How to Probate a Will in Minnesota

Posted on June 1, 2016 by jlawyer

How to Probate a Will in Minnesota Probating a will in Minnesota is, unfortunately, a complicated process.

Most people we speak with are handling an estate for the first time. Many have no idea where to start and do not understand what they are supposed to do. Often, a loved one has named them as the personal representative but they don’t even know what that means. Read on for some answers to these common problems.

How to probate a will in Minnesota

The first thing that a executor or personal representative should do is review the deceased person’s estate plan or their Will. The deceased person may also have a trust or other “testamentary” document. Next, the person should read the Will to see one who the chosen executor or personal representative is and who the heirs of the estate will be. Locating names and addresses for all individuals is very important as they will be sent all information about the estate.

From there, the person in charge of the estate should determine whether or not there are surf sufficient assets to require the probate of the estate.

When it is a probate required?

A probate is required when their assets in excess of $50,000. Assets may include such things as bank accounts, retirement accounts, real estate, the home in which the deceased person lived, and all other monetary assets -including personal pride property.

If, after totaling up all of the assets, the estate is worth over $50,000, the probate will be necessary. If, the assets are worth less than $50,000 for probate will not be necessary. However, a personal representative should still speak with an attorney about a small estate administration as there are legalities that need to be taken care of upon a person’s death even if their estate is worth less than $50,000.

If the probate is necessary what should you do next?

After determining that that the assets of the estate are in excess of $50,000, the person in charge of the estate should contact the probate attorney. Do not try to handle an estate alone. The probate process is difficult to understand even for seasoned lawyers.

A petition for a probate must be filed in the county in which the deceased lived. Once filed with the county court, notice of the estate will need to be published a newspaper of general circulation in the county in which the deceased person had property. Notice of the estate and the petition will need to be sent to all heirs, creditors, and other interested parties of the estate.

The law office has discussed the requirements of a probate petition in previous posts, please read those files for further information on the requirements of what needs to be contained in a probate petition.

The probate inventory and final accounting

The executor or personal representative will need to keep track of all assets and debts of the deceased, pay debts, gather assets, and inventory those assets in a document which will be provided to the court. This document will also be sent to all heirs and interested parties of the estate. Again, this document is called an Inventory.

After the estate assets have been inventoried, the personal representative will work with the probate attorney to fall the law, pay all debts, work with the court system, and, eventually, make distributions to all heirs of the estate.

No distributions from the estate should be made to errors or any other parties until the probate process has been completed. This process can take months if not years and the right steps need to be followed. If the right steps are not followed, the personal representative or executor could be held personally liable to the heirs, the federal government, the state of Minnesota, and the court system at large for failure to properly administer the estate. Generic lawyer shit

How to Probate a Will in Minnesota

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

Minnesota Probate | Applying for Life Insurance: Declaring Health Conditions

Posted on May 19, 2016 by jlawyer

Applying for Life Insurance: Declaring Health Conditions

While the insurance industry provides an important service to society, they’re still in business to make a profit just like the rest of us. For that reason, whether applying for term life or whole life insurance, you must honestly answer questions about all current and past medical conditions and diagnoses. The same holds true for certain addictive behaviors. If you fail to do so, there’s a strong chance that your beneficiaries won’t be able to collect any benefits.

There Are Many Reasons Why Insurers Demand Certified Copies of Death Certificates

Insurance companies demand these documents to do more than just verify that someone has passed away. They also want to review the stated causes of death. Therefore, if you’ve told your doctor that you smoke — be sure to declare that reality when requesting a life insurance policy. Otherwise, problems can arise later if you die of lung disease – and failed to disclose that fact.

The same holds true regarding many other conditions. Here’s a look at some of the numerous ailments often listed on forms that insurance policy applicants must fill out when applying for coverage. Once you see all of the diseases and conditions – you’ll begin to see how profits can be made — since far too many people are tempted to withhold key information.

Medical Conditions and Health-Related Practices Insurance Companies Often Ask About

