Estate Planning FAQ — Minnesota

Yes. Estate planning is not just about distributing wealth — it also covers who makes medical decisions if you are incapacitated, who manages your finances, and who cares for minor children. Without a plan, Minnesota's intestacy laws determine these matters, which may not align with your wishes.

Learn more about the essential documents in What Is Estate Planning?

Minnesota's intestacy statutes (Minn. Stat. § 524.2-101 et seq.) dictate how your assets are distributed. Generally, your estate goes to your surviving spouse and children in specified proportions. If you have no spouse or children, it passes to parents, siblings, and more distant relatives. The court also appoints a personal representative, which may not be the person you would have chosen.

See our guide to Minnesota inheritance laws for a detailed breakdown of the intestacy rules.

Major life events should trigger a review: marriage, divorce, birth or adoption of a child, death of a beneficiary or named fiduciary, significant changes in assets or financial circumstances, moving to or from Minnesota, changes in tax laws, and retirement.

As a general practice, reviewing your plan every three to five years is advisable. See our full guide: When to Update Your Estate Plan.

While Minnesota law does not require an attorney to create a will or trust, estate planning involves complex legal and tax considerations. Mistakes can be costly and may not become apparent until after death, when they are difficult or impossible to correct.

An experienced estate planning attorney can help ensure your documents are properly drafted, executed, and coordinated with your overall financial plan.

A comprehensive Minnesota estate plan typically includes a last will and testament (or revocable living trust with a pour-over will), a financial power of attorney, a healthcare directive, and beneficiary designation reviews for retirement accounts and life insurance.

Depending on your situation, you may also need an irrevocable trust, a Transfer on Death Deed, or business succession documents. See our estate planning checklist for a step-by-step guide.

An estate planning checklist helps ensure you have addressed all essential elements: inventorying your assets, choosing fiduciaries, drafting core documents, reviewing beneficiary designations, assessing estate tax exposure, planning for digital assets, and scheduling regular reviews. Each step involves decisions that should be informed by your specific circumstances and Minnesota law.

See our full Minnesota Estate Planning Checklist.

Look for an attorney who concentrates in estate planning and is licensed in Minnesota. The Minnesota State Bar Association maintains a lawyer referral service. Key qualities to consider include experience with Minnesota estate tax planning, familiarity with the state's trust law reforms, and a willingness to explain options clearly.

An initial consultation is an opportunity to assess whether the attorney is a good fit for your needs. Contact us to discuss your situation.

Estate planning costs depend on complexity. A basic will typically costs $500 to $1,500. A revocable living trust-based plan generally runs $2,000 to $5,000 or more. Complex plans involving irrevocable trusts, business succession, or estate tax planning can cost more.

These figures reflect the attorney's time to draft customized documents — the investment reflects the quality and durability of the plan.

A revocable living trust in Minnesota typically costs $2,000 to $5,000, depending on the complexity of your estate and whether additional tools like irrevocable trusts or tax planning provisions are included. The cost also covers related documents such as a pour-over will, power of attorney, and healthcare directive, which are usually part of a trust-based plan.

Creating a revocable living trust typically takes two to four weeks from the initial consultation to signing. This includes gathering information about your assets, drafting the trust and ancillary documents, and reviewing the drafts. After signing, funding the trust — transferring assets into it — can take additional weeks depending on how many accounts and properties are involved.

A will takes effect only at the death of the person who created it. During the person's lifetime, a will has no legal force — the creator can revoke or change it at any time. After death, the will must be submitted to the probate court, which oversees its administration.

Probate costs in Minnesota typically include court filing fees (around $300-400), personal representative fees, attorney fees, and potentially appraisal costs. Total costs vary widely based on estate complexity but commonly range from 2% to 5% of the estate's value.

Informal probate, available for uncontested estates, is generally less expensive than formal probate.

Minnesota law requires that the estate remain open for creditor claims for at least four months after the personal representative is appointed. In practice, most estates take six months to a year to fully administer. Complex or contested estates can take significantly longer.

