A new Minnesota law makes it easier and cheaper for Minnesotans to plan for the transfer of real property upon their death. The transfer on death deed (or TODD) legislation that went into effect last month allows a person to sign and record a deed transferring real estate directly to a named beneficiary when the person dies, thereby avoiding probate on the property. The transfer proceeds much the same way as financial accounts that have a “pay on death” designation.
Under the new law, the transfer on death deed must be recorded prior to the grantor’s death.
The grantor retains full ownership rights over the property while living, including the right to revoke the deed or sell the property.
In addition, a TODD may direct the transfer of real estate to one or more named beneficiaries, to a class of beneficiaries or to the trustee of a trust, and because the beneficiary has no ownership interest until the grantor’s death, the property is protected from potential claims by the beneficiary’s creditors.
According to real estate practitioners, the TODD is especially useful for small estates, where it will avoid probate when the only asset might be one particular piece of property, like a homestead.
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Avoiding probate made easier under new law
Under the new law, the transfer on death deed must be recorded prior to the grantor’s death.
The grantor retains full ownership rights over the property while living, including the right to revoke the deed or sell the property.
In addition, a TODD may direct the transfer of real estate to one or more named beneficiaries, to a class of beneficiaries or to the trustee of a trust, and because the beneficiary has no ownership interest until the grantor’s death, the property is protected from potential claims by the beneficiary’s creditors.
According to real estate practitioners, the TODD is especially useful for small estates, where it will avoid probate when the only asset might be one particular piece of property, like a homestead.
Full Article and Source:
Avoiding probate made easier under new law
I wish that every state would have the TODD law.
ReplyDeleteThis would help alot of guardianship victims alot.
Avoiding probate is the name of the game!
ReplyDeleteProbate is GOOD - for the unethical lawyers who churn it up to create continual cashflow.
ReplyDeleteTODD is better - if it works!
THIS LAW DOES NOTHING to prevent abuse on one's deathbed.
ReplyDeleteIn fact, it was by means of a deed, brought to my father's bedside just hours before he died, that my father was taken advantage of by an attorney and others.
See the transcripts, linked to http://members.aol.com/tvfields/dir.htm and http://members.aol.com/tvfields/ILF_Links/Frameset001.htm, of the testimony collected from lawyers, doctors and others during proceedings which I initiated to contest this deed, which was presented my father while he was being administered morphine under a Do Not Resuscitate order that was started just hours earlier, after a nurse found him writhing in pain in his hospital bed as a result of his cancer rupturing his stomach.