What property does not pass under a will in Minnesota?

When it comes to estate planning in Minnesota, it’s crucial to understand which assets may not pass under a will. Certain types of property are exempt from probate and will be distributed according to specific rules, regardless of what a will may say. In this article, we will delve into the various forms of property that do not pass under a will in Minnesota, shedding light on joint property, life insurance policies, trusts, and more.

Joint Property

One type of property that does not pass under a will in Minnesota is joint property. When property is held jointly with rights of survivorship, it automatically passes to the surviving joint owner upon the death of the other owner. This means that the property does not form part of the deceased owner’s estate and is not subject to distribution according to the terms of the will.

Life Insurance Policies

Proceeds from life insurance policies are another example of property that bypasses a will in Minnesota. Life insurance policies typically designate a beneficiary to receive the death benefit upon the insured’s passing. The proceeds from the policy go directly to the named beneficiary and are not considered part of the deceased’s probate estate.

Trusts

Assets held in a trust are also exempt from passing under a will in Minnesota. A trust is a legal arrangement where a trustee holds assets on behalf of a beneficiary. Upon the trust creator’s death, the assets held in the trust are distributed according to the terms of the trust document, bypassing the probate process and the instructions in the will.

Legal Code Reference

In Minnesota, the laws governing the distribution of property that does not pass under a will can be found in the Minnesota Statutes, Chapter 524. This chapter outlines the rules regarding intestate succession, non-probate transfers, and other aspects of estate administration in the state.

Ensuring Proper Distribution of Assets

Understanding which assets do not pass under a will is essential for effective estate planning. By being aware of how joint property, life insurance policies, trusts, and other exempt assets are handled, individuals can ensure that their property is distributed according to their wishes and in a timely manner.

Buried in Work’s Additional Resources

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