PROBATE LAW PLYMOUTH, MN
Probate & Trust Administration
What is ``Probate``?
Probate is the process wherein a court approves the distribution of an estate. It can be a long and complicated series of court proceedings that, if done incorrectly, can create considerable headaches (and expense) for the people involved. In probate, the following generally occurs:
- Notices to all heirs, devisees, and interested parties are made
- A petition to appoint a personal representative is submitted to the Court
- Assets are inventoried and appraised
- Payments to creditors are approved
- Certain assets and real property of the estate are sold
- Estate taxes are paid, if any
- Heirs and devisees receive their final distributions
If you’re currently experiencing challenges with probate, we can help.
What is ``Probate``?
Probate is the process wherein a court approves the distribution of an estate. It can be a long and complicated series of court proceedings that, if done incorrectly, can create considerable headaches (and expense) for the people involved. In probate, the following generally occurs:
- Notices to all heirs, devisees, and interested parties are made
- A petition to appoint a personal representative is submitted to the Court
- Assets are inventoried and appraised
- Payments to creditors are approved
- Certain assets and real property of the estate are sold
- Estate taxes are paid, if any
- Heirs and devisees receive their final distributions
If you’re currently experiencing challenges with probate, we can help.
What Makes up a Probate Estate?
The probate estate is made up of essentially anything that passes by will. This can include, for example, real estate, bank and investment accounts, stocks and bonds, and vehicles. If an asset is in a living trust then it can avoid probate and remain in the trust after death. Non-probate assets can include the following:
Assets owned in joint tenancy with a right of survivorship
Property or accounts that are “payable-on-death” or “transfer-on-death”
Life insurance which designates a beneficiary other than the estate
Retirement assets which designate a beneficiary other than the estate
Formal vs. Informal Probate
In Minnesota, there are two kinds of probate: Formal and Informal. Formal (supervised) probate is where the estate is administered in Court proceedings. It tends to be more costly, both in time and money. Formal probate can take anywhere between 6 and 24 months or more, depending on the complexity of the estate. A judge oversees the estate disposition, so if there is potential for a dispute, then formal probate may be the way to go.
In informal (unsupervised) probate, a court administrator oversees the disposition of the estate. The designated personal representative can make distributions to creditors and heirs without approval of the court. An informal probate starts with filing a petition. Reasons that informal probate may be rejected and force the estate to go through formal probate include, for example:
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The estate is insolvent.
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The original will cannot be found.
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There are unknown heirs to the estate.
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There is disagreement among the heirs or beneficiaries.
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The interests of vulnerable parties need protection. This includes minors, persons with certain special needs, and creditors.
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The estate is overly complex.
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A descendant is disinherited
What is Trust Administration?
Trust Administration happens when a person dies and has a Revocable Living Trust-based plan rather than a Will-based plan. Many of the same things that happen in a Probate also happen in a Trust Administration, however there is no court involvement. This takes months off the process and can decrease the expense by tenfold. It does, however, need to be done right: Improper administration can pull the trust estate into court, and all the benefits of having a Revocable Living Trust will be lost.
Probate Procedures & Alternatives
The first step to success in a Probate is knowing what procedure to follow. In Minnesota, there are several kinds of probate: From the easiest to most difficult, we have Informal Unsupervised Probate, followed by Formal Unsupervised Probate, and lastly Formal Supervised Probate. Additionally, there are a variety of probate alternatives, such as Summary Administration and Distribution, Declaration of Descent, and Affidavit for Collection of Personal Property to name a few.
Each procedure has their pluses and minuses in cost, time, and headache involved. Which procedure to use will depend on the particular circumstances of each case, including, for example:
- Complexity of the estate
- The kind of and how many assets are in the estate
- Whether the estate is insolvent or how much is owed to creditors
- Who the heirs and devisees of the estate are and whether they are all known or anyone is disinherited
- Various family dynamics and potential for conflict
- Whether children or vulnerable individuals are involved
That’s just to name a few. Starting with the wrong procedure can add months to the process and thousands of dollars of expense.
Our Approach
Probate is a complicated process which generally requires an attorney to help navigate. Our approach is to make probate as efficient, economical, and effective as possible. Probate in Minnesota is not like probate in New York or California – there is no reason a normal probate needs to cost tens of thousands of dollars. We keep it reasonable and keep you informed every step of the way about what is going on. One exception is that we do not at this time assist in contested probates: if you are challenging a will or expect there to be a challenge to a will, we have attorneys that we can recommend you work with who are excellent at what they do.
When my brother died unexpectedly last year, I was asked if I could handle his affairs. From my first call with Gregory I was guided and helped through the probate process with professionalism and compassion. He promptly answered all my questions via email or return phone call and helped me whenever I needed him. He was more than just my attorney – it was like working with a friend. The probate went very smoothly from beginning to end, thanks to Gregory and Signature Law.
– Steve C.
Let’s Work Together to Settle Your Estate
If you’re ready to settle your estate as efficiently and economically as possible, then we’re ready to help. Simply schedule a free consultation so we can discuss your case and answer any questions.