Henningson & Snoxell

Why Pre-Paid Legal Plans Often Miss the Mark for Business Owners

Thu, 04 Jun 2026 16:03:28 GMT

Pre-paid legal services, such as LegalShield, offer businesses a subscription-based way to access basic legal support at a predictable monthly cost. While that consistency can feel appealing, it is important to understand what these plans actually deliver — and where they fall short — before assuming they are the right fit for a growing business.

At their core, pre-paid legal plans are off-the-rack solutions. They are designed for volume and standardization, not for the specific realities of your business. When a legal issue arises, you may be routed to a general practitioner who does not know your industry, your contracts, your risk exposure, or more importantly your business and your goals. Generic advice applied to a unique situation can leave critical gaps — in your agreements, your compliance posture, tax consequences, or your liability protection.

What It Is

Pre-paid legal plans are designed to provide accessible, general legal support for common issues — but business legal issues are often more complex than owners expect, and these plans are not built to adjust to the facts, timing, and risk profile of your specific situation.

Monthly subscription providing access to a network of law firms across the U.S. and parts of Canada
Attorneys are assigned to you, not selected by you
Designed to make legal services more accessible and cost-predictable

What These Plans Typically Include

Predictable monthly cost with no traditional hourly billing
Common features may include: Document review ( within plan limitations ), phone consultations, lawyer letters or calls on your behalf, limited IRS audit assistance, & trial defense hours (depending on level of plan and includes other limitations)

Why This May Not Work for Your Business

Pre-paid plans are structured with firm limitations — and those limitations have real consequences as your business grows.

You do not choose your attorney. Attorneys are assigned, leaving you no ability to vet for relevant experience, industry knowledge, or communication style.
Plans are built for the common case, not your case. What starts as a simple question can quickly become a layered issue once you factor in your contracts, industry requirements, employees, customers, deadlines, and risk exposure. The standardized structure limits a plan's ability to adapt as the real complexity of a situation emerges.
Exclusions are built into the model. Certain matters — particularly pre-existing issues — may not be covered at all, and you may only discover these gaps at the moment you need help most.
The monthly fee is rarely the full cost. Many services may fall outside the plan, leading to additional charges that erode the cost predictability that made it appealing. Even when a service is covered, the plan may limit the time spent on your matter.
You pay regardless of whether you need it. Legal matters do not arise on a monthly schedule, and quick questions that an experienced attorney could answer in minutes still carry the same flat fee — potentially costing more over time than paying only for what you need.
There is no continuity of counsel. Without an ongoing relationship, each interaction starts from scratch, with no institutional knowledge of your business, your history, or your goals.

The monthly fee may feel like a savings, but reactive, one-size-fits-all legal advice can cost far more to unwind than proactive counsel would have cost to begin with.

A Better Approach

As businesses grow, cost-predictability alone is not enough. Quality, consistency, and genuine representation require a real relationship with an attorney who knows your business.

You choose who represents you , based on experience, practice area, and fit
You build an ongoing relationship with an attorney who understands your history and your goals
You gain access to collaboration across practice areas when your situation demands it
You receive legal strategy, not just legal answers — guidance that evolves with your business

For businesses focused on long-term growth and protection, working directly with Henningson & Snoxell provides something no subscription can replicate: a trusted legal partner who is genuinely invested in your success. Contact us today to connect with one of our attorneys.

Henningson & Snoxell Welcomes Back Jill A. Adkins

Tue, 02 Jun 2026 16:48:01 GMT

Jill A. Adkins recently returned to Henningson & Snoxell, Ltd. as the latest attorney to join our estate planning and elder law department. With more than 30 years of legal experience working with wills, trusts, probates, and more, Jill is a fierce advocate for her clients. She has a strong passion for serving, focusing on helping her clients understand and navigate the legal system.

Jill works with clients of all ages to create personalized estate plans. From naming guardians for young children to planning for incapacity to minimizing estate taxes, Jill helps her clients with a wide range of topics. She also works with each client’s financial planner or insurance agent to properly coordinate all aspects of the estate plan.

Jill is especially committed to protecting the rights of older persons. She focuses much of her practice on elder law, which includes helping clients plan for long-term care and apply for Medical Assistance. Jill also helps older persons and their families prevent and address abuse, especially financial exploitation.

“I am excited to return to Henningson & Snoxell and resume my estate planning and elder law practice with a stellar group of professionals who focus on serving client needs,” Jill said.

Henningson & Snoxell, Ltd. is excited to welcome back Jill and looks forward to her contributions to our firm!

Scams Against the Elderly on the Rise

Wed, 27 May 2026 14:00:19 GMT

May is National Elder Law Month! Planning for the future or even just the next few months can feel overwhelming, but you don’t have to do it alone. Elder law attorneys help older adults and their families with important issues like estate planning, long-term care, and Medical Assistance. This month, talk to an Elder Law attorney at Henningson & Snoxell, Ltd. to learn how you can bring peace of mind to yourself and your loved ones. Be prepared by keeping yourself informed!

Scams Against the Elderly on the Rise

According to the federal government’s own crime complaint tracking, last year, people age 60 and older were targets of fraud and exploitation that led to nearly $8 billion in losses over the year . Not “thousands.” Not “millions.” That’s “BILLIONS.” This was an increase of 59% over a year ago where the fraud was estimated at a loss of around $5 billion. Not only does the amount of loss rise, but the number of seniors targeted also grows too, with around 200,000 victims in 2025. Keep in mind that these numbers are voluntarily reported and only cover federal government numbers. The number of victims and amount of loss from scams (financial or otherwise) is probably underreported nationwide. There are estimates that across the United States, the losses from fraud against seniors could reach nearly $ 200 billion . The sheer amount of losses are shocking but the widespread experience of seniors should also not be understated , with 4 in 10 adults age 50 or older stating that they have been victims to a scam or fraud . Beware of these popular scams by the bad guys!

Financial Grooming and Romance Scams

This is the classic scam that people think of when they think of elderly persons being taken advantage of. These scammers take advantage of an elderly person who is isolated or does not have nearby family they talk to regularly. They start talking to a senior adult and pretend to get to know them before asking for money or offering an “opportunity to invest.” The money was their goal the entire time and often a single scammer (or multiple working as a group) are communicating with multiple victims in order to maximize the money they can steal. However, from growing awareness and an increasing number of seniors living in communities of their peers for a sense of community and friendship, there are excellent ways of combating this particular type of scam.

Jury Duty or Court Hearing Scams

These scams have always existed, but they have become more sophisticated, often using specialized letterhead and official-looking insignia (which are easily counterfeited with the use of artificial intelligence). A letter or message will state that the target victim missed a jury duty or court date, often referencing a real (but unsearchable and confidential) court case number. It will then direct the addressee to call a number to clear everything up, usually by making a payment. If you ever receive documentation or a message from the court, make sure to look up the actual court contact information through other means, not simply relying on the contact information in the letter or message. Better yet, bring the communication to the attention of an Elder Law attorney who can help you discern whether it is genuine or fraudulent.

“Grandparent” or Distress Call Scams

This one is scary. Although it does not seem like it would be successful, scammers are pretending to be close friends or family of an elderly victim, then acting like they are in an emergency situation for which they need money immediately (e.g. for legal fees, medical bills, or vehicle tow and repairs). This scam may sound improbable, but with more people communicating through text or email, the malfeasor can “spoof” or fake the phone number/email they are messaging from and make it look like a trusted family member’s telephone number or email. Even worse, new technology allows people to “spoof” voices of loved ones, making it sound like a child, grandchild or close friend is on the phone in distress. Taking advantage of elderly people’s compassion for their families or friends allows these scammers to take money with only a single interaction. This scam is increasingly on the rise and hard to defend against in the moment. The best advice is to keep a cool head and call your loved ones back to confirm any prior request for money or to check whether there really is an emergency.

How Henningson & Snoxell Can Help

At Henningson & Snoxell, our Elder Law attorneys are aware of the legal dangers that our clients face every day. We hope that you are aware of the scams above to better protect yourselves or your loved ones. If you are ever wondering whether someone is trying to defraud you or not, we are here to help.

Medicare vs. Medicaid: What’s the Difference?

Wed, 20 May 2026 14:00:06 GMT

Health insurance terms can feel overwhelming, and the confusion often grows as you approach age 65 and start hearing more about Medicare. Two programs that are frequently mixed up are Medicare and Medicaid . They’re both government programs, but they serve different purposes, have different eligibility rules, and cover different types of care.

What Medicare Is

Medicare is a federal health insurance program primarily for people age 65 and older (and for some younger people with qualifying disabilities). It’s administered through the Centers for Medicare & Medicaid Services (CMS). Medicare is split into parts, each covering different categories of services.

Part A (Hospital Insurance): Covers inpatient hospital care and, in limited situations, skilled nursing facility care, hospice, and some home health care. For skilled nursing facility coverage, Medicare generally requires a qualifying 3-day inpatient hospital stay , admission to the facility within 30 days of discharge, and a need for skilled care.
Part B (Medical Insurance): Helps pay for doctor’s office visits, durable medical equipment, and preventive services. It can provide limited outpatient prescription drug coverage in specific circumstances.
Part C (Medicare Advantage): A private plan option that bundles Part A and Part B coverage. Many plans also include prescription coverage (often Part D). Medicare Advantage plans often feel most similar to the employer or individual plans people are used to.
Part D (Prescription Drug Coverage): Helps cover medications on the plan’s formulary when prescribed for an approved use. If a drug is prescribed off-label, coverage may still be possible, but additional requirements can apply.

What Medicaid Is (Medical Assistance in Minnesota)

Medicaid is a needs-based program that helps pay for health coverage for eligible individuals of all ages. For many older adults, Medicaid becomes especially important when help is needed to pay for long-term care after personal resources have been used. In Minnesota, Medicaid is called Medical Assistance . Within Medical Assistance , two common programs for people age 65+ are Elderly Waiver (EW) and Long-Term Care (LTC) . Both have financial eligibility rules (income and assets) plus non-financial requirements.