A will takes effect only at death and must go through probate. A trust can take effect during your lifetime, avoids probate for assets held in the trust, and provides privacy since it is not filed with any court.

Trusts offer more control over how and when assets are distributed but involve more upfront cost and effort to create and fund. See our detailed comparison in Wills vs. Trusts in Minnesota.

Neither is universally better — the right choice depends on your circumstances. A trust avoids probate, provides privacy, and offers more control over distributions, but involves higher upfront costs. A will is simpler and less expensive but requires probate.

Many Minnesota families with assets over $100,000, real property, or minor children benefit from a trust-based plan. See Wills vs. Trusts in Minnesota for a detailed comparison.

Joint tenancy avoids probate for the specific property held jointly, but it creates risks that trusts avoid. Adding someone as a joint tenant is an immediate gift that may trigger gift tax consequences, exposes the property to the joint tenant's creditors, and gives the joint tenant equal control during your lifetime.

A trust provides probate avoidance without these drawbacks and offers far more flexibility in how and when assets are distributed.

Minnesota recognizes electronic wills as of August 2023. An electronic will must meet the same substantive requirements as a traditional will — the testator must be at least 18, of sound mind, and the will must be signed and witnessed by at least two individuals. The electronic signing and witnessing must comply with Minn. Stat. § 524.2-502.

However, a will's validity is only the beginning. Whether it achieves your goals depends on proper drafting, coordination with beneficiary designations, and consideration of tax implications.

A revocable living trust is a legal entity created during your lifetime that holds your assets. You typically serve as both the trustee and the beneficiary during your life, maintaining full control. At your death or incapacity, a successor trustee takes over and distributes assets according to the trust terms — without probate and without court involvement.

Yes. A will can be changed by executing a codicil or drafting a new will that revokes the old one. A revocable trust can be amended or revoked at any time during the creator's lifetime. Irrevocable trusts are more difficult to change, though Minnesota's trust decanting statute and the 2025 trust law reforms provide some flexibility for modifying irrevocable trusts under certain circumstances.

Yes. Common strategies include holding property in joint tenancy, using beneficiary designations on accounts and insurance policies, creating a revocable living trust, executing Transfer on Death Deeds for real property, and using payable-on-death designations for bank accounts.

Each method has specific advantages and limitations. See our full guide: How to Avoid Probate in Minnesota.

A Transfer on Death Deed (TODD) is a legal instrument under Minn. Stat. § 507.071 that allows a property owner to designate a beneficiary who will receive the property automatically at the owner's death, without probate. The deed must be recorded during the owner's lifetime and can be revoked at any time.

Informal probate is a simplified process available when the will is valid on its face, no one contests it, and the estate is straightforward. It requires minimal court involvement and is handled largely by the registrar. Formal probate involves a court hearing before a judge and is required when the will is contested, heirs cannot be located, or complex legal issues arise.

Most Minnesota estates qualify for informal probate.

Minnesota imposes its own estate tax on estates exceeding $3 million. This is significantly lower than the federal exemption of $13.61 million. Minnesota estate tax rates range from 13% to 16%. Importantly, Minnesota does not allow portability — a surviving spouse cannot use their deceased spouse's unused exemption.

See our detailed guide: Minnesota Estate Tax.

No. Minnesota does not impose an inheritance tax. However, Minnesota does have a state estate tax that applies to estates exceeding $3 million. The distinction matters: an estate tax is paid by the estate before distribution, while an inheritance tax would be paid by the individual receiving the inheritance.

For a full breakdown of how assets pass under Minnesota law, see Minnesota Inheritance Laws.

The key differences are the exemption amount ($3 million state vs. $13.61 million federal), the lack of portability in Minnesota (surviving spouses cannot use the deceased spouse's unused exemption), and the fact that Minnesota taxes only assets with a Minnesota connection while the federal tax applies to the worldwide estate.

