Estate planning rules in Minnesota

Wills and intestate succession

Minnesota's ordinary will execution rule includes two witnesses signing within a reasonable time after witnessing the signing or acknowledgment, subject to specified exceptions. Minnesota generally treats probate validation of a will as a condition for proving a property transfer, nominating an executor, or exercising a power of appointment, subject to a statutory exception.

Minnesota permits a will to exclude or limit an individual or class from intestate succession. Minnesota treats the affected share as passing as though the excluded person or class had disclaimed the share.

Personal authority and digital assets

Minnesota treats a power of attorney as durable when its language expresses the principal's intent that authority remain exercisable despite later incapacity or incompetence.

Minnesota permits a court to appoint a guardian on clear and convincing evidence of incapacity and identified needs unmet by less restrictive means. Minnesota's court explains why those alternatives do not work. Minnesota limits guardianship powers to demonstrated needs, and powers without a specific grant supported by a written finding remain with the person under guardianship.

Minnesota's digital asset chapter applies to custodians when the user resides in Minnesota or resided in Minnesota at death. Minnesota excludes employer digital assets used by employees in the ordinary course of business.

Minnesota gives a modifiable online-tool direction priority over contrary instructions in a will, trust, power of attorney, or other record. Minnesota conditions an agent's access to communication content on express power-of-attorney authority over that content.

Minnesota provides for disclosure of a deceased user's communication content to the personal representative when the user consented or a court directs disclosure, subject to documentation conditions.

Transfer-on-death deeds

Minnesota recognizes a transfer-on-death deed recorded before the grantor owner's death in a county containing at least part of the described real property. Minnesota gives the deed no effect on title before effectiveness, while recognizing an insurable interest in favor of the designated grantee beneficiary.

Minnesota permits a transfer-on-death deed to name the trustee of a revocable inter vivos trust, a testamentary trust, or another qualified entity as grantee beneficiary. Minnesota treats the deed as void and ineffective to transfer any interest if the last surviving joint tenant owner did not execute the deed.

Minnesota does not treat a will as revoking a recorded transfer-on-death deed. Minnesota generally excludes property acquired after signing from the deed's transfer unless the deed specifically includes after-acquired interests.

Minnesota property passing through a transfer-on-death deed remains subject to existing mortgages or security interests without a right of exoneration, subject to a statutory exception.

Estate tax and estate income filings

Minnesota estate tax reporting includes Minnesota real or tangible personal property held through a pass-through entity in which a nonresident decedent had an interest. Minnesota places that property on step 1 of Worksheet B.

Minnesota calls for an amended state estate tax return within 180 days after notice of federal changes or filing an amended federal return. Minnesota Form M2 applies to an estate whose assets generate $600 or more of Minnesota gross income.

Minnesota allows administrative-expense deductions on the state estate tax return when the expenses were not deducted on the estate's federal fiduciary income tax returns.

Thresholds and rates change. Check the state's own current figures.

Thresholds and rates change. Check the state's own current figures.

Common questions