Asset limits for many married applicants (age 65+): Couples may be required to spend down assets to approximately $162,660 for the spouse not receiving Medical Assistance and $3,000 for the spouse receiving Medical Assistance (plus additional non-exempt asset rules).
Common exemptions: The spouse living in the community may typically keep a home and one vehicle . Minnesota also applies a home equity limit (noted in this overview as $752,000 ).

Gifts and the 5-year lookback : If a family applies for Medical Assistance to help pay for long-term care, certain gifts/transfers made within the prior five years can trigger a penalty period . In general terms, the penalty period is calculated by dividing the value of the gift by the Statewide Average Payment for Skilled Nursing Services. As of May 2026, the figure referenced here is $11,653 .

How Henningson & Snoxell Can Help

At Henningson & Snoxell, our elder law attorneys help families navigate the complexities of paying for long-term care. We assist with Medicare coverage issues (including appealing denials for covered services) and with Medical Assistance planning and applications when additional support is needed.

National Elder Law Month – Guardianships and Conservatorships

Fri, 15 May 2026 14:00:01 GMT

An often-overlooked part of a person’s estate plan is planning for incapacity. Most people think of “death” and making sure they have a will and/or trust. However, equally important is planning for what would happen if you were to become incapacitated or incompetent during your lifetime. That is where documents such as a power of attorney and health care directive come into play. These documents can direct agents you designate in the documents to handle your financial and medical affairs during your lifetime, if you were unable to do so. But what happens if you don’t have incapacity documents; then who is “in charge”? That is where a guardianship and/or conservatorship can come into play.

Guardianships and conservatorships are court proceedings whereby an individual or fiduciary service is appointed as your guardian and/or conservator due to your inability to properly handle your financial and/or medical affairs. If you have incapacity documents in place, those designated agents have the ability to make those decisions for you without the involvement of the court. If you do not have those documents and you were to become incapacitated or incompetent, then a guardianship/conservatorship proceeding may become likely.

In Minnesota, guardianships and conservatorships are separate matters. A person could be subject to just a guardianship, or just a conservatorship, or both. In other states the words “guardianship” or “conservatorship” may be used interchangeably. A guardianship is needed when someone is unable to manage their personal well-being – i.e., they no longer can take care of their medical needs, they are unable to make proper decisions as to where they should live, they can’t live alone or they are a danger to themselves, among other reasons. A conservatorship is when someone is unable to handle their financial affairs – they cannot properly pay their expenses, they do not understand the concept of money, they cannot properly apply for benefits on their own, i.e. they need someone to manage their money. Guardianships and conservatorships are also used if someone is being taken advantage of, or is subject to fraud, threats, undue influence and pressure.

The process for a guardianship/conservatorship is someone (family member, friend, interested party) petitions the court to be appointed as that person’s guardian and/or conservator. As stated previously, these are two separate matters in Minnesota. Sometimes a person may need help financially (they are being taken advantage of by a child, for example), but they are still able to live on their own and take care of themselves – in this case they may only need a conservatorship. Once a petition is filed the court will schedule a hearing. The person possibly subject to the guardianship/conservatorship will have a court-appointed attorney assigned to represent them and they will also meet with a court visitor, both of whom submit reports to the court as to whether a guardianship and/or conservatorship is needed. Once the court hearing is held, if no objections are presented, the guardian/conservator will be appointed.

Guardianships and conservatorships provide protection to the person subject to the court matter. The “negative” of a guardianship/conservatorship if you want to call it that, is that the process is costly and takes a significant amount of time. In addition, the guardian/conservator will have to file yearly reports with the court, and if they are the conservator file annual accountings. The guardian/conservator has a duty to report to the court on a yearly basis and keep accurate records of all actions they take as the guardian/conservator. It’s important to remember that the court and the departments overseeing guardianships/conservatorships are there to protect the person subject to the guardianship/conservatorship – they need to make sure that person’s best interests are being met. If a guardian/conservator fails at those duties, the court could remove them from the position.

It’s important to discuss with your family members whether they have their incapacity documents in place in hopes that if an incapacity/incompetency situation arises, their interests could be protected and met through a power of attorney and health care directive, rather than having to go through the costly and timely guardianship/conservatorship process. It’s important to note that even if you have a power of attorney and health care directive document there are still situations where there may still be a need to pursue a guardianship/conservatorship, however having named agents in those documents is telling the court “this is who I would want as my guardian and conservator” if that situation arose; you are not then leaving it up in the air as to who you would have preferred in those roles and leaving that decision up to others. So in essence, make sure you have your incapacity documents prepared and executed; however, if you don’t there is a court process in place to protect your needs.

Planning for Incapacity

Thu, 14 May 2026 15:10:37 GMT

If you have an accident or a serious health issue and became incapacitated, who would handle your finances or make health decisions for you? A person of any age could be faced with incapacity but as we get older, health issues often increase. It is essential to plan ahead and designate trusted persons to make decisions for you.

Powers of Attorney for finances and Health Care Directives for health care decisions are legal documents which name one or more persons to handle financial and health decisions if you cannot do so.

If you become incapacitated and do not have these important documents in place, your family may be forced to seek a court-ordered guardianship and conservatorship to make financial and healthcare decisions for you.

What is a Power of Attorney?

In Minnesota, a Power of Attorney is a document naming one or more persons to handle your finances for you. That person is called “attorney-in-fact” and can pay your bills, sell your home, make investments, and generally take care of your assets and accounts.

Be careful about who you name on your Power of Attorney. You should name one or more persons who are trustworthy and careful with their own finances. Your attorney-in-fact must act in your best interests and keep records of each transaction handled for you. Most Power of Attorney documents go into effect immediately upon being signed but would be used only if you become incapacitated.

What is a Health Care Directive?

A Health Care Directive is a document naming one or more health care agents to make your health care decisions if a physician determines you cannot make health care decisions for yourself. Your health care agents may be family members or close friends who agree to follow your wishes about your care.

In addition, your Health Care Directive may include instructions about your health care. Health Care Directives were once called Living Wills, which focused on end-of-life care. Your Health Care Directive may include end-of-life directions but can also describe your religious beliefs and your wishes about topics such as organ donation or cremation or pain medication.

Medicaid Planning

If you wish to protect your assets from being depleted by future care expenses (such as nursing home costs), you may want to learn about how the Medicaid rules apply to your situation, as well as the pros and cons of gifting and irrevocable trusts.

What is the role of your Elder Law/Estate Planning Attorney?

The Elder Law and Estate Planning attorneys at Henningson & Snoxell will customize your Power of Attorney and Health Care Directive to ensure you are protected and your wishes are carried out. Our attorneys have decades of experience guiding you through the process of planning ahead for incapacity, including gifting and planning for future Medicaid eligibility.

Contact Henningson & Snoxell at (763) 560-5700 to schedule an appointment with one of our Elder Law and Estate Planning attorneys.

National Elder Law Month

Fri, 01 May 2026 17:04:49 GMT

May is National Elder Law Month! Planning for the future or even just the next few months can feel overwhelming, but you don’t have to do it alone. Elder law attorneys help older adults and their families with important projects, such as estate planning, long-term care planning, and Medical Assistance applications. This month, talk to an Elder Law attorney at Henningson & Snoxell, Ltd. to learn how you can achieve peace of mind for yourself and your loved ones. Be prepared for the future!

Topic 1: Team Effort

As individuals age, it is not unusual for them to need more help from others. Such help could take the form of automatic bill-pay or a cleaning service. It could include, for example, transportation services, meal preparation assistance, or a second “set” of ears at medical appointments. The usual helpers are family and friends, but staff at assisted living and nursing care facilities, medical providers, financial advisors, long-term care insurance brokers, and paid care providers are also key helpers. Despite all the assistance helpers provide, however, such help, in and of itself, isn’t enough. Two more components are needed to provide an aging individual who needs help with the necessary assistance: 1) incapacity planning documents; and 2) a team leader.

Incapacity planning documents name agents who have legal permission to act on behalf of and for the benefit of the elderly person, including a Health Care Directive, Power of Attorney, and perhaps a trust. Without such documents, willing helpers lack authority to ask questions, make decisions, or pay bills.

A team leader is a person who provides an overall plan and who counsels and coordinates efforts. By definition, a team is made up of 2 or more individuals who are working together toward a particular goal. Most teams, such as a sports team or a work team, are comprised of various individuals with different talents. No one person on the team has all the necessary skills or experience for team success, and it is only by working together as a team that the overall team effort is successful. Further, every team needs a leader. Even a team of incredible individual talent can flounder or fail without leadership. Consider a football team without a coach or quarterback.

In the context of helping an aging individual who needs help, it takes a team of helpers to provide all the helps and cares that such an individual needs, but the usual helpers—family, friends, staff at facilities, medical providers, financial advisors, long-term care insurance brokers, care providers—are only able to play their defined helping role and are not well-suited to be the team leader. Only an elder law attorney has the knowledge, training, and expertise to serve as team leader because only an elder law attorney knows the relevant law, can analyze facts and circumstances, is able to counsel and advise, and has the skills and expertise to coordinate team efforts.

Susan Peterson-Lerdahl, Adam Kaufman, Jill Adkins, David Estle, and Rachell Henning, all of whom are Estate Planning and Elder Law attorneys at Henningson & Snoxell, Ltd., have decades of experience helping aging individuals and their families plan for successful team effort. They create the necessary legal structure for helpers to have authority to help. They consider facts and wishes and advantages and disadvantages of various options. They counsel clients to make good decisions about their futures. When necessary, they assist clients with navigating challenging situations. In every case, they lead and guide the team of helpers. Give your Elder Law attorney team leader at Henningson & Snoxell, Ltd. a call today!

Retirement and Spousal Maintenance Modifications

Sun, 08 Mar 2026 15:46:34 GMT

Minnesota instituted a number of changes to the law relative to spousal maintenance effective August 1, 2024. One of these alters how the courts handle retirement of a party. The new statute allows for the modification of spousal maintenance upon the retirement of a former spouse who is paying spousal maintenance. The modification may (1) reduce; (2) suspend; (3) reserve; or (4) terminate the spousal maintenance.

