Estate Planning Checklist for Minnesota Residents: A Step-by-Step Guide

A comprehensive estate plan involves far more than signing a will. It requires a systematic review of legal documents, financial accounts, insurance coverage, family circumstances, business interests, and digital assets. This checklist provides a structured framework for Minnesota residents to organize their estate planning, whether starting from scratch or reviewing an existing plan.

Each section below identifies the key items to address and links to detailed resources where applicable.

Essential Legal Documents

The foundation of any estate plan is a set of core legal documents, each serving a distinct purpose.

Will or Trust

• Last will and testament. Directs how assets are distributed, names a personal representative (executor), and designates guardians for minor children. Under Minnesota law, a valid will requires the testator’s signature and two witnesses (Minn. Stat. Section 524.2-502).
• Revocable living trust. An alternative or supplement to a will that allows assets to bypass probate, provides privacy, and enables seamless management during incapacity. See Revocable Living Trusts in Minnesota for a detailed explanation.
• Pourover will. If a trust is the primary planning vehicle, a pourover will acts as a safety net to capture any assets not titled in the trust at death.

For help deciding between these approaches, review Wills vs. Trusts in Minnesota.

Powers of Attorney

• Financial power of attorney. Authorizes a trusted agent to manage financial affairs if the principal becomes unable to do so. Minnesota’s statutory short form is governed by Minn. Stat. Section 523.23-24. Without this document, family members may need to petition for a court-appointed conservatorship. See Power of Attorney in Minnesota.
• Healthcare directive. Minnesota combines the living will and healthcare power of attorney into a single document under Minn. Stat. Section 145C. It appoints a healthcare agent and documents medical treatment preferences. See Healthcare Directives in Minnesota.

Additional Documents to Consider

• HIPAA authorization. Allows designated individuals to access medical information. While a healthcare directive grants broad authority to the named agent, a standalone HIPAA form ensures other family members can communicate with healthcare providers.
• Disposition of remains. Minnesota law (Minn. Stat. Section 149A.80) allows individuals to designate a person to control funeral arrangements and disposition of remains.
• Guardianship nomination. For parents of minor children, the will should name a guardian. Consider naming alternates and addressing how guardianship decisions align with financial provisions for the children.

Financial Accounts and Assets

A thorough estate plan requires a complete inventory of assets and careful attention to how each account is titled and who is designated as beneficiary.

Accounts to Review

• Bank accounts (checking, savings, money market) — review ownership and consider payable-on-death (POD) designations or trust titling
• Investment and brokerage accounts — review titling and transfer-on-death (TOD) designations
• Retirement accounts (401(k), 403(b), IRA, Roth IRA, pension) — review and update primary and contingent beneficiary designations
• Health savings accounts (HSAs) — designate a beneficiary; these do not pass through a will
• 529 education savings accounts — confirm successor account owner designation
• Annuities — review beneficiary designations and contract terms
• Certificates of deposit — review ownership and POD designations

Real Property

• Primary residence — confirm title reflects estate plan (individual, joint tenancy, trust, or transfer on death deed)
• Vacation property or cabin — Minnesota cabin planning involves unique considerations including co-ownership, property tax implications, and long-term family access. See Family Cabin Planning in Minnesota.
• Rental or investment property — review ownership structure and management succession
• Out-of-state property — without trust planning, each state where property is located requires a separate probate proceeding (ancillary probate)

Debts and Liabilities

• Mortgage balances and terms
• Student loans — federal loans are discharged at death; private loans may not be
• Auto loans and personal loans
• Credit card debt
• Tax obligations — any outstanding federal, state, or property tax liabilities

Insurance Coverage

Insurance is a critical component of estate planning that is often overlooked during the document preparation process.

Life Insurance

• Policies in force. List all policies (term, whole life, universal life, group coverage through employers).
• Beneficiary designations. Verify primary and contingent beneficiaries are current and consistent with the overall estate plan.
• Ownership. Consider whether an irrevocable life insurance trust (ILIT) is appropriate to exclude proceeds from the taxable estate. This is particularly important in Minnesota, where the $3 million estate tax exemption means life insurance proceeds can push an estate above the threshold. See Irrevocable Trusts in Minnesota.
• Coverage adequacy. Evaluate whether existing coverage is sufficient to meet the family’s needs, including debt payoff, income replacement, and education funding.

