Dealing with the loss of a loved one is difficult, and navigating the probate process can be overwhelming. At Sandahl & Damhof, we understand the challenges you face and are here to help you through the process. In this blog post, we’ll discuss essential steps for navigating probate in Minnesota and explore estate planning strategies that can simplify the process for your heirs.

Determine if Probate is Necessary

Probate is the legal process of administering a deceased person’s estate, including paying debts and distributing assets to heirs. Not all estates require probate—whether it’s necessary depends on the type and value of the assets involved. In Minnesota, a simplified probate process, called an “affidavit for collection of personal property,” may apply if the estate is valued at less than $75,000 and does not include real estate. Consulting with an experienced probate attorney can help you determine whether probate is required in your situation.

Locate and File the Will

If the deceased person left a will, the original must be filed with the probate court within 30 days of death. If no will can be located, the estate will be distributed according to Minnesota’s intestate succession laws. Filing the will correctly and on time is a critical step, and an attorney can help ensure this is handled properly.

Appoint a Personal Representative

The personal representative, or executor, manages the estate during probate. The will usually names this person, but if no one is named or able to serve, the court appoints someone. Choosing a capable, trustworthy personal representative is key to making sure the estate is managed smoothly.

Inventory and Appraise the Estate

The personal representative must inventory and appraise all assets in the estate, including real estate, personal property, bank accounts, and investments. For some assets, like real estate, a professional appraiser may be needed to determine fair market value. A complete and accurate inventory helps ensure assets are properly distributed.

Settle Debts, Taxes, and Expenses

Before distributing assets, the personal representative must pay any outstanding debts, taxes, and expenses. This may include funeral costs, bills, and estate taxes. In some cases, assets may need to be sold to cover these obligations. An experienced probate attorney can help ensure debts and taxes are settled in compliance with Minnesota law and protect the personal representative from liability.

Strategies to Simplify Estate Settlement

Planning ahead can help your heirs avoid unnecessary challenges during probate. A few strategies to consider:

• Joint Accounts: In Minnesota, spouses can own property as joint tenants with the right of survivorship, meaning the surviving spouse automatically becomes the sole owner. However, joint accounts can be challenged if an heir claims it was set up for convenience, so it’s important to align account ownership with your estate plan.

• POD and TOD Accounts: Payment on Death (POD) and Transfer on Death (TOD) designations allow assets like bank accounts and securities to pass directly to beneficiaries without probate. The named beneficiary can claim the assets by presenting identification and proof of death. These designations must also align with your overall estate plan to ensure they reflect your wishes.

• Gifting: Gifting assets during your lifetime can help reduce the size of your taxable estate. For example, in 2022, you could gift up to $16,000 per person without triggering gift tax. Larger gifts may count toward your lifetime gift tax exemption, which is currently $12.06 million. This strategy can be a useful way to support loved ones and reduce estate taxes.

• Revocable Living Trusts: A revocable living trust allows you to place assets into a trust while maintaining control during your lifetime. Upon your death, the trust becomes irrevocable, and a successor trustee distributes the assets without probate. This offers privacy, potential tax advantages, and can simplify the estate settlement process. However, creating a trust requires careful legal drafting and a solid understanding of tax laws—an experienced estate planning attorney can help you avoid mistakes.

Plan with Confidence

Navigating probate can be a complex and emotional process. At Sandahl & Damhof, we are here to guide you every step of the way, whether you need help administering an estate or want to create a solid plan for your own legacy. Our team can help you evaluate your goals, inventory your estate, and create a comprehensive estate plan, including wills, trusts, powers of attorney, and Medicaid planning.

Let us help you simplify the probate process and protect your family’s future.