Category: Estate Planning

How to transfer your house and avoid probate in Minnesota is a common question with situational or case by case results.

The idea of forcing your family into probate when the process is so much easier while we are alive is a no brainer.  On the flip side, inheriting a mess is an ugly alternative.

In my experience, it doesn’t matter if a family is young or old, rich or poor.  Everybody gets a choice, a few being very inexpensive!

Here are  three really fantastic strategies to reduce problems with a family home:

1. Joint Tenancy,
2. Transfer on Death Deed (TODD), and
3. Utilizing a revocable trust.

Certainly, there are more than three options.  But, these are three of my favorites.

Joint Tenancy to Avoid Probate

Joint tenancy is a specific way to title a home.  Although this method does NOT reduce problems to a 0% percent chance, it can serve as a good step in the right direction.  

The next question I hear is “how do I find out”?

Generally, anybody can determine whether the deed to a house was titled joint tenancy by reading the deed.  

For those who cannot find their deed, I encourage calling the real property department serving the county where the home is located.  

A lot of people believe joint tenancy helps them avoid probate.  Again, this isn’t the case, but it is a god start because a joint tenancy supports a right of survivorship.

Transfer Your House and Avoid Probate by using a TODD

A transfer on death deed  does not necessarily help families avoid probate either.  

However, these types of deeds are very inexpensive and help transfer a home quickly and efficiently in certain situations involving our death.

If the person(s) receiving the property are still alive, then a TODD can be an effective tool.  If the person(s) receiving the property are not alive (dead), the effectiveness of a transfer on death deed has been defeated.

Not to worry, because there are other options to reduce this problem too.  

Transfer Your House and Avoid Probate with a Trust

I love revocable trusts for a whole lot of reasons.  Most families can use this type of estate planning document to their advantage.

Whether a trust can help depends on the documents being properly funded and:

• Assumes the trustee doesn’t engage in mischief,
• Beneficiaries are easily identified, and
• There is a trustee.

Wait, you are concerned about a crazy family member?  The idea of meeting one-in-one is to flush out these issues.

Thus, this type of document is the preferred method of reducing problems.

Leaving It Up To Chance

I close with this:  none of us know how things are going to end.  

Money and cost is always important.

 Luckily, there are excellent alternatives to the process of leaving everything to chance. 

You can help avoid probate for a cabin by utilizing a number of estate planning techniques and tools. Of course, there are pros and cons to each, as one size doesn’t fit all.

In no particular order, here are the 5 ways:

1. Grantor Retained Annuity Trust (GRAT).
2. Record a transfer on death deed (TODD)
3. Transfer the cabin into a Cabin Trust
4. Have an entity (like an LLC) own the Cabin
5. Deed or transfer the cabin now, while reserving a life-estate
6. Sell the family cabin before death (Death Clock).

A registered will is the process of taking a valid will and filing or depositing it with a Court.  Minnesota’s law supporting a deposited will falls under rule 524.2-515.

On the other hand, I still find myself questioning whether this is a good idea or bad idea.

Registered Will:  Bad Idea

The families and veterans I serve always ask where they should store their will.  Everybody, including myself, can become stressed over the idea of loosing our documents to fire or other means.  Today, we have more technology savvy opportunities to prevent this from occurring.

For myself, I believe it is a bad idea to register a will because I do not want my intimate estate plans shared with a court unless absolutely necessary.  For this one reason, it might be a bad idea to deposit a will with a court.

The second reason why this might be a bad idea is because I want freedom to make changes to my plan without running to the local court-house and making a day of it.

Third, who is to say the court won’t  lose it too?  In case it was forgotten, our government lost critical records in the past and it wouldn’t surprise me if it happens again.  Minnesota high schools are being exploited by children.  Target Corporation was hacked.  Very likely, evil people are trying to break into our ancillary documents too.

Fourth, it gives me heartburn wondering whether people are snooping through records.  Like you, I have nothing to hide.  But, our privacy is slipping away and I do not want a court filing to turn into a bigger deal.

Registered Will:  Good Idea

A good reason to deposit a will with a court while I am still living is because I do not want my greedy family to make changes without my knowledge.  Of course I joke about my family being greedy.  But, we all know a person who might be tempted to edit our will without our consent.

A second reason a registered will in Minnesota is a good idea is because we are fearful of fire or theft.  Buying a fire-proof safe is expensive.  Buying a safe deposit box is a hassle.  Maybe just maybe using a court to keep it safe is a good idea.

A third reason why giving my will to a court to keep during my lifetime is because I know where it is.  The feeling of losing a document or having a document stolen can be unsettling.

A fourth reason why registering my will with a court is a good idea is because it puts my creditors on notice without making my personal representative rush to a court-house days after I die.

