How to Give the Kids Your Home and Still Protect Yourself- Minnesota’s Transfer on Death Deed

Minnesota has a nifty estate planning document that allows the owner of real property to name the person or persons to receive the property upon the owner’s death. The document is the Minnesota Transfer on Death Dead or TODD.    MN Statute Section 507.071

The owner ( grantor) names the beneficiary ( grantee or grantees) in the TODD.  The grantee receives the property only upon the grantor’s death.  If spouses have a TODD, then the grantee receives the property only after the death of the surviving spouse.

The TODD allows the grantor to keep complete property rights.  The grantor can change or revoke the TODD at any time he or she desires.  The grantees’ creditors cannot place a lien or record a judgment against the property until the TODD is effective. Put another way, Grandma’s wayward son’s creditors have no access to Grandma’s home.  Property subject of a TODD does not go through probate.   The property passes outside of probate according to the title – from grantor to grantee.  A will cannot revoke a TODD.

A TODD must be recorded in the county where the property is located. If the TODD is not recorded, then it is not valid.  A TODD will not avoid the placement of a medical assistance lien on the property. It will, however, not count against the grantor in need of medical assistance.

The TODD may be useful in your estate plan.  Ask your estate planning attorney if a TODD will work for you in the overall planning of your estate.

About Kate Willmore, Esq.

Kate Willmore, Saint Cloud, Minnesota, divorce, custody and family attorney brings over 25 years experience to every client's legal matter. *** Licensed in Minnesota and in California

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