Safe deposit boxes are a great resource to store and protect valuable assets. However, they can cause problems during an estate administration. The first issue that arises is the lack of knowledge that the decedent had a safe deposit box. Often the individual administering the estate is neither aware of the existence nor the location of the safe deposit box. The next issue then is accessing the safe deposit box when the decedent was the sole lessee.
Minnesota Statute 55.10 outlines exceptions permitting access to a safe deposit box when the sole lessee or all lessees of the box have died. Under MN Statute 55.10, a safe deposit company shall permit the examination of a safe deposit box when…
“…an individual who appears in person and furnishes an affidavit stating that the individual believes:
(1) the box may contain the will or deed to a burial lot or a document containing instructions for the burial of the lessee or that the box may contain property belonging to the estate of the lessee; and
(2) the individual is an interested person as defined in this section and wishes to open the box for any one or more of the following purposes:
(i) to conduct a will search;
(ii) to obtain a document required to facilitate the lessee’s wishes regarding body, funeral, or burial arrangements; or
(iii) to obtain an inventory of the contents of the box.”
An individual is an “interested person” under this statute if the individual is:
- the named personal representative of the decedent lessee’s estate;
- had a right of access to the box as a deputy immediately before the decedent lessee’s death;
- the surviving spouse of the decedent lessee;
- a devisee of the decedent lessee;
- an heir of the decedent lessee;
- a person designated by the decedent lessee in a writing acceptable to the safe deposit company which is filed with the safe deposit company before death; or
- a state or county agency with a claim against the decedent lessee’s estate.
To read the full statute, click here.
Estate planners typically advise against clients storing their Wills or Trust Agreements in their safe deposit box because of the problems noted at the beginning of this post. If a client does lease a safe deposit box, regardless of whether they place their estate plan in the box, we encourage them to make sure someone is at least aware of its existence and location.
One of the many reasons driving clients to finally complete their estate plan is the desire to make things easier for loved ones when they pass away. But as we often tell clients, it is not enough to just complete their estate plan – they must organize their “affairs” to truly make the estate administration process easier. You need to ensure that others will be able to locate your assets once you’re gone – in and out of a safe deposit box. For suggestions on how to organize your estate, see Jamie Held’s post Get Your Affairs In Order.
