Sjoberg & Tebelius, P.A. Sjoberg & Tebelius, P.A. 2026-08-28T05:00:04Z https://www.stlawfirm.com/feed/atom/ WordPress /wp-content/uploads/sites/1204482/2025/11/cropped-favicon-sjoberg512-32x32.png On Behalf of Sjoberg & Tebelius, P.A. <![CDATA[Why Inherited Businesses Need a Q4 Buy-Sell Agreement Audit]]> https://www.stlawfirm.com/?p=69567 2026-07-28T19:28:58Z 2026-08-28T05:00:04Z Separating voting control from economic interest The first challenge is knowing exactly what rights you have inherited. Getting shares in a family business does not always give you the power to run it, because share classes or operating agreements often separate economic interests from voting control. In other words, while an economic interest gives you a right to profits and payouts, it is voting control that lets you elect board members and guide the company's future. Heirs often think they hold both sets of rights, but past owners often limit voting shares to active managers while giving non-voting shares to other family members. According to the U.S. Small Business Administration, having an agreement in place for buying, selling, and transferring ownership can help prevent disruption when ownership changes. Checking your exact legal standing helps prevent disputes with current partners or board members.

Auditing the existing buy-sell agreement

Reviewing the legal contracts starts with the buy-sell agreement, which the past owner likely built around their own retirement timeline and peers. Once leadership changes, that old contract often holds outdated terms that threaten business stability. A comprehensive review of the agreement typically addresses these specific areas:
  • Valuation formulas: Older agreements often use fixed-price models that ignore current market trends or recent revenue growth.
  • Trigger events: Effective contracts outline what happens if a new owner faces disability, divorce, or bankruptcy.
  • Funding mechanisms: Businesses generally rely on verified life insurance policies or cash reserves to fund future buyouts.
Updating these terms helps the company survive another sudden leadership change. Amending these core documents helps protect the business against future problems.

Securing the new leadership structure

Protecting the business against future legal issues takes a permanent shift in focus. A sudden change exposes the weak spots of an unprepared business, and taking on an inherited leadership role requires more than learning the daily tasks. It demands a full reset of the legal requirements that hold the business together. By updating voting structures and buy-sell agreements during fourth-quarter planning, new owners can set clear protocols for the next transfer of power. This approach helps prevent internal conflicts and promotes business stability for the years ahead.]]> On Behalf of Sjoberg & Tebelius, P.A. <![CDATA[Do New Parents Need a Trust AND a Will?]]> https://www.stlawfirm.com/?p=69559 2026-08-11T14:29:25Z 2026-08-12T14:05:16Z For many new parents, estate planning can be one of those things they know they should do but is easy to postpone. Between doctor appointments, sleepless nights, and adjusting to new routines, it can be difficult if not emotionally painful to think about worst-case scenarios. However, becoming a parent also means taking responsibility for decisions a child cannot make for themselves. If something happened to both parents, who would raise the child? Who would manage the money and other assets left behind? Would that person understand the parents’ wishes about education, healthcare, and the values they'd hoped to pass down? In Minnesota, wills and trusts can help parents answer these questions. While each document serves a different purpose, using both together can create a more complete plan for protecting a child’s future.

How a will and trust serve different roles

A will is often the starting point for parents who want to create an estate plan. Wills allow parents to nominate a guardian for their child in the event of both parents' deaths. While the nomination would still require court approval, the will gives the court great insight into who the parents identify as a trustworthy person capable of providing care, stability, and guidance for their child. For example, parents may choose a relative who already shares a close relationship with their child and understands their family’s values. They may consider whether that person can support their child through different stages of life, from helping a young child adjust to a new home, to guiding an older child through education and major life decisions. A will can also outline how certain assets should be distributed to the child after the parents' deaths. However, a will alone may not provide enough control over how a child receives inherited property or money. Because minors cannot typically manage significant assets on their own, leaving property directly to a child can create additional legal steps. A court may need to oversee how those assets are handled until the child reaches adulthood or other legal arrangements are established. A trust can provide another layer of planning, allowing parents to decide how assets should be managed and used for their child’s benefit. In addition, a trust can set out when assets should be distributed. For example, instead of providing a child with full access to an inheritance at age 18, parents can provide for certain percentages to be distributed at predetermined ages over time (e.g., ages 25, 30, and 35), or at predetermined milestones (e.g., graduation from college or trade school).

