Estate Planning

Probate in Minnesota - Costs, Time Frame & Beneficiary Designations

By admin

The following is not legal adivce, rather it is a general description of the probate process as it applies to assets with beneficiary designations.

Investment accounts with beneficiary designations: 

Investment accounts with beneficiary designations are non-probate assets, and as such will not be involved in the probate process.  These assets will not be held up in probate and the method by which they are transferred to the beneficiary after the decedent?s death varies a little depending on what company they are with.  The beneficiary will need to provide a certified copy of the death certificate to the investment company holding the assets.  Often times the company will require the beneficiary to open an account with them, transfer the assets to the new account and then the assets can be liquidated.

Cost of the Probate Process where the estate?s probate assets exceed $20,000: 

Trying to determine the cost of the probate process is a tricky thing.  First of all the filing fee in MN for probate is $200.    The family, decedent?s assets, creditors and the complexity of the estate all play large rolls in what the overall cost can be.  If the family fights over assets costs go up.  If the assets are large the likelihood of family fights increase.  The accounting for the estate?s checking account can also take time depending on how well the PR has tracked income and expenses.  Sometimes the estate will receive rebates or other correspondence from creditors up to 9 months after the decedent passed away. 

All of these things require time from the attorney to deal with the different issues.  Another reason that I am hesitant to give out numbers is that clients are often very unhappy if an attorney quotes a possible overall cost and then the costs exceed that estimate.  But if you need a number to work with you should plan on at least $3,000 for the attorney?s fees for the probate process with the possibility of the costs going up.

Cost of the probate process where the estate?s probate assets do NOT exceed $20,000.

When the probate assets of a decedent?s estate do not exceed $20,000 the estate can be probated through Summary Administration pursuant to Minn. Stat. 524.3-1201 et. seq.  This means that instead of going through the normal probate process the PR or an interested person can file an affidavit with the court stating that the estate?s value is less than $20,000.  The court will sign an order allowing the PR or interested person to distribute the assets in accordance with a will, if one was made, or follow the intestacy laws if no will was made.

Time frame for the probate process:

The standard probate process must be kept open for a minimum of 4 months.  The 4 month minimum is the period that creditors have to bring forth claims against the estate.  Some attorneys say that 6 months is a reasonable rule of thumb for a probate with no major problems.  But here the problems of fights and late rebates can influence that time frame. 

The time frame for the summary proceedings is a little different.  From what I understand an interested person or PR must wait at least 30 days after the death of the decedent to file the affidavits for summary proceedings.

Paying for the final expenses of the decedent:

The final expenses of the decedent are usually paid by the estate after a personal representative has been appointed.  In a situation where summary proceedings are used the person authorized by the court to act on behalf of the estate will pay the funeral home, cemetery etc… with the estate?s funds.

For the situation in which the person who is likely to be the PR has a power of attorney for the soon to be deceased writing a large check and holding it to pay for the final expenses can be tricky.  There are a couple of problems with this situation.  First, who would the attorney-in-fact write the check to?  Second, depending on the language of the power of attorney documents there may be a restriction on the amount of money that the attorney-in-fact can transfer to herself.

If you need assistance or have questions regarding the probate process in Minnesota please contact an attorney.  You can contact me, Jim Anderson, at the Law Office of James T. Anderson via email at james@jtandersonlaw.com or visit my website www.jtandersonlaw.com

Full post as published by Minnesota Estate Planning Blog on May 21, 2008 (boomark / email).