When a parent or other relative in Minnesota passes away and leaves you the house, the timing is never convenient, and living in another state makes it harder. You may have walked through the house once after the funeral, locked the door, and gone home. Meanwhile it sits empty, and every month it costs money in taxes, insurance, and utilities.
You can handle most of this from where you live, as long as you take the steps in the right order. Your county, the probate court, and a Minnesota attorney are the authorities on your specific situation, so treat this article as an overview, not a substitute for their guidance.
A vacant house faces risks an occupied one does not, and a Minnesota winter raises the stakes. A single frozen pipe can cause serious water damage before anyone notices.
Keep the heat and utilities on. Set the thermostat low, but never turn it off, and transfer the utility accounts into the estate's or an heir's name. If the house will sit empty through the winter, have a plumber evaluate whether it should be winterized.
Notify the insurance company. The policy is probably still in your relative's name, and most homeowner policies limit or change coverage once a house has been vacant for a period of time. Tell the insurer about the death and ask specifically what is covered while the house is unoccupied. Our post on vacant house problems in the Twin Cities covers vacancy clauses in more detail.
Arrange regular check ins. Ask a trusted neighbor, friend, or property manager to walk through the house on a set schedule and look for leaks, frozen pipes, and signs of a break in. Someone will also need to handle snow removal. Most cities in the metro require sidewalks to be cleared after a snowfall and will bill the owner if a city crew does it.
Change the locks and redirect the mail. Caregivers, cleaners, neighbors, and relatives may all have keys. Forwarding the mail matters too, because that is where you will find tax statements, utility bills, and any notices about what the house owes.
No one can sell the house until someone has the legal authority to sign for it. In Minnesota, that authority typically comes through one of three routes.
A transfer on death deed. If your relative recorded a transfer on death deed before passing, the named beneficiary can usually take title without probate by recording a few documents with the county, including a clearance related to any public assistance claims. Hire an experienced attorney who can tell you exactly what is required.
Joint ownership. If the house was owned jointly with someone who is still living, that person generally becomes the owner by recording a death certificate and supporting documents.
Probate. If the house was in your relative's name alone and there was no transfer on death deed, the estate will need to go through probate. Minnesota's small estate procedure does not cover real estate. Many estates use informal probate, which is handled by the court's probate registrar and usually does not require a hearing. The court appoints a personal representative and issues documents called letters, which authorize that person to act for the estate, including selling the house. In most estates, the personal representative can sell without the court approving the sale.
Living in another state does not, by itself, disqualify you from serving as personal representative. Probate is opened in the county where your relative lived, and a local probate attorney can usually handle the filing without you traveling. If there is a surviving spouse, or the will leaves the house to a specific person, additional consents may be required. Our complete guide to selling an inherited house in Minnesota covers the probate process in more depth.
Inherited houses often come with debts and charges the heirs do not know about yet.
A mortgage or reverse mortgage. A mortgage does not go away when the borrower dies, and missed payments can still lead to foreclosure. A reverse mortgage generally becomes due at the borrower's death, and the lender gives heirs a limited period, usually a matter of months, to pay it off or sell. Contact the loan servicer early.
Property taxes. Once no one lives in the house, it will eventually lose its homestead classification, which can raise the tax bill. The county assessor can tell you when that change takes effect.
Medical Assistance. If your relative received Medical Assistance, the state may have a claim against the house. That claim is addressed during probate or the transfer on death process, and it can reduce what the heirs receive.
City and utility balances. Unpaid water bills and other city charges can be added to the property taxes and are typically paid off at closing.
The personal representative has the legal authority, but disagreements among heirs are one of the most common reasons inherited houses sit unsold. Put the key decisions in writing early: the minimum price everyone will accept, who pays the taxes, insurance, and utilities until the sale, how those expenses are reimbursed at closing, and how the proceeds will be divided.
Remote closings are routine. Twin Cities title companies regularly handle closings by mail, using a notary near you, or through remote online notarization.
The contents do not have to hold up the sale. You can hire an estate sale company, donate what remains, or sell the house with the contents included. Remove important papers, photos, and keepsakes first.
City inspections may apply. Minneapolis, St. Paul, and several suburbs require a point of sale or truth in housing evaluation before a house is sold. Someone local will need to give the evaluator access.
Taxes may be lower than you expect. Inherited property generally receives a stepped up tax basis, which can mean little or no capital gains tax if the house is sold soon after the death. Confirm the details with a tax professional.
Fix it up and list it. This brings the highest sale price and makes sense if the house needs little work and someone local can manage the contractors. From another state, you are paying for work you cannot see in person while covering taxes, insurance, and utilities through the winter.
List it as is with an agent. This is a middle path. You still need showings, inspections, an appraisal, and approval from the buyer's lender, and the house has to stay in show condition the entire time it is listed.
Sell it to a cash buyer. We will be direct about this: a cash offer will be lower than what the same house would bring on the open market after repairs. In exchange, you choose the closing date and skip the repairs, showings, lender approvals, and trips back to Minnesota. After you subtract repair costs, months of carrying costs, and commissions, the difference is often smaller than heirs expect.
A word of caution: out of state heirs are frequent targets, and not every offer that shows up in your relative's mailbox is legitimate. Work only with buyers who have an established local track record, close through a licensed Minnesota title company, and never ask you for money upfront. Our post on seven ways to spot scams when selling your house for cash explains what to watch for.
Inherited a Twin Cities house and live out of state? Homefield Homebuyers buys houses as is, contents included, and works directly with your probate attorney and a local title company so you can close from wherever you live. Contact us for a no obligation offer. Visit HomefieldHomebuyers.com and fill out our contact form or send us an email at Sales@homefieldhomebuyers.com to get started.
This article is general information only. It is not legal, tax, financial, or insurance advice, and it is not a substitute for talking to a professional about your own situation. Probate procedures, transfer on death requirements, public assistance claims, property tax classification, insurance coverage, point of sale requirements, and deadlines vary by county, by city, by policy, and by property, they change over time, and the descriptions above are simplified. Do not rely on this article for your own deadlines, obligations, or numbers. Confirm your specific situation with your county, your city, your insurance company, and a licensed Minnesota attorney or tax professional before making any decision about the property.