Why many parents choose both a will and trust

A trust does not replace a will, and a will does not provide every benefit of a trust. Each document addresses different parts of a family’s estate plan, which is why many parents choose to use both. A trust can help parents create a more detailed financial plan that reflects their child’s changing needs over time. For example, the expenses involved in raising a young child may include childcare and after-school activities, while an older child may need support with college tuition, career training, or putting a down payment on a house. A well-prepared plan allows parents to account for those changes instead of making decisions based only on their child’s current age and situation.

Creating a plan that grows with the family

Estate planning allows parents to make important decisions while they are still able to communicate their wishes. A will and trust can work together to provide direction, financial support, and stability for a child’s future. While no parent can predict every challenge their child may face, thoughtful planning can help provide protection during uncertain times. Because every family has different circumstances and goals, parents should seek legal guidance to create an estate plan that reflects their needs under Minnesota law. For more information, call the attorneys at Sjoberg & Tebelius, P.A. (651) 738-3433.]]> On Behalf of Sjoberg & Tebelius, P.A. <![CDATA[When You Can No Longer Make Health and Financial Decisions for Yourself]]> https://www.stlawfirm.com/?p=69561 2026-07-23T15:21:43Z 2026-07-30T13:00:09Z Health Care Directives and Durable Powers of Attorney Two common estate planning tools are the Health Care Directive and Durable Power of Attorney. These documents allow you to name a trusted person to manage your health and medical care (Health Care Directive) and your money, financial accounts, contracts, and legal affairs (Power of Attorney) if you are incapacitated and unable to do so for yourself. By creating these documents before they are needed, and while you still have the mental capacity to execute these documents, your family may be able to avoid court involvement.

What if I don't create a Health Care Directive or Power of Attorney?

If you do not execute these documents and later become incapacitated, your family may immediately want to petition for guardianship and/or conservatorship; however, before the Minnesota courts will appoint a guardian or conservator, they will first require your family to explore less restrictive alternatives. Health Care Directives and Powers of Attorney are the most obvious less restrictive alternatives, but there are other options when you have not put those documents in place and no longer has the capacity to execute them. For example, ABLE accounts, supported decision making, representative payees, and technology-assisted independence are all less restrictive options. Depending on your circumstances, one of these alternatives may effectively meet your needs.

What if there is no appropriate less restrictive alternative?

If there is no less restrictive alternative that meets your needs, your family can pursue a Minnesota guardianship to have the court appoint someone to manage your person, clothing, possessions, lodging, and health care and/or a Minnesota conservatorship to have the court appoint someone to manage your finances, contracts, and legal affairs. Because these are court actions, they can be time consuming and expensive. In addition, guardians are required to make annual well-being reports to the court, and conservators are required to submit annual accountings to the court, which are audited every year. These audits are not random or discretionary, but required.

Understanding your options

Every family's situation is different, and no single legal tool is right for everyone. The right approach depends on a person's needs and whether a less restrictive alternative can meet them. Learning about these legal tools before a crisis arises can help families make informed decisions with greater confidence. Want to learn more? Contact the attorneys at Sjoberg & Tebelius, P.A. at 651-738-3433.]]> On Behalf of Sjoberg & Tebelius, P.A. <![CDATA[Divorce and the family business: navigating marital property agreements in Wisconsin]]> https://www.stlawfirm.com/?p=69557 2026-07-08T21:19:40Z 2026-07-13T13:00:55Z Wisconsin's equal division presumption Wisconsin is a marital property state during an ongoing marriage under Chapter 766, but property division at divorce is governed by Wis. Stat. § 767.61. Under this statute, the court applies a presumption that all assets owned by either spouse are part of the divisible estate and should be divided equally. This presumption has significant implications for business owners:
  • A business founded before the marriage is still pulled into the divisible pool once the parties marry.
  • Any increase in the company's value during the marriage is presumed to belong equally to both spouses.
  • A spouse who never participated in the business is still treated as an equal equity holder under the initial statutory presumption.
The only assets automatically excluded are verified inheritances and gifts from third parties, and even those can lose their protected status if commingled with marital funds.

The protective role of marital property agreements

To separate a family business from Wisconsin's default division rules, owners can use marital property agreements (prenuptial agreements before marriage or postnuptial agreements during the marriage). These binding contracts allow couples to explicitly override the state's default rules. A properly drafted agreement can designate the business entity, its intellectual property, real estate holdings, and future appreciation as individual property, keeping it entirely outside the divisible estate in the event of a divorce. For a marital property agreement to hold up in court, Wisconsin law requires that it be entered into voluntarily, supported by full and fair financial disclosure from both parties, and not unconscionably one-sided at the time of execution or enforcement.

