Minnesota’s Transfer-on-Death Deed (TODD) has been a popular estate planning tool since 2008, when a law enabling the technique became effective.
The homeowner uses a TODD to designate who should inherit a specific parcel of real estate after the homeowner’s death. The TODD must be recorded with the county recorder (or registrar of titles, as the case may be) in the Minnesota county where the property is located prior to the death of the homeowner. » Read more..
Minnesota’s Transfer on Death Deed (TODD) for real estate is a popular way for Minnesota families to try to avoid probate upon the death of the property owner.
Probate in Minnesota isn’t the onerous process that it is in some states, but probate takes time and costs money regardless. Thus, many Minnesotans try to avoid probate.
Probate is triggered in Minnesota when the deceased: (1) owns real estate in his or her name alone, or (2) owns $75,000 or more in probate assets in his or her name alone. This blog focuses solely on the first trigger – ownership of real estate. » Read more..
The danger of thinking that your Will covers the transfer of all your assets at your death is that the distribution of your assets may not end up as you intended.
Your Minnesota Will covers only what is known as your “probate assets”. If your Will provides that each of your 3 children is to inherit one-third of your estate, each child will inherit one-third of your “probate assets” only.
Stated another way, the wording of your Will has no impact on assets that are considered “non-probate assets”, and your non-probate assets may be a significant portion of your estate. » Read more..
If several children are in line to inherit Minnesota real estate that is destined to be sold, probate may be faster, less complicated and less expensive than some of the maneuvers used to avoid probate.
Why? » Read more..
The value of the assets that you hold at your death is viewed two different ways: one way by the Probate Court and another way by taxing authorities. It’s easy to confuse the two versions. » Read more..
Odds are that you have assets that are not covered by your Will, and that’s not necessarily a bad thing.
Your Will covers your “probate” assets only. Your other assets are called “non-probate assets”. » Read more..
Minnesota’s relatively new Transfer on Death Deed (TODD) — a so-called “Will substitute for real estate” — works best when the property owner has a simple distribution plan in mind for the owner’s real property at death.
Historically in Minnesota, when one person owned a piece of real estate and then died, a probate action was automatically required. By authorizing TODDs effective August 1, 2008, the Minnesota Legislature created the opportunity to avoid probate. In other words, if the TODD is executed correctly, no probate action is triggered simply by the ownership of real estate. » Read more..
