If you have worked hard your entire life and acquired significant wealth, you are certainly concerned about what will happen to your estate and legacy when you die. If you have a will at the time of your demise, your estate will be distributed per the stipulations in the document. And if you do not, Minnesota intestacy laws would determine how your estate is distributed.
Whether you have a will or not at the time of your demise, your estate will go through probate. This is a court-supervised process of winding up the decedent’s estate, paying their bills and distributing their property per the provisions in their will if they had one or per Minnesota intestacy laws if they die intestate.
How much does probate cost?
Whether there is a will or not, probating an estate is never cheap. Depending on the complexity of your estate, probate can eat up between 3% and 7% of your estate’s total value. This cost can be higher if someone decides to challenge your will. And this is where the question, “Can you reduce the cost of probating your estate?” comes in.
Yes, you can reduce the cost of probate. And here are two steps you can take to achieve this:
1. By making your instructions clear
The less ambiguous your will is, the less likely someone will dispute your wishes. In return, this will shorten the probate process and save your estate money. Alongside clear instructions, be sure your will is valid.
2. By devaluing your estate
Probate cost is basically determined by the size of your estate. By sizing down your estate, you will greatly reduce the cost of probating it. For instance, your estate can skip probate altogether if it is valued below $10,000 at the time of your demise.
Safeguarding your legacy
Probate does not have to cost your estate an arm and a leg. Learning more about Minnesota estate planning laws can help you take appropriate steps to reduce the cost of probating your estate.