Consequences of operating without an agreement

Without a marital property agreement, a divorce can disrupt business operations in two significant ways. A court may order a forensic valuation of the company and require the owner to buy out the spouse's share of the equity, which can drain operational capital or force a sale. In more complex scenarios, a court could award the spouse actual ownership interests in the company, creating an ongoing governance relationship between former spouses. For Wisconsin business owners, establishing a marital property agreement is a practical component of any long-term business succession plan.  ]]> On Behalf of Sjoberg & Tebelius, P.A. <![CDATA[The End of Forced Listening: Minnesota’s Captive Audience Law]]> https://www.stlawfirm.com/?p=69555 2026-07-08T21:18:29Z 2026-07-09T21:18:03Z Broad definitions of prohibited speech The law, which survived a legal challenge earlier this year, defines political and religious matters much more broadly than most business owners expect. For example, political matters include any discussion about the decision to join or support a labor organization. Employers must be careful when discussing the following topics in mandatory settings:
  • The benefits or drawbacks of unionization
  • Support for specific political parties or candidates
  • Opinions on civic or community organizations
  • Religious beliefs or affiliations
These restrictions apply to group meetings, one-on-one sessions and even required digital media. If attendance is required and the meeting is meant to push these kinds of political or religious views, it may fall under these rules.

The employee right to opt out

The heart of this regulation is the employee's right to walk away without fear of punishment. If a worker believes a meeting will cover prohibited topics, they can refuse to attend or simply leave mid-session. Minnesota law strictly prohibits any form of retaliation against these workers, including:
  • Termination or demotion
  • Threats of disciplinary action
  • Other penalties for choosing not to attend or participate
Violating these protections can lead to civil lawsuits where employees may seek back pay and other damages. This shift requires management to change how they handle sensitive company-wide discussions.

Maintaining operational control

Businesses still have the right to hold mandatory meetings for essential operations and daily tasks. You can continue to require attendance for training, safety briefings and project assignments. To minimize risk, clearly state that any meeting involving the employer’s political or religious opinions (or anti-union messaging) is strictly voluntary for all staff. Seeking legal guidance helps ensure your workplace policies align with these and other evolving state standards. Setting up a compliant communication framework today prevents costly complaints or lawsuits in the future.]]> On Behalf of Sjoberg & Tebelius, P.A. <![CDATA[Can Medical Assistance Claim Your Inheritance in Minnesota?]]> https://www.stlawfirm.com/?p=69549 2026-07-08T21:15:52Z 2026-07-08T21:15:52Z How Minnesota's recovery program works Federal law requires Minnesota to seek repayment for MA benefits provided to recipients age 55 and older. The state recovers costs for nursing facility care, home and community-based services, and related hospital and prescription drug expenses. Recovery happens only after the MA program recipient dies, or if married, after the surviving spouse has died (see below). The state files a claim during probate proceedings, just like any other creditor.

What the state can (and cannot) touch

While agencies primarily target assets in probate, Minnesota law also reaches certain non-probate assets. This includes real estate held in joint tenancy or transferred via a Transfer-on-Death Deed. In these cases, the state can often recover costs from the deceased person's interest in the property, even if it passes directly to a survivor. Generally, protections remain in place for life insurance and retirement accounts with properly designated beneficiaries, as well as specific types of trusts.

When recovery gets postponed or waived

Minnesota law provides important protections for certain family members. For instance, recovery is postponed if a surviving spouse is still living. The claim waits until after the spouse's death. Additional recovery protections apply when the estate passes to a child under 21, a blind or disabled child of any age, or a sibling who lived in the house for at least one year prior to the recipient moving into a nursing facility. Families facing significant hardship can apply for an undue hardship waiver through the Department of Human Services. The agency may grant these waivers when recovery would deprive heirs of their primary income source or living situation.

