Sjoberg & Tebelius, P.A. Sjoberg & Tebelius, P.A. 2026-06-23T20:58:32Z 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[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.]]> On Behalf of Sjoberg & Tebelius, P.A. <![CDATA[Why Minnesota employers benefit from an employment lawyer]]> https://www.stlawfirm.com/?p=69516 2026-02-02T22:18:19Z 2026-02-02T08:49:40Z Running a business in Minnesota is a challenge. Every hiring decision, policy update or staff adjustment carries potential legal consequences. Working with an employment lawyer can give you greater confidence in decision-making and help your business run more smoothly. Even if your team is small or large, understanding employment law basics can prevent problems before they start. A lawyer can serve as more than a safety net, they can be a partner in supporting your business’s growth.

How lawyers support day-to-day operations

Employment lawyers often do more than respond to disputes. They can help your business operate efficiently by identifying policies and practices that comply with state and federal laws. A proactive approach may reduce uncertainty and strengthen relationships between you and your employees. Some ways lawyers may assist include:
  • Reviewing employee handbooks and company rules for legal compliance
  • Advising managers on hiring and termination processes
  • Guiding on issues like discrimination, harassment or wage concerns
  • Updating policies to reflect changes in labor laws
These efforts can reduce risk and protect your company’s reputation.

How lawyers guide staff transitions

Hiring new employees, reorganizing departments or reducing staff can be challenging. Lawyers can provide guidance to help these transitions stay fair and legally compliant. Their input may help prevent disagreements that could otherwise reach court or government agencies. Lawyers can also assist with employment contracts, severance agreements and workplace evaluations. Attention in these areas can affect how your business manages employees and maintains long-term stability.

How a trusted legal partner adds value

An experienced employment lawyer can act as a strategic partner rather than just a shield against penalties. Anticipating challenges and keeping policies aligned with current employment laws allows you to focus on business growth. For Minnesota employers, investing in skilled legal support can help create a workplace that is compliant, confident and prepared for future opportunities.]]> On Behalf of Sjoberg & Tebelius, P.A. <![CDATA[3 important recent changes to Minnesota elder law]]> https://www.stlawfirm.com/?p=69514 2026-01-26T16:58:51Z 2026-01-26T16:58:51Z 1. Conservatorship and guardianship reform Many older adults worry about people abusing conservatorships or guardianships to take control of their property and their lives. New regulations now impose additional restrictions on emergency guardianship requests in particular. The law now also requires that guardians provide advance notice to their wards before imposing new restrictions on their lives or finances. Additionally, the law now establishes communication rights for those under guardianships. Their guardians cannot restrict their access to electronic communications or prevent them from visiting and interacting with others. Statutory changes have also created higher levels of personal liability for gross negligence, recklessness and willful misconduct while caring for a vulnerable adult.

2. Exploitation rules

A new law that takes effect in 2026 helps support older adults facing financial exploitation. The courts can now intervene much more quickly to freeze assets and stop the ongoing financial manipulation and exploitation of older adults. Previously, it could take weeks for the courts to freeze assets and intervene. Now, they can potentially act within days or hours. Older adults and their loved ones can also now turn to the civil courts for protection from financial abuse by requesting a civil protective order.

3. New rules for assisted living

Updates to laws regarding assisted living facilities and the people residing there help protect people who are at their most vulnerable. In scenarios where an older adult previously paid for their own room and must switch to public assistance, the facility can no longer terminate their contract due to that change. Additionally, contracts with assisted living facilities can no longer include mandatory arbitration clauses. If ownership of an assisted living facility changes, the new owners must uphold the contracts previously executed with residents. There are also now improved standards for both dementia care and overall staffing in assisted living facilities. Being aware of critical changes to Minnesota laws can help older adults and their loved ones address misconduct and abuse. Those experiencing nursing home neglect, financial abuse or inappropriate conduct in a guardianship may need the support of an elder law attorney, and that’s okay.]]> On Behalf of Sjoberg & Tebelius, P.A. <![CDATA[The Greatest Gift: Why the Holidays Are Ideal for Estate Planning]]> https://www.stlawfirm.com/?p=69510 2026-01-26T16:58:02Z 2025-12-20T16:57:33Z Connecting family traditions to future security Seeing your family gathered in one place highlights the importance of a clear transition plan. A solid estate plan offers much more than a distribution of assets. It can provide your heirs with a roadmap that prevents confusion and avoids the public, time-consuming probate process (for estates exceeding $75,000 or that include real estate held outright). Without these legal protections, grieving families often face hurdles and administrative burdens. Without a will, your estate follows Minnesota’s intestacy rules, which may not align with your wishes for distributing assets. You can give your family clarity and peace of mind by making these decisions now. Proactive planning ensures your values and wishes remain the priority.

Streamlining the future for heirs

Many people mistakenly believe estate plans are only for the exceptionally wealthy or are overly complex. In reality, modern estate planning uses practical tools to simplify your life and your beneficiaries' lives. Consider the following essential components:
  • Properly funded revocable living trusts to manage property and avoid court intervention
  • Last will and testaments, which outline your final wishes
  • Powers of attorney to designate trusted decision-makers for financial matters
  • Legally executed health care directives to ensure your medical preferences are honored
Establishing these documents serves as a final act of kindness for your heirs. By organizing your affairs today, you remove the guesswork from their future.

Ensure your legacy

Do not leave your family’s financial or legal future to chance. The best time to begin this process is while your loved ones are top of mind and your goals are clear. At [nap_names id="FIRM-NAME-3"], we serve as your trusted guides through the estate planning process. We can help you create a plan tailored to your unique goals and family values. Contact our Woodbury office to schedule your consultation and give your family the gift of certainty.]]>