Other Insurance

• Long-term care insurance — evaluate coverage for nursing home, assisted living, and home care costs
• Disability insurance — review coverage amounts and elimination periods
• Umbrella liability insurance — consider whether current limits are adequate given asset levels
• Property and casualty insurance — confirm coverage reflects current values and ownership structures

Family Considerations

Estate planning is ultimately about people. The following family-related items deserve careful attention.

• Guardian nominations for minor children — name a primary and alternate guardian, and discuss the responsibility with the chosen individuals before finalizing
• Provisions for children with special needs — a special needs trust can provide supplemental support without disqualifying the beneficiary from government benefits such as SSI and Medical Assistance
• Blended family considerations — when spouses have children from prior relationships, specific trust provisions may be necessary to balance the needs of the surviving spouse with the inheritance rights of each spouse’s children
• Aging parents — consider whether parents’ own estate plans are current and whether multi-generational planning is appropriate
• Family members with substance abuse or financial management challenges — spendthrift trust provisions or staggered distributions can protect an inheritance from creditors and poor decisions
• Unequal distributions — if the plan calls for unequal shares among children, consider including a statement of intent to reduce the risk of disputes

Business Matters

Business owners face additional estate planning requirements that go beyond personal asset distribution. For a detailed discussion, see Estate Planning for Business Owners.

• Succession plan — identify who will manage or acquire the business at death, incapacity, or retirement
• Buy-sell agreement — if the business has partners or co-owners, a funded buy-sell agreement establishes the terms and funding mechanism for ownership transfer
• Business valuation — obtain a current valuation for estate tax planning purposes
• Key person insurance — evaluate whether the business needs insurance to cover the loss of a critical owner or employee
• Entity structure review — confirm that LLC operating agreements, corporate bylaws, or partnership agreements align with the estate plan

Digital Assets

Digital assets are an increasingly important category that many estate plans fail to address.

• Online financial accounts — document access credentials or use a password manager and share access instructions with a trusted fiduciary
• Email and social media accounts — provide instructions for access and disposition; Minnesota follows the Revised Uniform Fiduciary Access to Digital Assets Act (Minn. Stat. Section 521A), which governs fiduciary access to digital accounts
• Cryptocurrency and digital investments — document wallet locations, private keys, and exchange account information; without this information, digital assets may be permanently inaccessible
• Online business assets — websites, domain names, digital storefronts, and intellectual property stored in cloud services
• Digital subscriptions and recurring payments — list services that should be cancelled or transferred
• Photo and document storage — identify cloud storage accounts containing important family records or photographs

Ongoing Maintenance Schedule

An estate plan is not a one-time project. Regular review ensures the plan remains aligned with current circumstances, relationships, and law.

Annual Review

• Confirm beneficiary designations on all accounts and policies remain accurate
• Review any significant changes in asset values or financial circumstances
• Check that fiduciary appointments (agents, trustees, personal representatives) are still appropriate

Review After Life Events

• Marriage or divorce
• Birth or adoption of a child or grandchild
• Death of a beneficiary, fiduciary, or family member
• Significant inheritance or financial windfall
• Purchase or sale of real property
• Starting, selling, or closing a business
• Relocation to or from Minnesota
• Major health changes

Review After Legal Changes

• Changes to Minnesota estate tax exemption or rates
• Changes to federal estate, gift, or generation-skipping transfer tax law
• Updates to Minnesota trust law, probate code, or power of attorney statutes

Every Three to Five Years

Even without a triggering event, a comprehensive review every three to five years ensures that the plan reflects current law and that all documents, beneficiary designations, and account titlings remain properly coordinated.

Getting Started

This checklist can feel overwhelming, but the process becomes manageable when approached methodically. Begin by gathering the financial records, insurance policies, account statements, and property records identified above. This preparation provides the foundation for a productive conversation with an estate planning attorney who can evaluate the complete picture and recommend the documents and strategies best suited to the family’s circumstances and goals.