Selling a Probate Property in Minnesota

Do you feel burdened by a probate property in the Twin Cities? We can help!

When people hear the word "probate" they often feel immediate stress. Losing a loved one is hard enough, but when their house and belongings get tied up in probate court, the situation can feel even worse. If you're the person in charge of the estate, you might feel like the weight of the world is on your shoulders.

But don't fret. In this post we'll go over how probate works here in Minnesota, a few things you should be aware of, and how you can sell the house while it's in probate.

What is probate exactly?

Probate is the process that happens after someone passes away to pay off their debts and pass on what's left to the heirs. The court appoints someone to be in charge of all of that. In Minnesota that person is called the personal representative, but most people just say executor.

If there's a will, it usually names who the personal representative should be. If there isn't a will, the court will appoint someone, typically the closest living relative.

In Minnesota, probate is handled by the district court in the county where your loved one lived. There are two main ways it can go:

• Informal probate. This is how most Minnesota estates are handled. You file the paperwork with the court's probate registrar and, as long as nobody objects and everything is in order, there usually isn't a hearing in front of a judge.
• Formal probate. This one goes in front of a judge. It's used when the will is being contested, when the will is missing or unclear, or when there's a disagreement among the family.

Not every house has to go through probate. If your loved one had a Transfer on Death Deed, a living trust, or owned the house jointly with someone, the house may pass without it.

5 things to be aware of when dealing with a probate property

1) The will needs to be proven valid

The original will needs to be filed with the court when the probate case is opened. In Minnesota a valid will generally has to be signed by someone who was at least 18 and of sound mind, and witnessed by two people. If the original can't be found, things get more complicated (and usually slower).

2) You'll need to notify creditors and heirs

After the case is opened, the heirs and anyone named in the will need to be notified. A notice to creditors also gets published in a legal newspaper. In Minnesota creditors generally have 4 months from when that notice is first published to file a claim against the estate.

One that catches a lot of families off guard... if your loved one was on Medical Assistance after age 55, the State of Minnesota may have a claim against the estate, and that can include the house. Your attorney will need to notify the state as part of the process.

And don't forget about Uncle Sam. The personal representative will need to make sure final tax returns get filed for the person who passed away.

3) You'll need to take inventory of the entire estate

On top of the house, the personal representative needs to track down bank accounts, retirement accounts, vehicles, stocks and anything else of value. All of this gets counted when paying off debts and when splitting things up between the heirs. For this part of the process, it's a good idea to work with a probate attorney to make sure everything is found and recorded the right way.

4) The process can be time consuming

If you're the personal representative, you'll be dealing with paperwork, phone calls, the court and maybe the bank. Some probate cases in Minnesota wrap up in 6 to 9 months, others take a couple of years. Having a will usually speeds things up, since there's less left for the court to decide. Meanwhile the house still needs the heat on, the insurance paid, the lawn mowed and the snow shoveled.

5) You CAN sell the house while it's in probate

This is the one a lot of people don't know. You don't have to wait until probate is all done to sell the house.

Once the court appoints the personal representative and issues their Letters (that's the court document that gives them the authority to act for the estate), the personal representative can usually sell the house. In most Minnesota estates, which are handled without court supervision, that doesn't even require a separate hearing or court approval. If the court is supervising the estate, then the sale will need the court's OK first.

The title company will want to see a current, certified copy of the Letters before closing, and they'll make sure the right people are signing.

Can you sell the house quickly?

Yes! You need to be the personal representative (or working with them), and it really helps to have all the heirs on the same page. Legally the personal representative may be able to sign on their own, but selling a family house without talking to your siblings first is a great way to make Thanksgiving awkward. The money from the sale goes to the estate, pays the debts, and then gets divided between the heirs.

It's important to work with an agent or a direct buyer who understands probate, so everything gets handled properly. Trademark Properties buys probate properties all over the Twin Cities and we're happy to answer any questions about how it works.

How much can it cost?

This varies a lot based on the size of the estate. You'll likely be looking at court filing fees, attorney fees, document fees and the costs of keeping the house up while the estate is open. A good probate attorney is worth it, but their fees can add up to thousands of dollars.

If you list the house with an agent, add in commissions, repairs, cleanout and the months of holding costs while you wait for a buyer.

Why sell now?

The faster the house is sold, the less stress and hassle there is for everyone. Probate can take on average 6 to 12 months, and every month the house sits, the estate is paying for taxes, insurance, utilities and upkeep.

Selling quickly can also save your family a lot of stress. These situations can be hard, and they can lead to arguments and bickering between family members. A fast, fair sale gives everyone some closure during a difficult time.

When you sell to Trademark Properties:

• We buy the house as-is. No repairs, no cleaning, no showings.
• We pay the closing costs and there's no commission.
• We close at a reputable local title company, on the date that works for the estate.

We're not attorneys and this isn't legal advice. Every estate is different, so talk with a Minnesota probate attorney about your specific situation.

Do you need to sell a probate property in Minnesota? We can help! Give us a call at Call us or fill out the form. There's never any obligation!