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SYMPOSIUM 2017: Planning for Success
Financial Planning Association of Minnesota October 16-17, 2017
THE CABIN TRUST SOLUTION
1 CE – CFP/CIMA/NASBA/MN/WI • .75 – CLE NASBA Category: Specialized Knowledge & Applications; CLE Category: Standard
Joel Mullen – Tuesday, October 17, 2017 – 1:50-2:40 pm
Course Description:
For many Minnesotans, the family cabin is intended to be a true legacy asset; however, simply leaving the
cabin to the next generation can present a myriad of problems. Most cabin owners are unaware that
without proper planning, unresolved issues could tear a family apart. The Cabin Trust Solution will teach
you how to utilize Minnesota case law to help your clients avoid future conflict and keep the cabin in the
family and away from creditors and claimants. Most importantly, you will learn how to identify critical
issues associated with the family cabin and how to respond with effective solutions.
Learning Objectives: By the end of this session, attendees will:
1. Understand why a family cabin is a unique estate planning problem that must be addressed.
2. Learn about largely unknown existing Minnesota case law that can help keep the cabin, “in the family”
3. Be able to counsel clients on the potential solutions to effectively transfer the family cabin to the next
generation
Detailed Content Outline: (50 minutes)
• Introduction and Overview 5 minutes
• Case Study 15 minutes
• Minnesota’s Unique Case Law 10 minutes
• The Solution: The Cabin Trust / The Cabin LLC 10 minutes
• Overview of Various Planning Options 5 minutes
• Wrap Up / Q & A 5 minutes
Course Schedule: Individual Course Schedules were not printed and mailed.
Course Level: Basic
Exam: No Exam
OCTOBER 16-17, 2017
Joel P. Mullen
Joel P. Mullen is a partner with the law firm of Mullen & Guttman PLLC. Joel assists clients
throughout Minneapolis, St. Paul, and the surrounding communities with estate planning,
cabin planning, planning for the LGBT community and non-traditional families, estate
administration and probate, special needs planning, elder law & medical assistance planning,
family business succession, and planning for children.
Joel enjoys counseling Minnesotans about the importance of having a good estate plan in
place. Joel frequently presents free public educational seminars to explain the benefits of
estate planning and to help clients decide what type of estate plan (i.e., Will, Living Trust,
Cabin Trust, Powers of Attorney, Healthcare Directives) makes sense for their personal
situations.
Joel is passionate about helping families prevent conflict through prudent estate planning.
He is a frequent speaker on family conflict resolution, and has committed himself exclusively
to estate planning as a practice. Joel has been interviewed by the Minneapolis Star Tribune
for his work with family cabin owners and hosts the website www.cabin-trust-mn.com (a
resource for MN family cabin owners).
Joel is a graduate of Hamline University School of Law, a former board member of the
Minnesota State Bar Association’s Elder Law Council, and a member of the Minnesota State
Bar Association.
Joel grew up in Excelsior, MN and currently resides in St. Louis Park with his wife Cindy
and their two beautiful daughters. They spend their leisure time on Lake Minnetonka and in
the beautiful Upper Peninsula of Michigan.
MULLEN & GUTTMAN, PLLC
THE CABIN TRUST SOLUTIONFINANCIAL PLANNING ASSOCIATION OF MINNESOTA
OCTOBER 17, 2017
1:50 P.M. – 2:40 P.M.
JOEL P. MULLEN, ESQ.Partner Mullen & Guttman Law FirmAn Estate Planning Law Firm
© Mullen & Guttman PLLC
▪ Attorney Joel Mullen
▪Attorney Matt Guttman
▪Attorney Ane Weiss
▪Attorney Jamie Reff-Wagner
▪Practice areas—Trusts and Estates
Introduction
▪ To prove that an estate plan involving a family cabin is a problem that MUST be solved
▪ To discuss the right and wrong ways to leave a cabin to the children
▪ How to keep the cabin “in the family”
▪ How to protect the cabin from creditors and potential divorces
Goals for this hour
▪ Because multiple owners mean multiple disagreements!
▪ Our children are all differentDifferences are age, income, temperament, marital status, geography, etc.
Why is the cabin a problem?
▪ This doesn’t have to be a problem for the children
▪ The solution will strengthen, not destroy, family relationships
▪ You have to take some action NOW before it is too late
So what’s the good news?
▪ Framing the issue- What we accomplish
through estate planning
▪ It doesn’t matter if a family is worth
$50K or $50M, the goals are the same —
this is not a rich person’s problem
✓ Avoid Probate
✓ Pass and PROTECT assets for the
next generation or to charity
✓ Plan for Incapacity
✓ No Estate Taxes!
Let’s get started
The Getalong estate
▪ Mom and Dad Getalong married in 1960Dad is a salesman; Mom is an educator
▪ Mom and Dad Getalong’s house purchased for $25K in 1965 and now worth $400K
▪ Purchased cabin in St. Louis County for $25K in 1975 and now worth $600K
▪ Mom and Dad Getalong are retired with $500K in “nest egg” and love spending time with their three children and grandchildren
The Getalong children
Joe:
▪ Married, loves to
fish and hunt.
Issues:
▪ Loves the cabin
▪ Struggles with
employment
Pete:
▪Married, accountant
Issues:
▪Controlling wife
▪Does not appreciate the
“party” culture
Sally:
▪Recently married, loves
her brothers
Issues:
▪Shaky marriage due to
creditor issues
▪Lives in Seattle
▪ Mom and Dad Getalong pass away, and have an estate plan that leaves all assets to the kids OUTRIGHT and in equal shares
▪ WHAT HAPPENS NEXT?
Tragedy strikes the family
What do we learn from theGetalong family?▪ Who is the bad guy here?
▪ What went wrong? Mom and Dad Getalong left their estate equally to their children- why did this story play out this way?
▪Use
▪Equity
▪Taxes and expenses
▪Buy-out provisions
▪CREDITOR issues!
What issues
did the
Getalong
children have?
How this story could have
ended if Mom and Dad
Getalong had a Cabin
Trust?
The ‘Getalong’Family trust
▪Allows your children to control their own assets while also protecting those assets in the future
▪Protects against creditors
▪Protects against divorces
The Asset Protection Trust
1. Force the sale
2. Leave cabin outright to the kids
3. Protect it with a “Asset Protection Trust”
4. Update your plan with a Family Cabin Trustand/or LLC
What are the options?Any cabin owner has only four estate options:
Questions?
THANK YOU
Presenter:Joel P. Mullen, Esq.Mullen & Guttman PLLCAn Estate Planning Law Firm6600 France Avenue South, Suite 210Edina, MN [email protected]
FPA MN Coordinator: Bonnie Stanley
Financial Planning Association of MN3900 Main Street NE
Columbia Heights, MN [email protected]
763-781-1212© Mullen & Guttman PLLC