Understanding the Probate Process in Minnesota

Many of my clients have asked me what the term probate means.  My answer?  It depends.

Probate law in Minnesota has a language all to its own.  It is typically complicated and often arcane.  Historically, the term "probate" means the court procedure by which a Will is proven valid or invalid.  I discussed the need for proper (go see it if you haven't read it).

As a lawyer, the term probate means all matters, proceedings, and actions of the personal representative in handling a deceased person's estate.  The probate court also has legal "jurisdiction" over all matters related to the proper administration of a deceased person's estate.  

This means that the personal representative works with the probate court to properly administer the deceased person's affairs after they die.

Probate versus Non-Probate Property in Minnesota

All of a deceased person's property can be divided into two general classes:  probate and non-probate property.

"Probate property" includes those assets titled solely in the name of the deceased person when they die, and which can be lawfully transferred to a new owner via the probate process.  Such assets typically include:  real estate, bank accounts, investment and brokerage accounts, contracts, promissory notes, stock, bonds, life insurance which is payable to a deceased's estate, automobiles, boats, etc.

"Non probate property" includes pproperty where the new, succeding owner is designated by a contract or as a joint-tenant in jointly owned property with the deceased.  Examples of such assets can include:  "Pay on Death" (P.O.D.) or "Transfer on Death" (T.O.D.) accounts, assets owned with joint tenants who have rights of survivorship, beneficiaries of life insurance proceeds, retirement assets where a specific beneficiary or beneficiaries are designated, and assets the deceased owned as a life estate.

As you migh guess, there are certain "gray area" assets which can confusing.  A joint bank account, P.O.D., or trust account come to mind.  

Such accounts appear to be non-probate property, but may be converted into a probate asset by specific reference in a deceased's Will.  If such is the case, the financial institution should be immediatly notified that the deceased's Will has made a specific provision related to the asset.  

Otherwise, the financial instituion will proceed as directed by the information on the account and may ditribute the assets to the named beneficiary.  This could have a major impact of the net-worth of the estate and the eventual distribution to estate beneficiaries.

After a lawyer has reviewed the estate with the personal representative; he or she will make a determination of which assets are probate and which are non-probate. Obviously, speaking with a qualifed probate lawyer in Minnesota is a good place to start.