When you start estate planning, you hope to have your assets go to your heirs quickly and easily. To do this, you plan to avoid probate as much as possible. While you can start to give away your assets now or create a trust to hold your assets, Minnesota has simple way for you to transfer your house without probate.
A transfer on death deed transfers your house to your heir while avoiding probate. The deed is a much simpler and less expensive option to keep your house out of probate court after you pass.
What does a transfer on death deed do?
To create a transfer on death deed, you write up a new deed that names your heir as the beneficiary of your house. The new deed states that the house stays in your name up until you pass away. You must file the deed in the county that the property is in. Then, when you pass away, the county records your death certificate with the land records office. This act officially transfers the property to your heir.
This transfer happens as soon as the county records the death certificate. A probate court does not have to rule on it like anything else that is in your will. This makes the transfer much faster and easier.
What if I change my mind?
A transfer on death deed is revocable. You can either revoke the deed outright or draft a new one naming a new beneficiary. As long as you record the revocation or the new deed with the county, the old deed becomes invalid.
A cost-effective option
While you have other options to avoid probate, such as living trusts, a transfer on death deed is typically a much simpler and less expensive route to pass along real estate. Since you only have to draft the deed and file it, you don’t need to create an expensive trust to take ownership of your house. For real estate, a transfer on death deed gives you benefits similar to a trust while being much cheaper.
A transfer on death deed is a cost-effective planning tool that helps your heirs avoid probate.