The reality for heirs

It can be surprising and feel unfair whenever a third party makes a claim against an estate, especially when you are an heir who expected to inherit certain assets. However, filing a claim is not the same as guaranteed collection. The state must follow probate procedures, and various protections and exemptions may apply. Understanding how this specific type of recovery program works can help families navigate probate and make informed decisions about asset protection and inheritance goals.
]]> On Behalf of Sjoberg & Tebelius, P.A. <![CDATA[The cabin trust: How to pass down the family vacation home without conflict]]> https://www.stlawfirm.com/?p=69550 2026-06-04T21:00:37Z 2026-06-08T15:35:31Z How a cabin trust protects your family's 'up north' legacy A cabin trust transfers ownership of your vacation property into a legal entity that outlives you. You name trustees who manage the property according to rules you establish while you're alive. The trust document spells out exactly how your children or grandchildren will share the cabin, who makes decisions about major repairs and what happens if one heir wants out. Minnesota Statutes Section 501C.0105 governs trust administration in the state and provides the legal framework for these arrangements. An experienced estate planning attorney can structure the trust to require all beneficiaries to contribute equally to property taxes, insurance and maintenance costs. This prevents one sibling from shouldering the financial burden while others enjoy free use of the property.

LLCs offer flexibility for shared cabin ownership

A limited liability company works differently than a trust but achieves similar goals. You transfer the cabin's title to the LLC, and your heirs become members who own shares in the company. An estate planning lawyer drafts the operating agreement to address common friction points, including annual maintenance fees, rotating schedules for peak summer weeks, voting procedures for major repairs and buy-out terms if one heir wants to sell their share.

Buy-out provisions prevent forced sales

Without a formal agreement, cabin disagreements often end with a partition lawsuit. The court can force the sale of the entire property when heirs can't agree. A skilled estate planning attorney can draft buy-out provisions that let one heir exit while keeping the cabin in the family. The remaining owners purchase the departing member's share at a fair price you set in advance. The cabin where your grandchildren learned to fish and your family gathered for special occasions can continue creating memories for generations, but only if you work with an estate planning professional now to prevent the conflicts that tear families apart later.]]> On Behalf of Sjoberg & Tebelius, P.A. <![CDATA[MN estate planning: 5 tips to reduce taxes on your home or cabin]]> https://www.stlawfirm.com/?p=69540 2026-05-12T14:44:38Z 2026-05-14T14:00:20Z Minnesota families often hold substantial wealth in their primary residence and/or a cabin. Poor planning can trigger avoidable Minnesota estate tax exposure, probate costs, valuation disputes, and delays that could force a sale. Here are five options to better ensure an effective plan that preserves control during your lifetime, but also reduces the tax bill when it comes time to transfer the property to the next generation. 

1) Use a revocable trust for probate control, tax readiness

A revocable trust does not eliminate Minnesota estate tax by itself, but it does centralize title, simplify administration, and support coordinated tax elections after death. This type of trust also reduces the chance of court-supervised probate.

2) Preserve step-up in basis through careful transfer planning

If there are future plans to sell the property, the tax burden that comes with real estate appreciation, the capital gains tax, can be very high. In general, assets transferred at death receive a “step-up” in basis. This means that for tax purposes the taxing authorities value the asset at the time of death of the owner and any capital gains tax is set at that amount as opposed to the amount at which the asset was originally purchased. However, transfers made while the original owner is still alive can lose this step-up in basis. For these reasons, it is important to carefully consider the impact of capital gains tax on any transfer for future generations.

3) Consider a transfer on death deed for clean succession

Minnesota permits transfer on death deeds, which, upon the owner's death, pass real estate to the grantees/beneficiaries named on the deed outside of probate. If used wisely, this legal tool can reduce administrative costs while preserving the step-up in basis. 

4) Use lifetime gifting strategically, document valuation

In some cases, gifting can help to transfer property, though it is important to take federal and state limitations into account to avoid the risk of unexpected tax bills after you finalize the gift.

5) Use entity planning for cabins, support discounts when appropriate

The use of a limited liability company (LLC) to centralize management can also create a framework for shared use of a cabin, thus reducing family conflicts. If considering this route, the following tips can help:
  • Create a clear operating agreement that provides for governance and membership transfer protocols and restrictions;
  • Document financial contributions to the LLC and maintenance reserves; and
  • Develop occupancy rules and methods for dispute resolution.

