Detailed Answer
Minnesota law requires a personal representative to collect and value all estate assets, pay debts and fees, and distribute the remainder to heirs. Use the following process to identify what assets remain after settling obligations:
1. Identify Estate Assets
List all property that belongs to the decedent at death. Common asset categories include:
- Real estate (e.g., home, rental properties)
- Bank accounts and cash
- Investments such as stocks and bonds
- Retirement accounts and life insurance
- Personal property (vehicles, jewelry, collectibles)
The personal representative must file an inventory and appraisement with the court. See Minn. Stat. § 524.3-801.
2. Determine Asset Values
Assign fair market values as of the date of death. Obtain appraisals for real estate and high-value items. For financial accounts, use account balances on the date of death.
3. Notify Creditors and Submit Claims
Publish notice to creditors in a local newspaper and mail direct notices to known creditors. Minnesota allows creditors to file claims within four months after notice publication or later under limited circumstances. See Minn. Stat. § 524.3-804.
4. Pay Debts, Taxes, and Fees
Use estate funds to pay valid creditor claims in order of priority. Typical expenses include funeral and burial costs, administration fees, attorney fees, and state or federal taxes.
5. Calculate the Remaining Estate
Subtract total debts, taxes, and administration costs from the gross estate value. The resulting amount constitutes the residue. The personal representative distributes the residue according to the will or, if none exists, under Minnesota intestacy laws. See Minn. Stat. § 524.3-812.
Disclaimer: This article provides general information under Minnesota law. It does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.
Helpful Hints
- Keep detailed records of asset values, notices, and payments.
- Obtain professional appraisals for high-value assets.
- Confirm claim deadlines to avoid late filings.
- Consult an accountant for complex tax issues.
- Review the will and any beneficiary designations before distribution.