Post-Death Services
Have you lost a loved one or a friend? Regardless of what type of estate planning they had in place before they passed away, or if they had none, our experienced professionals have the tools and expertise to guide you through the process. This includes, but is not limited to, probate and trust administration, collecting and transferring non-probate and non-trust assets, estate tax returns, trust termination proceedings, business dissolutions and transfers, and any other services you may need in that regard.
Every situation is different, and sometimes there is very little or nothing that needs to be done. In any event, we would be happy to have the opportunity to help you determine what, if anything, needs to be done so that you can move on without any uncertainty.
To better help you understand the process, here are some common questions we answer for our clients after they have lost a spouse, family member, or a friend:*
*Please see the DISCLAIMER below regarding the following responses as well as our LEGAL DISCLAIMER page at the bottom of this page.
What is probate?
Probate is the court proceeding and the process by which the assets of a decedent are paid and distributed. This involves paying the decedent’s bills and creditors, if any, and distributing the decedent’s remaining assets to beneficiaries designated in the decedent’s Will or to the heirs of the decedent as proscribed by law for decedents who do not have a Will. However, as explained below, not all assets are subject to probate, and often times a probate proceeding may not even be necessary.
How do I know if a probate is needed?
As stated above, not all assets are subject to probate. For instance, assets that have beneficiary designations, a surviving joint owner, or that are held in trust are generally not subject to probate. Common examples of beneficiary designated assets include retirement accounts (IRAs, 401Ks, etc), life insurance policies, investment and brokerage accounts, etc. So if virtually all of a decedent’s assets have a beneficiary designation, a surviving joint owner, or are held in trust, it a probate proceeding may not be necessary.
On the other hand, common examples of when a probate is needed include a decedent who was the sole owner of their home or other real estate, or a decedent that has financial accounts or other assets in excess of $75,000 that do not have a beneficiary designation or a surviving joint owner.
What happens if the decedent had a trust?
If the decedent had a trust, the first step would be to begin the administration of the trust. Trust administration generally begins with reading and understanding the terms of the trust (with the assistance of an attorney), and determining what assets are held in trust, and what assets are not held in trust. If there are any assets that are not held in trust, we would help you determine what the next steps are with regard to collecting and/or distributing those assets. Once that is complete, our office or another attorney would help you determine what is needed to proceed with distributing the assets of the trust in accordance with the terms of the trust.
Do I need to worry about paying any taxes?
If you are the nominated personal representative, trustee, or simply the only person willing and able to handle the decedent’s affairs, the short answer is YES. You will need to speak with their accountant, if they had one, or any CPA about filing the decedent’s final tax return covering the year in which they died. Also, if a probate is needed, or if they had a trust, and there are assets in the estate or trust that generate income, you will likely also need to file one or more fiduciary income tax returns for each year until the final distributions are made. Lastly, if the decedent died with a state and/or federally taxable estate, you will need to file an estate tax return. Specifically, if they were a Minnesota resident when they died (and there is no surviving spouse), their estate would be considered a taxable estate for Minnesota estate tax purposes if their total assets were worth more than $3 million as of the date of their death. Additionally, as of 2024, if their total assets exceed $13.61 million (and there is no surviving spouse), then they would also have a federally taxable estate in addition to any state estate tax owed. Please note, however, as stated below, answering these questions requires a nuanced legal analysis from a qualified legal and tax professional.
DISCLAIMER: Please note that all of the information and response above are simply summaries and basic overviews, and are not to be relied on as legal advice or in any other manner. This information is only intended to give you a basic understanding of what happens after someone dies. In order to actually answer any of these questions, you will need the assistance and advice of a qualified legal professional as well as assistance and advice from qualified tax and financial professionals.