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Probate Process Step Six: Closing the Estate

September 7, 2016

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

There are several items that must occur before the Personal Representative can close the estate with the Court.  The first thing is that the four month creditor period must have passed.  Creditors have a four month window from when the case has been filed to file a claim with the estate.  So, even if everything else has been administered, the estate must remain open a minimum of four months.

Second, bills and final expenses of the estate must be paid.  The Estate is notified of a bill either by a bill arriving or by formal notice through a court notice.  Either way, final expenses must be paid.  If the estate is insolvent (more debts than assets), a court order will need to be issued to determine which bills are paid.  If you believe you have an insolvent estate, make sure to contact an attorney to ensure the expenses are handled correctly.

Third, all assets must be either sold or re-titled.  This includes selling real estate, personal property, financial accounts, and any other asset.  The Personal Representative will follow the decedent’s Will to determine what is sold, what is re-titled, and who gets what.  If there is not a Will, the Personal Representative will follow the intestacy (no Will) statute of Minnesota: §524.2-101-§524.2-123.

Fourth, the Personal Representative must make sure all taxes have been filed.  Usually the Personal Representative must file the decedent’s final year of taxes.  Sometimes multiple years must be filed.  Occasionally the estate will owe taxes and an estate tax return will be required.  This is a very important step.  A tax professional is often used, as this is more complicated than filing your own personal tax return.

Fifth, the Final Account must be drafted.  The Final account is an update from the Inventory that was filed during the administration of the estate.  This will have all final expenses and distributions to the beneficiaries.  Sometimes the Final Account is filed with the Court.  Sometimes it is simply shared with all beneficiaries.  It may depend on the type of administration (supervised or unsupervised), your county, or other facts in your case.  This is a decision to be made with your attorney.

Sixth, the Statement to Close must be drafted and filed with the court.  This is a document signed by the Personal Representative stating that the estate has been fully administered, the four month creditor period has expired, and all notices have been properly sent.  Before filing this with the court, it is important that everything has been completed.  It is expensive to have to re-open the estate if an asset is forgotten.

Closing the estate with the court is an important final step for the Personal Representative.  For some, this final act allows emotional closure of the decedent’s death.   For many, there is a relief that the process is finally over.

 

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