Inheritance Laws in Minnesota (2026): Rules That Surprise Most People

Most people think they know how inheritance works. You die, your family gets your stuff. Simple, right?

Actually, Minnesota inheritance laws are way more specific than that. And honestly, a lot of folks get blindsided by the details. Let’s break down exactly what happens to your assets when you die in the North Star State.

What Are Inheritance Laws?

Inheritance laws determine who gets your property after you die. Think of them as backup rules that kick in when you don’t have a will or when your will doesn’t cover everything.

Minnesota has two main systems. First, there’s what happens when you have a valid will (that’s called dying “testate”). Second, there’s what happens when you don’t have a will (dying “intestate”). Most people assume their family will automatically get everything either way. They might be surprised.

The state also has estate tax rules. Minnesota is one of only 12 states that charges its own estate tax on top of federal taxes. Yep, that’s right. More on that later.

Minnesota Estate Tax vs. Inheritance Tax

Hold on, this part is important.

Minnesota does NOT have an inheritance tax. Let me say that again. There is no inheritance tax in Minnesota. The state repealed it back in 1980.

So what’s the difference? An inheritance tax hits the people who receive assets. An estate tax hits the estate itself before anything gets distributed. Minnesota only does the estate tax thing.

As of 2025, Minnesota charges estate tax on estates worth more than $3 million. That’s the exemption threshold. Anything under $3 million? No state estate tax. Anything over? You’ll owe taxes on the amount above that threshold.

The federal government also charges an estate tax, but their threshold is way higher. For 2025, it’s $13.99 million. Most estates in Minnesota won’t hit the federal limit, but plenty hit the state limit at $3 million.

Pretty straightforward, right?

Who Inherits When You Have a Will

If you have a valid will in Minnesota, your assets generally go to whoever you named in that will. Makes sense.

But your will has to be actually valid. Minnesota law requires three things. First, it must be in writing. Second, you must sign it (or someone must sign it for you if you’re physically unable). Third, at least two witnesses must sign it after watching you sign or after you acknowledge your signature.

No witnesses? Not valid. Didn’t sign it? Not valid. You get the idea.

The person you name to handle everything is called your executor or personal representative. This person manages your estate, pays your debts, and distributes what’s left to your beneficiaries. Choose wisely, because this job can be a lot of work.

Even with a valid will, some assets bypass it completely. Life insurance with a named beneficiary? Goes straight to that person. Joint bank accounts? The surviving account holder gets it. Retirement accounts with beneficiary designations? Same deal. These are called non-probate assets.

What Happens Without a Will (Intestate Succession)

Wondering if this applies to you?

If you die without a valid will in Minnesota, the state’s intestate succession laws decide who gets your stuff. The rules follow a specific order based on your family situation.

If You’re Married

Your spouse gets everything if you have no kids. Your spouse also gets everything if all your kids are from you and your current spouse, and your spouse has no kids from another relationship.

Basically, the state assumes you’d want everything to go to your spouse in these situations.

But wait, it gets more complicated. If either you or your spouse has kids from a previous relationship, the split changes. Your spouse gets the first $225,000 of your estate, plus half of whatever’s left. Your kids get the other half.

Sound complicated? It’s actually not that bad once you see an example.

Let’s say your estate is worth $500,000. You have two kids from a previous marriage. Your current spouse gets $225,000, plus half of the remaining $275,000 (that’s $137,500). Total for your spouse: $362,500. Your two kids split the remaining $137,500. Each kid gets about $68,750.

If You’re Not Married

No spouse? Your entire estate goes to your children in equal shares. They split everything evenly.

No Spouse or Kids

This is where things get interesting. Minnesota law has a whole priority list:

Your parents inherit everything if they’re alive. Both parents alive? They split it equally. One parent alive? That parent gets it all.

No parents? Your siblings inherit, with their descendants taking their share if a sibling already died.

No siblings? Your grandparents inherit. Then it goes to your aunts and uncles. Then cousins. The state will trace your family tree as far as necessary to find someone.

Honestly, this is the part most people miss. Minnesota will work really hard to find a relative to inherit your property. Even distant cousins can end up with your assets.

Special Rules for Children

Adopted kids inherit just like biological children. Legally, there’s no difference.

Stepchildren and foster children do NOT automatically inherit unless you legally adopted them. This surprises people.

