Probate for Small MN Estates

Requirements

To use the small estate process, the following conditions must be true:

• The estate has a gross value <$75K
• At least 30 days have passed since the death
• No petition has already been made to the court to officially appoint a personal representative

In determining the gross value of the estate, you should value assets as of the date of death, and ignore any unsecured debts. Do not include any assets that would not normally go through probate, such as community property with rights of survivorship, assets with named beneficiaries (e.g., 401Ks, life insurance policies), and other standard probate exclusions.

Process

To use the small estate process:

1. Prepare a Small Estate Affidavit (Form PRO202), have it notarized, and attach a copy of the death certificate
2. Obtain possession of estate assets by presenting the affidavit to current custodians (this affidavit cannot be used to collect real estate)
3. Settle the estate in the normal way (pay debts, distribute remaining assets)

Settlement Priority

When settling the estate, you must allocate estate assets in the following priority order:

1. Family entitlements (other than a spousal elective share)
2. Costs and expenses of estate administration
3. Reasonable funeral expenses
4. Federal taxes
5. Reasonable and necessary medical, hospital, and nursing home expenses for the last year of life
6. State taxes
7. All other debts
8. Distributions to heirs

See MN Stat § 524.3-805.

If estate solvency is uncertain, an executor should consider going through official probate for the increased creditor protection it offers. Alternately, such uncertainty can sometimes persuade creditors to forgive a portion of debts, since they will want to avoid legal expenses as well, and may prefer to get something rather than nothing.

See also Resolving Debts and Making Distributions.

Requirements

You can use summary administration (also known as simplified probate) if it appears that the value of the entire estate does not exceed the sum of items 1-6 in the settlement priority list above.

You can also use summary administration if the estate value, not including any homestead or exempt property (see Family entitlements) does not exceed $150K.

In determining the value of the estate, you should value assets as of the date of death. Ignore any unsecured debts (such as credit cards), but do account for secured debts such as mortgages (i.e., if a house is worth $150K and has a $130K mortgage, the house would contribute $20K to the estate value). Do not include any assets that would not normally go through probate, such as community property with rights of survivorship, assets with named beneficiaries (e.g., 401Ks, life insurance policies), and other standard probate exclusions.

Process

To settle an estate via summary administration:

1. Submit an Petition for Summary Assignment to the court
   (This form provided by MN is a bit dated, and you may need to modify it to match the above dollar limit)
2. The court may require you to send notices and schedule a hearing
3. Upon approval, the court will assign ownership of estate assets in the settlement priority order
4. Use the court order to collect and distribute the assets