Failing to Plan in Minnesota can Cost Your Family!

Estate planning tools like a will, trust, financial power of attorney, and healthcare directive provide clear instructions about your wishes and designate decision-makers for critical situations. Without these documents, Minnesota law steps in, but the outcomes may not align with your preferences, and the process can be time-consuming and costly. Here’s an overview of what happens if you lack these essential tools in Minnesota.

Without a Will or Trust

If you pass away without a will or trust, you are considered to have died “intestate.” Minnesota’s intestate succession laws determine how your property is distributed. Generally:

  • Spouse and Children: Your spouse typically inherits most or all assets. However, if you have children from a prior relationship, your spouse may share the estate with them.
  • No Spouse or Children: Your estate goes to your closest relatives, starting with parents, siblings, and then more distant relatives.

If no relatives can be found, your property “escheats” to the state of Minnesota.

Costs: Intestate estates go through probate, a court-supervised process to distribute your assets and settle debts. Probate fees can range from $3,000 to $10,000 or more, depending on the estate’s complexity. Additionally, delays in court can mean your loved ones wait months or years for resolution, which delays distribution of the estate.

Without a Financial Power of Attorney

A financial power of attorney allows someone to manage your financial matters if you become incapacitated. Without one:

  1. Court-Appointed Guardian: The court must appoint a conservator to handle your finances.
  2. Process and Costs: This requires filing a petition in court, notifying relatives, and undergoing a hearing. Legal fees can easily exceed $3,000 to $5,000.
  3. Decision-Maker: The judge may appoint a family member, friend, or professional guardian. Their decisions might not align with your wishes, and their actions are subject to ongoing court oversight, which adds expense and complexity, as well as stress.

Without a Healthcare Directive

A healthcare directive outlines your medical treatment preferences and appoints a healthcare agent. Without one:

  1. Default Decision-Maker: Minnesota law designates someone, typically a spouse or closest relative, to make decisions. However, disagreements among family members can complicate matters.
  2. Court-Appointed Guardian: If no suitable individual is available or disputes arise, the court may appoint a guardian to make healthcare decisions.
  3. Costs: As with conservatorship, court proceedings for guardianship are costly, averaging $2,000 to $5,000 or more, depending on complexity.

Why Estate Planning Matters

The absence of a will, trust, or directives leads to uncertainty, stress, and potentially significant expenses for your loved ones. Estate planning tools let you:

  • Specify who receives your assets and avoids probate delays.
  • Name trusted agents for financial and healthcare decisions.
  • Minimize legal fees and court interference.

Conclusion

Failing to plan means Minnesota’s laws and courts decide your financial, healthcare, and estate matters. By creating a will, trust, power of attorney, and healthcare directive, you ensure your wishes are followed and reduce burdens on your loved ones. Speak with an estate planning attorney to get started and secure peace of mind for you and your family.

To learn more about estate planning, keep an eye on our Events page located at: https://www.wagnerlegalmn.com/events/.

If you’re ready to start being proactive about your estate plan, contact us to get started.

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Categories: Estate Planning