Questions about what needs to be in a Minnesota probate Inventory? Read on.

Every probate estate in Minnesota is required to file an Inventory with the county court or the probate registrar.  The law office has been asked many times by many different clients what an Inventory is.  I hope this article but answer some of those questions

Inventory in a Minnesota Probate Estate

This article will be written with the assumption that the chosen personal representative has already been appointed by a court of law.  If you or someone else has not been appointed as the personal representative of the estate, that step needs to be taken prior to filing an Inventory with the court.  Read further articles by the law office on the subject.

An MN probate inventory is a multi-page document in which the personal representative of the deceased’s estate totals and calculates a the deceased’s assets and debts. Probate assets can include bank accounts, retirement accounts, and a home or other real estate.  These are the common probate assets. The personal representative will also need to determine the deceased’s debts. The debts would be people or companies who were owed money by the deceased.

Both the assets and debts information will be included in the estate Inventory. The inventory also sets up a tax basis for the estate.  The personal representative will have to file several tax returns for the deceased and the estate. A personal income tax return is required, and, if the estate makes any income, a Minnesota and federal estate income tax return will also be required. This topic is discussed only to illustrate why an Inventory maybe necessary and how it helps set up a basis for monetary assets belonging to the estate.

Are non-probate assets required to be in the Inventory?

The answer to the question of whether or not non-probate assets need to be inventoried is no. Not probate assets differ from probate assets. If you or someone associated with the deceased person’s estate has questions about this, consult the probate attorney.

There are times when assets may seem to be non-probate assets, but may be treated as probate assets depending on how they are set up. Again, speak with an attorney about these issues as they are very important.

Typically, only probate assets need to be included in the Inventory.

What about issues with titling real property and inventorying it?

A very common issue associated with many estates the law firm has worked on is titling of real property.  A very common problem associated with titling of real property is when a deceased name and a deceased spouse’s name may be on the home title.  If there are two people who are deceased were listed on the title, an Affidavit of Survivorship should be filed with the county of the deceased residence – or where the real property is located. I bring up this point only because it may have an effect on the transfer of a home or other real property and, therefore, will affect the estate Inventory values.

Speaking with a probate lawyer

Dealing with monetary assets is a very serious issue in which many people do not have experience.  Being in charge of a person’s estate for the first time is a daunting task.  Personal liability can attach to the personal representative if assets and debts are not properly gathered, tabulated, and included in the Inventory.

As was discussed above, if these terms for the law is foreign to you, a probate attorney must be contacted. The cost of an attorney is often much less than the assets belonging to the estate and is, essentially, an operating cost which must be taken on by the estate.

If you have questions about a probate estate Inventory, I hope this article serves to answer some of the common questions the law firm receives.  It is important to note that the in the Inventory must be sent to all of the heirs, and to any interested parties, or creditors of the estate. This concept is entitled “due process”, and is an important hallmark of the law. The heirs or other interested parties must have an opportunity to review the Inventory and object to the court if necessary.

Minnesota Probate Attorneys and Lawyers

For free initial consultation on the estate inventories in Minnesota probates, contact Flanders law firm LLC.   Call the firm today at 612-424-0398.

Before scheduling your next appointment with your Minnesota probate attorney, you may want to review the following legal principles that often govern how a person can give away property to beneficiaries under a Will or trust.

Once you fully understand these informal rules, and have prepared a list of all of your property, you and your lawyer can make better progress toward carefully dividing up your possessions and leaving them to others upon your death.

Summary of Rules That Often Control How You Give Your Property to Others and MN Probate Laws

• You should never confuse the courts by trying to use a Will to give away property already disposed of by other documents. Before leaving any property to others under a Will, ask your lawyer if it would be simpler to just leave your money or property to your loved ones by naming them as beneficiaries to your: IRA and/or 401k retirement accounts; one or more trusts; POD (payable on death) bank or other investment accounts; or thr
  gh gifts of various annuities. Many people only use a Will as a “catch-all” device for property that they may forget to include in other documents prior to their death;
• You can only give away co-owned business property under a Will if you have a written agreement that expressly provides for this type of arrangement — upon your death or when you otherwise stop working with your business partners. Keep in mind that since you can’t know the exact buyout amount that your partners may be willing to pay to your surviving beneficiaries, it’s best not to name a sum in your Will;
• Revise your Will periodically so you can avoid naming one or more gifts that you may decide to give away before you die. Few things upset loved ones more than learning that the deceased actually gave away certain items listed in his/her Will prior to dying. One way to avoid this problem is to revise your Will every few years;
• State laws govern nearly every gift you’ll make using a Will or other legal documents. This holds true especially in regards to real property that’s located in another state or country. Keep in mind that the law only allows a testator to claim one legal place of residence – even though that person may own land or other property located elsewhere. If there’s any confusion about choosing your state of residence, you should base this upon such factors as:

1. Where you register your vehicles
2. Where you vote
3. Where the majority of your property is located
4. Where most of your financial or investment accounts are located
5. Where your main home or physical residence is located
6. Where you conduct most of your business – or warehouse your inventory

• If you leave any of your property burdened with liens or mortgages, your beneficiaries will have to remove those encumbrances. Do try and remove all financial liens and other “holds” on property long before you die. Should you become seriously ill, ask your spouse or attorney to carefully review the records on all major properties to be sure they’re currently free of encumbrances;
• Avoid trying to make direct financial gifts to your pets. It’s usually best to leave the money to a close friend who has promised to use it to care for your pet. In some states, however, you may be allowed to set up a trust account to benefit your pets.  This may help you avoid a Minnesota probate.  Contact the firm to find out more information about this legal process.

MN Probate Laws and Probate Lawyers

Contact the Flanders Law Firm today.  The firm offers estate planning and probate consultations to all potential clients. Call (612) 424-0398.