Detailed Answer
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney before taking action.
When a Minnesota resident dies owning property outside Minnesota, the transfer process depends on the type of asset and the laws of the state where the property sits. If all heirs agree and the asset qualifies for a statutory alternative, you may avoid formal ancillary probate in Minnesota (see Minn. Stat. § 525.291).
1. Identify the Asset and Its Location
• Confirm whether the asset is real estate, a titled vehicle, intangible personal property (stocks, bonds), or personal property (bank accounts, equipment).
• Obtain deeds, titles, account statements and a certified copy of the death certificate.
2. Determine Applicable Small-Estate or Affidavit Procedures
• Intangible personal property: In Minnesota, heirs can collect assets under a Small Estate Affidavit if the total value does not exceed $75,000. Use the collection-by-affidavit procedure under Minn. Stat. § 524.3-1207.
• Real estate or titled assets outside Minnesota: Check the property state’s small-estate or affidavit-of-heirship statutes. For example, California’s real-property affidavit limit is $150,000 (Cal. Prob. Code § 13100).
3. Prepare and Execute the Necessary Instruments
• Affidavit of Heirship or Small-Estate Affidavit: Draft using the form required by the property state. List decedent, heirs, and asset details. Sign before a notary.
• Transfer deed or assignment: For real estate, record a quitclaim or grant deed signed by all heirs. For corporate or LLC interests, execute an assignment or consent form following the company’s operating agreement or bylaws.
4. Record or File in the Property State
• Real estate: File the affidavit and deed in the county recorder’s office where the property is located.
• Vehicles: Submit the affidavit and title documents to the state’s Department of Motor Vehicles.
• Intangibles: Present the affidavit to the financial institution or corporate transfer agent.
5. Notify Interested Parties and Clear Liens
• Notify mortgage lenders, taxing authorities, homeowners associations and other lienholders.
• Pay any transfer taxes, fees or outstanding debts to ensure clear title.
6. Optional: Formal Ancillary Probate
If the asset fails to qualify for affidavit transfer or a lienholder objects, you must open an ancillary probate in Minnesota under Minn. Stat. § 525.291. Appoint an ancillary personal representative and follow Minnesota’s probate procedures.
Helpful Hints
- Start by obtaining a certified death certificate early—most jurisdictions require the original or certified copies.
- Compare small-estate thresholds in the property state before assuming affidavit eligibility.
- Use a checklist of creditors and lienholders to avoid surprises at recording.
- Review the operating agreement or bylaws before transferring LLC or corporate interests.
- Keep copies of all recordings, filings and correspondence in a dedicated estate folder.