Sjoberg & Tebelius, P.A. Sjoberg & Tebelius, P.A. 2026-07-13T13:00:55Z 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[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.]]> On Behalf of Sjoberg & Tebelius, P.A. <![CDATA[Do you still need a will if you have a trust in Minnesota?]]> https://www.stlawfirm.com/?p=69523 2026-03-12T14:17:20Z 2026-03-16T13:29:44Z Both wills and trusts allow people to dictate who will receive their assets after their passing. Trusts have the benefit of being confidential and do not have to go through the probate process. However, wills can be easier to understand and navigate, especially for smaller estates. For these reasons, it may seem like estate planning is a this-or-that decision: trust or will. In reality, however, it is often a good idea to have both. Here’s why:

Which assets do trusts cover?

A revocable living trust controls only those assets that you transfer into it. For example, your home, bank accounts, and investment accounts only become trust assets if you transfer them from your name (John Smith) into the name of your trust (John Smith, Trustee of the John Smith Living Trust). Then, after your passing, your successor trustee can manage, sell, and distribute those trust assets without the involvement of the probate court. At this point, you may think, sounds great. Who wouldn’t want to avoid probate court? I’ll get a trust rather than a will. But what happens if an asset gets left behind?

Why you may still need a will

A will can act as a safety net for the trust. How? Assets that you do not retitle in the name of the trust—either intentionally or accidentally—cannot be distributed by your trustee because they are not part of your trust; they remain part of your probate estate and can only be distributed according to the terms of a will or, if you die without a will, according to Minnesota's intestacy laws. This means that even if you have a trust but no will, the State may distribute some of your property in ways that you never intended. For this reason, many people with revocable living trusts also have what’s known as a pour-over will that instead of distributing your assets to individual people, distributes your assets to your trust. Bear in mind that even if you properly execute a pour-over will, good trust funding still matters. If most of your assets never enter the trust, your estate may still require a full probate process, taking time and money.

In conclusion: Are wills necessary if you already have a trust?

Wills and trusts complement each other, and an effective trust-based estate plan is one that’s properly funded with trust assets and includes the safety net of a pour-over will, especially for people who also need to appoint a guardian for their minor children (something you cannot do within a trust document).]]> On Behalf of Sjoberg & Tebelius, P.A. <![CDATA[Protecting Your Minnesota Business from the Noncompete Ban: A 2026 Strategy]]> https://www.stlawfirm.com/?p=69528 2026-03-03T22:43:17Z 2026-03-03T22:43:17Z end of the first quarter is a time for Minnesota business owners to make sure they have everything they need in place to protect their business interests. Without traditional noncompete agreements as a backstop, it is especially important to confirm that other safeguards are clear, current, and enforceable — such as confidentiality and trade secret protections, non-solicitation provisions where permitted, strong employment and contractor agreements, and practical steps like limiting access to sensitive information and documenting customer relationships and proprietary processes. A focused review can help identify gaps, align policies with current Minnesota law, and reduce the risk of losing key employees, clients or valuable know-how ultimately setting your business up for success in 2026 and beyond. 

Resetting the playbook after the ban

Noncompete provisions are no longer a default risk-control device for most employment relationships in Minnesota. A successful business strategy in 2026 should prioritize agreements and operational steps that protect confidential information, customer relationships and trade secrets. The goal: reduce misappropriation risk and improve enforceability.

Confidentiality agreements as the first line of defense

Although you generally cannot keep a valued employee from going to work from a competitor, you can protect confidential material. Confidentiality agreements are central to business success. Employers should avoid overbreadth that reads like a disguised noncompete. Drafting should track job duties, access levels and legitimate business interests. Before implementing updates, align the agreement with actual practices. Courts weigh whether information was treated as confidential in practice. Tips to help can include:
  • Implementation of role-based confidentiality definitions, access controls and labeling conventions  
  • Separation checklists that cover device return, cloud account disablement and written certification of deletion  
  • Training records documenting ongoing confidentiality expectations
After rollout, audit compliance quarterly. Documentation matters during a dispute.

Non-solicitation clauses with careful tailoring

Non-solicitation provisions may remain viable when narrowly designed to protect customer relationships and employee stability. Overreaching restrictions can draw challenges. The scope of the clause should reflect relationships the employee developed, serviced or learned through employment. Duration should be defensible, tied to sales cycles and relationship cadence. Before adopting a template, analyze who it covers, which customers qualify and the definition of solicitation.

Trade secret protection under the Minnesota Uniform Trade Secrets Act

The Minnesota Uniform Trade Secrets Act provides a direct path for relief when dealing with the misappropriation of trade secrets. The strongest MUTSA claims start before litigation through reasonable secrecy measures. Businesses should identify trade secrets, restrict access, maintain logs, use technical controls and require written acknowledgments to help better ensure such secrecy measures are in place. Trade secret status depends on value from secrecy and reasonable efforts to maintain secrecy. If successful, a claim can result in injunctive relief and damages. Minnesota’s noncompete ban requires business leaders to respond with discipline, not panic. Confidentiality agreements, tailored non-solicitation clauses and robust MUTSA-aligned trade secret programs now serve as primary legal tools for retention leverage and IP protection. Use Q1 findings to tighten drafting, strengthen operational safeguards and build the record that supports enforcement when a key employee exits.]]> On Behalf of Sjoberg & Tebelius, P.A. <![CDATA[Minnesota’s 2026 Estate Tax Outlook: What High-Net-Worth Families Need To Know]]> https://www.stlawfirm.com/?p=69522 2026-03-03T22:49:07Z 2026-02-23T22:48:28Z estate tax remains a primary transfer tax exposure for Woodbury and Twin Cities families because the state exemption stays far below the federal level. For 2026 planning, the central issue is the widening gap between Minnesota’s threshold and the federal exclusion amount.

2026 Minnesota threshold vs federal limits

For deaths in 2026, Minnesota’s estate tax exemption is $3,000,000. Amounts above that level can trigger Minnesota estate tax, even when no federal estate tax is due. This situation is possible as the federal basic exclusion amount is $15 million in 2026. This means even though families with estates valued above $3 million and below $15 million are unlikely to have a federal estate tax bill they can expect to have a Minnesota estate tax bill.

The Minnesota “cliff” effect

Minnesota’s estate tax is commonly described as having a “cliff” effect. In practical terms, going even slightly above the $3,000,000 exemption can cause a meaningful state tax liability relative to the overage. That structure increases the value of precise valuation, timing and allocation decisions. A modest asset appreciation, a year-end liquidity event, a retained interest valuation adjustment disallowed on audit can move an estate from non-taxable to taxable at the state level.

Three state-focused mitigation strategies for this tax season

The following actions are often helpful when implemented early, documented carefully and coordinated with income tax planning:
  1. Annual exclusion gifting plus lifetime gifting to reduce the Minnesota taxable estate  
  2. Spousal planning with AB trust design to use each spouse’s Minnesota exemption  
  3. Careful use of beneficiary designations 
Each option has legal tradeoffs. Gifting can shift future appreciation out of the taxable estate. AB trusts can preserve two Minnesota exemptions at the first death, which matters when the survivor’s estate will exceed $3,000,000. Wise use of beneficiary designations, such as the marital deduction, can reduce the risk of unintended estate taxes.

Key takeaways for Woodbury and Twin Cities families

Minnesota’s $3,000,000 exemption in 2026 creates state tax exposure for many households that remain under federal limits. The “cliff” effect increases the cost of inaction. Tax season is an appropriate time to update valuations, confirm asset titling, verify beneficiary designations and implement a gifting or trust strategy aligned with Minnesota’s rules.]]>