What Is the Purpose of the Probate Process?

Probate is the legal process by which the estate of a deceased person is distributed under the supervision of the court. It involves obtaining authorization from the court to transfer an individual’s property after death. The probate process is designed to ensure the deceased’s debts are paid, and the remaining assets are transferred to the rightful beneficiaries, according to either a valid will or state laws of intestate succession, which apply when a person dies without a will. The three main purposes of probate are to:

• Confirm the validity of the will (if one exists) to ensure the estate is distributed according to the final wishes of the deceased;
• Settle any outstanding debts and pay all taxes owed by the estate; 
• Ensure the assets of the estate are distributed fairly among heirs and beneficiaries pursuant to the will, or pursuant to state law if there is no will; and
• Finally, close the estate.

Are There Different Types of Probate in Minnesota?

As stated by the Minnesota Judicial Branch, there are two possible types of probate in state district courts:

• Informal probate: This is a simplified process suitable for straightforward estates with no disputes or complexities. It involves filing an informal application asking the court to appoint a personal representative without a hearing in front of a judge. Informal probates are handled by a Probate Registrar. Once a personal representative has been appointed and the estate has been fully administered, the personal representative may informally close the estate by filing an “Unsupervised Personal Representative’s Statement to Close Estate” with the probate court. 
• Formal probate: If the estate is more complex or disputes arise, formal probate may be necessary. This is a more structured process in which a formal petition asks the court to appoint a personal representative in a hearing overseen by a district court judge. Formal probate may be unsupervised or supervised, in which case court filings and deadlines are involved. 

When Is Formal Probate Appropriate?

Formal probate may be necessary if complications with the estate require decisions to be made by a judge. It may be appropriate if:

• The original will cannot be located.
• The validity of the will is being contested or must be established.
• The estate owes more in debt than it has.
• Provisions of the will need clarification.
• Interests of minors, creditors, or other vulnerable parties need protection.
• A disagreement exists among the heirs.
• The location or existence of interested parties is unknown.
• The estate must be distributed differently than as stated in the will.
• Supervision of complex estate administration procedures is required. 

What Types of Challenges Can Occur with Probate?

Certain challenges can arise in probating an estate. Some of the most common include the following:

• Time and delays: Particularly with a formal probate, the process can be time-consuming. Disputes and other complications can lead to additional delays.
• Property in different locations: One probate case may not be sufficient if the deceased owned property in more than one state. It may be necessary to file probate cases in more than one jurisdiction. 
• No will: When a person dies without a will, Minnesota intestacy laws apply. The estate is distributed according to state laws of succession, regardless of the wishes of the deceased. 
• Unknown will: After the death of a person, a will may appear that was previously unknown to surviving family members. The validity of the will must be established, after which the estate is distributed accordingly. 
• Executor disputes: When a will names one person as personal representative (executor), that role may be disputed by one or more of the heirs. In this case, the court must decide whether the person named is suitable to fulfill the responsibilities of a personal representative. 
• Distinguishing non-probate assets: Not all estate assets are subject to probate. Non-probate assets include property held in joint tenancy, assets held in trust, life insurance policies, and retirement accounts with designated beneficiaries. It is important to inventory assets, review beneficiary designations, and work with financial institutions to ensure the smooth transfer of assets outside of probate. 
• Early distribution: In the case of a large estate, the heirs may request that assets be distributed before the probate process is completed. The court may allow partial early distribution, provided the estate retains sufficient assets to cover taxes and outstanding debts.
• Will challenges: In Minnesota, a will may be challenged for various reasons, including undue influence, lack of mental capacity, improper execution, and fraud or forgery. When heirs or creditors challenge a will, the resulting court case typically involves depositions, hearings, expert witnesses, and legal arguments. The outcome of the case may be that the will is found to be valid, the entire will is invalidated, or only specific provisions. 
• Estate taxes: A high-value estate may be subject to federal and state estate taxes. Calculating tax liability may require appraisals of real estate and other valuable property. It is important to work closely with tax professionals and appraisers and to utilize all available deductions and exemptions. 
• Creditor claims: The personal representative of an estate has a responsibility to identify and pay any outstanding debts from the assets of the estate. This can be challenging, particularly if the assets are not sufficient to cover all liabilities. An experienced probate lawyer can provide sound legal guidance on debt settlement negotiations. 

At Sandahl & Damhof, we can offer skilled legal representation throughout the probate process. Our Minnesota probate attorneys have 60 years of combined experience. We take a collaborative approach to provide personalized legal guidance and build lasting relationships with our clients. Call us for a consultation at 612-448-3898.