Kids born outside marriage inherit from their mother automatically. They can inherit from their father if paternity was legally established.

Kids conceived before you die but born after? They inherit normally, as long as they live at least 120 hours after birth. Yep, five full days.

The 120-Hour Survivorship Rule

Here’s a weird one that actually matters.

To inherit under Minnesota law, a person must outlive you by at least 120 hours. That’s five days.

Why? Picture this. You and your sister are in a car accident. You die instantly. She dies three hours later. Under Minnesota law, she never inherited from you because she didn’t survive the required 120 hours. Her estate doesn’t get your property.

The rule prevents messy situations where property bounces between estates in quick succession.

Half-Siblings Get Full Rights

Half-siblings inherit just like full siblings. Minnesota doesn’t discriminate.

So if you have a brother who shares only your dad (different moms), he has the same inheritance rights as a brother who shares both parents. Pretty fair, honestly.

When Probate Is Required

Not sure what counts as a violation?

Probate is the court process that validates wills and distributes estates. In Minnesota, you need probate if the deceased person’s assets exceed $75,000 or if they owned real estate.

Under $75,000 and no real estate? You can skip probate and use a simpler process called an Affidavit for Collection of Personal Property. Way easier.

Real estate almost always requires probate unless it was held in joint tenancy or placed in a trust. If the property is solely in the deceased person’s name? You’re going to probate court.

Probate must be initiated within three years of death. After three years, you’ll need a special court order called a decree of descent.

Minnesota has two types of probate. Informal probate is simpler and less expensive. The personal representative works mostly independently with minimal court oversight. Most probate cases use the informal process.

Formal probate involves more court supervision. You’d use this when there are disputes about the will, fights among heirs, or complex legal issues that need a judge’s attention.

Trust me, this works. Informal probate can wrap up in less than a year if everything goes smoothly. Formal probate? Could take much longer.

Estate Tax Details for 2026

Okay, pause. Read this carefully.

Minnesota’s estate tax kicks in at $3 million. That’s total estate value, including your house, cars, bank accounts, investments, life insurance (sometimes), business interests, and everything else you own.

Rates are progressive, meaning the percentage increases as the estate value increases. The exact rates can change, but they generally range from around 13% to 16%.

The federal estate tax exemption is $13.99 million for 2025. These numbers get adjusted for inflation periodically.

If your estate owes both Minnesota and federal estate taxes, you get a credit. You don’t pay the full amount twice.

Wait, it gets better. Spouses can use something called portability. This lets a surviving spouse use their deceased spouse’s unused exemption amount. Basically, a married couple could potentially shield up to $6 million from Minnesota estate tax ($3 million each) or up to about $28 million from federal estate tax.

How to Avoid Estate Taxes

Wondering if you can reduce your tax burden?

Several strategies help. Making gifts during your lifetime is one option. For 2025, you can give up to $19,000 per person per year without using any of your lifetime gift exemption. Married couples can double that to $38,000.

You can also pay someone’s medical expenses or education costs directly. These payments don’t count as gifts if you pay the provider directly.

Charitable donations reduce your taxable estate. Setting up trusts can help too. There are special trusts designed specifically to minimize estate taxes.

Honestly, if your estate is anywhere near $3 million, talk to an estate planning attorney. The tax savings can be significant.

Recent Law Changes (2025)

Minnesota updated some inheritance laws in 2025. Here’s what changed:

The rule against perpetuities extended from 90 years to 500 years for trusts created on or after August 1, 2025. This lets wealthy families protect assets for many more generations.

Divorced people got new protections. After a divorce, your ex-spouse’s family members no longer automatically inherit from your will unless they’re also your descendants (like shared kids).

Parents can now be disinherited if they were estranged from their adult child in the year before death and if parental rights could have been terminated during the child’s minority. This prevents absent or abusive parents from inheriting.

Powers of attorney got stricter. To consent to modifying or terminating a trust, the power of attorney must expressly authorize it. A generic power of attorney isn’t enough anymore.

Small trusts got easier to manage. Trustees can now modify or terminate trusts worth $150,000 or less without court approval (up from $50,000).

Creating a Valid Will in Minnesota

You’re gonna love this one.

Writing a will isn’t that complicated. You need it in writing. You sign it. Two witnesses sign it. Done.

