| Minnesota law now allows the use of Transfer on | | | | In addition to the avoidance of probate, an advantage |
| Death Deeds("TODD"). A TODD can be used to | | | | of a TODD is that the designated beneficiary has no |
| transfer real property to another person upon the | | | | rights to the owner's property during the owner's |
| owner's death. The use of a TODD allows the | | | | lifetime. As such, the beneficiary cannot transfer, |
| property to pass to the named beneficiary as | | | | mortgage or pledge any interest in the property as |
| non-probate property and thus can avoid the probate | | | | long as the owner is alive. Another advantage is that |
| process.This is a procedure similar to transfer-on-death | | | | the owner of the property also retains the right to |
| or pay-on-death accounts which are widely used at | | | | change his or her mind about who should receive the |
| banks. | | | | property on their death. The property owner can |
| With a TODD, an owner of real property can | | | | revoke the TODD or record a new one naming a |
| designate someone as the beneficiary of the property, | | | | different beneficiary. The revocation must be recorded |
| and upon the owner's death, the property will then | | | | prior to the owner's death. |
| pass to the named beneficiary.The property owner | | | | The use of a TODD does not avoid estate taxes. It |
| also has the option of naming more than one person | | | | also does not protect the property from creditors, as |
| as beneficiary. In order for a TODD to be valid, it must | | | | mortgages or other liens that are attached to the |
| be recorded during the lifetime of the owner. However, | | | | property will carry over to the beneficiaries. TODDs |
| the transfer of the real estate does not become | | | | can be useful estate planning tools in the right |
| effective until after the death of the owner. The | | | | circumstances. You should contact an experienced |
| named beneficiary must then record a death | | | | estate planning attorney to determine if using a TODD |
| certificate and affidavit of survivorship to have the | | | | to transfer your property is right for you. |
| property put into their name. | | | | |