Who Inherits When There is no Will in Minnesota?

One of the fundamental questions in estate planning is whether you should create a will or not. For most people I meet with, creating a will is the first step in protecting their legacy and ensuring that they have left a plan behind for their loved ones.

If they have children under 18, the will is in place to provide a guardian for their children and a trustee to manage the money for the children until they are legally able to do so. It provides specific gifts to family members, designates a personal representative to administer the estate after you're gone, and generally lays out a plan for your legacy.

Often, people who are unmarried will ask if they even need a will and we can have a long discussion about the pros and cons of choosing to go without a will. However, it's important to understand that there's no requirement that you have a will, it's just often a good idea to protect your legacy.

If you choose not to have a will, when you die without a will, you are considered to have died "intestate" and the laws of the state where you lived determine how your estate is distributed. Intestate succession laws provide a detailed framework for how property is inherited when someone passes away without a will. Understanding these rules is crucial, as they ensure that the estate is passed on to the right people, often prioritizing close relatives such as spouses and children.

What is Intestate Succession?

Intestate succession is the legal process through which the assets of a deceased person are distributed to their heirs when no will is in place. It determines who has the legal right to inherit and in what proportion. This process is governed by Minnesota statutes, specifically Chapter 524.2, which outlines the intestate succession rules.

Who Inherits First: Surviving Spouse and Children

Your spouse (if they outlive you) and children are your primary beneficiaries under Minnesota's intestate succession laws. However, the distribution varies depending on the nature of the relationships and the existence of descendants from other relationships:

1. Surviving Spouse with No Descendants: If you leave behind a spouse but no children or descendants, the entire estate goes to your. This arrangement ensures that your spouse receives all of the assets.

2. Surviving Spouse with Children from Both Spouse and Decedent: If you have children, all of whom are also your spouse's children, your spouse again will receive the entire estate.

3. Surviving Spouse with Children from Another Relationship: If you have children who are not the children of your spouse, your spouse inherits the first $225,000 of the estate, plus half of the remaining balance. The rest is divided equally among your children. This rule helps to balance the needs of both your spouse and your children from other relationships.

What If There’s No Surviving Spouse?

If your spouse does not outlive you, your estate is passed down to your other relatives in a specific order:

1. Children: If you leave behind children but no spouse, the entire estate is divided equally among your children. If a child has died before you, that child's share goes to their descendants (your grandchildren).

2. Parents: If you have no surviving spouse or children, the estate goes to your parents. This means that if one or both of your parents are alive, they inherit the estate.

3. Siblings: If you have no surviving spouse, children, or parents, your estate then passes to siblings. If a sibling has died before you, their share would go to their descendants (your nieces and nephews).

More Distant Relatives: What Happens If No Immediate Family Members Are Alive?

Now we're getting into a more remote, but not impossible, territory. If you have no surviving spouse, children, parents, or siblings, Minnesota’s intestate succession rules continue down a line of more distant relatives:

1. Grandparents: If no closer relatives exist, the estate is divided among your grandparents. If a grandparent is deceased, their share is passed to their descendants (your aunts, uncles, and cousins).

2. Aunts, Uncles, and Cousins: If no grandparents survive, the estate will go to your aunts and uncles. If they have also passed away, then the estate is distributed among your cousins.

3. Other Relatives: If no immediate or extended family members can be found, more distant relatives may be entitled to inherit under Minnesota's intestacy laws.

When we're getting down into these categories, the court may sometimes require you to produce a family tree to help it map out who is entitled to your estate.

What If There Are No Surviving Relatives?

In rare cases where you have no surviving relatives, the estate "escheats" to the state of Minnesota. This means that the state becomes the owner of the estate. While this is a last resort, it prevents the property from being left in limbo without a legal owner.

Important Considerations in Intestate Succession

While Minnesota's intestate succession rules provide a clear (but sometimes complex) pathway for distributing an estate without a will, there are some additional considerations that can make things more challenging:

1. Debts and Taxes: Before any inheritance is distributed, the estate must settle any outstanding debts, taxes, and funeral expenses. The personal representative will be responsible for ensuring these obligations are met before distributing the remaining assets.

2. Non-Probate Assets: Not all assets are subject to intestate succession. Certain assets, like life insurance policies, retirement accounts, and jointly owned property, typically have designated beneficiaries and are not governed by a will or intestacy laws. These assets will pass directly to the named beneficiaries, regardless of the intestate succession rules.

3. Adopted Children: Legally adopted children are treated the same as biological children under Minnesota’s intestate succession laws. They are entitled to inherit just like any other child of the deceased.

4. Children Born Out of Wedlock: Children born outside of marriage may still inherit from a parent who dies intestate, provided paternity can be legally established. This ensures that all children have the opportunity to inherit, regardless of their parents’ marital status.

The Importance of Creating a Will

While Minnesota’s intestate succession laws aim to distribute assets fairly, they may not always align with your specific wishes. For example, if you wish to leave part of your estate to a friend, unmarried partner, or a charity, you must have a will, as such individuals do not inherit under intestate succession. A will allows you to outline specific instructions, avoid family disputes, and provide clarity for your loved ones during a challenging time.

Drafting a will with the help of an estate planning attorney can ensure that your assets are distributed exactly as you desire, protecting your family’s interests and preserving your legacy. Without a will, your estate is left to the default rules of the state, which may not reflect your personal wishes or family dynamics.

Need Help With Your Minnesota Estate Plan?

If you would like to use a Transfer on Death Deed for your estate plan, let's schedule a Legal Strategy Session online or by calling my Edina, Minnesota office at (612) 294-6982 or my New York City office at (646) 847-3560. My office will be happy to find a convenient time for us to have a phone call to review the best options and next steps for you to work with an estate planning attorney.