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Probate Process Step Five: Administration

August 26, 2016

This blog post is part of a series of posts on the probate process.  This is the fifth step.  You may start the series with the Initial Attorney Meeting, the Personal Representative’s role, the Initial Documents, and the Initial Hearing.

Congratulations!  You’ve come this far in the estate administration process.  You are in the heart of the matter, and probably very ready to be done.  Now that you’ve been appointed Personal Representative by the court, the real work begins.

Depending on the complexity of the decedent’s estate, the administration may take a short period of time, or quite a long time.  For many estates in Minnesota the administration period lasts between six and eighteen months.  It may also take longer if someone is contesting the validity of the Will or if there is real estate that must be sold during the probate process.

Regardless of the complexity, Minnesota statute requires the probate administration remain open for four months.  This open window allows any creditors to state their claims.  You may know of some claims because a bill has come in the mail.  However, there may be additional creditors, and this open window allows them to state a claim or give up their right to collect.

Aside from collecting and paying bills, you also need to collect assets.  This may simply be bank accounts.  This may also include real estate.  Some real estate will pass free of probate; some will be sold during the probate process.  It all depends on how the real estate is titled and with whom it is titled.

Another important part of the administration is to draft the Inventory.  The Inventory lists the debts and assets of the decedent at the time of death.  The Inventory is similar to the initial petition or application, but with more specificity.   Sometimes when filing the petition or application, you may not know of a debt or value of an asset.  This is the time to collect all that information to ensure a complete and updated picture for the court, beneficiaries, and creditors.

Some Personal Representatives may elect during the administration to make initial or partial distributions of assets to the beneficiaries.  This should be done with caution and only after consulting with an attorney.  There may be plenty of liquidity in the estate to handle future or on-going costs – allowing a small distribution to be made earlier in the process.  However, there may unexpected expenses of the estate that can not always be predicted; especially if real estate is at issue.  Many estates do not make distributions until the estate is about to close with the Final Account and final distribution.

 

If you have questions regarding the probate process, please contact Claire Tralle at 612-787-2553 to set up a consultation.