Peterson Law Office, LLC Peterson Law Office, LLC 2026-05-08T14:34:48Z https://www.petersonlawoffice.com/feed/atom/ WordPress /wp-content/uploads/sites/1204179/2022/11/cropped-site-icon-peterson-32x32.jpg On Behalf of Peterson Law Office, LLC <![CDATA[Significant changes for Minnesota estate planning in 2026]]> https://www.petersonlawoffice.com/?p=254928 2026-02-09T13:56:49Z 2026-02-09T13:56:49Z When federal and state law collide Under the One Big Beautiful Bill Act (OBBBA), the federal estate tax exemption increased to $15 million per individual and $30 million for married couples. However, in Minnesota, the state threshold remains at $3 million. Exceeding this amount requires you to pay estate tax. This means that your heirs could owe a significant amount upon your death.

How strategic gifting can help

Gifting is one of the common strategies for minimizing total estate amounts. For 2026, the Internal Revenue Service (IRS) allows individuals to give up to $19,000 per recipient without reporting the action. If you are married, you and your spouse can combine this to give $38,000 to as many people as you prefer. However, timing is a critical matter when you plan to start gifting. In Minnesota, all gifts exceeding the annual exclusion made within three years of death can be considered as part of your estate for tax purposes.

What the dynasty trust means for families

Previously, families could only create trust funds that lasted for up to 90 years. Now, Minnesota law allows trusts to last for up to 500 years. The change is significantly beneficial for families who want to keep farmland, businesses or investments within the family line for centuries.

Why portability does not exist in Minnesota

While the federal estate tax portability does not apply in Minnesota, it is possible to avoid it. Residents with combined assets exceeding $3 million can create a credit shelter or family trust. This ensures that both parties’ exemptions apply, shielding their estate from state taxes.

Avoid leaving your legacy to chance

Considering all the changes, estate planning in Minnesota can be overwhelming. Choosing a do-it-yourself approach could expose you to mistakes that bring lasting consequences. An experienced estate planning attorney can help you leverage these new 2026 rules to lock in your family’s future.]]> On Behalf of Peterson Law Office, LLC <![CDATA[My Parent Had a Will. Why Do I Still Have to Go to Probate in Minnesota?]]> https://www.petersonlawoffice.com/?p=254927 2025-11-07T12:23:14Z 2025-11-07T12:23:14Z Even with a valid will, you may still need probate in Minnesota. What matters is how your parent owned their assets and how much those assets were worth at the time of death and not just whether a will exists.

Why a will doesn’t skip probate

You must go through probate if your parent owned real estate in their name alone or as a tenant in common. You must also go through probate if your parent owned personal property in their name alone worth more than $75,000. The court handles probate to authorize transfers, confirm debts and taxes and make sure the right people receive property.

What the court does with the will

During probate, the court uses the will to guide each step of the process. The court:
  • Validates the will: Confirms it is the decedent’s last testament.
  • Appoints a personal representative: Gives legal authority to manage the estate.
  • Oversees administration: Tracks assets, debts, taxes and any disputes.
  • Authorizes distribution: Ensures property transfers follow the will.
These actions give heirs certainty and protect the executor from legal risk.

When probate may not be needed

You may skip probate if the estate qualifies as small. In some cases, you can use an Affidavit for Collection of Personal Property instead of full probate. You can use this option if the decedent owned no real estate, probate assets total $75,000 or less, at least 30 days have passed since death, and the court has not appointed a personal representative. Whether you need probate depends on the types of assets owned, not just on having a will.

Non-probate assets to check

Before filing for probate, check which assets transfer automatically and which need court involvement. Some assets avoid probate because they already name a new owner or beneficiary:
  • Jointly owned property: Property held in joint tenancy with right of survivorship.
  • Accounts with beneficiaries: Bank or investment accounts with POD (Payable on Death) or TOD (Transfer on Death) designations.
  • Trust assets: Property titled in a living trust.
Confirm how each asset is titled and whether the beneficiary designations are current. Doing this can help you avoid unnecessary probate filings.

What you can do next

Even simple estates involve deadlines, legal notices and financial reports. A probate attorney can review the estate, determine if probate is required, file court documents and guide the executor through debt payment and asset distribution.]]> On Behalf of Peterson Law Office, LLC <![CDATA[The executor’s guide to credit card bills: What you must (and must not) pay from a Minnesota estate]]> https://www.petersonlawoffice.com/?p=254926 2025-11-05T20:02:02Z 2025-11-05T20:02:02Z Handling the estate of a loved one can be a daunting task, especially when it comes to managing outstanding debts like credit card bills. As an executor, it is important to understand your responsibilities. This guide will help you navigate the process of dealing with credit card debt after someone passes away in Minnesota.

