(612) 206-3701 info@lucerelegal.com

Why a Transfer on Death Deed is better than a Quit Claim Deed

Lucere Legal helps draft transfer on death deeds

Sometimes people quitclaim deed their home to their adult children because they want to give their house to them and think that’s a good way to avoid probate. It does avoid probate, but it’s a very bad idea for a number of reasons. The relationship with the kids could go south and the kids could literally evict the parents because they are no longer owners of the home. Also, the kids’ creditors can put a lien on the house and foreclose, forcing the parents to pay off the lien or move. A quit claim deed is non-revocable – once it’s done, it’s done.

A better solution is to do a transfer on death deed (also known as a TODD), which avoids probate, transfers the ownership of the property at death, protects the parents from ouster by the beneficiaries, protects the home from creditor claims of the beneficiaries until the transfer is complete (at death), and is fully revocable. Using a transfer on death deed, the parents can achieve their goals without exposing themselves to the risks associated with a quit claim deed.

Transfer on death deeds are appropriate for people who do not have other property that will need to go through the probate process. The most important aspect of using a TODD, though, is that it must be recorded with the county land records before death to be valid. Any revocation of a TODD also must be recorded before death. For those who use a TODD as part of their estate planning, it is important to get the document recorded right away.

To get a transfer on death deed drafted for your property, contact our office at (612) 206-3701 or through our contact form to schedule a time for us to sit down and talk.

Image courtesy of smarnad / FreeDigitalPhotos.net

Contact us to see how we can help you with Transfer on Death Deeds

You may also like . . .

No Results Found

The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.

The plain-English guide for Minnesota small business owners

When it comes to business, ignorance isn't bliss; ignorance is risk.

There's a handful of legal topics that business owners should be familiar with, at least on a rudimentary level, to reduce the risk of having something horrible come out of left field.

This book is a legal guide to help you put the most common business legal issues on your radar, with enough information for you to be on the alert for when you may need to get some professional advice.

The intention in arming you with this information is so that you can proceed in business confidently and with fewer legal quagmires.

Do you have a cabin?

The first generation that buys a cabin enjoys it to the fullest and it’s a magical place where happy memories are made and families go for some much needed respite. Unfortunately, without thoughtful planning, the chances of the cabin staying a place of happiness and tranquility into successive generations is very, very slim.

If you haven’t done the planning in advance and made it legally binding, the family members (and their ex-spouses and new spouses) will have to work every detail out for themselves. If they can’t, what is likely to happen is a lawsuit called an action for partition that forces everyone to sell their interest. This lawsuit is expensive, and the costs of litigation will come out of the proceeds of the sale of the cabin, so to add insult to injury to those who wanted to keep the cabin but couldn’t afford to buy the others out, they are footing part of the legal bills in the lawsuit against them. Ouch!

It’s no wonder that family members stop speaking for years after the cabin conflict is “resolved.” You can’t make family relationships perfect, but you can take away much of the fuel for the family conflict fire. That’s what cabin planning does, and it has the nice side effect of giving you peace of mind now.

That’s why Kimberly wrote The Minnesota Cabin Planning Guide and Workbook, and you can get a free electronic copy of her book on our cabin planning website, or you can find it in many county libraries in Minnesota, or you can get it on amazon.com.

Make An Appointment>

Join Our Mailing List

Subscribe to our newsletter list to get information and resources helpful to running your business and planning and managing your personal financial affairs delivered right to your inbox.

We don’t spam and won’t share your information with anyone, at anytime, ever.

Check out our podcast

The Small Business Buzz Podcast

Contact Us

We look forward to hearing from you!

 

Please note that any information submitted in our web form is not subject to attorney client privilege and no attorney-client relationship will be created until a representation agreement has been executed.

12 + 8 =