Bonus: Consider a cabin fund

If it is important to preserve recreational or vacation property for future generations, it is beneficial to have the personal representative for the estate establish a cabin fund for covering the costs of maintaining cabin while transitioning into full ownership.  Tax reduction for Minnesota homes and cabins depends on coordinated estate tax planning and enforceable legal documentation. The right structure varies by family wealth, property value, and the intended heirs. A Minnesota estate planning attorney can model outcomes, draft compliant deeds, and build a plan that secures your legacy.]]> On Behalf of Sjoberg & Tebelius, P.A. <![CDATA[The risks of DIY estate planning apps for Minnesota residents]]> https://www.stlawfirm.com/?p=69543 2026-05-07T16:21:06Z 2026-05-08T14:00:41Z Generic documents may not conform to state rules Minnesota has unique estate planning statutes that people need to understand to ensure that their documents are both legally valid and extend optimal legal protection. For example, witness requirements in Minnesota mandate that the testator sign in front of at least two competent adult witnesses for a will to be valid. Documents they draft on an app may not have any witnesses. Additionally, an estate planning attorney can educate a testator about tax implications and when revisions may be necessary. Under Minnesota's anti-lapse rule for the descent of property, the death of a beneficiary does not invalidate an estate plan or leave the assets designated for that beneficiary unaccounted for during the probate process. Minnesota state law explicitly allows for the inheritance intended for a deceased individual to pass to their surviving heirs and beneficiaries. For those who want to control who actually inherits their property, naming alternate beneficiaries or including special language to prevent the transfer of inheritance may be necessary.

Other common digital planning issues

Creating a digital or electronic estate plan using an app can be challenging, regardless of the jurisdiction. People may create generic documents that don't actually meet the necessary standards or that lack the language necessary to achieve their specific testamentary goals. Additionally, there is the very real possibility of surviving family members and beneficiaries being unaware of the presence of the documents drafted through an app. Unless a testator stores them in a specific location or deposits their will with the courts, their family members could administer their estate as though the testator had left no will at all. Working with a Minnesota estate planning attorney is almost always a better option than using generic apps for important legal documents. The attorneys at Sjoberg & Tebelius, P.A. prioritize bespoke documents that reflect not only our clients’ unique property and family circumstances but also their true legacy wishes. Creating detailed, legally-accurate estate planning paperwork provides both protection and peace of mind. An estate planning attorney from Sjoberg & Tebelius, P.A. can offer better guidance and more effective paperwork than a generic app.]]> On Behalf of Sjoberg & Tebelius, P.A. <![CDATA[When is regulatory approval required in Minnesota mergers/acquisitions?]]> https://www.stlawfirm.com/?p=69535 2026-04-09T18:27:15Z 2026-04-09T20:00:02Z If you are planning to grow your Minnesota business through a merger or acquisition, your likely focus is on strategy and financial benefits. At the same time, some rules and approvals could affect your timeline and the smooth progression of the deal. Knowing when regulators may get involved can help you plan ahead and avoid delays.

Federal antitrust rules

The federal government, through the Federal Trade Commission and the Department of Justice, checks deals that could reduce competition. Under the Hart-Scott-Rodino Act, if the deal reaches certain financial levels, you usually need to file a notice before completing the merger. As of early 2026, deals worth $133.9 million+ generally require a federal filing. Smaller deals might not need pre-merger notice, but regulators can still review them later if they see potential problems. After you file, the government will review the deal to determine whether it needs more information.

Minnesota state rules

In addition to federal oversight, the Minnesota Attorney General can review mergers and acquisitions that may affect prices or services for local residents. Healthcare transactions are especially likely to require state review under Minnesota law. For example, organizations with $40 million or more in annual revenue generally need to notify both the Attorney General and the Commissioner of Health at least 90 days before closing. Planning for this timeline can help you keep the deal on track.

Industry-specific rules

Some industries face extra rules beyond general antitrust review. Agencies often step in when a deal affects essential services or public safety. Examples include:
  • Banking: Federal and state banking regulators may need to approve the deal
  • Energy: Utility and energy transactions usually require approval from the Minnesota Public Utilities Commission
  • Healthcare: Hospitals, clinics and provider groups may face extra state-level review
Each agency follows its own schedule, so these deals may take longer to clear.

Timelines and conditions

Regulatory reviews can take different amounts of time. Some finish quickly, while others can take months, especially if regulators ask for more additional information. Approval may come with conditions, such as selling part of the business or setting temporary pricing limits. Planning for these steps early can help keep your financing and closing dates realistic.

Taking a thoughtful approach

Knowing which regulators might review your transaction can help reduce delays and make the process easier. Every merger and acquisition is different and preparing for regulatory review can protect your schedule and help the transition go more smoothly.]]>