Minnesota's elective share (Minn. Stat. § 524.2-211) gives a surviving spouse the right to claim a percentage of the deceased spouse's augmented estate, regardless of what the will provides. The share ranges from approximately 3% to 50% depending on the length of the marriage.

This prevents a spouse from being completely disinherited and is an important factor in planning for married couples, particularly in blended family situations.

A charitable trust allows you to make a significant gift to charity while potentially retaining income or providing for your family. Charitable Remainder Trusts pay income to you or your beneficiaries first, then distribute the remainder to charity. Charitable Lead Trusts pay charity first, then distribute the remainder to your heirs.

Both can provide income tax deductions and estate tax benefits.

A power of attorney is one of the most important estate planning documents. Without one, if you become incapacitated, your family may need to petition the court for a conservatorship to manage your finances — a costly and time-consuming process.

Minnesota's statutory short form power of attorney (Minn. Stat. § 523.23) provides a standardized way to grant financial decision-making authority.

A Minnesota Health Care Directive (governed by Minn. Stat. § 145C) combines a living will and healthcare power of attorney into a single document. It allows you to state your wishes for end-of-life care and to appoint an agent to make healthcare decisions on your behalf if you cannot do so.

In Minnesota, a guardianship gives a court-appointed person authority over personal decisions for an incapacitated individual, while a conservatorship gives authority over financial matters. Both require a court proceeding under Minn. Stat. Ch. 524.5.

Proper estate planning — including a power of attorney and healthcare directive — can often prevent the need for either proceeding.

Minnesota adopted the Revised Uniform Fiduciary Access to Digital Assets Act (Minn. Stat. § 521A), which gives your personal representative or trustee the ability to access your digital accounts after death — but only if you have planned for it. Without specific authorization in your estate plan, online service providers may refuse access.

See our guide to digital estate planning for practical steps.

No. Minnesota is a common law (separate property) state. Each spouse owns the property they earn or acquire individually during the marriage. However, Minnesota's elective share statute (Minn. Stat. § 524.2-211) provides a surviving spouse the right to claim a share of the deceased spouse's augmented estate, which serves a similar protective function.

Minnesota enacted significant trust law reforms effective in 2025. Key changes include allowing dynasty trusts to last up to 500 years, simplified trust decanting rules, new provisions for terminating uneconomical trusts under $150,000, and updated trustee duties and beneficiary notification requirements.

See Minnesota Estate Planning Laws for a detailed overview.

Many Minnesota families own lake cabins that have been in the family for generations. As property values increase and more family members have ownership interests, managing the cabin becomes complex. Common issues include disagreements about use, inability to pay taxes or maintenance, and unequal interest among family members.

Estate planning tools like LLCs, trusts, and family cabin agreements can address these challenges. See Family Cabin Planning in Minnesota.

Blended families face unique challenges because Minnesota's default inheritance rules may not align with a blended family's intentions. Key strategies include QTIP trusts, carefully coordinated beneficiary designations, and prenuptial or postnuptial agreements.

Minnesota's elective share statute is particularly important to understand. See Estate Planning for Blended Families for a comprehensive guide.

Yes. Farm estates present unique challenges including illiquid assets, business continuity needs, and balancing farming and non-farming heirs. A farm estate plan often includes entity structures, trusts, buy-sell agreements, and life insurance.

See Estate Planning for Farmers in Minnesota for detailed strategies.

Yes. Minnesota law (Minn. Stat. § 501C.0408) authorizes trusts for the care of animals. A pet trust allows you to set aside funds for your pet's care, name a caretaker and a trustee, and specify how the funds should be used. The trust remains in effect for the life of the animal.

A special needs trust is designed to provide for a person with disabilities without disqualifying them from means-tested government benefits like Medicaid and SSI. Minnesota recognizes both first-party and third-party special needs trusts under the Minnesota Supplemental Needs Trust Act (Minn. Stat. § 501C.1205).