How to Avoid Probate in Minnesota : Utilizing Joint Tenancy

Posted on April 9, 2021 by jlawyer

Utilizing Joint Tenancy to Avoid Probate

Rather than discussing the Minnesota probate process, here’s a bit of a look at how you can avoid having to deal with the process entirely. This isn’t a guarantee because everything depends on who survives who, but using a joint tenancy to prevent probate from happening should work for at least one party. If all goes well, probate law shouldn’t have any real effect on the property that you’re dealing with.

The nice part is that this whole process is rather simple. Below, you’ll find out more of what might be involved, but compared to most other forms of estate planning, this is relatively simplistic. Consider the following if you’re thinking about sharing ownership with someone and you want to ensure that at least one of you maintains ownership after one of you two passes.

The basics for avoiding probate with joint tenancy

Joint tenancy works to keep two or more parties’ assets from going anywhere else. That isn’t to say that the assets won’t go anywhere once all tenants have passed on, but that if one of the two remaining tenants passes, the surviving party gets the remaining assets. Effectually, you agree to walk towards a fork in the road with someone. However, who outlives the other determines which path you’ll take. You might think of it as survivor takes all so to speak.

Being married or not shouldn’t be an inhibiting factor. What you should be concerned about is whether or not you want the other party to inherit your bank accounts and other assets. If you’re serious about sharing everything that you own, this is a fine option. As a word of warning though, a joint tenancy will not work to prevent probate if all the tenants die at the same time. Though, even if one tenant does outlive the other tenant, they may need to rethink their estate planning plans since their original heir is no longer there.

Fast and Clean

Besides being rather inexpensive to create, joint tenancies usually help make things faster and easier for all parties involved. Part of this is because things are a lot simpler to figure out because once one party passes on, things just go to the other tenant. That’s assuming that there were only two tenants to begin with. It means that you can avoid most of that concern over finding beneficiaries and making awkward phone calls to distant relatives.

Concerning making things faster, the creation of a joint tenancy will probably be faster than crafting a will or a trust. You actually might not have to worry that much about fancy wording. It’s always wise to check in with your lawyer to be certain, but you may not need to be so worried. Ownership can be created and dissolved later on, moreover. So, if you’re looking to change things as time goes on and your estate planning becomes more robust, that’s just fine.

How it Works

There’s not much special to this part. It just goes to the other party. The title transfers, the survivor takes the deceased’s share, and the cows can go home. That property won’t be touched by probate court. It goes to the survivor after some paperwork gets done. Once everything is in their name, it’s in their name for real. To be blunt, a joint tenancy is effectually a legal agreement that lets another parry have your stuff after they’ve signed a few documents.

There is a bit of a clause to that though. What kind of property is being left behind dictates the kind of paperwork that needs to be done. Don’t let that scare you, however, as it will probably be a lot less of a pain than anything the probate process might throw at you. It’s possible for the probate process to take years to resolve depending on the circumstances. That’s not even getting into how wills can be contested just because the person who created it was relatively incapacitated.

Everything Must Go

Do be mindful of the fact that your portion will fully go to the other party if they survive you and vice versa. There really isn’t anything concerning estate planning that you can do with the stuff that’s under a joint tenancy besides give it to the other party. They get it all. There’s no portioning or negotiating. You may as well consider that anything in a joint tenancy will go to them without any questions asked. It’s kind of like an irrevocable will because the one party will get legal ownership without too much concern for having to deal with probate.

You will still own the property in a joint tenancy. That’s one thing that sets it apart from irrevocable trusts. However, that also means that you need to be fully aware of court rulings against your fellow tenant. Should the property that you both own be affected by a court ruling, you might feel those effects. You might be innocent, but the court ruling may still make things a bit more difficult. Hopefully, everything will go only once one of you two passes on and not when a judge has their say.

Minnesota Probate Lawyers

For further questions or for help with your estate planning ventures, you can get in touch with Flanders Law Firm LLC.

Someone there can walk you through what estate planning options are best for you, tell you if a joint tenancy is possible, or assist you with the probate process. Probate law doesn’t need to be something that stresses you out. All you have to do is reach them at 612-424-0398.

Estate planning can be a big deal, but it doesn’t need to be a difficult decision. Start working on it today for a better tomorrow.

Making Probate Easy | MN Estate Law

Posted on March 11, 2020 by jlawyer

Making Probate Easy for Your Family

Probate and party both start with the same letter. Sadly, the two words aren’t always related to one another.

Most of us would like to think of the probate process as being a relatively painless operation. Nonetheless, not everyone has witnessed, dealt with, or otherwise encountered the Minnesota probate process first hand. With that in mind, listed below are four tips on how to make going through probate easier.

