When someone dies owning a house in Minneapolis, Saint Paul or the suburbs, the family wants to know: who owns it now, and what do we have to do before we can keep it or sell it?

I’m Troy Molde, owner of Henry Home Buyer in Lakeville. I buy inherited houses across the Twin Cities. I’m not an attorney, but here’s a plain overview of how Minnesota inheritance law treats real estate.

First: How Was the House Titled?

Check the deed first. Some houses pass without probate:

Joint tenancy. If the house was owned “as joint tenants,” the surviving owner usually becomes the sole owner.
Transfer-on-death deed. A recorded TODD passes the house directly to the named beneficiaries (Minn. Stat. § 507.071).
A trust. If the house was deeded to a living trust, the trustee handles it under the trust’s terms.

Otherwise, the will or Minnesota’s intestacy rules decide, usually through probate.

If There’s a Will

A valid will controls who gets the house, with protections for a surviving spouse. A spouse who’s left out can claim an “elective share,” a percentage of the estate that grows with the length of the marriage, up to 50% after 15 years (Minn. Stat. § 524.2-202). The homestead also has its own spousal protections, explained below.

If There’s No Will: Minnesota Intestate Succession

When someone dies without a will, Minnesota’s intestate succession law decides who inherits (Minn. Stat. § 524.2-101 and following).

The surviving spouse (§ 524.2-102) takes:

Everything, if the deceased had no descendants, or if all of the deceased’s descendants are also the spouse’s and the spouse has no other descendants.
The first $225,000 plus half of the rest, if the deceased had children from another relationship, or the spouse has children from another relationship.

Everyone else (§ 524.2-103). Whatever doesn’t go to a spouse passes in this order, stopping at the first group with a living member:

Children and other descendants, “by representation,” so a deceased child’s share goes to that child’s children
Parents
Brothers and sisters, and their descendants
Grandparents and their descendants, split between the father’s side and the mother’s side
The next of kin

If no relatives can be found, the estate passes to the State of Minnesota (§ 524.2-105). An heir has to outlive the deceased by 120 hours (five days) to inherit (§ 524.2-104). Stepchildren who were never adopted aren’t heirs under these rules.

The Homestead Rule

The family home (the homestead) has its own rule that surprises many families. If there’s a surviving spouse, the homestead passes like this (Minn. Stat. § 524.2-402):

No surviving descendants: to the spouse.
Surviving descendants: a life estate to the spouse (the right to live in or use the house for life), with the remainder to the deceased’s descendants in equal shares.

This can apply even when there’s no will, and the general intestacy rules above apply only to what’s left after it (§ 524.2-101). It’s also why the probate code requires the spouse’s written consent before a personal representative sells a homestead the spouse has an interest in. With no surviving spouse, it passes like other real estate.

Minnesota Is Not a Community Property State

You may read that a spouse automatically owns half of everything. That’s the rule in community property states like California and Texas. Minnesota is not one of them. At death, a spouse’s rights come from the deed, the will, the intestacy rules, the homestead rule and the elective share.

Please note: I’m a home buyer, not an attorney, and nothing in this post is legal advice. Inheritance rules have exceptions, and every family is different. Talk with a Minnesota probate attorney about your situation before you make decisions or sign anything.

Do Heirs Pay Taxes on an Inherited House?

No Minnesota inheritance tax. Heirs aren’t taxed for receiving an inheritance.
Minnesota estate tax. It applies only to estates above $3 million, the exclusion for deaths in 2020 and later (Minn. Stat. § 291.016). Most estates owe nothing.
Capital gains. Under federal law, inherited property generally gets a “stepped-up” basis equal to its value at death (26 U.S.C. § 1014), so a prompt sale often has little taxable gain. Ask a tax professional.

Getting Authority to Sell

Inheriting a house doesn’t mean you can sign a deed. Usually a personal representative must be appointed through probate first.

Minnesota’s small-estate affidavit covers personal property, like bank accounts and cars, not a house (§ 524.3-1201).
If the person died more than three years ago and no probate was ever opened, a decree of descent may be an option (§ 525.31).
In informal probate, the personal representative has to wait 30 days after Letters are issued before selling real estate (§ 524.3-711).

I can’t skip these steps, but I can make a written offer and plan the closing around the probate timeline. My guide to selling a house in probate in Minnesota walks through it, and if you’re an attorney, see my page for probate attorneys.

How I Help Families With Inherited Houses

As-is. No cleanout or repairs. Take what you want and leave the rest.
No agent fees. I pay the closing costs, including the state deed tax and any required city point-of-sale inspection fee.
My own funds. No lender, appraisal or financing contingency.
A written offer that the personal representative, the heirs and the attorney can review with no pressure. The price is final after my inspection.
Remote signing for out-of-state heirs through my title company.

If the house is in great shape and the family has time, listing with an agent may net more. I’ll tell you if that’s the case.

Frequently Asked Questions

Who inherits a house in Minnesota if there is no will?

Often the surviving spouse inherits everything, but children from another relationship change the split. With no spouse, children inherit, then parents, then siblings. The homestead has its own rule when there’s a spouse and descendants.

Is Minnesota a community property state?

No. A spouse’s rights at death come from the deed, the will, the intestacy rules, the homestead rule and the elective share.

Does Minnesota have an inheritance tax?

No. Minnesota has an estate tax only for estates over $3 million.

Can heirs sell an inherited house before probate is finished?

Usually, yes, once a personal representative is appointed and any 30-day informal waiting period has passed.

Talk With Troy

If you’ve inherited a house anywhere in the Twin Cities, call me. You’ll get honest answers, a written offer and no pressure.

Call Troy at (612) 430-8822 or fill out the form on this page.

Disclaimer: Henry Home Buyer is a real estate investment company, not a law firm, and Troy Molde is not an attorney. This post is general information about Minnesota inheritance law, provided for educational purposes only. It is not legal or tax advice, may not reflect the most current law, and does not create an attorney-client relationship. For advice about a specific estate, please consult a licensed Minnesota probate attorney.