What is the difference between Probate and Non-probate Assets?
As an estate planning attorney, one of the most common misconceptions I hear is, “I have a Will, so my family will avoid a probate proceeding.” This is simply not the case. Having a Will alone will not keep your estate from going before a probate court. A Will simply allows you to direct how your assets are dispersed and who gets them. Whether or not an estate will be probated depends on what assets the decedent (the person who has died) owns at the time of death and how they owned them. Assets that are left only in the... Read More
You Have Inherited Farmland. Now What?
Inheriting farmland can be more complicated than simply receiving the title to the real estate. Inherited farmland can take many forms including from a lifetime gift, or estate, or a trust. Considerations may differ depending on whether you have inherited farmland outright or in and entity such as a Trust, Corporation, or LLC. Although Minnesota has no inheritance tax, the farmland in a Trust or Estate may be subject to an Estate Tax or Gift Tax depending on how it was received. Additionally, whether the land can be designated as Homestead will determine your real estate tax obligations. You... Read More
Court of Appeals protects specific gifts of real property from an estate.
On December 12, 2022, in In re Estate of Zych, the court of appeals held that the “personal representative of an estate may not sell real property that the testator has specifically devised by will.” Stanley Zych left his farmland to four sons, certificates of deposit to three daughters, and the remainder of his property was left to all seven children. Prior to his death, several of his assets were mismanaged for over a decade by three of his children. As a result of the mismanagement, the district court found that the three children owed significant sums to the estate,... Read More