Note that these tips aren’t meant to replace the legal advise of a probate lawyer. Whenever you’re dealing with a family law matter that has the gravity of probate, you should have at least have a little bit of legal assistance.

Keep in mind, as you read the following, that most of this is written to individuals who are preparing their estate. If you’re looking to assist someone who’s going through estate planning, these are some great tips that you can give to them.

No Debt or No Assets

That’s a potential exaggeration. Being stripped of assets won’t happen in every probate case, but the debt must be accounted for. For every debt that exists, you need to account for the assets that it will take to pay for them. Besides, you may not be the one who gets to determine the dollar value of each asset. And that’s not even taking inflation into account.

Sell, sell, and sell. That might be the only thing you can do. As long as that debt remains, at least some of your assets will be gobbled up. Student loans die with you. That’s a blessing. It’s the other debts that you cannot completely ignore. That’s not to say that you should pay off everything except your student loans and default on them. Defaulting on your loans is a terrible idea to say the least.

Debt is not your friend, but paying off the debt is your best friend.

No Family Secrets

What you do in your personal life is your business. Though, when it comes to the assets, debts, and everything else you’re leaving your family, you may as well make it their business. Once they’re taking care of your assets because you’re not there, your secrets either die off with you or someone will probably find out. As much as you might want to think of the probate process as a transference of property, it’s also a process that requires the authorities to account for your remaining possessions. Those in change may not care where the possessions go. They’re probably just doing their job.

The person who becomes the executor of your will takes on the responsibility of passing on your assets. Sure, some assets like your house will go directly to whoever co-signed with you. The executioner might not have to handle most if not any of that kind of property. It’s the tiny stuff that you left outside of your will that they really have to worry about. Whatever you forgot to deal with becomes their yoke.

Have a Backup Executioner

Americans have always been fond of freedom. Saying no to becoming the executioner of a will is one such freedom. It’s a volunteer position. The government will probably do it for them anyway unless someone else fills that role. Beg and plead as you may like, but no is no. And stay away from bribing your executioner as that may result in a family spat, further complicating the matter.

Having a backup executioner is a good idea even if the original person you had in mind says yes. A dead executioner is an executioner without power. Your family may not have someone to fill their role if things go south. Do that part for them. It’s your executioner after all.

Clear Intent

You’ve probably heard that being clear in your estate planning is a must. That’s true. However, a bullet point list may not suffice for every asset and piece of land that you own. Write out how you think each part of your property will get from point A to point B. If you don’t know all the details about what’s between those two points, assuming there are only two points, researching those details is a high priority.

Stuff that can be mailed, as long as you have the right addresses, shouldn’t prove bothersome. It’s the big stuff — think houses — that might rain on your parade. Saying that you want to send X to Y is a great start. It’s just what all that really means is the potentially difficult part.

Finalizing Things | Minnesota Probate Attorney

Regardless of whatever part of estate planning you’re in, someone should be able to guide you through the path. Getting everything worked out immediately isn’t necessary. You can do so at your own pace.

With the help of the law firm of Flanders Law Firm LLC, a Minnesota probate law firm, probate can be an easier process. Located centrally in the Twin Cities in Eagan, Minnesota.

There’s a probate lawyer who can tell you how to make the process even easier. They can be there for both you and your loved ones. If you’re interested, reach someone at 612-424-0398. And you don’t have to have all your estate planned out just yet. Someone can walk you through that whole process as well.

Personal Representative Liability | MN Probate Law

Posted on June 27, 2019 by jlawyer

Personal representative liability in a Minnesota Probate

“Liability” is a very serious concern. Black’s Law dictionary defines “liability” as:

The state of being bound or obliged in law or justice to do, pay, or make good something; legal responsibility. Wood v. Currey, 57 Cal. 209; McElfresh v. Kirkendall, 36 Iowa, 225 …

It is important to understand that a personal representative or an executor of an estate could be held “liable” or “obligated in law or justice” to pay for certain debts if he/she is doing things improperly. What does improperly mean? It is complicated, but improper personal representative conduct can include things like:

Breach of Fiduciary Duty
Negligence
Failure to pay creditor claims
Failure to make distributions properly
Excessive cost and fees for the administration of the estate

All of the above are only a few examples of improper behavior of a personal representative which could cause liability. Minnesota probate law if very clear that personal representatives needs to serve the estate – not themselves.

Failing to serve the estate can result in a claim for breach of fiduciary duty. When someone signs a petition to probate the estate in a Minnesota court, they also must sign a document called an “Acceptance of Appointment and Oath.” This oath is taken very seriously by the courts. The personal representative is swearing, under oath, that they fill follow the law.