Okay, there’s a bit more to it. The witnesses should be familiar with your will and should watch you sign it (or watch you acknowledge your signature). They need to sign within a reasonable time after witnessing.

Can you write your own will? Technically yes. Should you? Probably not if your estate is complex or worth much money.

A simple will for a simple estate? Sure, go for it. Templates exist. Just make sure you follow Minnesota’s requirements exactly.

Complex estate? Multiple properties? Business interests? Blended family? Get an attorney. The cost of a lawyer is way less than the cost of a contested will or estate tax mistakes.

What Doesn’t Go Through Your Will

Not all your property follows your will’s instructions. Some assets bypass your will entirely based on how they’re titled or who’s named as beneficiary.

Life insurance policies go to the named beneficiary. Retirement accounts (401k, IRA, etc.) go to the named beneficiary. Joint bank accounts go to the surviving account holder. Real estate held in joint tenancy goes to the surviving joint tenant.

Payable-on-death (POD) accounts and transfer-on-death (TOD) accounts go straight to the named person.

This matters because you could write a detailed will dividing everything equally among your kids, but if your life insurance names only one kid as beneficiary, that kid gets all the life insurance money regardless of what your will says.

The Probate Process Step by Step

Here’s where it gets practical.

First, someone files an application or petition with the probate court in the county where you lived. This usually happens within a few weeks or months of death.

The court appoints a personal representative (either the person named in your will or someone the court chooses if there’s no will).

The personal representative inventories all assets, notifies creditors, pays legitimate debts and taxes, and eventually distributes what’s left to heirs or beneficiaries.

Creditors have four months from the Notice to Creditors to file claims against the estate. After that window closes, most claims are barred.

The whole process typically takes about 18 months for a straightforward estate. Disputes, complex assets, or estate tax issues can stretch it longer.

Common Estate Planning Mistakes

Most people don’t realize how strict these laws are.

Mistake number one? Not having a will at all. About 56% of Americans don’t have one, according to recent surveys. They assume their family will figure it out or that the state’s laws will do what they wanted anyway. Sometimes yes, sometimes no.

Mistake number two? Outdated beneficiary designations. Your 401k still lists your ex-spouse from 15 years ago? That ex gets the money, not your current spouse, regardless of what your will says.

Mistake number three? Not planning for estate taxes. If your estate is worth $3.2 million and you die without planning, Minnesota takes a chunk in estate taxes that could have been avoided or reduced.

Mistake number four? DIY wills with errors. One missing signature from a witness can invalidate the whole thing.

Mistake number five? Not updating your will after major life changes. Marriage, divorce, births, deaths, moving to a new state. All these should trigger a will review.

How to Get Started with Estate Planning

Let’s talk about the penalties.

Actually, there aren’t really “penalties” for not having a will. You just lose control over where your stuff goes. The state’s intestate succession rules take over.

But there are consequences. Family fights. Unintended beneficiaries. Unnecessarily high taxes. Delays in distributing assets.

Getting started is simpler than you think. First, make a list of your assets and their approximate values. Include your house, vehicles, bank accounts, retirement accounts, investments, business interests, and valuable personal property.

Second, decide who you want to inherit what. Be specific. Think about backup beneficiaries in case your first choice doesn’t outlive you.

Third, choose a personal representative. Pick someone responsible, organized, and willing to do the work.

Fourth, consider who should care for your minor children if something happens to you and the other parent.

Fifth, think about whether you need a trust. Trusts can help avoid probate, provide for special needs beneficiaries, or reduce estate taxes.

Then talk to an estate planning attorney. They’ll guide you through the options and draft documents that actually work.

Special Considerations

You’re not alone, this confuses a lot of people.

Non-citizens can inherit in Minnesota. Immigration status doesn’t affect inheritance rights under intestate succession.

Relatives conceived before your death but born after can inherit if they survive at least 120 hours after birth. This applies to all potential heirs, not just children.

Minnesota recognizes common law marriages from states where they’re legal. If you have a valid common law marriage from another state, that spouse has full inheritance rights in Minnesota.

Same-sex spouses have identical inheritance rights to opposite-sex spouses. Minnesota legalized same-sex marriage in 2013, and all marriage laws apply equally.

If someone murders you, they can’t inherit from you. Seems obvious, but Minnesota law specifically addresses this. A killer is treated as if they predeceased the victim.