Register my Will in Minnesota

On second thought, maybe giving my will during my lifetime sounds like a really good idea.  On the other hand, I still like my privacy (dead or alive) even more.

If you are a Veteran and have time, I addressed a similar issue with our DD 214 document.

Otherwise, I wish you the very best.

A Minnesota bequest is a gift of property.  Every person I advise who is wishing to create an estate plan must think through how they want their property and stuff gifted or transferred onto the next person or generation.  Generally, this can be a difficult thing to do if you have not given it consistent thought.

When I meet with a person for the first time, I challenge them to place a gift into five categories:

• Necessity,
• Cash Gift,
• Sentimental Value,
• Pets, and
• Our Organs.

If my Clients are not able to label their gifts under one of these five categories, I encourage them to simplify.  Here is what I mean:

Minnesota Bequests: Necessity

My favorite gift to add to a person’s estate is a gift of necessity because a bequest of this kind generally has a significant impact on the beneficiary.

For example, I recently had a Client who owned a hutch and matching kitchen table.  Because the person’s adult child did not have a kitchen table, gifting their kitchen table was important.

On the other hand, sometimes gifting a person’s possessions onto their favorite charity is more significant because it takes the guess work out of the organization mom or dad wanted to help.

Thus, a bequest in MN based on necessity can go both ways.

Minnesota Bequest:  Cash Gift

Gifting cash to an organization (a church or non-profit), friend or family member is another popular gift.  In fact, it seems to be as popular while we are alive as it is when we are dead.  

Gifting cash is a process that requires thought too because most people experience their greatest expense during the last 6 months of life.

Yes, sometimes placing money in an irrevocable trust makes sense because we know it will transfer accordingly.  On the other hand, being comfortable in a setting that we worked hard to achieve can also have value.

Thus, making a cash bequest is not always as straight forward as it might appear.

Minnesota Bequest:  Sentimental Value

As you might expect, anything you own can acquire  a memory or event generally described as sentimental value.  

Some of my favorite sentimental gifts include:

• Wedding Rings,
• Military Medals,
• And baseball card collections.

Thus, a gift or bequest that carry sentimental value are sometimes even more important than cash or other gifts described herein.

Minnesota Bequest: Pets

Your pet is a member of your family.  It doesn’t seem right to view our pets as a gift or bequest.  Right or wrong, pets are viewed as property.

I believe the best way to assure a pet is cared for by a person you know and trust is through the gifting clause of a will or trust.  Generally, I like the idea of attaching a small monetary gift to a pet as well such that they are properly cared for by an animal doctor.

MN Bequests: Organs

Every person and faith has a different perspective on gifting organs.  Generally, I discourage Clients from making organ donations inside their will.

Instead, I think the best way to handle organ donation is through:

• Health Care Directive (also called a living will), or
• An exclusive directive like that used by a specific entity or university.

Final Thoughts

If you stuck with me to the end, thank you.  Everybody is different and all of us have the ability to identify a gift.

That said, I think associating a gift with one of the five categories referenced above makes this process easier to think about.

Love is a powerful act.  Planning your estate and affairs is an act of affection and serves as an example to future generations.

Unfortunately, people are afraid to address their demise. Personally, I find the nursing home, tax collector, and the boogie man to far more scary.

Estate planning is not just about preparing for the inevitable; it’s about ensuring that your hard-earned assets are distributed according to your wishes, minimizing tax liabilities, and providing for your loved ones. In this blog post, we’ll explore the key reasons why estate planning is crucial and how our experienced team can guide you through the process to secure your family’s future.

Protecting Your Loved Ones

One of the primary goals of estate planning is to safeguard the financial well-being of your loved ones. Without a clear plan in place, your assets may be subject to probate, a lengthy and expensive legal process that can significantly delay the distribution of your estate.

By creating a comprehensive estate plan, you can ensure that your family members are provided for without unnecessary complications.

Minimizing Tax Liabilities

Estate taxes can erode a significant portion of your estate if not properly managed. Our expert team will work with you to identify strategies to minimize tax liabilities, allowing you to pass on more of your assets to your heirs.

From establishing trusts to taking advantage of tax exemptions, tailor a plan to maximize the wealth you leave behind.

Preserving Family Harmony With Love

Estate disputes can strain family relationships, leading to long-lasting rifts. A well-crafted estate plan can help prevent conflicts by clearly outlining your wishes and intentions.

By addressing potential sources of disagreement proactively, you can foster harmony among your heirs and ensure a smoother transition of assets.

Ensuring Business Continuity

Do you love your business? If you own a business, estate planning is essential to ensure its seamless continuity after your passing. Without a proper succession plan, your business may face uncertainty, potentially leading to financial instability.

