Is a $3 million net worth setting up a trust in a state other than MN ?

[ERMNUSA1957]

I get that the people with huge estates have flocked to SD to set up Trusts and use SD based Trustees, but what about couples who have just $3 million in assets? Is it still worth the effort? And if I use a MN attorney to set up the trust in MN with a SD Trustee, is MN going to claim rights to taxes from the Trust  even if we move from MN to another state (in the works) because of a claim that the Trust was set up in MN?

[sjrcpa]

What's the $3 million? Cash and their house?

Or a closely held business that will sell in a few years for $20 million?

Or something in between?

Are they being sold this by some seminar?

Unless large appreciation is expected after 2025, or they are losing mental competence, I question the need for a trust at all.

If set up while they are MN residents and funded with MN real property, I'm sure MN will want their cut anyway.

Oh @BobKamman  What say you?

[IRonMaN]

I wonder what Bob will say about setting up a trust😁

[BobKamman]

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[ERMNUSA1957]

Mea Culpa.

This isn't McDonald's? 🙈

[qbteachmt]

"This isn't McDonald's?"

Sir, this is a Wendy's.

"Are they being sold this by some seminar?"

My favorite topic = empty revocable trust.

As noted, a $3m net worth can be double that in 7 years, depending on the assets. On January 1, 2026, the current exclusion amount will revert back to the 2017 amount of $5 million, adjusted for inflation.

So, yes, if it is done right, it might be "worth" it.

For this type of planning, MN has Transfer on Death Deeds and Transfer on Death Car Titles (DVS). You don't need to put the house in a trust. Financial accounts all provide for beneficiary designations.

So, it depends on why someone thinks this should be done.