MINNESOTA LAW Questions and Answers

Moss & Barnett hosts and guest attorneys answer your questions on-air during WCCO Radio's MINNESOTA LAW, Presented by Moss & Barnett, heard every Saturday from 11am until Noon on WCCO AM 830. To post a law-related question regarding an upcoming or recent MINNESOTA LAW topic, click on "Ask the Lawyer" and complete the form. Then listen to the MINNESOTA LAW to hear your answer. We regret that we are unable to personally answer every question we receive.

Some questions we have received:

Q: Could you discuss estate law, specifically how much in taxes are withheld in Minnesota beyond the first $1,000,000 of the estate?

A:The computation of taxes on estates is typically unique to each situation, and we cannot hazard a guess for you without knowing the particulars of your situation. We encourage you to either see your own attorney or CPA, or to feel free to make an appointment with Cindy Ackerman at 612.877.5330. You may also want to visit the web site of the Minnesota Department of Revenue for their estate tax calculator: http://taxes.state.mn.us/estate_trust/pages/other_supporting_content_estate_calculators.aspx

Q: What if you sell your house for a price below what has been the market value on the property tax statement.  How do you get a refund for over paid taxes because of the over valuation?

A: It is important to remember that the property is assessed as of January 2 of the year prior to the taxes being payable. For example, the January 2, 2008 value is used for the 2009 taxes payable. If you have previously paid taxes on the property last year, then the deadline of April 30th to appeal those taxes already passed. 

If you consider the above dates, the January 2, 2008 valuation must be appealed by April 30, 2009. The first half of the taxes payable in 2009 are due by May 15, 2009. If you are disputing the property taxes already paid in 2008, then the deadline to appeal that valuation (January 2, 2007) was April 30, 2008. If I understand your questions correctly, then it is likely that it it too late to file an appeal. 

However, if you sold the home in early 2009, then you may still have a pro-rated interest (for the first few months of the year through the date of the closing) in the taxes payable for the remainder of 2009 if you can prove that the valuation as of January 2, 2008 was too high and if you file your appeal by April 30, 2009. You should also evaluate the costs of filing an appeal and how much you stand to recover for the pro-rated time period when making your decision as to the benefits of an appeal.

Q: I have been married for 8 years, although currently my marriage is on the rocks. I want to start a new business, which I will need to work at very hard, but if my marriage ultimately fails, would my former spouse receive half of my new business? Could we sign an agreement so that I would get to keep most of my new business? If not, I probably will not start the business at this time. Thanks for your advice.

A: In Minnesota, an already-married couple can enter into a legally enforceable, binding agreement to divide their existing and future marital assets (including the value of businesses started during the marriage), provided that they comply with all of the requirements of Minnesota law, including the need to be fair. Since one requirement is that each spouse signing a post-marital agreement must be represented by an attorney, you will need to retain legal counsel to learn more about how this might work in your situation.

Q: I am looking into purchasing a franchise. What are some issues that I should know about? What are some questions that I need to ask the franchisor?

A: This is really quite an involved point, as the issues involved range from financial and operational, to legal. You should, at a minimum, be given a written disclosure statement by the franchisor as required by Minnesota law. Then, it will be vitally important that you retain a qualified CPA and a lawyer with experience in such matters. Unfortunately, we cannot possibly cover all of the issues you will face in this Q&A format. I would add that you simply can't be too careful in performing a thorough due diligence review of the offering before jumping in! We have attorneys who are qualified and they could also assist in finding a CPA. Let us know if you would like to further pursue the matter with one of our attorneys. Thanks for your inquiry!

This program does not create an attorney-client relationship between Moss & Barnett, A Professional Association, or any attorney appearing on this program and any caller or listener. Please remember that we can only give general information and every case is unique. Always check with your individual attorney for any specific legal concerns.