I want my home to go to my friend upon my death, how do I do this?
by: Legal Aid Service of Northeastern Minnesota-Duluth
A legal question and answer column for seniors.
DEAR SENIORS LEGAL LINE:
I only own my home and a very small bank account with $500 in it. I want the home to go to my friend upon my death. I don't want my friend to own it while I am alive, I just want her to get it when I die. I have heard that there may be a new way to do this. Can you tell me how to do this?
Signed, Eleanor
DEAR ELEANOR:
The Governor of Minnesota recently signed legislation to allow "Transfer on Death Deeds." This is probably what you have heard about. The new law should be codified as Minnesota Statutes ยง 507.071.
The Transfer on Death Deed (TODD) allows a homeowner to designate a person or persons to automatically become the owner(s) of the home upon the homeowner's death. The deed does not become effective until the homeowner actually dies. Prior to the homeowner's death, that homeowner can revoke a Transfer on Death Deed and grant it to someone else. It is the same concept as a "payable on death" (POD) beneficiary designation on a bank account. The person named as beneficiary has no ownership interest in the property until the present owner actually passes away. The purpose of the deed is to avoid probate.
One caveat to the law is that the Transfer on Death Deed must be recorded with the County Recorder prior to the death of the homeowner in order to be effective. The new statute becomes effective on August 1, 2008. Therefore, in order to work, a Transfer on Death Deed must be recorded on or after August 1, 2008, and before the grantor's death.
This new legislation will be extremely useful for people in your situation who have a home and some small assets. With a properly recorded TODD, you will have avoided probate and you will have the peace of mind that after your death the home will transfer quickly to the person(s) you designate on the deed.
Keep in mind, however, that because the home is still "available" to you, a TODD will not protect the home from a Medical Assistance lien should you need long-term care. Contact us for further information about Medical Assistance.
The Senior Citizens' Law Project does not draft deeds for clients. I strongly suggest that you seek the assistance of a real estate attorney to draft the deed for you, should you decide that a TODD is right for you.
This column is written by the Senior Citizens' Law Project. It is not meant to give complete answers to individual questions. If you are 60 years of age or older and live within the Minnesota Arrowhead Region, you may contact us with questions for legal help by writing to: Senior Citizens' Law Project, Legal Aid Service of Northeastern Minnesota, 302 Ordean Bldg., Duluth, MN 55802. Please include a phone number and return address. To view previous articles, go to: www.lasnem.org. Reprints by permission only.
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