Named Personal Representative in Minnesota? Here's What That Means

Were you just named the personal representative of a loved one's estate?

First, we're sorry for your loss. And second... take a breath. It's a big job, but it's a manageable one, and you don't have to do it all on day one.

Here in Minnesota, the person in charge of an estate is called the personal representative. Most people just say "executor," and it's the same thing. Here's what the job involves, step by step, including what to do with the house.

What does a personal representative do?

In a nutshell, your job is to:

1. Gather up everything your loved one owned
2. Pay their debts and final bills
3. Pass on whatever is left to the people who are supposed to get it

You're what's called a fiduciary. That's a fancy word meaning you have to act honestly and in the best interest of the estate and the heirs, not yourself. That means keeping good records, keeping the estate's money separate from your own, and treating everybody fairly.

How do you become the personal representative?

Being named in the will doesn't make it official on its own. You (usually with an attorney) apply to the district court in the county where your loved one lived.

In most Minnesota estates this is done through informal probate, which usually doesn't require a hearing in front of a judge. Once you're appointed, the court gives you a document called Letters (Letters Testamentary if there was a will, Letters of General Administration if there wasn't). Your Letters are your proof that you have the authority to act for the estate. Banks, title companies and pretty much everyone else will ask to see them, so get a few certified copies.

If there's no will, the court appoints someone, usually the surviving spouse or one of the closest relatives.

Your to-do list as personal representative

Every estate is a little different, but here's what the job usually looks like.

Right away

• Secure the house. Lock it up, make sure the heat is on (this is Minnesota!), and check on it regularly.
• Call the insurance company. Let them know the owner passed away and ask about coverage if the house is going to sit empty. Many policies cut back coverage after 30 to 60 days of vacancy.
• Find the important papers. The will, deeds, bank and retirement statements, insurance policies, mortgage statements, recent tax returns.
• Forward the mail, so bills and statements come to you.
• Get certified copies of the death certificate. You'll need more than you think.

After you're appointed

• Give notice. Notice of your appointment needs to go out to the heirs and others interested in the estate.
• Notify creditors. A notice to creditors is published in a legal newspaper. In Minnesota, creditors generally have 4 months from the first publication to file a claim. If your loved one received Medical Assistance, the state needs to be notified too.
• Open an estate bank account. Keep the estate's money separate from your own. Pay estate bills from this account and keep every receipt.
• Make an inventory. List everything the estate owns and what it's worth. In Minnesota you have to prepare the inventory within 6 months of being appointed, or 9 months after the death, whichever is later. Copies go to the surviving spouse, the people inheriting, and anyone else who asks for one.

Over the next several months

• Pay valid debts and bills, from estate money, not your own.
• File the final tax returns for your loved one, and any returns the estate needs.
• Take care of the house (more on that below).

At the end

• Distribute what's left to the heirs according to the will (or Minnesota law if there wasn't one).
• Close the estate. Usually that's after the 4-month creditor period is over and everything has been paid and passed out.

What about the house?

For a lot of estates, the house is the biggest asset, and the biggest headache. It keeps costing money every month: taxes, insurance, utilities, lawn care and snow removal. If there's a mortgage, those payments keep coming too.

Here's the thing a lot of personal representatives don't know. You can usually sell the house while the estate is still open. Once you have your Letters, in most Minnesota estates you have the authority to sell the house without going back to court. (If the court is supervising the estate, you'll need the court's approval first.) The money from the sale goes into the estate account.

A few tips:

• Check the will. Sometimes it says specifically who gets the house. If so, you may need to transfer it to that person instead of selling it.
• Talk to the heirs first. Even if you have the legal authority to sell, getting everyone on board up front saves a lot of grief.
• Get the value. An appraisal or a few opinions on value will help you show the heirs that you got a fair price.
• Don't sink a lot of estate money into repairs unless you're sure you'll get it back.

Can the personal representative get paid?

Yes. In Minnesota a personal representative is entitled to reasonable compensation for their work, and you can be reimbursed for reasonable expenses you pay out of pocket. Some family members choose not to take a fee, which is up to you. Either way, keep good records of your time and expenses.

You don't have to do it alone

Most personal representatives hire a probate attorney to help, and the attorney's fees are paid by the estate. A good attorney is worth it.

And if the house is a burden, we can help with that part. When you sell to Trademark Properties:

• We buy the house as-is. No repairs, no cleanout. Take what the family wants and leave the rest.
• No commissions, and we pay the closing costs.
• We close at a local title company, and they'll work with your Letters and your attorney to make sure everything is done right.
• You pick the closing date, whether that's in a couple of weeks or after the estate is further along.

We're not attorneys and this isn't legal advice. Every estate is different, so please work with a Minnesota probate attorney.

Were you named personal representative and have questions about the house? Give us a call at Call us or fill out the form. There's never any obligation!