Understanding the estate's responsibility

When a person passes away, their estate is responsible for settling any outstanding debts, including credit card bills. However, it is important to know that the law does not treat all debts equally, and you must use the estate's assets wisely to pay off these obligations.

Prioritizing debts

In Minnesota, the estate's debts must be paid in a particular order. As an executor, you should be aware of this hierarchy to ensure that you are fulfilling your legal duties correctly:
  • Funeral expenses and costs associated with administering the estate
  • Debts and taxes with priority under federal law
  • Medical expenses from the last illness of the deceased
  • Other debts, including credit card bills
Credit card debts are typically lower in priority compared to other obligations. This means that if the estate lacks sufficient assets to cover all debts, credit card companies may not receive full payment.

What you must and must not pay

As an executor, you are responsible for paying the estate's debts in accordance with Minnesota law. Here are the key points to remember:
  • Pay debts in the order of priority
  • Use only the estate's assets to settle debts
  • Keep detailed records of all payments made
It is important not to use your personal funds to pay the deceased's debts. It is also wise to avoid paying debts out of order, as this could lead to legal complications and personal liability. Although you must go in order, it is important not to ignore creditor claims, as they may have legal recourse against the estate. Managing credit card debt as an executor requires a clear understanding of Minnesota's legal framework. By prioritizing debts correctly and using only the estate's assets, you can fulfill your responsibilities effectively. Remember, the exact process can vary depending on the details of the estate. As a result, it is wise to consult with a probate attorney if you have any doubts or questions about the process. This will help to better ensure that you are acting in the best interest of the estate and in compliance with the law.]]> On Behalf of Peterson Law Office, LLC <![CDATA[Addressing digital assets while estate planning]]> https://www.petersonlawoffice.com/?p=254900 2024-12-20T19:29:00Z 2024-12-20T19:29:00Z By identifying their assets There is an assortment of digital resources that people may need to address in their estate plans. Many individuals have personal social media accounts. They may have to arrange for someone else to take control of those accounts or risk their loved ones losing access to and control over their profiles after their passing. Online photo repositories are another important resource. People may need to provide information to their loved ones about any digital storage that they have purchased so that their family members can download and save those photographs and other valuable family memorabilia. Estate plans may also need to address digital bank accounts. People have begun banking with institutions that may not have physical locations. Those accounts may only send out digital statements. Without knowledge of the account and access to the decedent's email, family members may not be able to access those accounts. Testators need to identify their digital financial resources or add transfer-on-death designations so that people can gain control of those assets without going through probate court. There are also digital investments to consider. Non-fungible tokens, digital currencies and even web domains can be valuable resources that people can bequeath to specific beneficiaries when they die. Creating a comprehensive list of all digital assets is the key component of successful digital estate planning.

Arrange for the descent of digital assets

As previously mentioned, digital financial accounts often allow account holders to file transfer on debt or payable on deaf designations. Other digital resources may an acquire inclusion in a will. People can even potentially transfer their ownership interest to a trust as part of the estate planning process. Providing clear instructions for what should happen to digital assets is an important aspect of estate planning. In some cases, people may want to designate an individual, such as their personal representative, as the party who maintains the memorialized pages left behind on social media after their passing. Addressing digital resources in an estate plan can give people more complete control over their legacies. Those with social media profiles, digital assets and online accounts may need help integrating such resources into their estate plans.]]> On Behalf of Peterson Law Office, LLC <![CDATA[The difference between joint tenancy and tenancy in common]]> https://www.petersonlawoffice.com/?p=254899 2024-12-20T19:21:13Z 2024-12-20T19:21:13Z Joint tenants inherit each other's interest The way that people hold title to their homes establishes their legal right to the property during their lives and influences what happens to their ownership interest when they die. For many people, the person that they live with is the main beneficiary named in their estate plan. They intend to have their spouse, close friend or romantic partner who lives with them inherit their ownership interest after their passing. In such scenarios, taking title as joint tenants can be the best option. Joint tenants have a right of survivorship that allows the other owner's interest to transfer directly to them after their passing. They become the sole owner of the property without the home passing through probate court first. Tenants in common, on the other hand, maintain separate ownership interests in the property. When one party who holds real estate as a tenant in common dies, the other tenant does not inherit their interest in the property. Instead, their heirs or chosen beneficiaries inherit their interest in the property. Two unmarried romantic partners might take title as tenants in common. Each owner's children could then inherit their interest in the property after their passing. How property owners hold title plays a major role in establishing property rights when they die. Changing how people hold title is one of several estate planning strategies that can help keep real property out of probate court. Those who understand the different options available for high-value assets may create functional estate plans that more effectively protect their loved ones and ensure the right people assume ownership of their most valuable resources.]]> On Behalf of Peterson Law Office, LLC <![CDATA[Formal vs. informal probate in Minnesota: Which path is right for your loved one’s estate?]]> https://www.petersonlawoffice.com/?p=254890 2024-09-03T19:00:14Z 2024-09-03T14:14:50Z Understanding the key difference The core distinction between formal and informal probate lies in the level of court supervision involved. Formal probate requires greater court oversight, with most actions needing court approval. This can be beneficial in complex estates or when there are beneficiary disputes. Informal probate, on the other hand, offers a simpler, less court-intensive process suitable for smaller, less complicated estates.

