frequently asked questions - probate
What is probate?
Probate is a legal process whereby a court oversees the distribution of assets left by a deceased person’s will. Assets are anything a person owns with value, such as real and personal property and cash, for instance.
Back to TopWhen is probate needed?
Probate is not always necessary. If the deceased person owned bank accounts or property with another person, that property with pass to the surviving co-owner. If a person dies leaving very few assets, such as personal belongings or household goods, these items can be distributed among the rightful beneficiaries without the supervision of the court.
Sometimes probate is needed to:
- Clear title to land, stocks and bonds, or large bank or savings and loan accounts that were held in the name of the deceased person only, and put the title to these assets in the names of the rightful beneficiaries.
- Collect debts owed to the deceased person.
- Settle a dispute between people who claim they are entitled to assets of the deceased person.
- Resolve any disputes about the validity of the deceased person’s will.
What happens during the probate process?
A personal representative is selected. A personal representative is someone who handles the deceased person’s affairs. A will generally names a personal representative who, if willing to serve and otherwise qualified, will be approved by the court. If a person dies without a will, the court will select the personal representative.
A notice to creditors is published in a local newspaper. This public notice to creditors tells the creditors that they have four months to bring any claim against the estate for debts the deceased person owes them. The personal representative also gives written notice to all known and possible creditors.
The heirs and people named in the will are notified of the probate proceeding.
Assets are identified and an inventory is prepared and filed with the court. The personal representative works to identify and value the deceased person’s assets. Depending upon the type of assets and the kind of records left by the deceased person, this step can be quite straightforward — or more difficult and time consuming.
Debts are paid. The personal representative ensures that creditors are paid. Creditors must be repaid from the estate before the remaining estate assets can be distributed to the rightful beneficiaries.
The personal representative prepares state and/or federal tax returns and any inheritance, gift and estate tax returns and pays any taxes due.
The personal representative prepares and submits an account to the people named in the will, the heirs of the deceased person and the court.
The account shows all money paid out from the estate and all money collected by the estate. It also contains a narrative explaining the important actions taken in connection with the probate of the estate.
After court approval of the account and payment of all unpaid probate expenses, the deceased person’s assets are distributed to the people and entities (such as charities or trusts) named in the will or, if the person died without a will, to the heirs of the deceased person.
Back to TopWhat is an "informal" proceeding?
Minnesota allows an abbreviated procedure for handling small estates that would otherwise require a full probate. If an estate fits in this category, the cost and time for distributing the estate assets may be greatly reduced.
Back to TopHow long does probate take?
Probate can be started immediately after death and takes a minimum of six to nine months. If the estate includes property that takes a while to sell, or if there are complicated tax or other matters, probate can last much longer.
Back to TopDo I need a lawyer?
Probate in Minnesota involves a good deal of paperwork that must be filed in a timely manner. To achieve the results you want, probate should be handled with an understanding of the legal principles involved. A probate lawyer can help you avoid the many possible tax traps and other problems that could arise. Also, a lawyer can help you prepare and file the legal documents and prepare you for hearings in court.
Back to TopCall 612-669-1426 now for a free consultation or submit your information below.