Diagnostic testing during the past 12 months for an “unidentified condition.” Fortunately, if you just went for a routine (versus a diagnostic) mammogram – or any other basic test as part of your annual physical, you probably won’t have to declare something here. However, if your doctor suspects some type of growth or cancer, you better think twice about what you disclose – and discuss your proposed answer with your doctor – and your Minnesota attorney. Even a “white lie” could prevent later recovery of benefits;
Carefully review your past use (for the past five years) of alcohol and illegal drugs. Many life insurance companies now specifically ask about these issues. They even inquire if you’ve ever been “convicted of a felony, DUI, reckless driving” – or treated for any substance abuse. Take these questions seriously since an absolutely staggering number of Americans have addictions (and related convictions) and must disclose them;
Recent mental health diagnosis or treatment, including care for dementia. Life insurance applications often ask about the past five years of your life – if you’ve ever missed “more than one week of work” due to anxiety, depression, or bipolar disorder. Considering the fact that a large percentage of people suffer from one or more of these ailments, complete candor can be challenging. Always ask your Minnesota attorney about what you need to disclose about your specific medical history;
Inquiries are also often made regarding a diagnosis of AIDS (Acquired Immune Deficiency Syndrome), HIV infection, cirrhosis, Hepatitis C, stroke, brain tumor, leukemia, or cancer. As you can see, these applications are likely to require disclosures by many applicants. While a company may still offer you a policy, they might insert specific provisions to minimize their potential losses – in keeping with your state’s governing statutes;
Diabetes. Sadly, the questions about this illness can reach back for about 15 years or more. Ask your lawyer what must be disclosed;
Central nervous disorders, ALS, lupus, chronic kidney disease, lung or respiratory disorders – or heart or circulatory disorders. Interestingly enough, they’ll often give you “a pass” when you disclose an asthma or high blood pressure diagnosis.

As this information indicates, it’s usually wisest to first apply for a life insurance policy when you’re very young. It doesn’t take long for various “health liabilities” to develop. Of course, some people do succeed in first applying for life insurance past age fifty. However, you can be sure they’re either very healthy – or they’ve probably had to release certain medical records for further scrutiny before being offered a policy.

Minnesota and North Dakota Probate Attorneys

Joseph M. Flanders is licensed to practice law in Minnesota, North Dakota, and Indiana. Flanders Law Firm LLC is a Minnesota probate law firm. Contact the law firm today at: 612-424-0398

How to Appoint a Special Administrator under Minnesota Probate Law

Posted on April 28, 2016 by jlawyer

Minnesota Probate Special Administration

There are times where it may be necessary to appoint a Minnesota probate special administrator instead a more traditional “personal representative” of a Minnesota probate.

The circumstances with this becomes an issue are limited. This article will discuss the instances in which a special administrator can be appointed over a deceased person’s estate and, also, what the person’s duties are.

Minnesota statute section 524.3-614, states that a special administrator can be appointed as follows:

524.3-614 SPECIAL ADMINISTRATOR; APPOINTMENT.

A special administrator may be appointed:

(1) informally by the registrar on the application of any interested person when necessary to protect the estate of a decedent prior to the appointment of a general personal representative, when necessary to protect the estate of a decedent due to circumstances described in section 524.2-803, or if a prior appointment has been terminated as provided in section 524.3-609;

(2) in a formal proceeding by order of the court on the petition of any interested person and finding, after notice and hearing, that appointment is necessary to preserve the estate or to secure its proper administration including its administration in circumstances where a general personal representative cannot or should not act. If it appears to the court that an emergency exists or that section 524.2-803 may apply, appointment may be ordered without notice.

The instances in which my office has asked for the appointment of a special administrator are in the “emergency” situations. Typically, a more traditional personal representative would be appointed. However, things like problems with a Will, or lack thereof, can lead to the appointment of a special administrator. In one particular circumstance, our office helped a client who needed to remove a loved-one from the city morgue and they were unable to do so without being appointed as a special administrator by a Minnesota court. This was an extreme example, but it illustrates why this area of the law may arise.

The next logical question is who can be appointed as a special administrator?

524.3-615 SPECIAL ADMINISTRATOR; WHO MAY BE APPOINTED.

(a) Except as provided in paragraph (b), if a special administrator is to be appointed pending the probate of a will which is the subject of a pending application or petition for probate, the person named executor in the will shall be appointed if available, and qualified.

(b) In cases where the court determines a personal representative named in a will may not be entitled to benefits pursuant to section 524.2-803, the court may appoint a qualified neutral, professional fiduciary, or an interested person to serve as special administrator.

(c) In other cases, any proper person may be appointed special administrator.

As you can see, Minnesota probate law provides very specific terms in which a special administrator can be appointed. The special administrator law does limit that person’s power over the estate. Our law firm has had experience asking that a special administrator be appointed, and then modifying the estate so that a new personal representative be appointed.

Finally, the special administrator has specifically delineated duties that he or she will be obligated to perform on behalf o the deceased person’s estate.

524.3-617 SPECIAL ADMINISTRATOR; FORMAL PROCEEDINGS; POWER AND DUTIES.

A special administrator appointed by order of the court in any formal proceeding has the power of a general personal representative except as limited in the appointment and duties as prescribed in the order. The appointment may be for a specified time, to perform particular acts or on other terms as the court may direct.

As you can see, a special administration may be appointed in an informal or formal probate administration depending on the situation. For further questions on this issue, a Minnesota probate attorney should be contacted.

Minnesota Probate Lawyers

Contact Flanders law firm LLC today to discuss your particular situation and possible appointment as a special administrator. Contact the firm at 612-424-0398.

Minnesota Probate Inventory | What needs to be in the estate Inventory?

