Probate is the legal process of settling a deceased person’s estate. In Minnesota, this process may be necessary depending on the type and value of the assets left behind.
Understanding when your family will have to deal with probate will help ensure the proper transfer of property and the resolution of any outstanding debts.
When the estate exceeds $75,000
Minnesota law requires probate if the total value of the deceased person’s probate assets is more than $75,000. Probate assets include property solely in the deceased person’s name without a beneficiary designation. This can include real estate, vehicles, bank accounts and personal belongings. If the estate’s value exceeds this amount, the probate court must oversee the distribution of these assets.
When there is real estate to consider
Probate is usually required if the deceased person owned real estate in Minnesota and the property was not held in joint tenancy or placed in a trust. Real estate cannot transfer to heirs or beneficiaries without legal authorization from the probate court. Even if the value of the real estate is below $75,000, probate becomes necessary if a title transfer must take place.
When there are no beneficiary designations
Assets with named beneficiaries, such as life insurance policies, retirement accounts and payable-on-death bank accounts, typically avoid probate. However, if there are no designated beneficiaries or if the named beneficiaries have also passed away, those assets may require probate to determine proper distribution.
When there are disputes about the estate
If there are disagreements among heirs or beneficiaries about the validity of a will or the distribution of assets, probate becomes necessary to resolve these issues. The court reviews the will’s authenticity, addresses any concerns and ensures fair distribution according to Minnesota law.
When the estate does not qualify for simplified probate
Minnesota allows a simplified process for small estates valued under $75,000 without real estate. This process, called an affidavit for collection of personal property, does not require formal probate. However, if the estate exceeds the limit or involves complex assets, probate becomes necessary.
A smooth and proper transfer of property is ideal for settling a loved one’s estate. Knowing when to expect probate can help your family prepare a thorough estate plan ahead of time.