Upon a motion to modify or terminate spousal maintenance, the courts will consider the following factors to determine the appropriate modification:

whether the retirement is in good faith;
The statute now states that there is a presumption that retirement was not in bad faith once the retiring spouse reaches full retirement age or customary age in their occupation.
whether the former spouse has attained the full retirement age under the Social Security Act (age 66 or 67) or the customary age for retirement in their occupation;
whether the former spouse has reasonably and prudently managed their assets since the dissolution of the marriage; and
the financial resources available to both former spouses.
There is now a presumption that a person of full retirement age (whether the spouse paying or the spouse receiving maintenance) will use both income and assets to meet their needs. This is a change from the past statute and appears to be a change from case law as well, where previously only the assets not awarded during the divorce needed to be used to meet a person’s needs.

As the retiring spouse, you may bring a motion to modify before you actually retire, as long as you have a specific date of retirement. The modification or termination can then be effective on the actual date of retirement. This is also a change, as previously a motion to modify could only be brought after retirement.

If retirement is in your near future or your former’s spouse’s future, our family law attorneys can help you determine what the next steps might look like. Contact us to see how H&S can help you.

Pitfalls of DIY Estate Planning: Failing to Plan for a Special Needs Beneficiary

Wed, 04 Mar 2026 15:43:43 GMT

With the age of information comes a lot of disinformation. Having information at our fingertips can be a good thing, but being able to understand and apply the information is equally important.

A common problem with trying to put your estate plan together yourself is failing to properly plan for a loved one with special needs. Individuals with disabilities who are on income- or asset-based programs can be significantly impacted by an unexpected windfall should you name such an individual as a beneficiary on a retirement account, a Transfer on Death Deed, or a checking account. The sudden influx of assets could jeopardize the person’s eligibility for essential benefits that they rely on to cover the services and supports they need. It could even impact their monthly income if they are on Supplemental Security Income (SSI).

A common scenario we see is families trying to add their children as joint owners on their checking accounts to try to avoid probate. Unfortunately, if you put your child who is receiving Medical Assistance or SSI on your checking account, this could impact their eligibility for assistance, as the assets in that account could end up counting as an available asset since their social security number is tied to it. There are better ways to avoid probate. Knowledgeable estate planning and elder law professionals can help you put in place a plan to still provide for your loved ones with special needs while trying to avoid probate and/or reducing the chance of jeopardizing their eligibility for the benefits they need to survive. There are multiple tools that can be used based upon the family situation and the individual’s needs and resources.

At Henningson & Snoxell, Ltd., our estate planning department has attorneys with the experience and knowledge to help you navigate the complicated waters when you have a loved one with special needs. From incapacity planning to estate planning and beyond, we can help you put the plan and tools in place for peace of mind.

Pitfalls of DIY Estate Planning: Failing to Plan for a Minor Beneficiary

Wed, 25 Feb 2026 15:42:08 GMT

Oftentimes while discussing estate planning when minor children are involved, parents tend to focus on the question, “who will our children live with if we were to die?” While this is an important part of their estate plan, of equal importance is how assets being distributed to a minor will be handled. Most people say that their assets should be distributed to their child or children if their spouse predeceases them (if married); this includes designating their child or children as beneficiaries. But if those children are minors, numerous issues could develop. And these issues are not just exclusive to parents of minor children; it can include others who are leaving gifts to minors, such as grandparents to grandchildren. Assets affected by not properly planning for minors include real estate, financial accounts, vehicles, and anything else owned by a decedent at the time of their death.

Some examples of failing to plan properly for minor beneficiaries include:

Not including a contingent trust in your will/trust. If a person has not attained the age of eighteen, they will not be allowed to inherit assets from your estate. If they have attained the age of eighteen, then they will be able to inherit. But do you want an eighteen-year-old to inherit money that they are free to spend as they wish? Instead, what is needed is a contingent trust that states that if a person is under a certain age, their share will be held in a trust until they reach a specified age. This trust would only be created if, at the time of your death, that individual is under the specified age. The funds would then be held in trust and managed by a trustee that you appoint in your will or trust. Funds would be available to pay for expenses on the individual’s behalf, such as education, medical expenses, a down payment on a first house, etc. The only time the individual would receive money to use however they want would be at the ages you designate. For example, a common estate plan could say that a child may get 50% at the age of twenty-five and then the remainder at age thirty. However, you can state whatever ages and percentages you feel are best. If a child is over that age at the time of your death, then they would get the entire distribution, and it would not be subject to a trust. Having a contingent trust such as this will ensure that the funds are held and properly managed until a suitable age.
Designating a minor child as a beneficiary of your financial accounts. Many people who meet to discuss estate planning will state that they have their spouse designated as primary beneficiary and their children as contingent beneficiaries. The issue with this is that a beneficiary designation supersedes what is stated in your will/trust. So if your will/trust has a contingent trust included for minor children with distribution ages and percentages (such as suggested above), but you do not name that trust as contingent beneficiary for the child, then the beneficiary designation of the minor child will control, and it will not be distributed to the trust. This means that if they are still a minor, the company holding the funds will continue to manage the money until the child turns eighteen. Upon turning eighteen, the child can receive the funds. Oftentimes this is where the bulk of a person’s assets reside—in financial accounts. This could be a sizable amount of money that a child is receiving at a very young age.
Improper planning for a minor might necessitate the need for court proceedings. If you don’t include a contingent trust in your estate plan or properly designate the beneficiary for a minor, a court proceeding may be needed to establish a conservatorship or custodial account for the child. Since a minor would not be able to receive funds until they turn eighteen, an adult would need to be appointed by the court to manage the funds on the child’s behalf. Conservatorships and custodial proceedings are costly and typically involve ongoing court responsibilities. Administrative costs and taxes are paid out of the child’s funds, which can deplete what they will ultimately receive. In addition, the court loses jurisdiction over the child once they turn eighteen, meaning the assets being managed by the conservator or custodian are then turned over to the child to be spent as they wish.

These are just a few of the issues that crop up when people do not properly plan for gifts to minor beneficiaries. Not having a proper plan can mean significant legal costs and time-consuming court proceedings. It is important not to rely on what your neighbor told you to do, or an internet search, or what your parents did forty years ago. Instead, meet with an estate planning attorney who can inform you as to the risks of designating gifts to minors and the proper estate planning that can be done to hopefully prevent the issues that happen when a plan is not done properly.

Pitfalls of DIY Estate Planning: Failing to Plan for Estate Tax Minimization or Avoidance

Wed, 18 Feb 2026 15:39:57 GMT

The saying goes that you can’t know what you don’t know; and nowhere is this statement more apt than for do-it-yourself estate planners. Many people are completely unaware of the potential for either a federal or Minnesota estate tax. They have often seen that there is no “death tax” on our assets or have heard that assets should get a “step-up in tax basis” at death to avoid any taxes on heirs. People have heard the accurate statement that there is no “inheritance tax” in Minnesota and assume wrongly that it means that no taxes ever have to be paid as part of an estate. Here are three dangers when it comes to making mistakes about taxes and do-it-yourself plans:

Not knowing the difference between federal and state estate tax liability. People may have heard that the federal estate tax exemption amount is up to $15,000,000.00 per individual, only taxing the portion of a deceased person’s estate that exceeds that relatively high amount. Minnesota’s estate tax exemption amount is nowhere near as gracious, being significantly less per individual. In addition, because the federal amount allows for portability between spouses, allowing a surviving spouse to take advantage of the deceased spouse’s exemption amount, a surviving spouse can effectively double that $15,000,000.00 amount to take advantage of a $30,000,000.00 estate tax exemption. Not so in Minnesota. There is a way to preserve portability and take advantage of a spouse’s estate tax exemption, but it must be set up by a lawyer who understands how laws and regulations actually work.
Assuming that because you aren’t “rich,” you don’t need to worry about estate tax. People with modest estates and lifestyles may still be subject to Minnesota estate tax. Just because someone does not own a million-dollar home or multiple lake cabins, that does not mean that person avoids a taxable estate. Often, life insurance policies may make the difference between a taxable and non-taxable estate. This comes as a surprise to many people because they were often told by brokers that their life insurance policies are “tax-free” and “pass to named beneficiaries without taxes.” The problem comes where the considerably large death benefit amount is considered part of a decedent’s gross estate, despite the fact they never had access to that money. There is a way to reduce the overall size of a gross estate, but it requires more than a do-it-yourself attitude; it requires an estate planning attorney’s careful guidance.
Mistaking how lifetime gift and estate tax exemptions interact. Because there is no “gift tax,” do-it-yourselfers often plan to simply give away their assets to avoid any possibility of taxation at death. They may even know that gifts to one recipient over a certain amount per year need to be declared on a tax form. But gifting can have the effect of lowering the estate tax exemptions (both federal and Minnesota). This is because the lifetime gift exemption and the estate tax exemption amounts are linked (despite having different rules around each). Even if the gift was effective and planned for, there is a possibility that Minnesota could “claw back” the gift amount to attribute it to the estate. An estate planning lawyer can help you understand these topics and plan for the issues.

There are many laws and regulations around estate taxes at death, and all of them include scrutiny from places like the IRS and Minnesota Dept. of Revenue. Inaction or—even worse—mistakes that were made in minimizing tax liability are extremely costly later on. And the mistake of the do-it-yourself estate plan will not be discovered until it is far too late. Don’t rely on what you don’t know. Instead, contact one of the attorneys in the Estate Planning Department at Henningson & Snoxell, Ltd. to assist you with your estate planning, estate administration, and elder law needs.

Employer’s Guide to Form I-9 Compliance and Audit Preparation

Tue, 17 Feb 2026 15:37:40 GMT

While immigration enforcement activity in Minnesota may be shifting, employer obligations under federal Form I-9 requirements remain unchanged. Being prepared for federal immigration inspections allows business owners to respond professionally and confidently if U.S. Immigration & Customs Enforcement (ICE) or Department of Homeland Security (DHS) agents arrive at their workplace. Here are practical steps employers can take to prepare for a potential federal inspection.

1. Before Anyone Arrives: Conduct an Internal Form I-9 Audit

Performing an internal Form I-9 audit is an essential first step in preparing your business for potential federal scrutiny. Federal regulations state you must retain a Form I-9 for each person you hire for three years after the date of hire, or one year after the date employment ends, whichever is later.

