When a Minnesota resident dies, they have often accumulated debt. It is important to address this debt when the affairs are sorted out. If there is debt that is not paid off by an executor, there can be some problems.
Nowadays, individuals in Minnesota and elsewhere understand the importance of establishing an estate plan. Taking this step not only protects the individual and their wishes when it comes to property and asset distribution, but it also protects the loved ones of the individual. It can be difficult to put our future wishes and intentions in writing; however, this can prove to be a very beneficial and vital step to take. Thus, it is important to understand how to draft an estate plan, set up a trust and what steps are necessary to make these documents valid.
When a loved one dies in Minnesota, a personal representative may engage in estate valuation for tax purposes and for its proper distribution. A person may also calculate the value of their estate when they are alive to help them determine the value of estate, make decisions about their will and calculate taxes for their heirs and estates.
Being an executor of an estate in Minnesota carries numerous responsibilities which, if not properly performed, can lead to court battles among heirs, family members and creditors. Estate valuation of household property is one of these important responsibilities.
When a Minnesotan dies, their estate is an important legacy that they leave behind. For tax purposes, the value of the estate needs to be calculated. There are two ways for an estate valuation to take place.
Last week's post on this Saint Paul, Minnesota, estate litigation blog discussed the "step-up basis" and its importance in putting the correct value on a probate estate. Arguments over what basis to apply to a piece of property, however, are just one of the many issues that can arise between a family and the state or federal taxing authorities during probate or trust administration.
Although probate disputes oftentimes involve quarrels between family members, many times litigation can result because a family gets challenged by the state or federal taxing authority. In these sorts of cases, estate valuation is often a very important issue since the value of the estate ultimately determines whether taxes are owed, and if so how much tax is owed.