Trust And Estate Administration In Minnesota

Last updated on October 15, 2024

Estate and trust administration is a complex and often emotional process involving the management and distribution of a loved one’s assets according to their wishes. In Minnesota, trust and estate administration involves navigating state-specific laws and regulations, including probate, trust administration and estate taxation.

At Messick Law, PLLC, our experienced attorneys for trust and estate administration in Minnesota have a deep understanding of these laws and regulations. They provide personalized attention and cost-effective solutions to individuals and families throughout the state, with offices in St. Paul, Woodbury and Faribault.

If you are facing the challenges of estate administration, you need an estate and trust administration lawyer in Minnesota who can provide guidance and support. Our lawyers will listen and understand your situation, offering customized solutions that address your challenges regarding fulfilling your loved one’s wishes with dignity and respect.

Probate And Trust Administration

Probate and trust administration are critical components of the estate administration process, ensuring that the management and distribution of a loved one’s assets are in line with their desires, whether through a trust, will or other estate planning documents. Our attorneys have the knowledge and experience to guide individuals and families through these processes in Minnesota.

Probate Of Estate

Probate is the process where the court or registrar appoints a personal representative (sometimes referred to as an executor) to manage the assets and debts of a deceased person. Probate is necessary if the decedent’s total assets are in excess of $75,000 or the decedent owned real estate.

If a decedent dies with a valid will in place, the estate becomes testate. The administration of a testate estate is according to the terms of the will. If a decedent dies without a will, the estate becomes intestate. The administration of intestate estates is according to Minnesota statutes.

Two Types Of Probate Proceedings

There are two types of probate proceedings: informal and formal. To commence an informal proceeding, there must be a filing of an application with the probate registrar in the county where the decedent resided or where the decedent’s property is located. Informal proceedings are appropriate when there are limited assets in the estate or no complicating factors. It is usually more time-effective to proceed informally, but not always. The unique facts involved with each case may or may not allow one to proceed informally. Seeking the advice of an attorney can prevent people from making the wrong and costly decision about whether to proceed informally or formally.

To initiate a formal proceeding, there should be a filing of a petition before the district court where the decedent resided or where the decedent’s property is located. Formal proceedings are appropriate when the estate owns real property with multiple owners, there are minor beneficiaries or there is potential for disputes from beneficiaries or creditors of the estate.

Formal proceedings take place either in a supervised or unsupervised administration. In a supervised administration, there should be no distributions to beneficiaries without prior authorization from the court. In unsupervised administrations, there can be distributions after the personal representative’s appointment without prior authorization from the court. An attorney can assist personal representatives in determining whether supervised or unsupervised is appropriate for their matter.

The Probate Process

In all probates, a notice of the proceeding must be served on all interested persons, which includes anyone with a material interest in the estate. The definition of an interested person can change depending on the proceeding’s purposes and the matter involved. There must also be a publication of the notice in a newspaper for two consecutive weeks before the initial hearing.

At the initial hearing, the court reviews the pleadings, takes brief testimony from the petitioner, and if no objections are filed, issues the order appointing the personal representative and letters of administration (in intestate cases) or letters testamentary (in testate cases). The letters prove the personal representative’s authority to act on behalf of the estate.

In formal cases, an inventory of estate assets must be filed with the court and served on the interested parties. Some key duties of the personal representative after appointment are:

• Locating, collecting and protecting all estate assets
• Reviewing claims for payment
• Completing any required tax returns

Creditors of the estate have four months from the date of the court administrator’s notice to file their claims. The personal representative must review the claims and determine whether they will be allowed, paid or denied. Making this determination can be complicated and the advice of an attorney can be important in protecting the estate from erroneously paying certain types of claims or missing deadlines to disallow invalid claims.

In formal proceedings, the personal representative must serve and file a final account, documenting the expenses paid from the estate, any income received by the estate and the proposed distribution of probate assets.

The process can seem daunting, but our attorneys have experience assisting our clients each step of the way. Contact us today to discuss any probate questions you may have.

Answers To Your Top Questions About Probate

At Messick Law, PLLC, we understand that going through the probate process can be overwhelming. Our attorneys for trust and estate administration in Minnesota have answered some of the most frequently asked questions about probate.

How long does probate take?

It depends on the size and complexity of the estate. Generally, a probate can be initiated within a matter of days or weeks. Once there is a publication of the notice of the probate, creditors have four months to file a claim. When all claims are processed, and all taxes are filed and paid, distributions can generally occur. Thus, simple probates will take anywhere from five months to a year. More complex probates will take a year or more.

Am I personally liable for any debts of the decedent if I am the personal representative?

No. Only the decedent’s estate is liable for valid claims against the estate. Claims are paid in this order of priority:

1. The costs to administer the estate (personal representative fees and attorney’s fees)
2. The costs of funeral
3. Debts and taxes with preference under federal law
4. Expenses of last illness
5. Reasonable medical and nursing home expenses in the year preceding death
6. Debts with preference under Minnesota law and state taxes
7. All other debts

As a personal representative, knowing your role and responsibilities in managing the decedent’s estate is essential. This can ensure the efficient and effective administration of the estate.

What happens if I get information that there is a claim for medical assistance?

Depending on the amount and whether real estate is included in the estate, there may be a need to negotiate with the county regarding the satisfaction of their claim. This is where the assistance of an attorney is critical to navigating this complicated area of the law.