Posted on April 27, 2016 by jlawyer

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.

Minnesota Probate Estate | Formal Administration

Posted on April 21, 2016 by jlawyer

There are many different kinds of probates. There may be small estate. There may be large estates. In any estate, a Minnesota probate attorney should be consulted. The attorney should be able to clearly tell you whether you should file for Minnesota probate estate – either formal or informal. For this post, I will be discussing a formal probate.

Minnesota Formal Probate Administration

A Minnesota formal estate begins with the filing of a “petition”. The petition must be filed with the proper court of “venue” – usually the county court where the deceased lived. As with any estate, the petition must include the important personal identifying information of:

The deceased
The heirs
The personal representative
Any other interested parties

Failure to include the proper information in the probate petition may result in your petition being dismissed or questioned by the court.

Proceeding Formally | Supervised vs. Unsupervised

If the personal representative asks for a formal estate, the personal representative must also decide whether to have a “supervised” or a “unsupervised” estate. An unsupervised estate is one in which the personal representative acts without supervision of the court, and is usually without the court supervising the reasonableness or legality of the personal representative’s actions. This can be a good or a bad thing.

One instance when a formal estate may be advisable is when there may be heirs who are disputing things or who may question the personal representative’s decisions. In this case, it may be best to request a formal probate which is supervised by the court.

In a supervised probate, the acts of the personal representative will be supervised by the court. The personal representative will have to file a final account and this document will be approved by the court. No distributions or “payments” to heirs are allowed in a formal supervised estate without court approval and court order. Obviously, this takes more time and can cost more money in terms of court costs and fees. However, again, at times they are highly advisable for estate with large assets and/or heir disputes.

Notice of a Formal Probate

In any case, Minnesota law provides that notice of a formal probate needs to be sent, in writing, to heirs of the estate. This literally means that the personal representative must send written notice of a court hearing to the heirs. This is true in formal and informal estate. In essence, the law is concerned about “due process” and the opportunity to be heard. Without this formality, it is much more likely that the personal representative may not do things that are lawful.

The Minnesota statutes (laws) also provide that notice of the formal estate must be published in a newspaper of general circulation in the county of “venue” – or where the deceased lived. The newspaper notice must be published for two successive weeks. After this is done, the newspaper will send an “Affidavit of Publication” to the court or the personal representative of the estate to let them know that the notice was properly published.

Once the notice is published and mailed, a court hearing can be held and the personal representative can move forward with the formal estate administration.

Questions about Formal Probates?

Contact the the probate lawyers at Flanders Law Firm LLC for your free consultation. The firm has experienced attorneys who can advise on all probate issues – including formal and informal probates and when to choose the correct one. Contact the firm today at 612-424-0398.

MN Probate Laws | Wills and Trusts: Simple Rules for Giving Property Away to Others

Posted on April 5, 2016 by jlawyer

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:

Where you register your vehicles
Where you vote
Where the majority of your property is located
Where most of your financial or investment accounts are located
Where your main home or physical residence is located
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.

MN Probate Law | IRS Transcripts in Lieu of Estate Tax Closing Letters

Posted on March 17, 2016 by jlawyer

The Internal Revenue Service (IRS) has issued an opinion that transcripts may be used by personal representatives instead of waiting for the traditional tax closing letter.

MN Probate Estate Tax Return

Traditionally, in a taxable estate, the personal representative and, vicariously, the attorney for the estate would be responsible for waiting to close out the estate until the final estate tax closing letter was received. This often took a long time.

In essence, after the personal representative petitions and is appointed by the proper county court, and issued letters, testamentary, that person would then gather assets, pay debts, and administer the estate. One of the implications of administering the estate are paying all necessary estate taxes.

Transcripts in Lieu of the Closing Letters

As reported by the IRS, account transcripts, “which reflect transactions including the acceptance of Form 706 and the completion of an examination” may now be used as an “acceptable substitute” for the traditional closing letter.

Typically, the probate estate tax return will be prepared by a qualified tax professional. If you are not sure what this means: contact a qualified tax professional.

For all estate tax returns filed on or after June 1, 2015, the estate closing letters will be issued only upon request. Instead, the account transcripts can be used. The transcripts are available online to all tax professionals. Remember what I recommended about contacting a qualified tax professional?

According to the IRS: “the account transcript from the Transcript Delivery System (TDS) reflects transactions including the acceptance of Form 706 and/or the completion of an examination.”

How does this effect a Minnesota Probate?

It is my hope as a practicing MN probate lawyer, that this change will mean quicker processing of estate tax returns and, more importantly quicker estate administrations. I have personally waited for a closing letter for nearly five months. Being able to move forward on a transcript basis should be helpful. I am somewhat leery of the implications of “faulty” transcripts and the lack of an “official” opinion.

MN Probate Estate Tax Return Lawyers

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