A proactive audit helps you identify errors early and reduce compliance risks. An internal audit allows you to:

Review all employee Form I-9s for completeness and accuracy
Ensure supporting documentation is accessible
Verify all forms are stored in a centralized, secure location (separate from individual personnel files)

For more guidance and best practices for conducting an internal audit, visit: https://www.ice.gov/doclib/guidance/i9Guidance.pdf .

2. If ICE or DHS Arrives: Understanding the Inspection Process

If you receive a Notice of Inspection from a federal agency, you generally have three business days to compile all documentation requested in the Notice. After the review, ICE or DHS may issue several types of notices—some administrative, others indicating potential violations.

Important: An employer who knowingly hires or continues to employ unauthorized individuals will be required to cease the unlawful activity immediately. Failure to do so may result in civil fines and/or criminal prosecution.

3. After a Formal Inspection: Maintaining Compliance

Following an inspection, take the following steps to ensure ongoing compliance:

Ensure you receive all Form I-9s and supporting documentation back from federal agents
Be aware of any follow-up interactions or requirements you must fulfill
Verify that your hiring personnel understand how to properly complete Form I-9, verify employee documents, and maintain Form I-9s and supporting documentation in accordance with federal requirements

Regular internal audits and properly maintained Form I-9s are essential to minimizing risk during a federal inspection. If your business wants to proactively address compliance issues or prepare for a potential ICE audit, Henningson & Snoxell can assist with internal audits, compliance reviews, and ongoing support.

Contact our team today to ensure your organization is protected.

Pitfalls of DIY Estate Planning: Failing to Title Assets Properly

Wed, 11 Feb 2026 15:34:47 GMT

Of all the pitfalls relating to DIY estate planning, failing to title assets properly is the most widespread and most problematic issue. It is most widespread because informal “advice” about how to title assets is readily available and because assets can easily be beneficiary-designated. It is most problematic because title to assets is controlling. A few examples are illustrative:

If a person adds a joint tenant to a bank account, the general rule is that the surviving joint tenant inherits the entire account. Legally, the bank balance is not part of this decedent’s estate upon his/her death, which means that the account balance is not available to pay bills and leftovers are not distributed to his/her estate beneficiaries. Such a result often fuels arguments between the decedent’s children, some of whom may contend that such an arrangement is “for convenience only” and therefore the joint tenancy account should be part of the estate.
If a person adds a beneficiary to an asset—whether a bank asset, a brokerage account, a car, real estate, or a retirement account—the general rule is that the named beneficiary automatically inherits such asset and does not, legally, have to share it. This means that the asset is not part of the decedent’s estate and is not distributed to his/her estate beneficiaries. Further, if the named beneficiary predeceases the decedent, a probate proceeding is required.
If a person dies owning sole title to an asset that is an interest in real estate or worth $75,000 or more, there must be probate administration under Minnesota law. While probate is a process that works, it is relatively slow and cumbersome. The law makes no exception for the surviving spouse. If the decedent, who owns the homestead in his/her sole name, is a married person, the surviving spouse must probate title to the homestead.

Simply put, if a person wants his or her Will to be applicable upon death, his/her assets must be titled in his/her sole individual name and NOT beneficiary-designated. Alternatively, if the person wants his or her trust to be applicable and wants to avoid probate, his/her assets must be titled to his/her trust prior to death OR be beneficiary-designated to his/her trust. Estate planning will only be successful in passing the asset on to the correct beneficiary in the most efficient manner if legal documents and title to assets are coordinated. This means that there is no one-size-fits-all estate plan and that each person’s estate plan must be customized for his/her wishes, assets, and estate planning documents. Such is the purview of an estate planning attorney and not one’s neighbor or bank teller.

Please contact one of the attorneys in the Estate Planning Department at Henningson & Snoxell, Ltd. to assist you with your estate planning, estate administration, and elder law needs.

Know Your Rights: A Practical Guide to OSHA Inspections

Wed, 28 Jan 2026 15:32:32 GMT

An unexpected visit from the Occupational Safety and Health Administration (OSHA) does not have to derail your day. While OSHA inspections can feel intimidating, understanding your rights and responsibilities as an employer will help you navigate the process with confidence and protect your organization.

When the Inspector Arrives

When an OSHA Compliance Safety and Health Officer (CSHO) arrives at your workplace, you have several important rights that set the foundation for a proper inspection.

Right to Reasonable Inspection

Under Section 8(a) of the OSH Act, employers have the right to a reasonable inspection. OSHA’s authority is limited to inspecting during “regular working hours and at other reasonable times, and within reasonable limits and in a reasonable manner.” This ensures inspections do not unnecessarily disrupt your operations.

Verify Credentials and Scope

Before allowing the inspection to begin, you may ask the officer to present official OSHA credentials. You can also request a clear explanation of the reason for the visit—whether it stems from a complaint, reported hazard, targeted program, accident, or imminent danger—as well as the intended scope of their review.

Request Time for Your Representative

You may request a reasonable delay so that your designated inspection representative or legal counsel can arrive. OSHA generally accommodates this unless an imminent danger requires immediate attention.

During Inspection

Once the inspection begins, staying informed and engaged is essential to protecting your interests. Remember that all statements made during the inspection are documented and may be referenced in OSHA’s findings. Everything your representatives and employees say is on the record. Be factual and concise, and avoid volunteering unnecessary information or speculation.

Right to Be Present

You have the right to accompany the OSHA inspector during the walk-around portion of the inspection, under Section 8(e) of the OSH Act. The employer’s OSHA representative is encouraged to take detailed notes and photographs that mirror what OSHA documents to maintain an accurate record of all areas reviewed and any issues identified.

Right to Continue Operations

You have the right to continue business operations safely. Contrary to common misconception, OSHA cannot prevent you from working if you are doing so safely. Only a US district court can halt normal operations based on OSHA’s demonstration of an imminent danger.

Right to Representation

You are entitled to have representation present during interviews of management employees to protect the company from unintended commitments or statements that could bind the organization.

Right to Refuse to Perform Demonstrations

OSHA is entitled to observe work as it is naturally being performed during regular operations. However, you retain the right to decline requests to stage demonstrations or perform specific tasks solely for the purpose of the inspection. OSHA cannot compel you to set up or demonstrate work processes on demand without first securing a warrant. Use this right with caution, as refusing reasonable requests may create tension with the inspector.

After the Inspection

Following the walk-around, you have the right to ask questions about potential violations, provide additional safety documentation, and clarify policies or corrective actions already in place.

If OSHA issues citations, you have several options:

Contest citations if you believe they are unwarranted
Request informal conferences to discuss findings with OSHA representatives and potentially negotiate settlements
Petition for Modification of Abatement if you need adjusted compliance deadlines

Moving Foward

Understanding your rights does not mean being adversarial with OSHA inspectors. It means being informed, prepared, and professional—protecting both your employees’ safety and your organization’s interests.

If you have questions about OSHA compliance or need assistance with an inspection, contact us for guidance tailored to your workplace.

Are Your Meal and Rest Break Policies Ready for January 1, 2026?

Tue, 11 Nov 2025 19:54:50 GMT

Effective January 1, 2026, meal and rest break law changes may require Employers to revise their Employee Handbooks. Under the current law, employers were required to provide employees with restroom time and time to eat a meal; however , the amount of time was left to the employer’s discretion. The only additional guidelines are that if the break was less than 20 minutes in duration, it must be counted as hours worked and paid. Any unpaid breaks require the employee to be completely relieved of work duties.

The amendments to the statute now mandate more specific requirements. Employers must provide at least a 15-minute rest break—or enough time to use the nearest convenient restroom, whichever is longer—within each four (4) consecutive hours worked. Additionally, employees working six (6) or more consecutive hours must receive a meal break of at least 30 minutes.

It is important to note that meal and rest break requirements fall under the Minnesota Fair Labor Standards Act (MFLSA), and not all workers meet the definition of “employee” under this law. The MFLSA definition excludes certain agricultural workers, individuals employed in bona fide executive, administrative, or professional capacities, and certain seasonal day camp staff members, to name a few.

With January 1, 2026, approaching quickly, it is important to ensure your employee policies comply with these new amendments. We encourage you to contact us to discuss how these changes affect your current policies and what updates may be necessary.

Minnesota Secure Choice: What Employers Need to Know Before the 2026 Deadline

Tue, 04 Nov 2025 19:53:35 GMT

The State of Minnesota enacted the Minnesota Secure Choice Retirement Program (the “Program”) in 2023, with an original launch date of January 1, 2025. While that deadline has passed, the Program’s new implementation date is now set for January 1, 2026 .

Who Must Participate?

The Program requires Minnesota employers with five (5) or more employees to participate if they do not currently offer a qualified retirement plan. This requirement applies regardless of whether employees reside in Minnesota.

How the Program Works

The Program is structured as an employee-funded retirement savings initiative:

Contributions are deducted directly from employee paychecks and deposited into individual Roth IRA or traditional IRA accounts.
A Roth IRA will be automatically established for each employee unless they elect pre-tax contributions through a traditional IRA.
The proposed initial contribution rate is 5% of wages, with automatic annual increases of 1% until reaching a maximum of 8%.
Employees may opt out of participation at any time.

Employer Responsibilities

While employers cannot contribute to employee accounts under this Program, they do have specific obligations:

Facilitate payroll deductions and remit contributions to the Program’s service provider.
Bear administrative costs associated with processing and remitting contributions.
Provide Program information and enrollment materials to employees.
Note: There are no setup fees for establishing employee accounts.

Importantly, employers who do not offer a qualifying retirement plan cannot opt out of the Program once their compliance date arrives.

Implementation Timeline

The Program features a phased rollout based on employer size. Employers should note they are not required to implement the Program until their designated compliance date:

https://securechoice.mn.gov/

Next Steps

Even if your compliance date is not immediate, we recommend familiarizing yourself with the Program requirements well in advance. This preparation ensures smooth implementation and gives you adequate time to communicate the new benefit to your employees.

For more information, visit the official Program website: https://securechoice.mn.gov/ .