Before my father died, he loaned money to my sibling. Does my sibling need to pay it back?

Depending upon the terms of the loan, it may need to be paid back. If the loan is not in writing, it would be helpful to work with an attorney to resolve the matter in a way that protects the personal representative from being personally liable.

I was living with my mother for a year before she died so that I could take care of her. Do I have any rights to continue living in the home?

This situation is becoming more common as our population ages. The child who lived with a parent to take care of the parent likely has at least the rights of a tenant, but this all depends on the circumstances involved. Consulting with an attorney is critical to understanding the duties placed on the personal representative regarding a person living in the homestead and the rights of the person who has been living there.

Administration Of Trusts

The administration of trusts is according to the explicit terms in the trust instrument. Most trusts are not initially subject to the jurisdiction of the district court, with the exception of special needs trusts and other statutorily created trusts. This is why trusts are a preferred option for estate planning, as these can avoid the cost and delay of probate.

Trusts can be subjected to the jurisdiction of the district court if a petition for court supervision or intervention is filed. A beneficiary can petition the court for any number of reasons, including, but not limited to, contesting the validity of the trust, reviewing the actions of the trustee, removing and replacing the trustee, interpreting a term of the trust and terminating the trust.

Duties Of A Trustee

Trustees have a fiduciary duty. This means they should administer the trust in the beneficiaries’ best interests and follow the trust’s terms. When investing in trust property, the trustee has a duty to act as a prudent investor would, ensuring that investments are diversified and productive.

Trustees also have a duty to update qualified beneficiaries, keeping them reasonably informed about the administration of the trust and of the material facts necessary to protect their interests in an irrevocable trust. Whether or not a trustee is fulfilling this duty is a common complaint from beneficiaries.

Our firm has extensive experience assisting trustees in managing trusts and representing beneficiaries. Please contact us today to discuss any questions you have about the administration of trusts in Minnesota.

Common Questions And Answers About Trusts

Our skilled estate and trust administration lawyers in Minnesota recognize that trust administration can be challenging. Below are some answers to common questions about trust administration.

What is a trust?

A trust is a way of protecting your assets while you are alive and after your passing. Think of a trust as a bucket you put your assets into and then put a lid on the bucket with instructions on how to use the assets. The instructions tell the trustee how to use the assets (or even how not to use them). The instructions can provide a great deal of discretion to the trustee on how to use the assets, or it can be very narrow. The trust instructions are limited only by the imagination of the person creating the trust.

There is a lot of terminology related to trusts that is hard to understand – what do all these terms mean?

Navigating trusts can be daunting, especially when faced with unfamiliar terminology. At Messick Law, PLLC, we are here to help you understand the language of trusts:

• Trustee: This person who manages the assets contained in the trust.
• Settlor: This is the one who transfers their assets into the trust (also called the grantor).
• Beneficiary: This is the person whom the settlor intends to benefit from the trust. A qualified beneficiary is currently eligible to benefit from the trust. Contingent beneficiaries are ones whom the settlor intends to benefit from the trust contingent upon an event occurring, usually the settlor’s death.
• Revocable: The settlor retains the power to revoke the trust entirely and regain the title of the property for themselves.
• Irrevocable: The settlor (nor any successor trustee) cannot revoke the trust. A revocable trust becomes irrevocable upon the death or incapacity of the settlor (regardless of whether the name of the trust has the word “revocable” in it).

By understanding these key terms, you may better manage the complexities of trusts. Further, this can help you make informed decisions about your estate planning.

I’ve heard that trusts are only for rich people. Is this true?

No, this is not true. People with blended families find that trusts are great options for ensuring a fair division of their estates between their children and current spouses. Creating a trust can also serve people with unique circumstances or wishes for their assets. A trust can be as simple or complex as a person wants it to be. There are many considerations in creating a trust, and our attorneys are ready to help people consider whether it may be the right choice for their estate plan.

Why would a person want a revocable trust instead of an irrevocable trust?

As the name suggests, the settlor can revoke revocable trusts. Creating a trust usually requires a great deal of consideration and planning, making it a plan that one generally wants to remain viable. However, there may be unanticipated circumstances that call for the revocation to be in the best interest of the person who created the trust.

I think I am a beneficiary of my grandmother’s trust. Do I have a right to see a copy of the trust?

If your grandmother is still alive, you probably do not have the right to see a copy of the trust. However, if your grandmother is now deceased, you have a right to be reasonably informed about the trust unless there is a provision in the trust that excludes you from receiving information.

What happens if co-trustees do not agree on the administration of the trust?

It can be incredibly hard to do the job of co-trustee when there is disagreement. If the disagreements are regarding significant assets, you might both need to find your own legal representation. One attorney should not try to represent both trustees if there is a conflict.

Often, when co-trustees seek separate counsel, the attorneys can work out the problems without resorting to the court. However, some differences are irreconcilable, and the parties find themselves in court. The sooner a co-trustee seeks advice, the better the chances of reaching a resolution. Don’t wait until you’re at the end of your rope.

Get The Advice Of An Estate And Trust Administration Lawyer In Minnesota

Facing the trust and estate administration process alone can be daunting and challenging. To take control of your concern, consult our firm’s attorney for trust and estate administration in Minnesota. Call us at 651-505-2655 or fill out our online contact form to take the first step toward resolving your trust and estate administration challenges.