Selling an Inherited House in Minnesota: Probate, Transfer on Death Deeds, the Clearance Certificate, and the $3 Million Line (2026)

Selling an inherited house in Minnesota starts with one question: who has the legal right to sign the deed? The answer depends on how the owner held title and what paperwork exists. It may be a personal representative appointed in probate, a beneficiary named in a transfer on death deed, or a surviving joint tenant.

This guide covers chapter 524 of Minnesota Statutes and the other laws a title company will ask about. For the wider picture, see our guide to selling an inherited house. None of it has to be settled this week.

Does an Inherited Minnesota House Need Probate?

Often it does, because Minnesota's small estate affidavit cannot transfer a house. The main exceptions are houses that passed at death by a transfer on death deed or by joint tenancy. Those skip the probate court, though not every county check.

The $75,000 affidavit covers personal property only

Thirty days after a death, a successor can collect certain assets with a sworn affidavit. The whole probate estate, less liens, must be worth $75,000 or less (Minn. Stat. § 524.3-1201). The statute covers debts owed to the owner, tangible personal property, stock, safe deposit box contents, and vehicle titles.

It lists no real estate. The affidavit can close a bank account or retitle a car, but it cannot put a house in anyone's name at any value.

Summary closing is still a court case

A court can close an estate summarily when the gross probate estate is $150,000 or less, not counting an exempt homestead and exempt property (Minn. Stat. § 524.3-1203). That is a court proceeding with conditions, not a way around the court.

Ways an Inherited Minnesota House Changes Hands

Five of the six paths below can transfer or sell a Minnesota house, and collection by affidavit is the one that cannot. The recorded deeds usually show which path applies, and a title company can pull them early.

Minnesota Probate: Can the Personal Representative Sell the House?

Yes, a personal representative can sell the house, and a separate court order to sell is usually not needed. The Uniform Probate Code lets the representative "sell, mortgage, or lease any real or personal property of the estate," including the homestead (Minn. Stat. § 524.3-715, clause 23). The same clause sets two limits:

• A house left to a named person. Heirs' consent is not needed unless the will specifically leaves the house to someone.
• The spouse's homestead. When a surviving spouse takes any interest in the homestead, it cannot be sold "unless the written consent of the spouse has been obtained."

Informal probate

Informal probate runs on paper through the registrar, a court official, with no hearing. The application lists the heirs, the will if there is one, and the county where the owner lived (§ 524.3-301). Once at least 120 hours have passed since the death, the registrar can appoint the representative (§ 524.3-307).

Formal probate

Formal probate is conducted before a judge "with notice to interested persons" (§ 524.3-401). Families end up there when a will is contested, only a copy survives, or the heirs are unclear.

The three-year limit

Most probate and appointment proceedings cannot start "more than three years after the decedent's death" (Minn. Stat. § 524.3-108). The limit does not apply to proceedings to determine descent, which is the next path.

The Decree of Descent When Nobody Opened Probate

When an owner has been dead more than three years and no probate was opened, an interested person can petition the District Court for a decree of descent (Minn. Stat. § 525.31).

Notice is published once a week for two consecutive weeks in a legal newspaper before the hearing (§ 525.312). The court enters the decree only after a clearance for medical assistance claims is on file and any claim is paid or settled.

The medical assistance clearance

The petitioner applies to the county agency, which checks whether the owner or a spouse who died earlier received Medical Assistance (§ 525.313). The county must mail the clearance within 15 working days after it receives the application. If a claim exists, it can be paid from the house, "including the net sale proceeds."

Heirs do not always have to wait for the final decree. A partial decree of descent allows "the good faith sale of their interest" free of the claim. The net proceeds are then held and used to pay any claim before the heirs receive the rest.

Transfer on Death Deeds and the Clearance Certificate

A transfer on death deed moves the house to the named beneficiary at death without probate, but the beneficiary still records paperwork before a sale. The deed counts only if it was "recorded before the death" of the owner (Minn. Stat. § 507.071, subd. 8).

