Thursday, February 07, 2013
Estate Planning Lessons, Part 1: Ownership of Property in Another State
As noted in a prior post, the year 2012 was a difficult one for me personally with the loss of both my parents. It has been emotional and trying to deal with the losses and then, on top of that, try to work through their estates with two different sets of family. This is the first post conveying some of the lessons I've learned in my continuing attempt to educate others about the need to work with someone to properly plan your estate.
Even the family of an estate planning attorney can be unprepared for an unexpected event. A week before my father's death I found out that he owned property in North Dakota. It turns out that my great grandfather had land there and divided it up between his children who did the same all the way down the line so that now my siblings and I own a piece of North Dakota land. At least we will own it once we go through the probate process and have the deed changed to our names.
You may think "Well, you're an estate planning attorney so can't you just take care of that?" Unfortunately for us, I can't as I'm not licensed in North Dakota. So, now we will need to hire a North Dakota attorney several thousand dollars to get the property into our names. No, the irony is not lost on me.
So, this post is to urge you to talk to your loved ones about what you own or ask what they may own so that you can properly manage things now before it's too late. If I would have known about the North Dakota property earlier, I would have urged my Dad to get a trust and deed the property into it so that we would now be able to avoid the hassle, expense and pain of going through probate in another state.
Monday, November 05, 2012
Minnesota Transfer on Death Deed, Part 4:Can You Cancel a Transfer on Death Deed After It's Filed?
In this series of posts, we've been discussing transferring a home via a transfer on death deed. You own property in your name alone and want to be sure that it goes to the beneficiary of your choice without the expense and delay of probate. So, after reading these informative blog posts, you decide to use a Transfer on Death Deed (“TODD”) to achieve this purpose.
But what happens if you change your mind after you have executed and filed the deed with the county? Can you cancel or change the TODD?
Yes. The Deed does not do anything to your rights over the property during your lifetime. It only takes affect upon your death. Therefore, nothing is set in stone until after death. You may, at any time, change the beneficiary or cancel the deed altogether. But, you MUST file the transfer on death deed revocation prior to your death.
Monday, October 29, 2012
Minnesota Transfer on Death Deed, Part 3: How Do You Get One?
Twin Cities Estate Planning Attorney Explains the Steps Necessary to Use a Minnesota Transfer on Death Deed
If you are a property owner and wish to use a transfer on death deed (“TODD”) to transfer that property without the hassle of probate, you must
Choose a beneficiary or beneficiaries
Execute a valid deed that expressly states that it is effective only upon your death
Record the deed in the county in which the property is located prior to your death.
Pay the filing fee.
A few things to note. If the property is jointly owned then all owners must sign the deed. And as #3 above states, it is not enough to execute the deed - you must also record it with the proper county before your death.
Wednesday, October 17, 2012
Minnesota Transfer on Death Deed, Part 4: Can You Change Your Mind?
We've been discussing the benefits of using a Minnesota Transfer on Death Deed to transfer your home to another person at your death. You own property in your name alone and want to be sure that it goes to the beneficiary of your choice without the expense and delay of probate. So, you decide to use a Transfer on Death Deed (“TODD”) to achieve this purpose.
Can you cancel a Minnesota Transfer on Death Deed?
Yes. The Deed does not do anything to your rights over the property during your lifetime. It only takes affect upon your death. Therefore, nothing is set in stone until after death. You may, at any time, change the beneficiary or cancel the deed altogether.
Monday, October 15, 2012
Minnesota Transfer on Death Deed: Should I Use it To Transfer My House?
Minnesota Estate Planning Attorney Discusses the Benefits of Using a Transfer on Death Deed to Transfer a Home
Minnesota has a unique tool to for use in avoiding probate known as a Transfer on Death Deed (“TODD”). In 2008 Minnesota’s legislature passed a law that allows the owner of real estate to execute a deed naming a beneficiary who, upon the current owner’s death, will succeed to ownership of that property.
There are several benefits to using a Transfer on Death Deed to transfer real property to someone.
You Retain Your Ownership Interests. The property is not transferred until the your death. So, you retain full ownership of the property during your life. So, you may choose to remain living in the home, sell it, borrow against it or give it away without restriction.
Your Home Is Still Protected. The finanacial obligations of the beneficiary will not affect your rights to the property. This is because the beneificary does NOT have any "present interest" in the property so if he/she has any legal actions such as bankruptcy, lawsuits, or divorce that are brought against the beneficiary won’t affect the property. This offers you a lot of protection in leaving the property to someone who may not be the best at managing money as a creditor may NOT file a lien against property subject to a transfer on death deed.
Your Heirs Will Avoid Probate For That Home. Again, this is probably the main reason why people choose a Transfer on Death Deed. The real estate won’t be subject to the costs and time of court probate proceedings- the beneficiary simply submits an affidavit and death certificate with the county recorder. This allows the home to transfer to the beneficiary quickly and inexpensively. It allows avoids the "ease of contest" often found in probate procedures.
You Can Revoke It. This means that you can change or delete the beneficiaries named in the document, even without their consent. Names can be deleted or added as the you sees fit. Or, you can revoke the entire document and dispose of the property in another manner (e.g. sell it or put it into a trust).
You Have Not Given a Gift. Because you are not giving the beneficiary a present interest in the home, there is no gift. This avoids issues with having to file a gift tax return or potential problems if you end up needing medicaid (medical assistance) in the future.
As these come up quite often in my practice, whether between partners or parents and children, I will address the different aspects of Transfer on Death Deeds in a series of future posts.
From within Hennepin County Unique Estate Law represents estate planning and elder law clients throughout Minnesota, including Minneapolis, Edina, Bloomington, St. Louis Park, Minnetonka, Plymouth, Wayzata, Maple Grove, St. Paul, and Brooklyn Park. The Minnesota law firm of Unique Estate Law focuses on all aspects of estate planning, including specialized wills, trusts, powers of attorney and medical directives for married couples, young families, blended families, single parents, gay families and those going through a divorce. Unique Estate Law also handles probate administration, asset protection, Medical Assistance planning, elder law, business succession planning, adoptions and cabin planning.