Breach of Fiduciary Duty

The most common example of personal representative liability in a Minnesota probate is a claim for breach of fiduciary duty. What does this mean?

Basically, a “fiduciary” is alike a bank: they are required to hold money, in trust, for others. They most be honest and diligent and invest in a prudent manner.

They must pay bills and act in a lawful fashion. Unfortunately, a number of personal representatives often view estates as a “free lunch” and act less than honestly. Doing so can create claims for breach of fiduciary duty. The big example is not handling estate cash properly.

Some common examples of breach of fiduciary duty are:

Self-dealing
Improperly using estate money
Combining estate funds with personal funds
Failing to invest properly
The failure to act in the interested parties’ (heirs) best interests
Lying about estate assets
Not locating estate assets
Favoring one beneficiary over others

Above are only some of the examples we have seen as Minnesota probate attorneys.

Minnesota Probate Lawyers

Of course, it is always a good idea to talk with an experienced probate attorney if you have any questions about personal representative liability.

Joseph M. Flanders and Flanders Law Firm LLC have helped both personal representatives and heirs deal with this thorny legal issue. A lot of money can be at stake in estate and people need to deal with it properly.

Contact the probate law firm today for your free initial legal consultation. 612-424-0398.

MN Probate Law | What Can Slow Down the Probate Process

Posted on June 19, 2019 by jlawyer

What Can Slow Down the Probate Process

Expect the Unexpected

You’ve probably heard that you should expect the unexpected in some way, shape, or form before. This is also true when it comes to the probate process. When you work with a probate attorney, they might be able to predict what will slow down the process.

However, that doesn’t mean that you should expect that everything will go fast as possible. Roadblocks can come up on a whim. For best results, consider starting or at least preparing for the probate process early on, before stuff has time to come up. An attorney might even end up helping the process to go faster, saving you valuable time.

The Will to Problem

Just because a will exists doesn’t mean that everything will go easily. Issues can normally be avoided preemptively by getting the will professionally written. Nonetheless, there are still cases in which the will is not properly prepared, leaving for issues to potentially arise. If you’re still just preparing for the probate process and the owner of the will is still alive, there’s always the chance that you could help them rewrite the will.

However, if the owner of the will is no longer able to rewrite the will, you might end up getting stuck with the will in its current state. One of the best things that you can do is have a professional look at the will to assess it. When in doubt, assume that issues surrounding the will shall come about.

Lots of Benefactors

Being liked by many people and having lots of family are not themselves bad things. But as far as speeding through the probate process, having multiple beneficiaries isn’t going to make things go any faster. If anything, having lots of beneficiaries is going to cause things to take more time.

Realize that every beneficiary needs to be notified. Miss one or if you run into trouble finding one, then things will most likely take longer than you originally planned. You might even run into having to get the beneficiaries sign documents and if anyone decides to take their time and be lazy, you’re going to need to push them to move forward.

Wills Galore

Even if the will is legitimate, there’s also the chance that there could be several wills to shift through. Here’s the catch: the court has to sort through each will. In the case that the court is unsure which will is the latest will, they need to figure out which one is the most current. At the same time, there’s another small catch. The court will also need to verify whether or not the will accurately represents deceased’s desires. There can be updates to previous wills, causing updates to be incomplete apart from the will itself. So, even if you have a part of the will, you might not have all the pieces to the puzzle. Don’t assume that there’s only one document.

Strange Assets

The child inside of all of us probably has wanted to be a treasure hunter at some point in time. You’d probably give up trying to win the lottery if you found out a relative was going to pass down a valuable heirloom. At the same time, comprehend that dealing with abnormal or valuable items can slow down the probate process significantly. You’re not talking in terms of mere cash. Items need to be valued. And as each rare asset comes to the forefront, each object has the potential of slowing things down.

You might find that the assets can’t be assessed all at the same time. Don’t focus about having to fight your family over rare items. Prepare yourself for having to deal with assets that aren’t easy to acquire or liquidate.

Speed Up the Process

You probably want as much time as you can get. You don’t need to wait forever to complete the probate process. Simply call a lawyer about probate law, schedule your free consultation, and see if they can speed up the process.

The law firm of Flanders Law Firm LLC might be the best place to help you move forward. Dial 612-424-0398 to get the ball rolling. That way, you can hopefully speed up the probate process without wasting your valuable time. If you have the time now, consider using it to save time later on.

When Is Probate Necessary?

