Published on July 03, 2009
With the advent of Minnesota's law authorizing transfer on death deeds, attorneys have a new tool to use in estate planning. The TODD statute refers to the owner as a "grantor owner" and the beneficiary as the "grantee beneficiary".
As one might expect, the interest transferred to a grantee beneficiary under a TODD is transferred subject to all mortgages, liens, judgments, and other encumbrances. These include claims by a grantor owner's surviving spouse, or by the state or county for medical assistance benefits, if the assets of the deceased owner's estate are insufficient to pay the amount of such claims.
A TODD may have multiple grantor owners and beneficiaries, and a grantee beneficiary can be a person or an entity. A TODD will most often be used for individuals with estates that are not in need of estate planning.