This law office helps families develop strategies to facilitate a smooth transition of business ownership, protecting both your legacy and the livelihoods of those depending on the business. Again, an example of love for those relying on your business entity as a source of income.

An Act of Love for Special Needs

If you have dependents with special needs, estate planning becomes even more critical. Our team understands the unique challenges faced by families with special needs members and can help you establish trusts and financial arrangements to provide ongoing support while maintaining eligibility for government assistance programs.

Adapting to Life’s Changes

Life is dynamic, and circumstances change. Our approach to estate planning is not a one-size-fits-all solution. We’ll work closely with you to ensure your plan evolves with your life, accommodating changes such as marriages, births, and career developments.

Each decision is difficult.  Decisions made out of love are always worth pursing.  Thus, have faith in your process.

Wills for Military Veterans in Minnesota are much easier to write when the Veteran is alive.

Unfortunately, veterans who pass without a will introduce a different challenge.  Lets skip past these challenges and get straight to the point.  Why having a will before you deploy is a must.

Wills for Military Veterans: Reasons

Whether you are an E-2 or an O-8, here are a handful of reasons why you need to jump on this process:

1. To identify a specific person as a guardian for a child.
2. You love your spouse.
3. You dislike an ex.
4. Your spouse, parent, sibling or friend would make a better personal representative than a creditor.
5. Dividing up your bank accounts and property amongst your family becomes much easier.
6. In case your significant other is pregnant.
7. Your children are depending on you.
8. Reduce Probate Problems.

Seems straight forward, right?  If you want to get fancy, having a will that pours into a revocable trust is even better because it helps reduce probate all together.

Wills for Military Veterans: Supporting Documents

If my last paragraph doesn’t make sense, no worries.  Call me and we can talk it through together.

Going forward, here are a few other documents current and past Military Veterans should check out:

• Power of Attorney
• Health Care Directive
• Funeral Directive

Keep your will safe.  That seems like good advice, but how on earth can you keep a will safe when we are surrounded by bad things.

After a quick review of common fears, I will share the one place people fail to think about.

Seriously, what are you afraid of?  Flood?  Fire?  Going to the Emergency Room?

Here are a few common suggestions on where people like to keep their wills:

• Safe deposit box,
• With an attorney,
• At home, or
• Recorded with the County.

Keeping your Will Safe from Fire

Being afraid of fire is natural, just not very likely.  Obviously, having your house burn down and having your estate plan destroyed is horrible.  On the other hand, you will likely live to tell about it.

In the year 2013, Minnesota saw 26 fatalities due to fire.  Even though I am familiar with a specific person perishing in a house fire, 26 people out of 5 million Minnesotans is a low risk (.0000052 %).

Will Safe inside a Safe Deposit Box

I agree, a safe deposit box can be a low-cost location for an estate plan.  The problem I run into with safe deposit boxes includes:

• Nobody knew a box exists,
• Forgotten locations,
• Keys are lost,
• Family members are not added to the list of patrons who are granted access.

In my experience, one stroke or car accident can make the Bermuda Triangle look more accessible than a safe deposit box.

Is your Will Safe with an Attorney?

No, do not keep your will with your lawyer.  This has nothing to do with trust.  Your lawyer’s office is susceptible to fire too.  And, your attorney might die before you.

Even though I trust myself more than any other person walking the planet, keeping a will safe with an attorney is an outdated practice.

Keeping your Will with the County

If you are unfamiliar with your County’s property department, you can visit them at for a few dollars, record a will.

A long time ago, this was a great idea because our life expectancy was short and people didn’t entertain implementing a revocable trust.  Now, this old way of doing things seems ridiculous.

First, I dislike the idea of exposing my will to the general public.  Second, I want the option of looking at my will from time to time so I know whether I need to make updates.  Third, I want my loved ones to have access to my important papers without involving the government.

Is my Will Safe at Home?

This is going to blow your mind, but I think a thief is more likely to steal money and electronics versus my will.  Even if somebody stole my will, I can make a new one.

Also, don’t hide your will so nobody can find it.  Instead, pick a spot that is sure to get noticed like your drawer or book shelf.

As of today, I encourage most of my Clients to keep their important estate planning documents in two spots:

• Inside an unlocked fire proof box, and
• The one place described below.

** TIP:  You can put other important papers inside your fire-proof box, like insurance policies, birth certificates, passports, marriage licenses and your DD 214 ***

Is my Will Safe: One Place People Fail to Think About

The one place people fail to think about is actually two of three places:

• MyCloud, and
• iCloud or
• Google Drive or
• DropBox.

Older generations are deathly afraid of storing their estate plan in the Cloud.  I will let you do your own research, but the MyCloud product is not stored in the Cloud and generally accessible anywhere you go and shareable with your loved ones.