Now, Here’s Where Things Get Serious

Estate planning isn’t just about who gets your stuff. It’s about protecting your family from unnecessary stress, expense, and conflict during an already difficult time.

Without proper planning, your spouse might have to share your estate with your adult kids from a previous marriage when you intended everything to go to your spouse. Your kids from that previous marriage might get nothing when you wanted them provided for.

Your family might face a tax bill of hundreds of thousands of dollars that could have been avoided or reduced. Your estate might be stuck in probate for two years instead of six months.

Take an hour. Make a list. Call an attorney. Get it done.

Frequently Asked Questions

Does Minnesota have an inheritance tax?

No. Minnesota repealed its inheritance tax in 1980. The state does have an estate tax, but that’s different. Estate tax is paid by the estate before distribution, not by the people inheriting.

How much can you inherit in Minnesota without paying taxes?

Beneficiaries don’t pay inheritance tax in Minnesota because there isn’t one. However, the estate itself may owe estate tax if it’s worth more than $3 million. As a beneficiary, you generally don’t pay income tax on inherited property either, though you might owe income tax on distributions from inherited retirement accounts.

What happens if you die without a will in Minnesota?

Your estate goes through intestate succession. If you’re married with no kids or with kids only from your current marriage, your spouse gets everything. If you or your spouse has kids from another relationship, your spouse gets the first $225,000 plus half the rest, and your kids get the other half. No spouse? Your kids inherit everything. No kids? Parents, then siblings, then more distant relatives.

How long does probate take in Minnesota?

Most estates finish within 18 months. Simple estates with no disputes can wrap up in less than a year. Complex estates or those with disputes can take much longer. The personal representative must petition the court for extensions beyond 18 months.

Can you avoid probate in Minnesota?

Yes. Estates under $75,000 with no real estate can use an Affidavit for Collection of Personal Property instead of probate. You can also avoid probate by holding assets in a revocable living trust, joint tenancy, or with beneficiary designations (like on life insurance and retirement accounts).

Do beneficiaries pay tax on life insurance proceeds in Minnesota?

Generally no. Life insurance death benefits are typically income tax-free to beneficiaries. However, if the policy was owned by the deceased, its value might be included in the taxable estate for estate tax purposes.

What is the estate tax exemption in Minnesota for 2026?

The Minnesota estate tax exemption is $3 million as of 2025. Estates valued under this amount don’t owe Minnesota estate tax. The federal exemption is much higher at $13.99 million for 2025.

How do I file for probate in Minnesota?

File an application for informal probate or a petition for formal probate with the district court in the county where the deceased lived. You must wait at least 120 hours (five days) after death but file within three years. You’ll need the death certificate and the will (if one exists).

Can stepchildren inherit in Minnesota?

Only if legally adopted. Stepchildren who were never legally adopted don’t automatically inherit under intestate succession laws. However, a person can leave property to stepchildren through a will.

What happens to debt when someone dies in Minnesota?

The estate pays debts before distributing assets to heirs. The personal representative uses estate funds to pay legitimate creditors. Heirs don’t personally owe the deceased’s debts unless they co-signed or guaranteed them. If the estate lacks funds to pay all debts, creditors are paid in priority order and some may get nothing.

Final Thoughts

Now you know the basics. Minnesota inheritance laws are detailed but logical once you understand the structure.

The biggest takeaway? Don’t leave your family guessing. Whether you write a simple will or create a comprehensive estate plan, having something in writing makes everything easier for the people you leave behind.

Estate planning isn’t morbid. It’s practical. It’s caring. It’s one of the kindest things you can do for your family.

When in doubt, get professional help. The cost of good legal advice is always less than the cost of fixing mistakes later.

References

1. Minnesota Department of Revenue – Estate Tax (https://www.revenue.state.mn.us/estate-tax)
2. Minnesota Statutes Chapter 524 – Probate Code (https://www.revisor.mn.gov/statutes/cite/524)
3. Minnesota Judicial Branch – Probate, Wills, and Estates (https://mncourts.gov/help-topics/probate-wills-and-estates/faqs)
4. Minnesota Attorney General – Probate and Planning Guide (https://www.ag.state.mn.us/consumer/handbooks/probate/)
5. Unique Estate Law – Minnesota Probate Guide (https://uniqueestatelaw.com/practice-areas/probate-estate-administration/a-complete-guide-to-the-probate-process-in-minnesota/)