Although death is never easy, there are many legal issues that can make it even more complicated and difficult for loved ones. Luckily, there are also laws in place that allow for making some of the financial aspects of death easier. In the state of Minnesota, Transfer on Death Deeds are one tool in an estate plan that can greatly simplify the process of transferring property after death. If you live in Minnesota and own real estate, then our lawyers can help walk you through the options you have with Transfer on Death Deeds.
Minnesota Transfer on Death Deeds
Transfer on Death Deeds became part of Minnesota state law in 2008. Essentially, this document allows a person to transfer property such as real estate at the time of death. With a Transfer on Death Deed, there is no need to go through probate, which can be a long and expensive process. The deed is very similar to a “payable on death” account, in the sense that the property automatically goes to the beneficiary at the time of death.
There are many options available with a Transfer on Death Deed (TODD). A TODD can name multiple beneficiaries. It also assigns interests related to the property, including mortgage interests, life estates, fee interests and liens. The grantor may name multiple beneficiaries, and even create a line of succession. Both individuals, and entities, are eligible to be beneficiaries in a Transfer on Death Deed.
The Benefits of Transfer on Death Deeds
The main benefit of a Transfer on Death Deed in Minnesota is that it is a fairly simple process, especially when compared to probate. In order to receive the property, the beneficiary simply has to file certain paperwork. The transfer must take place at least 120 hours after the grantor’s death, and a fair market value of the property will be granted to the beneficiary. It is important to note that any mortgages, liens, or other interests associated with the property will be transferred along with the property.
Another major advantage of a Transfer on Death Deed is that it is relatively inexpensive, especially when compared to other options. This deed can greatly reduce the time and financial expenses necessary in probate. It also gives the grantor complete control of the property during life. Once a Transfer on Death Deed is executed, it may be revoked at any time prior to death.
In order for a Transfer on Death Deed to be valid and effective, all parties involved in ownership of the property must sign it. For example, if a spouse does not sign the deed, then the property will be subject to marital rights before it is subject to what is outlined in the TODD. A divorce may also lead to the termination of the TODD. Reasons like these are why it is always important to have a qualified attorney involved in your estate plan.
If you own property in the state of Minnesota, then a Transfer on Death Deed should be a part of your estate plan. We provide free consultations for all matters pertaining to estate plans. If you need further information, contact the Brown Law Offices, P.A. at 763-323-6555.