Posted on May 14, 2019 by jlawyer

For Complex Estate Situations

Generally, you should consult a lawyer when you’re dealing with a larger probate estate.

However, you may also need to speak to your lawyer if the estate itself is not set to pass onto someone else. When there are multiple parts to an estate that need to be separated out, your family might benefit from having a lawyer step in and sort out everything.

There are lawyers out there that understand that ensuring everyone’s happiness isn’t always a simplistic task. Above all, double check with your lawyer about whether or not your state actually requires you to have your will probated. You probably won’t be around once you’re loved ones find out that your will wasn’t properly set into place. Otherwise, they might find out they need help when it’s already too late.

Sole or Shared

If you own something that’s only in your name, your car for example, or shared with another individual, say a building that you invested in, those things might go through probate. Probate law is commonly used for getting the stuff that’s in a sticky situation out.

Just because you gave your granddaughter a card saying that you want to give her your car upon her eighteenth birthday doesn’t make it legal. It may help the legal process since it technically is in writing, but if you truly want to pass down something in your name, you want to make sure that everything’s legal. When in doubt, pitch a call to your lawyer and explain your situation.

What Doesn’t Qualify

As mentioned previously, shared assets sometimes will go through probate since part of the shared asset was owned by the deceased. This is not always the case. Certain items that automatically go to a surviving owner may not need to go through probate. However, when the jointly owned assets don’t automatically transfer, you need to start thinking about probate law. Similarly, if there exists a valid beneficiary designation for a given asset, it might not need to go through probate law.

The same is true for assets that are listed in the deceased’s trust. That’s why estate planning is so beneficial, because it helps settle things before problems arise. However, if you know of any existing assets that do not fall under one of these three categories, make a note that these should be handled with the help of a lawyer who understands probate law.

On Tenants-In-Common

When you have assets owned in a tenants-in-common ownership, they have the chance of going through probate law. Even though these assets are in a joint ownership, they can be a bit messy to deal with. First off, the assets that are held in a tenants-in-common ownership can be rerouted to anyone that you chose.

Nonetheless, there’s a clutch: those assets must go through probate in order to pass onto someone else. They do not, moreover, automatically go to the person who has joint ownership with you unless your will says otherwise. So, on one side, you have control of where the assets go. On the other hand, these assets will end up going through legal proceedings before they transfer.

Check the Trust

Not every asset that’s in a trust can avoid going through probate. There are certain kinds of trusts that help your assets stay out of probate and there are others that do not. Testamentary trusts are one kind of trust that do not shield the assets from probate. In other words, if the trust in question is inside a will, all of the assets listed could potentially be put through the legal process.

Moreover, testamentary trusts have a kind of lock over them, causing both the will and assets to be halted by the probate process. They exist in a kind of limbo, resulting in assets that are technically set to pass to particular individuals being unable to pass until the probate case is dealt with.

Who Has Final Say

Deciding who has final say is another reason why you may want to find someone for helping you with estate planning. If no one has been chosen to be the extractor of the will, the state takes over that role. This is why you should have a lawyer who understands probate law while you’re working on your will.

When it comes to putting items through probate, in the absence of an executioner, the state gets to decide who is the executioner. In affect, the state takes over all wills that don’t have executioners and has the freedom to elect a puppet executioner who doesn’t necessarily hold your values. Moreover, this executioner doesn’t merely open the court case, they also shepherd the probate case till the case is finished. Thankfully, an executioner who’s been decided upon by the will also has this same power, potentially helping the family for the better.

Lawyers Who Know Probate Law

Whether you’re making a will, haven’t composed a will, or you’re getting ready to put assets through probate, you probably need someone who knows the ins and outs of Minnesota probate law. The law firm of Flanders Law Firm LLC is an answer to your problems. Any assets that are going through probate need to be handled carefully.

There are lawyers out there who understand the importance of those assets. Even if the state elects an executioner, you may still want to have some legal assistance.

So, if there exist some assets that might go through probate, ask about getting free initial consultation at 612-424-0398.

When is a probate required in Minnesota?

Posted on January 3, 2018 by jlawyer

When is Probate Required?

Probate is required when a deceased person owned assets in his/her name alone at the time of their death, and those assets were worth more than $75,000.

Furthermore, when there is real estate (a home) that belonged to the deceased person in his/her name alone, a probate will always be required – even if the value of the property could arguably be less than $75,000. This is because the title to the property will not transfer to a new buyer without court supervision of the probate process.

The next question you might have is, what is probate?