Please contact us with any questions regarding the Program. We will continue to provide updates as additional information becomes available.

One Big Beautiful Bill—One for the Businesses? Blog Series: Part 3

Thu, 30 Oct 2025 19:51:22 GMT

In our final installment of the One Big Beautiful Bill series, we turn to specialized investment and property provisions that could significantly impact specific types of business owners and investors. Part 3 explores three targeted provisions: enhanced benefits for small business stock investments, extended opportunity zone incentives, and new farmland sale options. While these provisions may not apply to every business owner, they offer substantial tax advantages for those who qualify.

1. Qualified Small Business Stock (“QSBS”)

QSBS is stock of a domestic C-corporation that has aggregate gross assets of less than $50 million when and immediately after the stock is issued. OB3 changed three key elements of QSBS: (1) shortened the required holding period from five to three years, with a phased-in exclusion amount for the holding period of between three to five years; (2) expanded QSB eligibility to C-corporations with gross assets not exceeding $75 million, adjusted annually for inflation; and (3) increased the flat cap, per issuer on the maximum amount of capital gain excludable from QSBS from $10 million to $15 million, adjusted annually for inflation.

2. Opportunity Zones (“OZ”)

OB3 permanently extends the OZ tax provisions of the Tax Cuts and Jobs Act (“TJCA”), which were set to expire at the end of 2026. Opportunity zones are designed to encourage people to invest in distressed areas to spur economic growth and job creation in low-income communities. A rolling 10-year OZ designation begins January 1, 2027. OB3 allows taxpayers to defer capital gains tax liabilities for five years from the date of investment, and they will receive a 10% exclusion of the original deferred gain. Among other things, OB3 also revised the OZ eligibility requirements and now includes enhanced tax incentives for investments in Qualified Rural Opportunity Zones. Investments in these rural OZ will receive a 30% exclusion of the original deferred capital gain after a 5-year holding period.

3. Sale of Farmland Property

For tax years beginning in 2026, OB3 allows taxpayers to elect to pay gain from the sale or exchange of qualified farmland to qualified farmers over four equal installments even if the total proceeds are received in a single tax year. Taxpayers can make this election by the due date of the initial tax return. Qualified farmland must be located in the United States and must have been used as a farm for the previous 10 years and must be subject to farm use restrictions for the next 10 years. Qualified farmers are individuals engaged in farming.

Conclusion

These specialized provisions in the One Big Beautiful Bill demonstrate Congress’s focus on supporting specific economic sectors through targeted tax incentives. From enhanced QSBS benefits that make small business investments more attractive to permanent opportunity zone extensions that encourage investment in underserved communities, these provisions create new planning opportunities for qualifying taxpayers. The farmland sale provision particularly benefits agricultural communities by providing installment payment options that can help manage tax burdens.

While these provisions may not apply broadly, they represent significant opportunities for those who qualify. However, these changes also come with compliance complexities and qualifying criteria that require careful navigation. As we conclude our three-part series on the One Big Beautiful Bill, we encourage you to work with your tax advisor to identify which provisions may benefit your specific situation and to develop strategies that maximize these new opportunities.

Our team at Henningson & Snoxell, Ltd. remains available to help you navigate these complex changes and optimize your business planning in light of OB3’s comprehensive reforms.

Minnesota Paid Family and Medical Leave—Employers’ Next Steps

Tue, 28 Oct 2025 19:46:05 GMT

January 1, 2026, is approaching quickly, and employer obligations under Minnesota Paid Family and Medical Leave continue to ramp up. This new law requires employers to provide employees with access to up to 12 weeks of family leave and 12 weeks of medical leave per 52-week benefit year for qualifying events. However, employees can only utilize a capped 20 weeks if claiming under both family and medical leave.

Critical December Deadline

By December 1, 2025 , employers must inform employees of their rights and benefits under Paid Leave through two required actions:

Display the official Paid Leave poster in a conspicuous location in the workplace.
Provide each employee with written notice of their new benefits.

The Minnesota Department of Employment and Economic Development (DEED) has prepared and made available both the required poster and a sample written notice to help employers comply.

Key Compliance Dates and Requirements

December 1, 2025 – Employee Notice Deadline

Inform all employees of their rights and benefits via the workplace poster and individual written notices.
Provide notices in English and in any other language that is the primary language of five (5) or more employees.
IMPORTANT: Employees hired after December 1, 2025, must receive individual notice within 30 days of their start date.
PENALTY WARNING: Failure to provide required notices may result in penalties of $50 per employee for a first violation and $300 per employee for subsequent violations.

January 1, 2026 – Paid Leave Program Launches

Benefits become available to eligible employees.
Employers may begin deducting the employee’s share of premiums from paychecks.

April 30, 2026 – First Premium Payment Due

Employers must remit the first quarterly premium payment.
This payment covers wages paid from January 1, 2026, through March 31, 2026.

We encourage you to reach out with any questions regarding Minnesota Paid Leave compliance. Our team is ready to help make this transition as seamless as possible for your organization.

One Big Beautiful Bill—One for the Businesses? Blog Series: Part 2

Thu, 23 Oct 2025 19:43:46 GMT

The One Big Beautiful Bill (“OB3”) takes a dual approach to business taxes: enhanced deductions for business investments paired with stricter limits on loss deductions. OB3 introduces expanded bonus depreciation and doubled Section 179 limits for equipment and property purchases, while also implementing permanent caps on excess business losses and modifying interest deduction calculations.

Part 2 of our blog series on OB3 focuses on business investment and loss limitation provisions:

1. Bonus Depreciation for Qualified Property

Bonus depreciation has been reinstated for certain new qualified property—including equipment, vehicles, and software—acquired after January 19, 2025. At the federal level, businesses may deduct up to 100% of the cost of qualifying property in the year of acquisition. However, Minnesota does not conform to this federal provision, so the full cost may not be deductible on your Minnesota return.

2. Expensing Limits under IRC Section 179

Section 179 allows businesses to expense personal property and certain qualified real property up to a set limit. OB3 increased the maximum deduction limit from $1 million to $2.5 million. Additionally, the phase-out threshold was increased from $2.5 million to $4 million. These limits will be adjusted for inflation. This applies to property placed in service in taxable years beginning after December 31, 2024.

3. Business Interest Deduction Limitation

IRC Section 163(j), beginning after January 1, 2022, limited interest deductions to 30% of taxable EBIT (Earnings Before Interest and Taxes) for certain businesses. OB3 modifies this limitation by reverting the calculation from Taxable EBIT back to taxable EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for tax years beginning after December 31, 2024, which will allow more interest to be deducted. For tax years beginning after December 31, 2025, OB3 makes additional changes, including modifying the definition of interest included in the calculation. The revised provision will require taxpayers to include all interest, even capitalized amounts, in the total interest amount when determining the interest limit.

4. Excess Business Losses

The Tax Cuts and Jobs Act (“TCJA”) limited the deductibility of excess business losses for noncorporate taxpayers (including individuals who own a business, trusts, and estates), a limitation that was set to expire in 2028. OB3 made this limitation permanent. An excess business loss is the amount by which the total deductions attributable to all of a noncorporate taxpayer’s trades or businesses exceed their total gross income and gains attributable to those trades or businesses. In other words, if your business losses exceed your business profits by more than a certain limit ($626,000 for married filing jointly or $313,000 for singles in 2025), the excess loss beyond that limit is treated as excess business loss. Any disallowed losses carried over to the next tax year will be treated as net operating losses rather than excess business losses.

Conclusion

OB3’s business provisions create new opportunities for investment-focused deductions while establishing permanent limitations on business loss utilization. These changes will require business owners to adjust their tax planning strategies to navigate the updated depreciation benefits, Section 179 limits, and loss restriction rules as they plan for 2025 and beyond. However, these changes also come with compliance complexities and qualifying criteria that require careful navigation. We encourage you to meet with your CPA or tax advisor to discuss planning strategies that work best for your specific situation.

As always, Henningson & Snoxell, Ltd. is here to help! Contact us with questions about how OB3 impacts your business. Be sure to check back for our final installment of the One Big Beautiful Bill series, where we will wrap up the key takeaways and planning considerations.

One Big Beautiful Bill—One for the Businesses? Blog Series: Part 1

Thu, 16 Oct 2025 19:41:48 GMT

As you have likely heard, Congress and the Trump Administration signed into law the One Big Beautiful Bill Act (“OB3”) on July 4 ^th , 2025, enacting a sweeping set of tax changes impacting individuals, estates, state, local, real estate, and business tax rules. While we know many of you have probably spent your first few weeks of fall reading all 330+ pages of the Act in your free time, we are launching this blog series to highlight a few key provisions that Minnesota business owners should know about.

Part 1 focuses on individual and pass-through provisions that affect business owners:

1. Qualified Business Income (“QBI”) Deduction

The QBI deduction was previously set to expire at the end of this year, potentially increasing taxes for many small-business owners. OB3 makes this deduction permanent. This means that eligible small businesses—structured as sole proprietorships, partnerships, S corporations, and LLCs—may continue to deduct up to 20% of their qualified business income.

2. Research and Development (“R&D”) Expense Deductions

Under OB3, U.S.-based R&D expenses are now fully deductible in the year incurred, reversing the previous requirement to amortize these costs over five years. This change is retroactive, allowing businesses to amend prior tax returns and claim deductions they were previously unable to take.

3. New Deductions for Tips and Overtime

For tax years 2025 through 2028, individuals in tip-based industries—with specific industry definitions still pending—may qualify for deductions up to $12,500 in tip income for single taxpayers, subject to income phaseouts and the requirement that tips be voluntary. Additionally, taxpayers who receive qualified overtime compensation—also awaiting regulatory definition—may be eligible for a deduction on the overtime portion of their wages, though not the full time-and-a-half compensation required under the Fair Labor Standards Act (FLSA). These new deductions come with numerous qualifying criteria and limitations, so further guidance is expected.

