Selling a home during a Minnesota probate is not something that you can do carelessly.

This is a larger project which must be conducted both in the right manner and with the proper people.

Minnesota Probate law has its way of dictating how to proceed without disrupting the overarching concerns. However, before you can learn how to act during one of these sales, it’s best to understand what might be the underlying causation to the central event. These auctions aren’t always brought about on a whim. Moreover, you may find that you’re in the middle of helping someone rectify the financial past of a recently deceased family member.

Why Sell

Sometimes choosing not to sell the property isn’t an option during probate.

The whole estate could be up for sale because there isn’t enough money or assets to pay off all of the debts, taxes, and other bills. The aforementioned items will still need to be paid in almost every probate case dealing with debt, at least in part, but whatever is being sold is usually brought to market to either pay something off or because no one is going to inherit it. Objects that were owned by the surviving spouse might not get touched, but don’t assume that anything will be passed down to the next generation until the debts are fully paid.

There are three potential parties that may have authority to sell off property during the probate process: the court, the executor, and/or the administrator.

Assume that they plan on selling on every part of the estate that they can if the debt calls for it. You need to consult them if you want any specific parts to be kept. As far as they may be concerned, selling off one larger asset may be more efficient overall compared to selling several smaller assets. Moreover, anyone selling parts of the estate must be wise in how they sell it. Selling property at an abnormally low price may cause legal issues.

Get Home Insurance

Regardless of what kind of items are being sold, make sure that the home itself is properly insured. You don’t want one of the largest assets to be brought to ruin without some kind of way of restoring it. It’s not uncommon for home insurance policies automatically dissipate once the home owner passes on, leaving the home without coverage until a new policy is introduced. Treat the home as if it’s going to be lived in even if someone is not going to inherit it and the entire estate is going to be sold off.

One way that you could maximize the selling price of the home is keeping it in good condition. If a fire or flood destroys the home, you might only have the insurance policy to go on. Don’t assume that you can treat the court as your insurance company since they’re probably looking to the executor or administrator to care over the assets. Whatever assets are lost during the process might not be able to be replaced, and losing the home could mean that you have to find a new place to stay. You may even want to consider having the executor take out a bond just to be sure.

When not to be Executor

Any party that wants to be the executor of the estate should not be someone who also wants to purchase the home with their own cold hard cash. Things get tricky otherwise to say the least. Executors should almost always be as impartial to the situation as they can be in order to properly conduct sales. Truth be told, executors should usually want to buy as little of the property as possible. And even in the case that they were originally supposed to inherit the home, but now they have to sell it to pay off debt, they should still turn down the role as executor. The court wants the buyer and executor to be two different people.

To help you better understand, realize why the sale is being made. If you’re an eligible heir, the only reason why the house is being sold off is to help pay off debt.

Should you take advantage of the situation and decide to pay too little for the home while claiming that the sale was authorized by the executor, other items may need to be sold off to compensate for the money that would have been otherwise generated by the home’s sale. Probate sales commonly happen out of a state of need rather than a heart of greed. The house may be being sold if there aren’t any heirs, but those situations are usually attempts to put the property under new management instead of letting it fall into disrepair.

Respect the Executor

Assuming that you’re buying from an executor, be respectful to what they’re asking for. This might be their attempt at trying to satisfy hungry creditors. Time may not be on the executor’s side, as they may have outstanding paperwork to be done, beneficiaries to assist, and taxes and debts that need to be paid. That executor might be looking at your checkbook as a way to keep a family off the streets. It’s completely possible that you’re buying someone’s childhood home which is being sold to help keep the children out of debt.

Keep in mind that the home could lack various improvements, and it may take a few weeks for you to even get the chance to get the purchase approved by the court. This can be a perfect way to find a home to be fixed up or flipped, but be aware that it might not be in the best of shape. Moreover, be sure to check that it’s actually insured and check the insurance policy documents to verify that what is being said is true. You don’t want to buy an uninsured mansion only to find that it went up in flames before you could start moving inside.

Minnesota Probate Lawyers

Should you ever find yourself in a standstill or standoff during a probate sale, the first person you may want to consult is a Minnesota probate lawyer.

There’s something to be said about having a probate lawyer from the start. Rather, assuming that you’ve tried to work on things by yourself from the start, it could be very well be a good idea to see if someone else can provide advice on the sale. Seek out someone from Flanders Law Firm LLC by calling their main line at 612-424-0398.

Even if you’re not wanting the sale to go forward, they might be able to provide comfort in these trying times. Maybe they can help you find a way to keep more assets than you originally thought possible.

