Dying Intestate in Minnesota FAQs

One of the most important reasons to create an estate plan is to avoid leaving behind an intestate estate. To fully understand why that is such an important estate planning goal, however, you need to understand what it means to die intestate and what the negative ramifications are of doing so. With that in mind, the estate planning attorneys at German Law provide answers to some frequently asked questions about dying intestate in Minnesota. If you have additional questions or concerns, please feel free to contact our office to schedule an appointment.

When you die you will leave behind an estate that includes your tangible and intangible assets. Those assets must be secured, inventoried, valued, and eventually passed down to beneficiaries and/or heirs of your estate. The legal process during which this occurs is referred to as “probate.” You may know this process by the more commonly used term of “estate administration.”

When someone dies, they leave behind a “testate” or an “intestate” estate. When the decedent left behind a valid Last Will and Testament or a trust agreement that distributes estate assets, the estate is referred to as a “testate” estate. When the decedent failed to leave behind a Will or trust that can be used to guide the distribution of estate assets, the estate left behind is referred to as an “intestate” estate. Many aspects of the probate process are influenced by whether the estate is a testate or intestate estate.

A person, charity, organization, or even the family pet named in a Will, trust, life insurance policy, or another legal document as the recipient of assets after your death is referred to as a “beneficiary.” A person who is legally entitled to inherit from your intestate estate, according to the laws of your state of residence, is an “heir.” It is possible, even likely, that a beneficiary is also an heir; however, you can also have beneficiaries that are not heirs and vice versa.

One important difference between a testate and an intestate estate is found in the role of personal representative. The personal representative is responsible for overseeing the probate of your estate. If you execute a Will, you name someone to be your personal administrator in the Will. Likewise, if you create a trust, you name someone to be the Trustee of the trust. If, however, you die intestate, a judge will have to appoint someone to be your personal representative. As such, dying intestate means you forfeit the right to decide who oversees the administration of your estate.

Not all assets are required to go through the probate process. For example, trust assets, assets owned jointly with rights of survivorship, proceeds of a life insurance policy, and retirement/pension accounts bypass probate altogether, meaning those assets may be distributed to beneficiaries shortly after the death of the owner.

Minnesota offers two alternatives to formal probate for estates that qualify. A small estate affidavit may be used if the value of the probate estate does not exceed $75,000 while summary administration may apply to an estate valued at up to $150,000. Both options have additional eligibility requirements; however, both may also be used for an intestate estate if all eligibility requirements are met.

 

If you die intestate in Minnesota, the Minnesota intestate succession rules will dictate what happens to your estate assets as follows:

• • If you leave behind children but no spouse, your children inherit everything.
  • If you are survived by a spouse but no descendants or a spouse and descendants from you and that spouse and the spouse has no other descendants, your spouse gets everything.
  • If you leave behind a spouse and descendants from you and that spouse, and the spouse has descendants from another relationship or you have descendants from another relationship, your spouse inherits the first $225,000 of your intestate property, plus 1/2 of the balance and your descendants inherit everything else.
  • If you are survived by parents but no spouse or descendants your parents inherit your entire estate.
  • If you leave behind only siblings, no spouse, descendants, or parents, your siblings inherit your entire estate.

The goal of all intestate succession laws, including those in Minnesota, is to pass down all assets to legal heirs of the estate. If you are not survived by a spouse, descendants, parent, or sibling, your personal representative will conduct a search for more distant heirs, such as aunts, uncles, cousins. If no legal heirs are located, your estate will escheat to the State of Minnesota, meaning your assets will go to the State.