Disclaimer: This article provides general information and does not constitute legal advice.
Detailed Answer
When someone dies owning a bank account in Minnesota, their funds typically become part of the probate estate. Probate is the court-supervised process for settling debts, paying expenses, and distributing assets. To access and withdraw money from a deceased person’s bank account during probate, follow these steps:
- Determine whether probate is necessary. If the decedent held the account solely in their name without a payable-on-death (POD) or transfer-on-death (TOD) designation, you must open a probate case. See Minn. Stat. § 524.2-201 for appointment of a personal representative.
- File a petition with the probate court. Submit a Petition for Probate along with the original will (if one exists). Request issuance of Letters Testamentary (with a will) or Letters of Administration (without a will).
- Obtain Letters for the personal representative. After the court appoints the personal representative, it issues certified Letters Testamentary or Letters of Administration. These letters give the representative authority to act on behalf of the estate. See Minn. Stat. § 524.3-601.
- Present Letters and death certificate to the bank. Provide the bank with certified copies of the Letters and a death certificate. The bank will verify the representative’s authority before allowing access to or withdrawal of funds.
- Notify and pay creditors. The personal representative must notify known creditors and publish notice to unknown creditors. They must review and pay valid claims before distributing assets. For creditor notice and claims procedures, see Minn. Stat. § 524.3-703.
- Distribute remaining funds. After debts, taxes, and expenses, distribute leftover funds to beneficiaries under the will or, if there is no will, under Minnesota’s intestacy laws (Minn. Stat. § 524.2-103).
If the decedent named a POD or TOD beneficiary on the account, those funds pass directly to the named beneficiary and avoid probate. For small estates, you may use a simplified procedure if the total personal property (excluding real estate) is under $75,000 and no real estate exists. Heirs can file a small estate affidavit under Minn. Stat. § 524.3-102 to claim bank funds without formal probate.
Helpful Hints
- Review bank statements for any POD/TOD designations before filing probate.
- Order multiple certified death certificates; most institutions require them.
- Check local probate court websites for forms, fees, and filing instructions.
- Keep organized records of all estate-related transactions.
- Consider consulting an attorney for complex estates or family disputes.
- Track deadlines for creditor claims and estate tax returns in Minnesota.