Sources

https://mncourts.gov/Help-Topics/Probate-Wills-and-Estates.aspx

Formal versus Informal probate in Minnesota

There are many different types of probate administration’s under Minnesota Probate Code.

However, the two most common filings are formal probate and informal probate. This article we’ll discuss the difference between formal and informal  probates.

Informal probates in Minnesota

An informal probate can be commenced by any interested party under the Minnesota probate.  Interest interested parties include the nominated personal representative or executor in the will. Heirs of the deceased devotees of the deceased or a creditor of the deceased.

The statutory priority for appointment of a personal representative is the person nominated in the Will.  If there is no Will, the priority of who can serve starts with:  the surviving spouse and then the children of the deceased.

Once the applicant has been chosen, the applicant may file for an informal probate administration with the county of venue.  Proper county venue will be the county where the deceased held lived the majority of their life.

The informal process utilizes a probate registrar which is a court appointed judicial officer who oversees and informal administrations in the county.  The registrar acts as the judge and makes a determination whether the applicant may proceed forward with an informal administration.

In most case, an informal administration is utilized to have a quicker appointment of the personal representative.  This can happen in both a testate or intestate probates.  Dying “testate” means that the person died with a Will.  “Intestate” means someone died without a Will.

The probate registrar will review the application and the facts of the case to make the determination.   The registrar will also review whether proper notice of the probate has been given to the interested parties.   Furthermore, notice will need to be published in a newspaper of general circulation in the county.

Sometimes the probate registrar will reject the filing due to problems in the estate.   Common rejection items including problems with the Will, disputes between heirs, questions about ownership of property and, perhaps, large creditor claims against the deceased. There could be other issues that come up in the probate that a judge will need to make a determination of law to the facts.

Finally, it is important to keep in mind that the difference in time – in terms of how long the probate takes – may not be significantly different.  It depends on the county that the probate is filed in and the facts of the case.  A competent Minnesota probate lawyer should be consulted in all cases.

Formal probate administration in Minnesota

A formal probate administration is commenced with the filing of a petition for appointment of personal representative.  In formal estate, the petitioner asks a district court judge to issue an order.  This is different from a probate registrar issuing a “statement of probate.”  In a formal administration, the judge will also make a determination that proper filings have been made, that the Will was properly executed, and that the heirs, creditors, and devisees are correct.

Judge will hold a hearing for the appointment of the personal representative.  Once the hearing has taken place, and there are no problems or objections to the petition, the court will issue in order appointing the personal representative.  The judge will also issue the Minnesota Letters Testamentary or the Minnesota Letters of General Administration. These letters will give the personal representative the power to act on behalf of the estate. The personal representative will serve as a fiduciary in both an informal and formal administration.  The personal representative is required to look out for the best interest of all parties.

As discussed above, in a formal probate may be necessary due to problems with the deceased person’s Will.  Also, disputes between heirs can create the need for a formal probate.  Finally, large debts or creditor claims can necessitate a formal probate.

An attorney who has dealt with many probates will be able to spot issues and facts to make a determination of whether formal or informal administration is required.   Additionally, it is important to keep in mind that there may not be a timing difference between formal and informal administration.   At times, it could be best to file a formal administration because the personal representative may need additional powers which will be graded by a judge and which cannot be granted by the probate registrar.

Also, in most cases, the costs of the formal versus informal administration will be very similar.   The attorney fees will be very similar.   The fees are entirely fact specific.

Formal probate administration | Supervised or Unsupervised

It is also important to understand that in certain formal administrations, a party can request that the personal representative serve in a supervised or unsupervised administration.

In many cases, the personal representative may proceed in an unsupervised manner. This means that the court has very little oversight about the case. The court will also have very little oversight over the person representative and their actions.  In an unsupervised estate, the personal representative can make payments to creditors and distributions to heirs without approval from the court.

Conversely, in a supervised probate administration, the personal representative is required to seek approval for all distributions. The court will have more supervision over the actions of the estate and the personal representative.  More court hearings will likely need to be held.

The total costs of a supervised versus unsupervised administration is likely to be higher.  This is due to the extra work involved with asking the court for permission on various issues. Supervised administrations may be advisable in cases where there are disputes between heirs, creditors, or what to do with the money in the estate.

Minnesota Probate Lawyers

Contact the Minnesota probate lawyers at Flanders Law Firm LLC if you have questions about the difference between formal and informal probate administration’s in Minnesota.  You may also contact the office for answers about supervised and unsupervised estates in Minnesota. The firm has years of experience helping clients in all sizes of estates.