Informal probate: A streamlined approach

Informal probate is often the preferred choice when an estate is straightforward, and there is little likelihood of conflict. It involves minimal court involvement, allowing the executor to administer the estate more efficiently. This can save time and money, but it's crucial to ensure that all requirements for informal probate are met.

Formal probate: Court supervision for complex situations

Formal probate is necessary in certain situations, such as when there are disputes among beneficiaries or questions about the validity of the will or significant assets involved. The increased court oversight provides a layer of protection and ensures that all legal requirements are met. However, it can also be a more time-consuming and costly process.

Making the right choice for your situation

Deciding between formal and informal probate depends on the specific circumstances of the estate and the wishes of the deceased. Consider the size and complexity of the estate, the likelihood of disputes and the desired level of court involvement. Consulting with an experienced probate attorney can help you understand your options and make the best choice for your situation. Remember, probate is a legal process, and it's essential to understand your rights and responsibilities. Whether you choose formal or informal probate, ensure that you comply with all applicable laws and procedures to ensure a smooth and efficient administration of your loved one's estate.]]> On Behalf of Peterson Law Office, LLC <![CDATA[When debts cast a shadow: Probate complications in Minnesota]]> https://www.petersonlawoffice.com/?p=254889 2024-09-03T18:59:42Z 2024-08-31T03:04:20Z The burden of debt: Navigating the executor's responsibilities In Minnesota, the executor is tasked with identifying and paying off the deceased's debts in a specific order mandated by law. This includes prioritizing expenses like funeral costs and taxes before distributing any remaining assets to beneficiaries. Failure to properly manage these financial obligations can have serious consequences, including personal liability for the executor.

When assets fall short: The challenges of estate insolvency

The estate is considered insolvent if the deceased's debts outweigh their assets. This creates a complex situation where creditors may not receive full payment, and beneficiaries may receive little or nothing at all. The probate court may need to intervene to ensure fair distribution of assets and resolve any disputes that arise.

Conflict and contention: Disputes in the probate process

Debts can also fuel disagreements among beneficiaries or creditors, further complicating the probate process. Disputes over the validity of debts, the priority of payments or even the distribution of assets can lead to delays, legal battles and strained relationships among family members. While debts can undoubtedly complicate the probate process in Minnesota, understanding these potential challenges can help you better prepare and navigate the legal complexities. Seeking guidance from an experienced probate attorney can ensure that the estate is administered properly, debts are addressed responsibly, and disputes are resolved fairly, ultimately bringing closure to a difficult chapter.]]> On Behalf of Peterson Law Office, LLC <![CDATA[How effective is a no-contest clause in preventing will disputes?]]> https://www.petersonlawoffice.com/?p=254878 2024-02-20T16:08:18Z 2024-02-20T16:08:18Z When you create a will, you do so with one clear goal in mind: to articulate how you wish to have your estate distributed when you die. And most often, the court will recognize and enforce your will.  However, a will can also be the subject of a costly court battle. If you suspect that someone might contest your will, then you may consider including a no-contest clause to it. But how far can a no-contest clause go towards protecting your will from disputes?