4. Pass-Through Entity Tax (“PTET”)

PTET is a tax on pass-through entities (partnerships, LLCs, or S corporations) that allows these entities to elect to pay an entity-level tax in exchange for a credit or deduction of the state tax imposed on the owners of the entities. OB3 extended PTET and increased the limit on the State and Local Tax (SALT) deduction cap to $40,000 annually for married couples filing jointly up from the current $10,000 annual cap. The $40,000 limit will be adjusted for inflation beginning in 2026 and increase by 1% annually until 2030. In 2030, the SALT cap is set to revert to the $10,000 deduction amount.

Conclusion

OB3’s individual and pass-through provisions offer significant opportunities for business owners, from permanent QBI deductions to immediate R&D expense deductions and new tip and overtime deductions. However, these changes also come with compliance complexities and qualifying criteria that require careful navigation. We strongly encourage you to consult with your CPA or tax advisor to understand how these changes may impact your specific situation.

Our team at Henningson & Snoxell, Ltd. is ready to help you assess the impact, make strategic adjustments, and keep your business compliant and protected. Contact us to discuss how OB3 may affect your legal planning and operations. Stay tuned for Part 2 of our series, where we’ll explore the business-specific provisions of the One Big Beautiful Bill.

Minnesota Paid Leave: Equivalent Plans

Fri, 18 Jul 2025 15:00:00 GMT

Minnesota’s Paid Family and Medical Leave program launches in approximately six months. Employers now have approved alternatives to the state program, with the Minnesota Department of Employment and Economic Development (DEED) publishing its list of compliant private plans and self-insurance options.

Alternative Options to State Plan

Employers have two alternative options to utilizing the state program: self-insure or private insurance carrier plans. Regardless of your choice, you must provide paid family and medical leave that offers the same or better coverage to all employees, costs employees no more than the state program, and provides equal job protection.

Self-Insured Plans

Employers may choose to self-insure for paid family and medical leave, which means you manage paid leave requests and payments directly to employees. However, self-insured plans must be backed by a surety bond to ensure payment capability. The surety bond must be:

Issued by a surety company authorized to do business in Minnesota, and
Equal to your total annual premiums under the state plan.

To calculate the required bond amount, use the DEED Paid Leave calculator: https://mn.gov/deed/paidleave/employers/premiums/index.jsp

Insurance Carrier Plans (Private Plans)

The second option is enrolling in a private plan sold by an approved insurance carrier. DEED has published the list of approved carriers with compliant plans at: https://mn.gov/deed/assets/approved-equivalent-plans_tcm1045-695686.pdf

How to use the alternative plans?

You may choose either alternative at any time, but you must request an Equivalent Plan Substitution through DEED. The process involves setting up required accounts, submitting documentation, and paying a nonrefundable fee (between $250–$1000 depending on employer size).

Even with approved alternative plans, employers remain subject to certain state requirements. You must continue submitting wage detail reports to the state each quarter and comply with all employee notification requirements.

All employees must be informed of their rights and benefits under Paid Leave by December 1, 2025 . These notices must be provided in employees’ native language, and workplace posters must be displayed in English and any language spoken by five or more employees. For employees hired after December 1, 2025, you must provide the required notice within 30 days of their start date. DEED will be providing a model notice for Employers to follow. Contact us with any questions regarding Minnesota Paid Leave.

Successful Representation in Breach of Fiduciary Duty Case

Thu, 17 Jul 2025 15:00:00 GMT

In a recent Wright County, Minnesota, case, Henningson & Snoxell, Ltd. attorneys, Mark V. Steffenson and Susan T. Peterson-Lerdahl, successfully represented a client who was short-changed in the distribution of her mother’s estate by her brother, the duly-appointed personal representative. The personal representative’s position was that the client’s distributive share of the estate should be reduced because the client still owed the decedent money under an old contract for deed arrangement between decedent and client. After a three-day evidentiary hearing, the court determined that the contract for deed carried contractual damages which had been satisfied when the client defaulted under the contract for deed and the property was sold and that the client should receive her equal distributive share of the estate. Further, the court held that the personal representative acted unfairly by reducing the client’s distributive share and that the personal representative breached his fiduciary duty by using undue influence over decedent in making codicils and by improperly administering the estate. The personal representative was removed for cause from service as personal representative.

As always, for any of your estate planning or elder law needs, feel free to contact one of Henningson & Snoxell, Ltd.’s estate planning and elder law attorneys: Susan T. Peterson-Lerdahl, Adam J. Kaufman, Eric J. Lilly, David T. Estle, and Rachell L. Henning.

Minnesota expands Rule Against Perpetuities to 500 years

Tue, 08 Jul 2025 17:48:00 GMT

Short History

Sometimes, statutes are written to satisfy both proponents and opponents of a law. Minnesota’s Rule Against Perpetuities is a case in point. A short history lesson best illustrates the concept.

In the late 1500s, the Duke of Norfolk created a trust to protect family property for his oldest son, who lacked capacity and was unable to own assets outright. The Duke transferred all of his property to the trust and prohibited the trustee from selling any of it, thereby indefinitely removing the property from commerce. This trust arrangement created controversy because some people did not believe that property should be encumbered with such restrictions that would last for generations. After many years of litigation, the case was decided with the court issuing what is now known as the “rule against perpetuities”, which limited the amount of time that property could be held in trust to about 100 years.

As of August 1, 2025, Minnesota’s Rule Against Perpetuities (RAP) increases from 90 years to 500 years. (Minnesota Statutes Section 501A.01(2025)). Trusts created prior to August 1, 2025, will remain governed by the 90-year vesting rule.

How does the new law impact you?

In general, a longer RAP period gives you more estate planning flexibility. For example, you may wish to leave an inheritance to people who are not yet born (and who may never exist) or to make a gift…with certain legal conditions attached. Or, you may want to plan to keep a property in the family for many generations. Further, you may decide to use one or more trusts to plan to minimize or avoid estate tax at death. If so, Minnesota’s new, longer, Rule Against Perpetuities will aid you in your planning. As always, for any of your estate planning or elder law needs, feel free to contact one of Henningson & Snoxell, Ltd.’s estate planning and elder law attorneys : Susan T. Peterson-Lerdahl, Adam J. Kaufman, Eric J. Lilly, David T. Estle, and Rachell L. Henning.

Simplifying Your Digital Estate

Tue, 10 Jun 2025 21:02:00 GMT

Apple’s “Legacy Contact” feature is a planning tool for your digital estate. When we make wills or other estate planning documents, we often focus on tangible assets like the car and fine china or on real property, such as the house. Today, some of our most invaluable assets are stored on our phones. Without proper planning, access to a loved one’s Apple account after his or her death is difficult, expensive, and time-consuming. If a person wishes to be proactive, Apple now offers the Legacy Contact feature as a planning tool. Keep reading to learn more.

Legacy Contact Feature

The Legacy Contact feature is a great alternative for individuals who prefer to avoid working through a court proceeding to gain access to a decedent’s iCloud account. Apple’s Legacy Contact allows an account holder to designate trusted people who are allowed to have access to his or her account data after his or her death.

Once the account holder is deceased, the designated contact person may go to Apple’s website and request access using the account holder’s death certificate and an access key, which is distributed to the Legacy Contact upon being delegated as such.

How to Appoint a Legacy Contact

An account holder can add up to five Legacy Contacts in his or her iPhone settings. To do so, first the account holder goes to Settings and taps his or her name at the top of the screen (otherwise known as Profile). Next, the account holder taps Sign In and Security, and then “Legacy Contact.” Once the account holder is at the Legacy Contact screen, he or she can scroll through his or her contact list and designate a contact as a Legacy Contact. Please note that each person selected must also be an iPhone holder (or at least have an Apple ID).

Once the account holder has designated a Legacy Contact, he or she will get a text with notice of the designation. That person can then access his or her account to find the access key: Settings, tap on your name > Sign in and Security > Legacy Contact.

How Does a Legacy Contact Gain Account Access?

If you are a Legacy Contact, you will need to request access to the decedent’s account through Apple.

First, go to Digital Legacy-Request access , tap or click on Request Access, and sign in with your Apple ID. After your identity is verified, you will need to upload the decedent account holder’s death certificate and enter your access key. Once Apple approves your request, you will receive an email containing a special Legacy Contact Apple account, which will be used to access the account holder’s data. From there, you will be able to access the account holder’s iCloud data for three years (from approval date).

What Data Can a Legacy Contact Access?

Privacy measures protect sensitive information, so signing into a Legacy Contact account is not the equivalent of logging into the account with the original account holder’s Apple ID username and password.

A Legacy Contact has access to:

iCloud photos
Notes
Mail
Contacts
Calendars
Reminders
Call history
Files stored in iCloud drive
iPhone Health app data
Voice memos
Safari bookmarks and reading list
iCloud messages

Legacy Contacts do not have access to:

Licensed media, such as books or music purchased on the phone
In-app purchases
Payment information, like credit card numbers or other Apple payment options
Information stored in the account holder’s keychain, such as usernames and passwords for websites and internet accounts, credit card numbers, or Wi-Fi passwords

We Can Help You Plan Ahead

If you or a loved one would like to pass on your digital legacy without subjecting your family to an expensive and time-consuming court proceeding, the Apple Legacy Contact feature may be the perfect solution for you.

As always, for any of your estate planning or elder law needs, feel free to contact one of Henningson & Snoxell, Ltd.’s estate planning and elder law attorneys : Susan T. Peterson-Lerdahl, Adam J. Kaufman, Eric J. Lilly, David T. Estle, and Rachell L. Henning.

Minnesota House Introduces Bill for Office of Healthy Aging

Thu, 29 May 2025 16:41:00 GMT

We are in the midst of National Elder Law Month! May is a month of advocacy for and celebration of the best our population has to offer: our Seniors and Elders. Whether we are appreciating the strength and contributions of our eldest family members or just holding our loved ones especially close this time of year, National Elder Law Month is a time to put our focus on issues that affect aging and elderly Americans.

