Although the probate process has its advantages, many people try to avoid probate time and expense. A Transfer-On-Death Deed (TODD) in Minnesota creates a “beneficiary” for your real estate. It functions like naming a beneficiary on your insurance policy. Similarly, a TODD allows a transfer of property to by-pass the probate process upon your death and transfer directly to the transferee (“beneficiary”).
- It’s inexpensive. For the cost of recording the TODD at the County Recorder’s Office (different in each county), you can arrange for this transfer of property upon your death.
- The TODD is only effective upon your death. Until that time, the successor to your property has no rights or privileges.
- It’s a relatively simple form.
- It allows the transfer of property as a “beneficiary” and avoids the probate process.
- If you change your mind, you can’t just rip it up, you must revoke it with another form.
- You may only leave it to one person or set of persons at a time. You can’t leave it to one person, and then if that person is not living at the time of your death, to another (like you can in a Will).
So, if you’re interested in a fairly straight-forward transfer of your Real Estate asset(s) to your loved ones upon your death, or if you are looking to avoid probate for some or all of your assets, ask your Estate Planning professional about a TODD and find out if it would be an appropriate planning instrument for you and your Estate.This blog is written by Bridget-Michaele Reischl, Attorney DECORO LAW OFFICE, PLLC www.decorolaw.com