Laws Regarding Illegal Gifting and Inheritance in Minnesota
- In Minnesota, a will is not legal if the person who wrote it is under 18 years of age. It is not a legal document if two witnesses have not signed it. If a person makes a will but it can be determined that he was not of sound mind and did not understand what he was signing, the will would not be legal. Provisions in a will requiring a beneficiary to perform an immoral or illegal act in order to inherit are illegal.
- While a Minnesota resident can disinherit a child, a Minnesota resident cannot disinherit a spouse. While a Minnesotan can disinherit a child by specifically stating in a will that the child is not to receive any part of the estate, a Minnesotan cannot totally disinherit a spouse without the spouse's consent. In absence of a document such as a prenuptial agreement, the spouse has a right to parts of the estate.
- A Minnesota resident cannot, in his will, name a beneficiary for property that is already designated for someone else. For instance, property that is held in joint tenancy automatically goes to the surviving tenant and cannot be left to anyone else. The same is true for beneficiaries of the proceeds of a life insurance policy or a retirement plan. Funds from these go directly to the person named in the plan.
- Minnesota does not have an inheritance tax. However, if the estate is worth more than $600,000, an estate tax must be filed and, if required, estate taxes would need to be paid. Being a beneficiary of a large estate could mean the recipient must pay income taxes. It is illegal to not report an inheritance to the appropriate government agencies.