The Minnesota Legislature is doing the same by bringing a light and a platform to current and future issues that affect a portion of our aging population in Minnesota. And make no mistake, our population is aging . According to census data, the State now has reason to believe that Minnesota’s 65-and-over population is larger than that of children aged 5 through 17. This is a historic change. And the Minnesota Legislature is not blind to the growing issues that come with a population with changing demographics. A bipartisan bill has been introduced in the Minnesota House as HF 2725 . The bill, if passed into law, would create an Office of Healthy Aging, whose goal is “to develop the Minnesota Healthy Aging Plan for aging Minnesota communities.” This Aging Plan must include input from older adults and recommend actions that support older Minnesotans, their contributions to the State, and their health care needs. A big focus of the plan would be dedicated to providing options for older adults to stay at home in their long-standing communities and make such options affordable . The Plan must address how elder Minnesotans can continue supporting themselves and society by attempting to lower barriers to employment and improving job opportunities. Finally, there must be a focus on implementing policies that will face head-on the increasing demands for home care, assisted living space and even nursing facilities.

These are big topics in Elder Law and have a real effect on people’s lives. This bill comes out of work by a Legislative Task Force on Aging created in 2023 . For the past few years, this task force heard from community members and advocacy groups to identify issues of major importance to elderly individuals in Minnesota, but it seems more action, participation, and planning is needed. This is where the Office of Healthy Aging comes in. There will be a Director for the Office of Healthy Aging; this Director must have skills in the relevant fields of public health and policy with actual knowledge of older adult home and community life. The Director must work within a budget to hire staff to support the office and the members. One of the biggest duties of the Office includes creating a Citizens’ Engagement Council which will hold community discussions to get all stakeholders (both public entities and private citizens) to discuss the Minnesota Aging Plan and contribute to it.

The bill has been held over for potential inclusion this 2025 legislative session. However, with the close of the regular legislative session, that means that the bill may only see a vote in a special session. As of the writing of this blog post, the bill has not been put to a vote in the Minnesota House or Minnesota Senate or been signed into law. The bill does show that the Minnesota Legislature knows that healthcare demands for seniors, community engagement of elderly adults, and issues facing aging Minnesotans are increasing and will continue to grow over time. As stated above, the bill is bipartisan and even the bill’s proponents are pointing out that this issue affects all of us . We do not know what the impact of an Office of Healthy Aging will be, even if the bill passes. Whether this State-funded cabinet can meet the needs of those it seeks to support is a question we will be looking into in the future.

One thing is clear: Elder Law issues need to be heard more loudly and clearly across the entire nation; this bill is a small, first step in that wider recognition. It is more important than ever to plan for the legal, health, and financial problems that affect older adults and their families. Elder law attorneys may assist with all sorts of issues—estate planning, long-term care planning, Medicaid and Medicare, Social Security benefits, tax planning, preservation/transfer of assets, and disability planning, among other legal matters. Elder law attorneys throughout the country are observing National Elder Law Month by providing education and outreach that brings all of us together to address and talk about these issues.

Elder Law Month is the perfect time to focus on Minnesota’s aging population. From the State Capitol to your own local neighborhood, make sure that you are learning about and engaging with topics that affect Minnesotans that have contributed so much over the course of rich and continuing lives. If you have questions about how those issues impact yourself or a family member, please contact a Henningson & Snoxell Elder Law Attorney today!

Update: FinCEN’s Interim Final Rule for BOI Reporting Requirements

Fri, 25 Apr 2025 13:57:57 GMT

Financial Crimes Enforcement Network (FinCEN) announced its interim final ruling regarding the Beneficial Ownership Information (BOI) reporting requirements Friday evening, March 21, 2025. The interim final ruling provides that entities created in the U.S., and their beneficial owners, are exempt from the BOI reporting requirement. Foreign entities, i.e., entities formed outside of the U.S., are still required to file their BOI report within the applicable timeframe, but U.S. persons who are beneficial owners of a foreign entity are not required to be reported as beneficial owners.

This means that entities formed in the state of Minnesota or any other U.S. state are exempt from filing the initial BOI report and no longer have the continuing obligation to file updated BOI reports. As with many of the BOI updates to this point, this is subject to changes that may occur in the final ruling.

Please contact us if you have questions.

Earned Sick and Safe Time Amendment

Thu, 10 Apr 2025 13:57:57 GMT

As of January 1, 2025 , the Earned Sick and Safe Time (ESST) statute has been amended with new requirements for additional paid leave. When employers offer paid time off (PTO) or other paid leave beyond the minimum ESST hours required by law, this additional leave must comply with all ESST statutory requirements (except for accrual requirements) whenever it is used for ESST-qualifying purposes.

For example, if the employer offers 25 hours of PTO in addition to the minimum requirement of 48 hours per year under ESST law, the employer must provide the same notice, documentation, anti-retaliation, replacement workers, etc. as required under ESST if the additional PTO hours are used for an ESST-qualifying purpose . In other words, whenever an employee uses PTO for an ESST-qualifying purpose, the employer must follow the ESST rules regarding notice, documentation, anti-retaliation, replacement workers, etc. Please contact us if you have any questions about the new amendment.

Tangible Personal Property: Dragons, Gold Coins, and Other Matters of Interest

Mon, 31 Mar 2025 13:57:57 GMT

It never ceases to amaze me how frequently our firm encounters outright bad advice offered by otherwise competent, well-meaning attorneys who simply lack experience in the estate planning arena. Nowhere is this more evident than in the creation of tangible personal property (TPP) lists—a topic that might sound mundane but lies at the heart of some of the most delicate, emotionally fraught aspects of estate transfers.

Picture this: Mom passes away, and the personal representative is busy managing the estate. Assets are being liquidated, decisions are being made about timing and listing prices for real estate—the entire gamut of complex choices that must be addressed during this difficult time.

And in the middle of all of that …the allocation of tangible personal property.

Inevitably, there are certain material possessions that Mom (or Dad) uniquely cherished. Perhaps it’s a watch worn for decades, her prized paintings, the family coat of arms on display in the study, that sword from World War I that Great-Grandpa carried, or Dad’s treasure trove of firearms locked safely away in his secretive vault. These are precisely the items that most families include on a tangible personal property list.

But here’s where things get interesting—and where inexperienced advisors often go astray.

The Statute That Many Miss

You might be surprised at how many times we witness outright violations of Minnesota’s clear statute addressing this topic. As you will see—its language is remarkably clear:

Minnesota Statute 524.2-513, titled ‘Separate writing identifying bequest of tangible property’ begins: “A will may refer to a written statement or list to dispose of items of tangible personal property not otherwise specifically disposed of by the will, other than money and coin collections… ”

This statute goes on to lay out specific core legal requirements for a valid TPP, bu t here we focus on just one critical element, an exclusion (no gold coins or bullion!). Those several core requirements include, for example, that the TPP list must either be signed by the testator or written in their handwriting, and that it must describe items and recipients with reasonable clarity.

A TPP list that fails to meet the core statutory requirements can be entirely disregarded, leading to unintended consequences during estate distribution—such as cherished personal items ending up in the wrong hands. When a testator’s intentions are perceived one way but, due to a technical violation of the statute, the assets are instead distributed differently (such as under the Last Will and Testament’s residue clause), it can create significant discord, straining even the healthiest of family relationships. Long after the financial assets of an estate are spent, it is often these personal items that carry the deepest emotional weight—serving as enduring connections to a loved one, evoking memories of times and places long past.

And for as clear as the foregoing passage reads, it’s amazing how frequently it gets misunderstood or misapplied. So, to be abundantly clear, the phrase “other than money and coin collections” is a deliberate exclusion and unequivocally stands for the rule that gold coins cannot be allocated via a tangible personal property (TPP) list. Rather, they default to the general estate assets unless otherwise addressed in the will or trust.

Why the Confusion?

Part of the problem seems to be that gold coins ‘feel’ like tangible personal property. They don’t feel like money, and maybe they don’t even register as a “coin collection” in the traditional sense of rare or collectible coins.

Just the other day, I was speaking with my neighbor who operates a pawnshop. He loves to buy and sell gold of all kinds, especially coins—be they American Eagles, Canadian Maple Leafs, South African Krugerrands, or even gold bullion.

As a savvy businessperson and negotiator, he’s constantly probing his buyers and sellers to maximize his profit margin on transactions, typically aiming for a $100–200 margin per coin exchange.

He readily confirmed my suspicion that the vast majority of people buying gold these days acquire it to hold, not to resell. It’s a place to store wealth with an almost guaranteed retention of value and minimal transaction costs.

A person might hold a set of gold coins for 20 or 30 years, or even pass them down to the next generation.

With increasing global instability and new rounds of trade wars, gold will only continue to be what it has been throughout the ages: a safe harbor for maintaining wealth. Indeed, your biggest risk factors with gold relate to its safe storage and retrieval, not with it losing value.

So, while gold may not feel like “money” in the everyday sense, under the language of the statute, it is. Those coins minted by the U.S. Treasury (American Gold Eagles), the Canadian Treasury (Maple Leafs), and the South African Mint (Krugerrands) are unmistakably “money” in the eyes of Minnesota’s TPP s t atute.

Solutions for Your Precious Metals

So how can a testator make sure her cherished gold coin collection is distributed according to her wishes? This presents a particular challenge because gold coins are such a prominent vehicle of wealth transfer, all the more now that gold has broken $3,000 per ounce, and testators frequently want to devise them differently than the rest of their estate—perhaps giving one gold coin to each grandchild, for example.

One option is gifting during your lifetime, which can be an effective mechanism (though annual gift tax exclusion limits should be considered).

But as an old proverb wisely notes, “A wise man leaves an inheritance for his children and his grandchildren.” Gifting during one’s lifetime is one thing, but the sentiment and legacy associated with providing an inheritance in the traditional sense—once a person has “run their race”—is quite another.

Since these gold coins cannot be included on the testators TPP list, depending on the exact circumstances we sometimes suggest a separate clause in your will or trust specifically dealing with gold coins and other precious metals.

Beyond Gold: Other Special Collections

All that I’ve discussed about gold coins could equally apply to other valuable collections—say a prized firearm collection—which may come with very specific preferences for dispersal among loved ones.

In a future post, I’ll discuss the a dvantages of creating a firearms trust (also known as a gun trust), which is not only effective for conveying inheritance when settling an estate but equally valuable during a person’s lifetime for managing their collection and even affording a layer of liability protection.