The probate process is, generally, the legal process by which a personal representative (executor) is appointed and that person is responsible to do a number of tasks on behalf of the estate:

– Collect, inventory, appraise, and distribute assets pursuant to a Will or by the laws of intestacy;
– Pay the valid, non-exempt, debts of the deceased;
– Protection of the estate assets;
– Finally, making distributions and accounting to the court.

The above process is not all inclusive. Every deceased person’s estate is different. A probate attorney should always be consulted with.

What if there was a Will?

A common misconception is that a probate is not necessary if a person had a Will. In many cases, this is simply not true. If someone dies and they have a Will, the determining factor are assets worth more than $75,000 in the deceased’s name alone. We discussed this above. In essence, a Will is only an instruction by the deceased as to how they want their assets passed to their loved ones or charitable institutions. It does not change the legal assets, debt, and real property issues discussed above.

Informal versus Formal Probate

The differences between an informal probate and a formal probate are, mainly, that an informal probate often does not have court supervision. The formal probate does.

What are some circumstances when a informal probate will not be allowed by a court:

– the estate has more debts than assets (insolvent)
– there are unknown heirs or hard-to-locate heirs
– the Original Will cannot be found
– there is a disagreement among the heirs or devisess;
– if there are minor heirs
– if there is a medical assistance claim by the State of Minnesota.

There are other reasons why an informal administration may not be allowed. For further questions on that issue, you should consult with an experienced probate lawyer.

Minnesota Probate Attorneys

For more information about when a probate is required, please contact Joseph M. Flanders at Flanders Law Firm LLC at 612-424-0398.

Contesting a Power of Attorney in Minnesota

Posted on September 7, 2017 by jlawyer

Contesting a Power of Attorney

Powers of attorney are incredibly useful documents in that they hand over important rights to allow another person to manage certain aspects of your life if and when you are unable to do so on your own.

Depending on how broad the power of attorney was written, the agent (the person on the receiving end of the power of attorney) will be able to make a number of crucial decisions on behalf of the principal (the person giving away the power). Essentially, the agent will be able to act like he or she is the principal, standing in the principal’s shoes.

Control of a Person’s Assets

What does this look like in practice? For broad powers of attorney, it can mean that the agent has the ability to control all of a person’s assets, financial accounts, financial decisions and even healthcare decisions. In these cases, the principal is truly trusting his or her life in the agent’s hands.

The agent is required to act in the principal’s best interest, but as I’m sure you can imagine, that does not always go so smoothly. In some cases, the agent may be abusing his or her powers or acting in ways that run counter to the wishes of the principal. If the principal is incapacitated and isn’t able to dispute the power of attorney on their own, what can be done? Thankfully, there are options, including a challenge by a loved one.

Power of Attorney Law

First things first, if you’re considering challenging the appointment of a power of attorney and you aren’t the person that made the appointment, you will need to gather evidence demonstrating why the principal is unable to challenge the appointment themselves. If the principal is fully aware of what’s going on and chooses to do nothing, either because he or she agrees or is simply willing to go along with the decisions of the designated agent, then it is unlikely a court will intervene.

It will be important to show that the principal is in some way incapacitated, such as being in a coma, suffering from dementia or other serious health problems. If it can be shown that the principal is unable to raise a dispute, then your chance of mounting a successful challenge increases.

Another thing to pay attention to if you’re considering challenging the appointment of a power of attorney is to see whether the proper legal formalities were followed. Was the power of attorney executed in the way required by state law? Did it include the right language? Was it witnessed by the proper number of people? Any of these flaws could be enough to attack a power of attorney designation and should thus be carefully scrutinized.

If there aren’t any formal flaws, it’s now time to turn your attention to broader abuse by the agent. In these cases, the appointment is valid, but will need to be revoked by a court. To launch a successful challenge, you’ll need to be prepared to show that the agent is abusing the authority he or she has been entrusted with. Examples of serious abuse include theft of the principal’s property, mismanagement of the principal’s assets and a neglect or disinterest in the principal’s needs. You’ll want to do your best to avoid this becoming a he-said, she-said battle and stick to objective facts, as this will improve your odds of raising a successful claim.

Challenging A Power of Attorney

Challenging a power of attorney can be quite difficult. After all, powers of attorneys are meant to withstand attack and give some comfort to the principal that the person they designate will remain the person in charge no matter what. To overcome this presumption that the principal’s selection should be upheld you will need to compile strong evidence showing that the agent has lost sight of his or her duty and that a judge should feel compelled to act.

Minnesota Power of Attorney Lawyers

An experienced Minnesota power of attorney lawyer can help walk you through the probate process, answering questions along the way. For more information on estate planning in Minnesota, along with a variety of other topics, contact Joseph M. Flanders of Flanders Law Firm at (612) 424-0398.