Minnesota Transfer on Death Deeds
Avoid Probate While Keeping Control of Your Property
At Martin-O’Rourke Law, PLLC, Nicole C. Geffre, helps individuals and families throughout Central Minnesota determine whether a Transfer on Death Deed is the right estate planning tool for their situation.
Schedule a consultation to discuss whether a Transfer on Death Deed fits into your estate plan.
What Is a Transfer on Death Deed?
A Transfer on Death Deed (TODD) is a legal document authorized under Minnesota law that allows a property owner to designate one or more beneficiaries who will receive ownership of real estate upon the owner's death.
Unlike adding someone to your deed today, a Transfer on Death Deed:
Does not give your beneficiary ownership while you are alive.
Does not require probate solely to transfer the property.
Does not protect the property from a medical assistance lien.
Can usually be revoked or changed during your lifetime.
Allows you to continue living in, selling, refinancing, or mortgaging the property.
Think of a Transfer on Death Deed as similar to naming a beneficiary on a bank account, but for certain legally described real estate.
How Does a Minnesota Transfer on Death Deed Work?
The process generally works like this:
You sign a Transfer on Death Deed.
The deed is properly recorded during your lifetime.
You remain the sole owner of the property.
Upon your death, ownership transfers to the named beneficiary after the legal requirements have been met.
Until your death, your beneficiary generally has no ownership rights in the property.
Benefits of a Transfer on Death Deed
Many Minnesota homeowners choose a TODD because it can provide several advantages.
Avoid Probate
One of the primary benefits is avoiding probate for the real estate covered by the deed. Probate can take months and may involve court filings, attorney fees, and delays.
Maintain Complete Control
You continue to own your property. You may:
Sell it
Mortgage it
Refinance it
Lease it
Change your mind about the beneficiary
Your beneficiary cannot stop you from making decisions regarding your property.
Affordable Estate Planning Tool
For many people, a Transfer on Death Deed can be a cost-effective component of an overall estate plan.
Privacy
Unlike probate proceedings, transferring property through a TODD may reduce the amount of information that becomes part of a probate court file.
Who Should Consider a Transfer on Death Deed?
A Transfer on Death Deed may be appropriate for:
Homeowners with one primary residence.
Individuals who want to leave property to children.
Married couples wanting simplified transfers.
Owners of cabins or recreational property.
Individuals seeking to reduce probate assets.
People creating a straightforward estate plan.
However, not everyone is a good candidate.
When a Transfer on Death Deed May Not Be the Best Choice
Although TODDs are useful, they are not appropriate in every situation.
You may need a more comprehensive estate plan if you:
Have a blended family.
Own multiple properties.
Have minor children.
Own a business.
Have significant debts.
Want beneficiaries to receive property under specific conditions.
Need asset protection planning.
Expect family disagreements after your death.
A Transfer on Death Deed is only one estate planning tool. It should be coordinated with your will, powers of attorney, healthcare directive, beneficiary designations, and other planning documents.
Common Mistakes to Avoid
Many problems arise when homeowners attempt to prepare deeds without legal advice.
Common mistakes include:
Using an outdated form.
Naming beneficiaries incorrectly.
Not using a correct legal description.
Not recording a new TODD after selling or moving to a new home.
Failing to properly record the deed.
Creating conflicts with an existing estate plan, which can lead to litigation.
Forgetting to update the deed after divorce, remarriage, or the death of a beneficiary.
Assuming a TODD replaces a complete estate plan.
Correcting these mistakes after someone has died can be difficult and expensive.
FREQUENTLY ASKED QUESTIONS (FAQs)
Does a Transfer on Death Deed avoid probate?
Generally, yes. If properly prepared and recorded, the property should pass outside of probate. At present, the beneficiaries need to complete and record an Affidavit of Identity and Survivorship and affirm there are no medical assistance liens. This typically is faster than having to probate real estate. However, if you have other assets, you may still need a probate, or further planning to avoid probate, as to those assets.
Can I sell my home after recording a TODD?
Yes. You remain the owner during your lifetime and may sell or refinance your property.
Can I change my beneficiary?
Usually, yes. Minnesota law allows Transfer on Death Deeds to be revoked or replaced during your lifetime if the legal requirements are followed.
Does the beneficiary own the property immediately?
No. The beneficiary generally receives no present ownership interest while you are alive.
Can multiple beneficiaries inherit the property?
Yes. A Transfer on Death Deed can name more than one beneficiary.
Is a Transfer on Death Deed better than a will?
Not necessarily. A will and a TODD serve different purposes. There can be a benefit from having a properly drafted will and utilizing a Transfer on Death Deed.
Do I still need an estate plan?
Yes. A Transfer on Death Deed only addresses certain real estate. A comprehensive estate plan addresses your other assets, healthcare decisions, financial authority, and family goals.
Why Work With Nicole C. Geffre & Martin-O’Rourke Law?
Estate planning should be tailored to your goals.
When you work with Nicole, you'll receive:
Individualized legal advice.
A review of whether a TODD is appropriate for your circumstances.
Coordination with your broader estate plan.
Proper preparation and recording guidance of your deed.
Clear explanations without unnecessary legal jargon.
Whether you own a home, family farm, lake cabin, or investment property, we can discuss the best strategy for transferring your real estate while protecting your family's future.
Serving Central Minnesota
MN Lawyer Lady assists clients throughout Central Minnesota, including:
Meeker County
Stearns County
Kandiyohi County
Wright County
McLeod County
Renville County
Remote consultations may also be available for clients throughout Minnesota.
Schedule a Transfer on Death Deed Consultation
A Transfer on Death Deed can be an effective way to simplify the transfer of real estate, but it should be prepared carefully and coordinated with your overall estate plan.
If you're considering a Transfer on Death Deed in Minnesota, schedule a consultation to discuss your options. We are call/text or an email away. Together, we can determine whether a TODD is the right solution for your property and your family's future.