Don’t Leave Your Legacy to Chance

Tangible personal property is often one of the most delicate, emotionally fraught aspects of estate transfers, carrying deep emotional weight for families. Whether it is a set of cherished spoons or vintage albums, proper planning with experienced counsel can make all the difference between your wishes being honored and your most treasured possessions becoming a source of family discord.

Our firm specializes in navigating these nuanced areas of estate planning. With over 40 years of dedicated firm experience focused heavily in estate planning, we understand well both the legal requirements and the emotional significance of these decisions.

Let us help you protect your legacy—keep the dragons at bay and protect your gold, your firearms, and all your most cherished treasures.

Minnesota Paid Leave Update: Premium Rates

Mon, 24 Mar 2025 14:45:00 GMT

The Minnesota Paid Family and Medical Leave, effective January 1, 2026 , provides paid time off for qualifying employees to take care of themselves or their families, for certain military -related events, or certain personal safety issues (“Paid Leave Program”). Family Leave provides payments and job protection for 1-12 weeks for (a) bonding with a new child, (b) caring for a loved one, (c) managing military leave, and (d) certain personal safety issues. Medical Leave provides payments and job protection for 1-12 weeks for an employee’s own serious health condition. However, the employee can only take a maximum of 20 weeks combined under the Paid Leave Program in one (1) year if the employee qualifies for both medical and family leave.

The Paid Leave Program is funded by both employers and employees by contributing premiums to the Paid Leave Program fund. The premium rate is the percentage of an employee’s wage reported each quarter that will be collected and paid to the Paid Leave Program fund. For most employers, the premium rate is 0.88 percent for 2026. For employers who employ thirty (30) or fewer people and the average employee wage is less than 150% of the statewide average weekly wage (less than $2,058 weekly and approximately $105,000 annually), the premium rate for the first year of the program is 0.66 percent of wages, of which two-thirds (2/3) or (0.44%) may be charged to the employee (“Small Employer”).

Employers must pay at least 0.44% (or 0.22% if a Small Employer) of the premium rate but may choose to pay up to 100% of the premium for their employees. The remaining 0.44% or the remaining amount not paid by the employer shall be deducted from the employee’s pay. The first premium payment is due April 30, 2026, based on the wage detail report from January 1, 2026, to March 31, 2026. Employers may deduct the employee’s portion of the Paid Leave premium from their paychecks beginning January 1, 2026. Moving forward, premium rates will be set annually by July 31 for the following year; however, the premium rate will not exceed the maximum rate set by state law (1.2%). To calculate an estimate of your Minnesota Paid Leave premium contribution, visit: https://info.paidleave.mn.gov/employers/premiums/index.jsp .

When an employee wants to use the benefits of the Paid Leave Program, the employee must apply to the Minnesota Paid Leave Program, which will process their claim and pay benefits out of the state fund. The fund pays a wage replacement rate, which is a percentage of the employee’s income on a progressive scale (i.e., lower-income workers receive a higher percentage of their income, and as the employee earns more, the percentage will decrease). However, benefits will be capped at the state average weekly wage (SAWW), which as of October 1, 2024, was $1,372.00 per week (adjusted annually). The employee has 12 months from the first date of absence under the Paid Leave Program to use the Leave time. If the employee does not use the full 20 weeks of absence in a benefit year, the employee does not get to carry over any unused time or receive any money for the unused time. In the new year, the benefits will renew, and the employee will again have up to 20 weeks of benefits available. In the upcoming months, the Minnesota Department of Employment and Economic Development (DEED) will be releasing an estimated benefits calculator similar to the one at the link above.

We encourage you to begin planning, if you have not already, for this obligation to ensure your business is financially and administratively prepared. Please contact us if you have any questions regarding the Minnesota Paid Leave.

Stay tuned for more information and blogs about Minnesota Paid Leave!

The post Minnesota Paid Leave Update: Premium Rates appeared first on Henningson & Snoxell .

Adam J. Kaufman Is Now Licensed to Practice Law in Wisconsin

Thu, 20 Mar 2025 19:40:00 GMT

The attorneys at Henningson & Snoxell are committed to providing our clients with comprehensive legal services, and this sometimes includes pursuing licensure in states beyond Minnesota.

As of December 2023, Attorney Adam J. Kaufman is now licensed to practice law in the State of Wisconsin. This presents a benefit to Henningson & Snoxell’s clients who reside or have property in Wisconsin, as they can have the assistance of an attorney right here in Maple Grove rather than searching for an attorney in Wisconsin. As a member of our Estate Planning Department, Mr. Kaufman can work with clients on their Wisconsin estate planning needs, including but not limited to wills/trusts/powers of attorney and health care directives, real estate matters, probates, trust administrations, and guardianships/conservatorships.

Working with an attorney who is licensed in both Minnesota and Wisconsin is especially convenient for clients who own property in or have family ties to both states. If you or someone you know has any Wisconsin legal needs, including estate planning or elder law, please reach out to Mr. Kaufman .

The Whirlwind of BOI Reporting & Recent Updates

Wed, 05 Mar 2025 20:26:00 GMT

As business owners, you are most likely aware that the Corporate Transparency Act (CTA) requires most businesses to file Beneficial Ownership Information (BOI) reports with the Financial Crimes Enforcement Network (FinCEN) to help find and stop illicit financing and increase transparency.

To help you understand the whirlwind of BOI reporting requirements, here is a brief outline of the recent BOI updates:

December 3, 2024 : a nationwide preliminary injunction issued on CTA and BOI reporting requirements.
December 23, 2024 : a nationwide preliminary injunction lifted pending U.S. Department of Treasury’s appeal.
December 26, 2024 : a nationwide preliminary injunction put back in place.
January 7, 2025 : a Texas District Court issued an order pausing the CTA enforcement.
January 23, 2025 : the U.S. Supreme Court lifted one of the nationwide preliminary injunctions.
February 18, 2025 : the second and remaining nationwide preliminary injunction has been lifted, making the CTA and BOI reporting requirements mandatory again.

As of this blog, the CTA and BOI reporting requirements are back in effect and reporting companies must comply to avoid severe penalties. Failure to timely file may result in civil penalties of $591 per day (adjusted annually for inflation), with a maximum penalty of $10,000.00 or criminal penalties of up to two (2) years imprisonment or a $10,000.00 fine.

Filing Deadlines **

For reporting companies formed or registered on or before February 19, 2025, BOI reports must be filed by March 21, 2025 .
For reporting companies formed or registered after February 19, 2025, BOI reports must be filed within thirty (30) days of the formation or registration date.
If there is a change in ownership information or company information, you must file an updated BOI report within thirty (30) days of the change.

**If your reporting company received an extension, such as the disaster relief extension, the reporting company has until the applicable extension date, rather than the general deadlines.

**If you are a tax-exempt organization that has received a determination letter to that effect, you are exempt from this reporting requirement. Furthermore, if you are an organization that is presumed to be tax-exempt and as such has received no determination letter, you will also be exempt from the reporting requirement IF your Articles of Incorporation contain the appropriate clauses required by the IRS.

Please use the following link to file your BOI report: https://www.fincen.gov/boi . We encourage you to contact us if you have any questions regarding the CTA or BOI reporting requirements.

Employer Rights & U.S. Immigration and Customs Enforcement (ICE)

Wed, 26 Feb 2025 15:50:00 GMT

When U.S. Immigration and Customs Enforcement (ICE) conducts a workplace visit, both the federal agents and the business owners have obligations to ensure that proper law enforcement procedures and business protections are respected. ICE officers must present their credentials, which employers have the right to examine, along with any warrants. While ICE officers may freely enter any “public area” of the business (such as lobbies or parking lots), access to “private areas” (like employee offices or break rooms) requires either employer consent or a judicial warrant signed by a judge. It is crucial to understand that administrative warrants (Form I-200 or I-205) require employer consent for entry into private areas, while judicial warrants provide broader authority.

The interaction between businesses and ICE involves established protocols that balance law enforcement objectives with business operations. The employer has the right to have a business representative present during any employee interviews and the right to contact legal counsel. For Form I-9 Audits, ICE must provide prior notification, and employers have three (3) days to produce the forms. If unauthorized employees are identified during an audit, employers have ten (10) days to become compliant. Throughout any ICE visit, both parties should maintain documentation of the interaction. Business owners should understand that they may exercise their rights while also complying with valid legal obligations, ensuring both proper law enforcement procedures and business protections are respected.

We encourage you to contact us regarding any questions or concerns you may have related to this topic. H&S is here to help you and your business comply with your legal obligations. If an employee requires legal assistance related to an ICE workplace visit, please seek legal assistance from an immigration attorney. If you do not know of one or would like a recommendation, please contact us for a referral.

Opportunity for STEM Businesses: Internship Funding Assistance

Tue, 18 Feb 2025 20:09:00 GMT

SciTech Internship Program offers Minnesota science, technology, engineering, and math (STEM) employers a grant of up to $2,500.00 to provide college students opportunities to gain experience in the STEM industries. Employers can receive a wage match for up to fifty percent (50%) of the intern’s wages ($2,500 max) when they hire an intern through the SciTech Internship Program.

SciTech Internship Program is a state-funded program that assists small to mid-sized Minnesota STEM companies that provide paid internships for college students in STEM disciplines. Eligible employers must have 250 employees or fewer, be a for-profit business registered in Minnesota, and offer a paid STEM internship. Grants are limited and require the internship to be posted on scitechmn.org to receive the grant.

Henningson & Snoxell is here to help your business succeed by providing insightful legal advice and informing you of opportunities that may help your business grow. Contact us to help your business reach its fullest potential.

Looking to hire? Make sure your job posting complies with new MN law.

Wed, 08 Jan 2025 15:22:00 GMT

Effective January 1, 2025 , Minnesota employers with 30 or more employees must include wage ranges and descriptions of any benefits that may be offered, including but not limited to health or retirement benefits, in any job postings, including those posted on Indeed, internally, or through a third-party recruiting agency. The wage range should be a “good faith estimate” of the minimum and maximum annual salary or hourly wage range for the posted position. If the wage range is unknown, employers will still need to list the fixed pay rate for the job. However, the salary range cannot be open-ended. Feel free to contact us to review your job postings before you post to ensure compliance.