How do I transfer title to my home without going through the court probate process
Historically if you owned real estate your estate at your death, you had to go through the probate process. The problem was that at your death, no one would have the authority to transfer your real estate to the next generation or to your beneficiaries. In 2008 the Minnesota legislature passed a law allowing the use of Transfer on Death Deed “TODD.”
A TODD allows a person or couple the ability to list a beneficiary to whom the title to real estate will pass after their death. This can be a very useful tool for estates that do not exceed the Minnesota estate tax exemption. (In Minnesota beginning in 2018, estates under $2 million are exempt from estate taxes)
The TODD provides that at your death (or at the second death of joint owners) any interest in the real estate will transfer to the person or persons you name as beneficiaries. This tool is very flexible in that you still retain full ownership interest in the real estate while you remain alive. You can sell, mortgage, or lease the property without getting anyone’s approval.
There are several issues of concern that need to be discussed before entering into a TODD. First, if your beneficiaries do not get along having them together on title can cause significant problems. Second, if any of the listed people have judgments against them, it is also not advisable to use a TODD.
To find out if a TODD will work with your estate plan call for a free consultation.