Is an inheritance marital property in Minnesota? In this post, we’ll cover whether your inheritance will be considered marital property if you live in Minnesota. Keep in mind that you should seek the advice of an estate planning attorney when dealing with complex legal matters.
By Michael Urch, CFP® Senior Wealth Manager
As a CERTIFIED FINANCIAL PLANNER,™ Michael advises his clients on insurance planning, investment planning, retirement income planning, tax planning, and estate planning.
Is an inheritance marital property in Minnesota?
An inheritance is not generally considered marital property. Through divorce proceedings, any assets that are inherited are considered to be the property of the heir (not their ex-spouse-to-be).
If an inheritance is spent during a marriage, or if it is put into joint accounts during marriage it can become difficult to differentiate them from other marital assets. Keeping inherited accounts in your own name is one way to help keep them segregated from marital assets.
What are non-marital assets in Minnesota?
In most cases, non-marital property falls in one of three categories:
1) It was yours prior to the marriage, and you brought it into the marriage
2) It is from an inheritance received before or during a marriage by one spouse but not the other
3) It is from gifts that were received before or during a marriage by one spouse but not the other
Can my husband or wife get any of my inheritance?
If your inheritance is spent or commingled, yes.
Is a house owned before marriage marital property in MN?
A house owned before marriage could become marital property. For example, if the mortgage is paid off during marriage and significant improvements are paid for during marriage, it may be partially considered a marital asset.
How does co-mingling of assets affect inheritance in Minnesota?
When money is co-mingled, it can become difficult to tell what money is marital and what money is non-marital. For example, if money is placed in a joint bank account where a lot of various deposits and withdrawals are taking place, whose money is being spent? It can be difficult to tell if it is joint or individual money spent.
What should I do to protect my inheritance before or after getting married?
You could consider a prenuptial agreement if this is a concern for you. It is also beneficial to keep your own assets in your own name and avoid commingling them with your spouse’s money.
What should I do to protect my inheritance if I’m getting divorced?
You should work with a divorce attorney to make sure it is clear what money is yours by inheritance.
Is working with a financial advisor important when managing an inheritance?
Absolutely. Especially if you receive an inheritance without experience managing significant investments. Having a trusted professional can help ensure you are not making any mistakes with your inherited dollars.
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If you need a wealth management team to help you achieve your big-picture goals, we recommend scheduling a call with a financial advisor at 360 Financial. 360 Financial is one of Minnesota’s best independent wealth management firms with over 30 years of experience. We work with clients in Minnesota and across the US. If you’d like to work with a team that always puts your best interests first and is committed to helping you create a lasting legacy, please get in touch.
About the Author
Michael Urch
As a CERTIFIED FINANCIAL PLANNER,™ Michael advises his clients on insurance planning, investment planning, retirement income planning, tax planning, and estate planning. He prides himself on being a professional advisor who puts planning before products. This is one of the reasons he was attracted to 360 Financial’s client-focused culture. Michael likes to start with each client’s “why.” By understanding what’s truly important to them, the “what” of investment and planning strategies can be custom-designed to support their long-term ambitions.
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This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.