What the beneficiary records after the death

The house passes subject to every mortgage, lien, and judgment that existed at death. It also passes subject to a state or county medical assistance claim if the rest of the estate cannot pay it (subd. 3). To show that claim is handled, "the beneficiary must record a clearance certificate." In practice, the recorded package is:

• An affidavit of identity and survivorship, with a certified copy of the death record attached and an address for future tax statements (subd. 20).
• The clearance certificate from the county agency where the house sits, handled the same way as a decree of descent clearance under § 525.313 (subd. 23).

On registered (Torrens) land, "a new certificate of title must not be issued until the clearance certificate is recorded" (subd. 23). If the county reports a claim, a court can allow a sale free and clear of it. The sale proceeds are then held to settle the claim.

Joint tenancy and survivorship

A deed to two or more people creates a tenancy in common "unless expressly declared to be in joint tenancy" (Minn. Stat. § 500.19, subd. 2). When the deed does say joint tenancy, the survivor owns the house when the other owner dies. The survivor usually records a certified death record to clear the title.

For joint tenancies created on or after August 1, 2003, a medical assistance claim can continue against the deceased owner's share (Minn. Stat. § 256B.15). A homestead held by spouses as joint tenants, where the surviving spouse lives, is generally outside that rule. A title company will check.

Does an Inherited Minnesota House Owe Estate Tax?

Only if the whole estate is large, because Minnesota subtracts a $3,000,000 exclusion for anyone who died in 2020 or later (Minn. Stat. § 291.016, subd. 3). Gifts made within three years of death are added back into the estate.

A Minnesota estate tax return is due when the federal gross estate plus those gifts exceeds $3,000,000, or when a federal return is required (Minn. Stat. § 289A.10). An estate built around one house and ordinary savings often falls under that line.

The federal step-up in basis

An heir's federal tax basis is generally "the fair market value of the property at the date of the decedent's death" (26 U.S.C. § 1014). In plain words, the value the house gained during the parent's lifetime is generally not taxed to the heir. If the house sells near its date-of-death value, the taxable gain is usually small.

Nonresident heirs still owe Minnesota tax on "income from property or businesses in Minnesota" (Minnesota Department of Revenue, September 2026). A tax professional can confirm the numbers.

Deed tax on estate deeds

Two estate deeds owe no deed tax: a personal representative's deed of distribution to the heirs and a transfer on death deed (Minn. Stat. § 287.22, clauses 8 and 15). A deed that sells the house to a buyer is different. It owes .0033 of the net consideration (§ 287.21). Hennepin and Ramsey counties add .0001 (§ 383B.80; § 383A.80).

The state's own example: a $200,000 sale owes $680 in Hennepin or Ramsey and $660 elsewhere (Minnesota Department of Revenue, September 2026). The purchase agreement decides who pays it.

Well, Radon, and TISH Duties That Survive the Death

A seller's disclosure duties survive the death, because Minnesota exempts the transfer to the heirs, not the heirs' later sale to a buyer. Whoever sells takes on the duties any seller would.

Wells

Before signing a purchase agreement, the seller discloses "the status and location of all known wells" (Minn. Stat. § 103I.235). At closing, a well disclosure certificate goes with the deed unless the deed states the seller "does not know of any wells." The statute has no estate or heir exception.

Radon and the disclosure statement

The radon disclosure exempts "a transfer to heirs or devisees of a decedent" and transfers under a court order (Minn. Stat. § 144.496). The general disclosure statement lists the same exceptions (Minn. Stat. § 513.54). An heir who later sells to a buyer is covered by both.

An heir who never lived in the house can only disclose what the heir actually knows. Our guide to Minnesota seller disclosure requirements covers what a written waiver can and cannot reach.

Truth in Sale of Housing in Minneapolis and St. Paul

A probate sale does not skip a city time-of-sale report. Minneapolis exempts sales by court officers, but "this exemption does not apply, however, to the sale of a dwelling by a person appointed by a probate court" (Minneapolis Code of Ordinances § 248.60). In Minneapolis, required repairs on the report pass to the buyer after closing (City of Minneapolis, September 2026).

St. Paul's program summary says its exemption "does not apply to the sale of a dwelling by a personal representative" (City of Saint Paul, September 2026). St. Paul does exempt a sale to an heir or part owner.

