In 2008, Minnesota’s legislature passed a law allowing an owner of real estate to have their real property transferred upon death to beneficiaries. This is done by executing and recording a deed known as a Transfer on Death Deed (“TODD”).
I frequently advise my clients to use TODDs as part of their estate planning. They are a relatively simple, straight-forward method to avoid the cost of probating real estate. Parents, for example, through a TODD can transfer to their children their home upon death and little more work than providing a death certificate is needed.
Here’s the positives I like:
If you had your estate planning done prior to 2008, contact our law office to schedule an appointment to see if a TODD is right for you.
The most common mistake individuals make in their estate planning is believing the will they executed prevents probate.
The major benefit of a will, a very important one, is assuring that the administration of your estate will be conducted according to your unique personal wishes and not according to the one-size fits all direction by the government. However, your estate will still have to go through probate unless you’ve either made death beneficiary designations on your assets or created a trust which is administered outside the probate system.
Often, the best way to have your estate avoid the cost of probate is to have transfer on death designations for your various assets. Your home or other real estate can be transferred upon death through the use of a Transfer on Death Deed (see “TODD” above).
The Personal Representative handles the settling of an individual’s estate upon their death. There are generally two routes by which one becomes a Personal Representative. The first is they are designated as such in the decedent’s Will. The second is the Court designates them as such, generally where the decedent died without a Will (called ‘intestate’).
The main roles of a Personal Representative are as follows:
Generally speaking, the average person can perform their entire role as Personal Representative, without an attorney, but many don’t, with some good reason. First, probate is filled with numerous rules to follow. These many formalistic steps can grind down many people. Second, while Personal Representatives are usually not personally liable for good faith acts, it doesn’t shield one from the anger and/or frustration of others, often family. Finally, retaining an attorney can often help a Personal Representative buffer themselves from difficult family members.
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