Whether you like Apple products or not, our own FBI spent $1.3 million dollars to break into one iPhone.  As of today, I really like Apple’s policies specific to iCloud storage and think this is a credible response to the fears identified above.

Google Drive also appears to be a strong method for keeping a will safe.  Here is why:  a person can set up their Google Drive to contact specific people if their account is not used for xyz days.  In other words, if I had a Google Drive and I didn’t access it for 120 days, I can set up a process to give my loved ones access to my Google Drive account.  On the other hand, I think Google’s policy on document access could be must stronger.

Personally, I think using MyCloud along with a secondary online source is a strong response to the issues described above.

Keeping my Will Safe is a Full-Time Job

Certainly, our lives are always evolving and nobody can predict the future.  My usual response is keeping hard copies in a fire proof box and an electronic version within a secure network.

One thing remains a constant:  only you can assess which methods are best for you and your family.

Are you looking to edit your will in Minnesota?  Great!  Here we go…

First, let’s acknowledge having a Will in Minnesota is better than dyeing with no will.

That being said, there are significant risks when you want to edit your will in Minnesota.

Why do you wan to edit your will in Minnesota?

If you need to edit your will in Minnesota, likely you had a change in your family.  A second reason to edit a will is because there was a new rule or law.

On the other hand, editing your current will can impose severe risks and bring more problems than you likely have time to worry about.  For this reason, I think starting from scratch is the preferable method.

However, some people are stuck in their ways and still want to edit their will and risk contradiction or ambiguity.  Thus, here we go.

Edit your will in Minnesota using a codicil

A “codicil” in Minnesota is a supplement or addition to a will.  This means a person is not disposing or terminating their will, but modifying it.

Yes, a person can edit a will in Minnesota by implementing a “codicil.”  The formalities of a codicil are the same as creating a new will.

Because the process is the same, making a new will can be much less risky.  

Other problems with editing your will in Minnesota include…

• People loose their will,
• Family members didn’t know there was a codicil,
• A codicil contradicts a statement in the will,
• The codicil make things less clear, or
• Your codicil was written under duress or a different mental state.

What should you do first if you want to edit your will in Minnesota?

If you are considering whether or not you want to edit your will in Minnesota and how to proceed, best practices suggests seeking help from an estate lawyer and starting from scratch.

Otherwise, creating a supplement to your will or looking to edit your will in Minnesota might cause issues or adversely alter your intentions.

TODDS or transfer on death deeds are fantastically inexpensive. When used correctly, these types of documents are fantastic for Minnesota families looking to reduce the risk of probate.

For those looking for online resources, the Minnesota law that govern this method of transferring real property begins within statute 507.071.

That said, because mistakes with land and beneficiary issues can compound, here are a few drafting issues that need to be taken into consideration:

• Titling
• Abstract versus Torrens questions, and
• Identifying the strongest Legal Description.

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What is a Transfer on Death Deed in MN?

A transfer on death deed, also called a “TOD deed” or “TODD” is a piece of paper that explains who should get your real estate (or house) on your death without the need of seeking approval from a probate court.

For a document of this nature to be effective, a transfer on death deed must be completed and recorded in the County where the property is located.

Can a Minnesota TODD transfer a piece of property to more than one person?

Yes, a TODD can transfer real estate to more than one person or entity (like a charity or church).

For example, a mother can use a transfer on death deed in Minnesota to transfer the family cabin in equal shares to her three children.  Each child is a grantee beneficiary.

The possibilities for a TODD can be as creative or exotic as your estate requires.  On the other hand, the more extreme a TODD becomes, the more likely a different transferring tool should be considered.

What can go wrong with a Transfer on Death Deed?

A few detailed examples how or why a TODD can go wrong includes the following:

• An incorrect legal description,
• A grantee beneficiary dies before the owner of the property dies,
• If the owners of a property were married, the remaining spouse fails to file an Affidavit of Survivorship,
• Names of the beneficiaries are misspelled,
• The person filling out the form uses the wrong form,
• A person fails to record the document,
• A person accidentally revokes the deed,
• The grantor fails to consider estate taxes,
• The grantor does not have each document notarized and witnessed correctly, and etc.

Where to find forms for a Transfer on Death Deed

If a person has the time, consider visiting your local recorder’s office. As an alternative, consider reviewing this list of forms.

What happens when a TODD is recorded in Minnesota?

The County’s recorder office charges a fee to file a transfer on death deed.

A TODD does not kick into effect until the owner of the real estate dies.  In other words, a transfer on death deed is not effective nor does  anything happen when it is recorded.

Instead, the property does not change hands until the owner or grantors die.  If the grantor dies and the document was valid, the property transfers to the designated recipient.

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