Out-of-State Heirs and a House Full of Belongings

Heirs who live outside Minnesota can usually sell without flying back for the closing. Minnesota closings are commonly handled by a title company, which can often mail the closing papers for signing before a notary where you live.

An empty house through a Minnesota winter

A vacant house needs heat or winterization, regular checks, and an insurer that knows it is empty. Our guides on selling a vacant house in Minneapolis or St. Paul and Minnesota tax forfeiture cover the city fees and the county clocks. These are reasons to plan, not reasons to hurry.

The contents

Many inherited houses still hold decades of furniture, papers, and keepsakes. Heirs usually agree on who takes what. A cleanout is not required before a cash sale. Take what you want, leave the rest.

Listing or a Cash Offer for an Inherited Minnesota House?

Listing often suits an updated house that shows well, while a direct cash sale can fit a house that needs work or is still full. The statewide median sales price was $370,000 in August, up 2.8% from a year earlier, with 40 days on market (Minnesota Realtors, August 2026).

Inventory rose 10.3% to 20,304 listings (Minnesota Realtors, August 2026). Active listings reached 18,852, up 30.6%, and 6,940 listings had a price cut (Realtor.com via FRED, August 2026). Zillow's typical Minnesota value was $350,752, up 2.5% (Zillow ZHVI, August 2026).

Listing with an agent

A listing can bring the most money for a clean, updated house. The estate usually pays for the cleanout, lender-required repairs, the commission, and every month the house sits. If listing is the better move, Propcash will say so and point you to a local agent who fits. We may receive compensation from agents we refer.

A cash offer on the house as it stands

Propcash is a direct cash homebuyer that buys houses as a principal. We make one transparent, data-backed offer and show how we got to the number. The offer can price the house as-is, with no repairs, no cleanout, and no showings, and it stands while the family decides.

There is no rush to decide. The appointment, the decree, or the clearance certificate sets the pace, and the closing follows that step on a date you pick. Sellers pay no fees or commissions to Propcash. When the family is ready, you can get a cash offer on the inherited house or read how we buy houses across Minnesota.

Frequently Asked Questions

Can you sell a house during Minnesota probate?

Yes, a house can be sold during Minnesota probate once the court or registrar appoints a personal representative. Under Minn. Stat. § 524.3-715, the representative can sell estate real estate, including the homestead, without a separate court order to sell. A surviving spouse who takes an interest in the homestead must consent in writing.

Can the $75,000 small estate affidavit transfer an inherited house in Minnesota?

No, the Minnesota small estate affidavit cannot transfer a house. Minn. Stat. § 524.3-1201 lets a successor collect debts, tangible personal property, securities, safe deposit box contents, and vehicle titles when the probate estate is $75,000 or less. It does not reach real estate at any value.

What does a transfer on death deed beneficiary need before selling a Minnesota house?

The beneficiary records an affidavit of identity and survivorship with a certified death record, plus a medical assistance clearance certificate from the county agency where the house sits. Minn. Stat. § 507.071 requires the clearance certificate, and the deed only works if the owner recorded it before death.

What happens if nobody opened probate within three years of the death?

Most Minnesota probate proceedings cannot start more than three years after the death, but heirs can petition the District Court for a decree of descent under Minn. Stat. § 525.31. The court needs a county clearance for medical assistance claims before entering the decree. A partial decree can allow the heirs to sell their interest before the final decree.

Does a Minnesota estate owe estate tax on an inherited house?

Only if the whole estate is large enough to owe Minnesota estate tax. Minnesota subtracts a $3,000,000 exclusion for deaths in 2020 and later. A state return is due only when the federal gross estate plus gifts made within three years of death exceeds that amount.

Does a probate sale in Minneapolis or St. Paul still need a Truth in Sale of Housing report?

Yes, a probate sale in Minneapolis or St. Paul still needs a Truth in Sale of Housing report in both cities. Minneapolis Code of Ordinances § 248.60 says its court-officer exemption does not apply to a sale by a person appointed by a probate court. St. Paul's program summary says the same about a personal representative.