Call today for your free consultation at 612-424-0398.

Probate is rarely a black and white process.

Probate has a lot of details that need to be dealt with. So, to answer a few general questions, here are a few general answers.

Yes, you should have a probate attorney who is more than a little bit familiar with probate law. That should go without saying. And because of how much this process relies on the kind of assets and how many assets there are, your best ticket is to get as much knowledge as you can. Avoid probate if you can.  This isn’t your normal legal process where everyone stands before the judge to prove or disprove a point. It’s more or less dealing with the deceased’s assets and waiting for each asset to be approved. Continue reading to find out more about probate.

What is Probate and How Long Does it Take

Probate is what you might go through after someone passes on. It’s dealing with all the messy little details like handling their assets and paying off their debts in probate. Apart from student debt, debts, much to everyone’s dismay, do not go up in smoke upon death. The money has to come from somewhere and the money needs to go somewhere. So, if you’re trying to maximize your gifts to your beneficiaries, pay off as much debt as you can stand while you’re still around to pay them off.

Nonetheless, probate isn’t just dealing with debt. Assets and their distribution are central parts of probate. Who gets what must be answered. Assets must be appraised. Individuals may need to be tracked down. Everything, more or less, must go in one shape or form. Unless the deceased lived selflessly in a convent, their assets probably need to be dealt with. There can, thankfully, be preventive measures taken.

Trusts are great tools that can help protect assets while making the process of passing on assets easier. Some assets may even dodge probate because of being in a trust. Trusts are essential parts of your estate planning to make everything safer and smoother.

Why Have a Probate Attorney?

Probably the biggest reason for having an attorney is keeping everything legal.  Minnesota probate law isn’t always cut and dry. So, whether you’re seeking an attorney that can help your family prepare for probate or you need one while you’re going through the process, you want to make sure that every step you take is done properly. If the personal representative, for example, fails to carry out their necessary duties properly, there might be trouble. An attorney can be there to help everyone involved do the right things.

A probate attorney can also help your family get the most out of every decision. Don’t be fooled into thinking that just because your relative has X-amount that you’re automatically going to get X-amount. Taxes can take chunks out of assets.

You may only get Y-amount. All the debts must be resolved. This process is supposed to settle any and all financial circumstances. Houses, cars, and just about everything the deceased owns is subject to being sold off to cover any outstanding bills. Moreover, everything needs to be appraised. The collection of famous movie posters may not bring in enough cash. You could find yourself needing help deciding what stays and what goes.

What are Some of the Executor’s Responsibilities?

Effectually, the executor’s role is handling most of the will-related matters. He or she is also supposed to get the ball rolling when it comes to filing the will to probate court and notifying others that the deceased has passed. Their role is to not only act as a representative of the deceased, but to ensure that everything moves forward. They’re basically the boss of the estate.

That means that they’re the person who takes care of the estate both physically and legally. Whatever happens to the property may be on them. Even if the property is going to be sold, if it’s not well-kept, the value could decrease drastically.

Everything is still subject to appraisal, meaning that the value of the assets may still be in limbo. And here’s a big catch: the executor can revoke their position and thereby their duties, leaving their position to be potentially filled by the state. If you want something done, you should do your best to work with the executor and keep this metaphorical ship afloat.

How Long Will This Take?

Hopefully, this whole process won’t take forever and a day. Unlike meeting with a mediator for a legal matter, the probate process isn’t designed to move too fast. There’s technically no set goal for everything to get done unless someone places a time limit on it. Moreover, that’s potentially out of your control and up to the court to decide, save that you convince the court to move faster.

Just as good business depends on location, location, and location, the probate process depends on assets, assets, and assets. You can move as fast as possible. Everyone can be on board and everyone can get along. However, as long as the assets need to be appraised or otherwise dealt with, work has yet to be done. Probate isn’t normally a simple transaction of transferring items from the deceased to the next of kin. It’s got several working parts.

Trusts that were put in place can bolster the process exponentially since they can remove the majority of assets from probate altogether. As hinted to previously, trusts are your best friends.

Where Do I Start?

You start by contacting a Minnesota probate attorney. Visit or contact the law firm of Flanders Law Firm LLC. They’ve helped people deal with probate issues time and time again. I

If you’re not convinced, dial 612-424-0398 and speak with someone representing the firm.