Understanding a no-contest clause

A no-contest clause is a legal document that deters a beneficiary from contesting a will on frivolous grounds. The contract further states that in the event they do, they risk losing their inheritance. This provision’s primary goal is to prevent unnecessary and, at times, malicious will disputes that can prolong the probate, sow seeds of animosity and waste both time and money.  

A no-contest clause has limitations, however

A no-contest clause may be effective at preventing unnecessary will disputes. However, it is important to understand that it only applies to beneficiaries who are listed in the will. In other words, an interested party who is not a beneficiary may still dispute your will.  A no-contest clause may not be enforced if there is probable cause to challenge your will. While probable cause is not clearly defined in Minnesota estate planning laws, it generally refers to any evidence that can lead any reasonable person to justifiably dispute a will. These may include evidence of fraud, lack of testamentary capacity, improper execution or undue influence. 

Protecting your legacy

A no-contest clause can help protect your will from beneficiary disputes. Find out how proper legal guidance can help you draft an effective no-contest clause for your will. ]]> On Behalf of Peterson Law Office, LLC <![CDATA[Revocable living trusts and pour-over wills: What you should know]]> https://www.petersonlawoffice.com/?p=254814 2024-12-18T09:47:30Z 2024-02-03T15:22:43Z If one of your primary goals for your estate plan is to prevent your estate from having to go through a long probate process, you’re likely considering placing your most valuable assets in a revocable living trust. This is a good way to make things easier for your loved ones after you’re gone and to maintain your privacy, since assets that don’t go through probate don’t need court filings that can be accessed by just about anyone. You can establish a revocable living trust long before your senior years. Because you’re the trustee, you can add and remove assets from it throughout your life. Once the trust is established, you just need to title (or retitle) any asset going into it in the trust’s name. This can be done with homes, cars, boats and financial accounts. It doesn’t limit your access to these assets.  You can even name your trust as the beneficiary for assets like your retirement and investment accounts if you like. People do this when they want their assets to go into their estate when they die and then want the estate assets distributed in designated percentages to beneficiaries. You’ll also name a successor trustee to take over when you pass away to manage the distribution of the assets in the trust. Often, people name their personal representative (executor) as their successor trustee. 

The role of a pour-over will

If you set up a living trust, you still need a will. There are things you handle through a will (such as naming a guardian for your children) that you can’t do with a living trust. Even if you don’t need to do that, you still need a will to deal with the assets that aren’t covered in your living trust.  Jewelry, furniture, art and things you may not have gotten around to putting in your living trust need to be distributed. By including a simple provision in your will that all assets not in your living trust should be transferred to the trust (for distribution with the other assets), you save even more assets from having to go through probate. Because this will “pours over” these assets, you’ll likely hear this called a pour-over will, since that’s it’s main purpose. This is actually a lot simpler than it may sound – at least it is if you have experienced estate planning guidance. This can help ensure that your wishes and your loved ones are protected.]]> On Behalf of Peterson Law Office, LLC <![CDATA[Tips for bringing up estate planning with parents]]> https://www.petersonlawoffice.com/?p=254812 2024-01-19T19:06:37Z 2024-01-19T19:06:37Z It can be difficult to bring up estate planning topics with your parents. You may be very interested in finding out if they’ve made a plan – or concerned if you think they haven’t – but it feels self-serving to bring up estate planning, as if you’re just curious about what assets you’re going to receive. Additionally, some people can feel fairly uncomfortable talking about estate planning. How can you bring this up in an organic and natural way so that you can have the conversation with your parents?

Find the right time

One thing that can help is identifying a good time to bring up the topic. Perhaps a parent was recently having medical troubles. You could simply point out that you’re wondering if they have an advanced directive or a medical power of attorney because the family needs to know what to do if there’s an emergency.

Include others 

Another helpful tip is to include your siblings in this conversation. This can often make it seem far less self-serving, and it shows that you care about the well-being of the family as a whole. You’re not just looking out for what you are going to get in the estate plan. You want things to go smoothly for everyone.

Explain what you want to learn

Similarly, it can be beneficial just to explain why you’re asking these questions and what you’re trying to learn. Perhaps you’ve heard examples of other families getting involved in estate disputes that take years to resolve and leave a permanent divide between siblings. You just want to avoid that eventuality by talking about the estate plan first and ensuring that your parents actually have one in place – which is one of the key steps to preventing these disputes. With proper planning in advance, it is possible to help things go smoothly. Those who are making estate plans just need to know about the tools they have at their disposal.  ]]>