What a transfer on death deed is
A transfer on death deed (often shortened to TOD deed or TODD) is a deed you sign and record now that names who will receive your real estate when you die. Minnesota has allowed them since 2008 under Minnesota Statutes section 507.071. Until your death the deed changes nothing: you still own the property, and you can sell it, refinance it, or change your mind. At your death the property passes directly to the beneficiary you named.
Why it matters for probate
In Minnesota, real estate titled in one person's name alone generally has to go through probate, whatever it is worth. For many families the house is the one asset that would send the estate to court, because bank accounts, retirement accounts, and life insurance already pass by beneficiary designation. A transfer on death deed closes that gap with a single recorded document.
How it works
- The deed is prepared. It carries the property's legal description and names one or more beneficiaries. You can also name successor beneficiaries in case your first choice dies before you.
- You sign before a notary. If you are married, your spouse generally needs to sign as well, even when only one of you is on the title. Joint tenants sign together, and the transfer takes effect when the last of them dies.
- The deed is recorded before your death. It must be recorded with the county recorder or registrar of titles in the county where the property is located. A signed deed that was never recorded is not valid.
- You keep full ownership for life. The beneficiary has no rights in the property yet, does not have to sign or even be told, and the beneficiary's creditors cannot reach it.
- After your death, the beneficiary clears the title. The beneficiary records an affidavit of identity and survivorship with a certified death certificate, together with a clearance certificate from the county agency addressing any Medical Assistance claim.
Changing or revoking the deed
You can revoke a transfer on death deed at any time during your life, but only with a document that is itself recorded before your death: either a formal revocation or a new transfer on death deed for the same property. A will does not revoke it. If your will leaves the house to one person and a recorded deed names another, the deed controls. Selling the property also ends the deed's effect, since there is nothing left for it to transfer.
A divorce generally cancels a transfer to a former spouse, but it is far safer to record a new deed than to rely on that rule. Review the deed after any marriage, divorce, or death in the family.
What it does not do
- It does not clear debts on the property. The beneficiary takes the property subject to any mortgage, lien, or judgment against it.
- It does not shield the home from Medical Assistance recovery. If you or your spouse received Medical Assistance, the state or county can still pursue its claim against the property after your death, and the beneficiary can be held responsible up to the value received.
- It does not plan for incapacity. If you can no longer manage your own affairs, the deed gives your beneficiary no authority to act. That takes a durable power of attorney or a living trust.
- It covers only the real estate described in it. Property you buy later is not included unless the deed says so. Bank accounts and vehicles need their own arrangements, and real estate in another state follows that state's rules.
- It does not reduce estate tax. Because you own the property until death, it is still counted in your estate.
Transfer on death deed, joint ownership, or living trust?
- Putting a child on the title now
- This is a gift the day the deed is signed. You then need the child's signature to sell or refinance, the property is exposed to the child's creditors and divorce, the gift can cause a Medical Assistance penalty, and depending on how it is done some or all of the stepped-up basis can be lost.
- Revocable living trust
- Also avoids probate, and does more. A trust manages the property if you become incapacitated, handles several properties and accounts under one set of instructions, and can hold a share for a minor, a beneficiary with special needs, or one who should not receive everything at once. It costs more to set up and has to be funded.
- Transfer on death deed
- The simplest and least expensive of the three. It fits best when you own one home or parcel of land, want it to go outright to one or a few adults, and expect no disagreement among them.
When a transfer on death deed is not enough
- A beneficiary is a minor or receives needs-based public benefits. Property left outright can require a court-supervised conservatorship or interrupt those benefits.
- You want a surviving spouse or partner to live in the home for life and the property to go to your children afterward.
- Several children will inherit one house together and may not agree on whether to keep it or sell it.
- You own real estate in more than one state.
In those situations a trust is usually the better tool. The two can also work together: a transfer on death deed may name the trustee of your trust as the beneficiary, so the home reaches the trust at your death without being retitled now.
Tell your insurance company
Under a 2024 Minnesota law, a homeowner's insurer must extend temporary coverage to the beneficiary after the owner's death, for up to 30 days, but only if the owner notified the insurer of the deed and gave the beneficiaries' names and contact information. Beneficiaries should arrange their own policy promptly and not assume the old one continues.
How the office helps
We confirm how the property is currently titled, obtain the correct legal description, prepare the deed, see that it is properly signed and recorded, and check that it agrees with your will, trust, and beneficiary designations. After a death, we help beneficiaries prepare and record the affidavit and clearance certificate so the title is clear.
Common questions
Does a transfer on death deed avoid probate in Minnesota?
Yes, for the real estate it describes, provided the deed was recorded before your death and a named beneficiary survives you. Other assets in your name alone may still require probate, so the deed works best alongside beneficiary designations and a will.
Can I still sell or refinance my home after recording one?
Yes. You remain the full owner and do not need the beneficiary's permission. A sale simply ends the deed's effect for that property.
What happens if my beneficiary dies before I do?
If you named a successor beneficiary, the property goes to that person. If you did not, and the beneficiary was a close relative such as a child, Minnesota law may pass the share to that beneficiary's descendants, which usually calls for a court order. If no beneficiary survives you, the deed fails and the property goes through probate. Naming successors and keeping the deed current avoids the uncertainty.
Does my will override a transfer on death deed?
No. A recorded transfer on death deed is not revoked by a will, even a later one. To change who receives the property, you must record a revocation or a new deed during your lifetime.
Will a transfer on death deed protect my house from nursing home costs?
No. Because you still own the property, the deed does nothing to shelter it, and the property stays subject to Medical Assistance claims after your death. Protecting a home from long-term care costs takes different planning, done well in advance.
This page is general information about Minnesota and federal law as it relates to transfer on death deeds. It is not legal advice for your situation. Laws and tax thresholds change; confirm current figures with the office before acting.