Transfer on death deed

Also called: TODD.

Where the statute uses it: Minn. Stat. § 507.071

What it means

Section 507.071 defines the instrument in six words — a transfer on death deed “means a deed authorized under this section” — and then spends twenty-six subdivisions on what that authorization involves. Subdivision 2 is the operative one.

A deed that conveys or assigns an interest in real property, to a grantee beneficiary and that expressly states that the deed is only effective on the death of one or more of the grantor owners, transfers the interest to the grantee beneficiary upon the death of the grantor owner upon whose death the conveyance or transfer is stated to be effective, but subject to the survivorship provisions and requirements of section 524.2-702.

The same subdivision states the deed’s status before that death: it “has no effect on title to the real property described in the deed,” though it does create an insurable interest in the property for the designated beneficiary, for the purpose of insuring against loss or damage occurring on or after the deed becomes effective. Subdivision 8 gives the recording rule — the deed is valid if recorded, before the death of the grantor owner on whose death the transfer is effective, in a county where at least part of the property is located. Subdivision 10 lets any grantor owner revoke by a revocation recorded before that owner’s death, and makes the deed ineffective as to any interest the grantor owner conveys away in the meantime. Subdivision 9 permits the grantee to be the trustee of a trust, including a revocable one.

Where the word shows up

In county land records, and in the recital of any later title work on the property. Subdivision 3 is the one sellers of estate plans leave out: the interest passes subject to liens and encumbrances existing at death, including a claim or lien by the state or county under §§ 246.53, 256B.15, 256D.16, 261.04, and 514.981 if other estate assets are insufficient, and the beneficiary must record a clearance certificate under subdivision 23.