Disclaimer: This is informational only and not legal advice. Laws change and every estate is different. Consult a Minnesota probate attorney before taking action.
Detailed Answer
This section explains the common, step-by-step process that a personal representative (often called an executor) follows to distribute the remainder of a decedent’s estate to the decedent’s children under Minnesota law once taxes, valid creditor claims, and administration expenses have been handled.
1. Who controls distribution?
The person in charge of distributing estate property is the personal representative named in the will or appointed by the probate court if there is no executor. That person has a legal duty to follow the will’s terms if there is one, or the Minnesota intestacy rules if there is not. See Minnesota Statutes, Chapter 524: https://www.revisor.mn.gov/statutes/cite/524.
2. Confirm that administration tasks are finished
Before distributing anything, the personal representative must make sure the estate is ready for distribution. Typical tasks include:
- Inventorying estate assets.
- Giving required notices to heirs and creditors.
- Paying valid creditor claims and administrative expenses (funeral, attorney, court costs).
- Filing and resolving federal and state income tax returns and any estate or inheritance tax obligations (if applicable).
- Obtaining receipts and releases from parties the estate has paid or settling disputed claims.
Minnesota probate statutes govern administration and creditor notice procedures. See the administration provisions: https://www.revisor.mn.gov/statutes/cite/524.3.
3. Determine who gets what
The estate’s distributable remainder is the “residue” after all debts, taxes, and expenses are paid. Distribution depends on whether there is a valid will:
- If there is a will: the estate pays out according to the will’s terms. The personal representative must follow any language allocating shares to children, trusts for minors, or conditions in the will.
- If there is no will: Minnesota’s intestacy statutes determine shares for the decedent’s children. The personal representative follows those rules to divide the residue among the heirs. See Minnesota’s intestate succession provisions: https://www.revisor.mn.gov/statutes/cite/524.2.
4. Special situations affecting children’s shares
Several common situations change how children receive distributions:
- Deceased child with surviving descendants: the child’s descendants may inherit that child’s share depending on the will or the intestacy rules.
- Minor children: a direct cash distribution to a minor usually requires a conservatorship, trust, or transfer to a custodial account (Uniform Transfers to Minors Act) instead of handing cash directly to the minor.
- Disclaimed inheritances: a child may formally disclaim their share; the statute and the will or intestate rules control where that share passes next.
- Debts and allowances: if a child owes money to the estate or has claims against it, distributions may be reduced or offset.
5. Prepare a final accounting and petition for distribution
Most estates require a written final account that lists all receipts, payments, and proposed distributions. The personal representative files this accounting with the probate court and provides notice to interested persons. The court reviews the account, and if everything is in order, it signs an order approving distribution. See the court-approval and accounting rules in the probate code: https://www.revisor.mn.gov/statutes/cite/524.3.
6. Make distributions and get receipts
After court approval (if required) or after the statutory waiting periods and notice obligations are satisfied, the personal representative transfers funds or assets to the children. The representative should obtain written receipts or releases from each beneficiary. Proper documentation protects the representative from later claims.
7. Post-distribution duties
Even after distribution, some duties may remain: filing final income tax returns, closing bank and brokerage accounts, and addressing late claims or audits. If new claims arise, the representative may need to resolve them from remaining estate funds or seek court guidance.
When should you involve the court or an attorney?
Involvement of the probate court or an attorney is advisable when:
- There are contested creditor claims or beneficiary disputes.
- Beneficiaries are minors or incapacitated adults.
- Tax issues or large, complex assets exist (real estate, business interests, out-of-state property).
- The will’s language is unclear or there is no will and the heirs dispute shares.
Helpful Hints
- Gather documents early: death certificate, will, asset statements, account numbers, titles, recent tax returns.
- Keep detailed records: every check, invoice, and receipt. The final accounting must match your records.
- Communicate with beneficiaries: explain timing and provide copies of the will and accounting drafts to reduce misunderstandings.
- Address minor beneficiaries properly: consider a trust or custodial accounts instead of direct distributions to minors.
- Obtain tax guidance: confirm whether estate tax or estate income tax filings are required. Minnesota Department of Revenue estate and gift tax guidance: https://www.revenue.state.mn.us/estate-and-gift-tax.
- Get releases when you distribute: a signed receipt or release avoids future claims against you as the personal representative.
- If a beneficiary disputes distribution, stop and consult counsel—immediate litigation can often be avoided by negotiation or mediation.
For more on Minnesota probate procedures and statutes, see Chapter 524 of the Minnesota Statutes: https://www.revisor.mn.gov/statutes/cite/524. If you are a personal representative or an heir, consider speaking with a Minnesota probate attorney to review your specific facts before completing distributions.