have directed. One benefit is that during your lifetime, you can change the trust provisions as often as you like. Additionally, you can determine how the money should be used.

Revocable Education Trust:
A revocable education trust provides substantial flexibility, as it allows you to set up a trust, act as a trustee, and make distributions for your chosen beneficiary’s education, but it can be revoked or revised if the funds are needed for other purposes or if the beneficiary does not attend college. It will not provide the tax benefits of other trusts or education plans, but it may be a better option if flexibility is a priority.

Coverdell Education Savings Account:
A Coverdell education savings account (ESA) is a savings account used to fund qualified education expenses. Although the contributions are not deductible, the distributions and growth are tax-free as long as the funds are used for qualified education expenses. Unlike some other options, the Coverdell ESA can be used toward qualified education expenses for elementary and secondary education without a monetary cap.

Working together with your financial team, we can craft a plan that accomplishes all of your family’s education goals and sets them up for the best possible future. Give us a call at (612) 888-1000.

04/30/2026

Artificial intelligence (AI) is transforming the way businesses operate, offering unprecedented opportunities for innovation, efficiency, and growth. From automating customer service to analyzing vast amounts of data, AI has become an essential tool for businesses across industries. However, as with any new technology, AI brings unique legal challenges that business owners must navigate to avoid costly pitfalls.

Here are a few legal considerations when incorporating AI into your business:

1. Compliance with Privacy Laws:

Businesses must adhere to data protection regulations like GDPR, CCPA, or Minnesota’s evolving privacy laws. Ensure that customer data is collected with consent and stored securely.

2. Ownership of AI-Generated Content:

Clarify ownership in contracts with AI vendors or developers. Courts are still grappling with whether AI generated works can be copyrighted, so be proactive.

3. Fairness in Hiring and Customer Service:

If your AI tools are used in hiring or customer-facing roles, ensure they don’t unintentionally discriminate based on age, gender, race, or other protected categories.

4. Accountability for AI Decisions:

If your AI system makes an error (e.g., providing incorrect financial advice or denying a customer service request), your business could be held liable.

5. AI in Employee Monitoring:

Using AI to monitor employees’ performance or behavior must comply with privacy and workplace laws.

AI is a powerful tool, but integrating it into your business comes with responsibilities. Failing to address these legal implications could lead to regulatory scrutiny, lawsuits, or reputational damage.

Call us today at (612) 888-1000.

04/28/2026

An often misunderstood but common estate planning tool is the power of appointment. Not to be confused with a power of attorney (the document that allows you to delegate someone to act on your behalf while you are still living), a power of appointment can be an incredibly useful tool if used properly and knowledgeably.

Broadly speaking, a power of appointment is a right granted in a legal document, including in a will or a trust, by an individual (the donor) to another person (the donee or the power holder). This granted power allows the donee to name someone else as a recipient (the appointee) of all or a portion of the donor’s assets in the future.

The power holder is not required to exercise the power. Rather, the power holder simply has the option to exercise it. If the power is left unexercised, then the money and property will pass to those individuals or entities who were originally named in the will or trust as the beneficiaries and in the amounts originally specified.

This tool essentially allows for the person making a will or trust to postpone the decision of who should receive the donor’s money and property, and grants such decision-making power to someone else who may be in a better position in the future to determine who will receive it.

If you would like to learn more about how powers of appointment can be used to help you achieve your estate planning goals while maintaining significant flexibility in your planning, please do not hesitate to reach out to us.

You can reach us at (612) 888-1000.