A transfer-on-death deed (TODD) can allow a Minnesota homeowner to pass a home to a named beneficiary without going through probate. The owner keeps full ownership of the property; the TODD takes effect only after the owner’s death. It can be a useful estate-planning tool for homeowners who want to transfer real estate to family members. Minnesota law requires homeowners to meet specific legal requirements before a TODD can avoid probate.
How a transfer-on-death deed works
A TODD gives a property owner the legal authority to name one or more beneficiaries who will receive a specific piece of real estate after the owner’s death. The chosen beneficiaries do not get any ownership rights when the owner is alive. The owner can revoke or replace the deed if the situation changes. To be valid, a TODD must meet Minnesota’s requirements for real estate deeds and be recorded in the appropriate county before the owner’s death.
When a TODD may be helpful
A TODD might be useful for homeowners who want to:
- Pass a home to family without the property going through probate
- Keep full control of the property during their lifetime
- Name one or more beneficiaries for the property
- Change or revoke the deed before death if plans change
It is also important to understand what happens after the owner’s death.
What happens after the owner’s death
A recorded TODD does not automatically transfer estate title to the beneficiary. Minnesota law requires additional steps before the transfer is complete. Depending on the situation, the beneficiary may need to record documents such as a death certificate and complete other legal requirements before the property can be sold or refinanced. Knowing these rules as part of estate planning for a family home can help prevent delays when transferring the property.
