If you’ve recently lost a loved one in Minneapolis or have begun discussing what will happen to your assets after passing, you may have heard the term “probate.” Probate can be overwhelming, especially when you’re grieving. This article will walk you through the Minnesota probate process and offer tips for ensuring everything runs smoothly.
What Is an Estate?
When people hear the word “estate,” they might think of a large mansion or a massive sum of wealth. However, an estate refers to all the assets and debts a person leaves behind after they pass. This includes real estate, personal belongings, bank accounts, and even digital assets. The process of managing and distributing these assets is called estate administration, which may involve probate if the individual didn’t leave a plan.
Minneapolis Estate Planning Director Phil Ruce outlines the process of probate in Minnesota in his interview on Minnesota Live KSTP.
How Do You Handle an Estate after the Death of a Loved One?
Handling an estate after a loved one passes can be complicated. Here are the main ways an estate might be handled:
- Last Will and Testament: This legal document directs how the estate should be distributed and names an executor (often called a “personal representative”) to manage the process.
- Trust: A revocable trust allows assets to bypass probate entirely, with a trustee managing the estate according to instructions set out in the trust. It’s often preferred for those wanting to avoid probate.
If no will or trust exists, Minnesota’s intestacy statutes come into play, meaning the state has backup rules to guide the distribution of assets.
Who Manages the Estate in Probate?
The executor is the one appointed in a will or by the state with the main responsibility to manage the estate according to the wishes outlined in the decedent’s will or, if no will exists, according to state law. If the e It’s a significant job that requires attention to detail, as any errors could delay probate or lead to legal issues. Executors are often family members or close friends, but for complex estates, hiring a professional like a Minneapolis estate planning attorney can help ensure the process runs smoothly and legal pitfalls are avoided.
In contrast, if the estate is managed by a trust, then the trustee will be the one responsible for the estate. Unlike an executor, whose duties end once the estate is settled, a trustee may manage assets in an ongoing trust for beneficiaries over time, following the terms set by the trust document. Trustees are responsible for handling trust assets, ensuring they are distributed or managed according to the trust’s guidelines, and they often have long-term responsibilities that continue beyond the immediate settlement of the estate.
What Are the Steps of Probate in Minnesota?
Probate is the court process of managing and distributing a person’s estate. It can be time-consuming and public, but it’s necessary when there’s no trust in place. While many Minneapolis residents mistakenly believe that a will protects their estate from court, a will merely gives instructions to the probate court for how to distribute it. Ruce outlines the following steps for those completing the probate process after the death of a loved one.
1. Take a Breath
When a loved one passes, there is no need to rush into probate. In Minnesota, you have up to three years to initiate the process. Allow yourself time to grieve before jumping into the logistics.
2. Gather Important Documents
The first step in probate is collecting key documents like the will, bank statements, real estate documents, and other financial records. If you can’t find the will, consider contacting the attorney or financial advisor who helped prepare it. They may have copies of the document.
3. Inventory the Assets
Next, you’ll need to take inventory of the estate’s assets. This includes everything from bank accounts and retirement funds to real estate and personal items. Some assets may need an appraisal to determine their value, which can be helpful when settling debts and distributing remaining assets.
4. Notify Creditors
Once you’ve gathered all the necessary documents and inventoried the assets, it’s time to notify creditors. Creditors have the right to claim any debts owed by the estate. Make sure to follow the order of payments, as certain creditors have seniority over others.
5. Pay Debts and Taxes
Paying off debts and taxes is another crucial step. This can include everything from unpaid medical bills to credit card debt. Be mindful of the payment order, as failing to do so can complicate matters later on. The estate’s remaining assets can only be distributed after all debts have been settled.
6. Distribute the Assets
Once the estate has settled all its debts, the executor can distribute the remaining assets to beneficiaries as outlined in the will or according to state laws if no will exists.
7. Close the Estate
Finally, the executor files the necessary paperwork with the court to officially close the estate. Once the court signs off, the probate process is complete.
What Are Common Probate Mistakes?
Managing an estate can be complicated, and many Minneapolis families make mistakes during probate. Here are some common pitfalls to avoid:
- Paying creditors too early: It’s crucial to pay creditors in the correct order. Making a payment to a creditor too early or out of sequence can cause legal complications.
- Distributing assets prematurely: Beneficiaries are often eager to receive their inheritance, but distributing assets too soon can lead to issues if there are outstanding debts.
- Not involving an attorney: Probate is a legal process, and involving an experienced Minneapolis estate planning attorney can help you avoid mistakes that might delay the process or lead to legal challenges.
What If You Can’t Find a Will?
It’s not uncommon for families to be unsure if a will exists or where it might be located. If you can’t find a will but believe one was created, reach out to the attorney or financial advisor who worked with the deceased. Many estate planning firms, like Stone Arch Law Office, keep encrypted digital copies of their clients’ wills. However, if no will can be found, the court will proceed as if no will exists, following Minnesota state intestacy laws. Read more in our article, Should I File My Will?
How Long Does Probate Take?
The probate process can take 9 to 24 months to complete. Factors like the complexity of the estate and the efficiency of the executor can affect the timeline. Keep in mind that probate is a public process, and documents like the will and asset details become part of the public record.
How to Ensure a Smooth Probate Process in Minnesota
If you’re navigating probate, keeping detailed records, maintaining clear communication with beneficiaries, and involving a professional attorney are key to ensuring everything goes smoothly.
If you’d like more information on probate or estate planning, book a call with the Minneapolis estate planning attorneys at Stone Arch Law Office. We also offer an e-book on the first steps of probate to help guide you through the process.
