Minnesota Probate Law | Publishing notice in the newspaper

Minnesota Probate Law Publishing Notice in the NewspaperIn every Minnesota probate estate administration, the personal representative is required to publish a notice to creditors and a newspaper of general circulation in the county in which the estate is probated.

We have discussed in previous articles that the county in which the estate should be probated is the county of the deceased person’s residency or “domicile”. Basically, this means the county where the decedent lived, had bank accounts, had vehicles titled, and where he/she paid bills from.

Why is publishing notice in the newspaper necessary?

Under Minnesota law, every personal representative must publish a notice to creditors in a newspaper of general circulation in the county where the decedent established residency. This is necessary because the personal representative is required to make extra efforts to identify potential creditors of the estate. Often times, a personal representative may not be aware of all the potential debts of the deceased person.

Common debts include credit cards, mortgages, utilities and other home payments, taxes, and other miscellaneous outstanding debts which one accrues during life.

A personal representative is taxed with the responsibility of being a fiduciary for not only the heirs but also the creditors. This can be a difficult and demanding job and it is one where the law needs to be followed very closely; otherwise, the personal representative could be held personally responsible for their failure to follow the law.

The publication process is rather antiquated and, in my opinion as a practicing attorney, a remedy that creditors are not likely to read. However, I was contacted by an heir who found out about a deceased person’s estate through an Internet search.  The notice to creditors was published in a newspaper which showed up on the Internet. I was surprised that the heir found out about the estate and I was pleased that the newspaper publication worked.

The above anecdote outlines the reasons why notice is necessary. In a previous article, we discussed the meaning of due process when it comes to a probate administration. Essentially, all heirs and creditors are entitled to notice of the existence of a probate estate while it is winding its way to the court system. The heirs and/or creditors will not necessarily have their claims paid, but they are entitled to notice.

What should be published in the Notice?

The notice to creditors must outline the existence of the estate, the name and address the personal representative, the attorney representing the estate, any notice of upcoming court hearings to appoint the personal representative.

As we discussed above, this notice gives creditors and heirs due process to be able to know what is going on in the estate. This is a extremely important function of the court systems. After all, the court systems are a supervisor of court cases and people, and attorneys, so that everyone is following the law.

Notice published in the newspaper does not mean that the creditor claims will all be paid. There are many exemptions and different arguments to creditor claims in any probated administration.

For further questions about notice to creditors, publication in the newspaper, exemptions, and probate administration a Minnesota probate lawyer should be consulted.

Minnesota Probate Lawyer

Flanders Law Firm LLC and Joseph M. Flanders are experienced Dakota County Minnesota probate attorneys. From also represents clients throughout the state of Minnesota on probate and estate administrations. For further information, contact the law firm at 612-424-0398.

What are the fiduciary duties of a Minnesota personal representative?

fiduciary duties of a Minnesota personal representative? In any Minnesota probate, a personal representative will be appointed to run the estate.

If there are over $75,000 in probate assets, the estate will need to be probated by the personal representative. The assets of the estate will be distributed to the heirs of the deceased person.   Distribution can be effectuated by the deceased person’s Will or via an intestate administration.  An intestate administration means someone died without a Will. Typically, a person will work with an attorney to follow the law and understand what they must do according to the law.

We often discuss the legal concept of “fiduciary duties” with out clients.  The personal representative must serve as a “fiduciary” for all heirs, creditors, and other interested parties.

Fiduciary duties of a Minnesota personal representative?

In a typical probate, the personal representative will have a fiduciary duty obligation to the heirs.

A typical situation my office sees is where the children of the deceased person are the only heirs.  In this scenario, the eldest child is often “nominated” by the deceased person to be the personal representative.

The personal representative must pay expenses of the estate and then distribute assets and money to their siblings.  While working on the estate, the personal representative owes fiduciary duties to their siblings – whether they like them or not.  Sibling rivalry can often get in the way of a proper administration.

It is also important to remember that the personal representative has a difficult job and that the money in the estate does not belong to them.

The personal representative is serving the estate. There are many instances of probate litigation (lawsuits) where the personal representative may not be doing what they are supposed to be doing. When thinking about the term fiduciary duty, please try to remember that it means to be honest and fair with the deceased person’s money.

Duties owed to creditors in a Minnesota probate estate

The personal representative will also owe a fiduciary duty to creditors of the estate.  If there is over $75,000 in probate assets, the personal representative is required to distribute assets and pay creditors.

Commonly, the debts of the estate include a mortgage on home, credit-card bills, utilities, and other contractual debts of the deceased person. Sometimes, the estate has very little debt because, as people age, they often pay off the home and other debs.

There are also certain probate asset exemptions which we discussed in previous articles.  Exemptions include:  the homestead of the decedent, $10,000 of personal property, and one automobile.  Life insurance is also an exemption.  This means that assets will not be collectible, in most instances, by creditors.

Paying creditors claims is relatively simple.  If the personal representative has knowledge of money owed to any person or business, those debts should be paid out of the estate. However, there are also instances when a personal representative does not have knowledge of debts owed by the deceased person.  In these instances, the notice of publication – which is published in the newspaper –  will be published so that unknown creditors have four months in Minnesota to file a claim against the estate.

It is very important for the personal representative to work hard to discover debts that need to be paid.  After payment of debts (minus exemptions), the remaining money will then be distributed to heirs.

As a warning to people who may be considering serving as a personal representative – not paying estate debts is where liability of the personal representative most often arises. This is because, at times, the personal representative may not be diligent in discovering otherwise known creditors.  Obviously, this can be a very large problem.  The court may hold the personal representative liable for not doing their job correctly.

An personal representative may want to speak with a probate attorney

For further information about the meaning of personal representative duties, and fiduciary duties, contact Joseph M. Flanders, a Minnesota probate lawyer, at 612-424-0398.

The firm offers free initial consultations in all cases.