Those assets cannot move or asses themselves. Getting them through probate faster sometimes means having more help. And even if the majority of assets are covered by trusts, consider having that same lawyer look over the trusts to ensure that everything’s in order. A lawyer who knows the ins and outs of both probate and trust law can help your family do exactly what needs to be done.

Does a Will Have to be Probated In Minnesota?

When it comes to wills and probate law, the former tends to greatly intertwine with the latter. You can go through a Minnesota probate without having a will on hand. That means, however, that most of the situation will be governed by the governing parties.

Estate planning tends to consist of your endeavors to try and state how you want your estate to be handled. Some of it may not work out if something doesn’t hold up in court, but if everything is done properly, you could potentially put everything you own into the right estate planning tools and have it sent to the right parties.

Your will might be, on another note, the central document for your estate planning. You could try and use trusts to redistribute your assets, but that all depends on your preferences. Wills tend to be the main tool for listing out your beneficiaries and assets. When in doubt, consider your will as starting point to help all the parties involved.

Who Gets What Stuff

It’s important to understand the role that wills can play in redistributing your assets. There’s also the fact that the will must be authenticated and can be challenged during this legal event, but once it’s clear, the will may dictate who gets what. Probate will probably take place regardless of there being a will or not. Your Minnesota estate planning tools are there to help give you freedom. Not having a will during probate is when the government tends to step in and make sure that all the assets get redistributed while having to figure out who rightfully receives anything.

It cannot be stressed enough how much the lack of a will can set things behind. You cannot neglect anything that’s not put into other estate planning tools such as trusts and you have to account for everything the deceased owned. The probate process is like a sale where everything must go or be accounted for. That includes projects like appraising the assets and finding out how to get them to the beneficiaries. The stuff has to go somewhere and the deceased’s will tends to be the document that everyone relies on.

Must Be Authentic

The will’s authenticity is what may make or break the Minnesota probate process. If it doesn’t prove real, then you have to find out what the next steps are. Proving that the will is important to move things forward. It’s so important to the process that certain states expect that whoever possesses a copy of the will should file for probate as soon as possible. Also, know where the death certificate is. Knowing where that is located can only help you and may prove to be necessary later on. Just as the will can’t be faked, so the passing of the deceased can’t be faked.

Keep in mind that just because the deceased wrote the will doesn’t mean that everything is ready. Parties which are interested in the will can contest it. Factors such as incapacitation can incapacitate the will from having any lasting impact. This is why you might want to consider opting for a living trust so that you can give away the assets before your will can be contested. The more that you can do beforehand to plan out your estate will only help your family to better deal with difficult concerns. If the will is contested, consider the will invalid until it’s proven innocent.

Select the Executor

Going through the probate process without a will probably means someone else gets to decide who the executor can be. While it’s true that not every will names an executor and that you can have a will without naming one, naming an executor might make the process easier. Assume that the government will decide who is going to be the executor if you don’t. It can’t be overestimated how much power you forfeit by not including more details inside your will. As far as you’re concerned, you might want your executor to memorize your will well before you pass.

That said, there’s a reason why executors are commonly referred to as personal representatives. They’re the person who gets the documents in order to help close out your estate. Without their help, you may as well consider the probate process postponed indefinitely. The people who help to close out your estate must be able to work with them. Select someone who will get along and will know what to do. They’re probably filling in your shoes after all.

Be Truthful

Though this might have been evident from the start, your beneficiaries probably won’t receive anything until after the probate process is complete. That may sound like it’s simple, but there’s a small catch. Your executor has to present all of the transactions pertaining to the estate before anybody can inherit anything. That means they must record and prepare a list of all the things they did when it came to your assets, more or less, and get it cleared.

Your executor has to be truthful to say the least. If the court isn’t happy, your beneficiaries may not be happy. To them, it might just appear that the assets are going through the probate process, but the real fight might prove to be internal. Cooperation is key. Having your will and copies of your other estate planning documents will only help all of those involved. Messing up one small detail could prove costly. Be well aware of what situations might arise in case something of yours is sold for a low amount, and there are still debts to be paid.

Minnesota Probate Lawyers

How you write your will may be different once you look into more about probate law. Your will isn’t the only thing that you can use to make the probate process easier. There are other estate planning tools out there that can help your assets avoid going through the probate process. Contact the Minnesota probate attorneys at Flanders Law Firm LLC.  You can always call someone at 612-424-0398 for ideas.

Flanders Law Firm LLC is a resource for whatever concerns you might have concerning preparing for probate in the future and for working on estate planning in the present. Probate isn’t something to be afraid of. Rather, it’s something that you can work through.