Transfer on Death Deed Minnesota: How It Works and What to Do After a Death

Minnesota's Transfer on Death Deed (TODD) is one of the most powerful estate planning tools available to homeowners who want to keep real estate out of probate. When executed correctly, the property passes directly to the named beneficiary the moment the owner dies — no court filing, no Letters Testamentary, no waiting for a judge.

But "passes directly" doesn't mean "automatically." There's a three-document recording process that beneficiaries must complete, and one of those documents — the Medical Assistance Clearance Certificate — trips up families who don't know it exists. This post covers both sides: how to create a valid TODD and exactly what a beneficiary must do after the owner's death.

What a Transfer on Death Deed Does

A TODD lets a real property owner (called the "transferor") name one or more beneficiaries who will receive the property upon the owner's death. The deed is recorded during the owner's lifetime, but it has no effect until death. The owner retains full control — they can sell, refinance, mortgage, or revoke the deed at any time without the beneficiary's consent.

The governing statute is Minnesota Statute 507.071. Minnesota adopted the TODD framework to give homeowners a straightforward, inexpensive alternative to joint tenancy and revocable living trusts for passing real estate.

What a TODD does not do:

• It does not affect the owner's ability to mortgage or sell the property during their lifetime
• It does not give the beneficiary any present ownership interest
• It does not automatically clear Medical Assistance liens if the decedent received Medicaid
• It cannot transfer Torrens property without additional clearance steps

How to Create a Valid TODD in Minnesota

The deed must meet standard Minnesota deed execution requirements:

• Be in writing and clearly identify the property by legal description
• Name one or more beneficiaries (multiple beneficiaries can be named, with or without survivorship language)
• Be signed by the owner and acknowledged before a notary public
• Be recorded at the county recorder's office before the transferor's death

Recording is the critical step. A TODD that is signed and notarized but never recorded has no legal effect. The deed takes effect on the owner's death only if it was recorded while the owner was alive.

If the owner wants to revoke or change the beneficiary, they record a Revocation of Transfer on Death Deed or a new TODD before death. A later-recorded deed supersedes an earlier one.

What Beneficiaries Must Do After the Owner Dies

This is where many families run into trouble. The property does not automatically transfer into the beneficiary's name when the owner dies. To clear title and make the property legally yours, you must record three specific documents at the county recorder's office:

Document 1: Certified Copy of the Death Certificate Obtain a certified copy from the Minnesota Department of Health or the county vital records office. The fee is $13 for the first copy and $6 for each additional copy ordered at the same time.

Document 2: Affidavit of Identity and Survivorship for TODD This is Minnesota Uniform Conveyancing Blanks Form 50.2.3. The beneficiary completes and signs this affidavit, which confirms their identity, states that they survived the owner, and identifies the property. The form is available from the Minnesota Department of Commerce.

Document 3: Medical Assistance Clearance Certificate for TODD This is Form DHS-5893A, obtained from the Minnesota Department of Human Services. Even if you are certain the decedent never received Medicaid, this document is required before the county recorder will accept the recording package. The DHS reviews the decedent's history and issues the certificate if no Medical Assistance claims exist against the estate. Allow several weeks for processing.

All three documents are recorded together at the county recorder's office. The standard recording fee is $46 per document.

If the property is Torrens land (registered property rather than abstract property), the process involves additional steps with the county Examiner of Titles and the Registrar of Titles. Hennepin and Ramsey counties have significant Torrens registries — check your property records to determine whether your land is abstract or Torrens before assuming the standard three-document process applies.

Medical Assistance and "Zombie Liens"

Minnesota aggressively recovers Medical Assistance costs from decedents' estates, and the TODD does not automatically protect against this. If the transferor received Medicaid benefits, the Department of Human Services can assert a claim against the property even after it has passed to the beneficiary under a TODD.

This is why the Medical Assistance Clearance Certificate is mandatory — it is the DHS's mechanism for either clearing the property or notifying the beneficiary that a claim exists. If a claim exists, the beneficiary must either pay it or negotiate a release before the property title fully clears.

Minnesota law also allows the state to treat a deceased person's interest in jointly held property as part of the estate for MA recovery purposes if the interest was created after August 1, 2003. TODD beneficiaries facing an MA claim should consult a probate or elder law attorney before recording anything.

Electronic Certificate of Real Estate Value

If the property is being transferred and its fair market value exceeds $3,000, the beneficiary must file an Electronic Certificate of Real Estate Value (eCRV) with the Minnesota Department of Revenue at the time of recording. This is a standard requirement for real estate transfers in Minnesota and is not unique to TODDs.

When a TODD Is Not the Right Tool

A TODD works well for:

• Homeowners with a clear beneficiary in mind and no MA exposure
• Estates where the home is the primary asset and probate would otherwise be required
• Owners who want to avoid the cost and ongoing administration of a revocable living trust

A TODD may not be sufficient when:

• The decedent had significant Medicaid expenditures and no way to satisfy the recovery claim
• The beneficiary is a minor (the property would pass to a minor, requiring court appointment of a conservator)
• The property is held in a trust (the trustee, not an individual, must execute the TODD)
• There are multiple beneficiaries with competing interests who may not agree on what to do with the property

For estates that involve solely owned real estate without a TODD, probate is generally required regardless of estate size. The Minnesota Probate Process Guide walks through both scenarios — when real estate must go through court and when a TODD or other non-probate mechanism allows you to bypass it entirely.

TODD for Vehicles: A Separate Process

Minnesota also allows Transfer on Death designations for motor vehicles, but this is handled through Driver and Vehicle Services (DVS) using Form PS2004, not through the county recorder. The TODD deed discussed in this post applies only to real property. Vehicle TODs are a separate filing with a separate agency.

The Bottom Line

Minnesota's TODD is a cost-effective probate avoidance tool for real estate. Creating one costs nothing beyond standard recording fees. But beneficiaries need to know that claiming the property after death requires the Medical Assistance Clearance Certificate — a step many families overlook, leading to delays and occasionally unwelcome news about outstanding state claims.

If you are a personal representative managing a Minnesota estate that includes real property without a TODD, or if you have questions about whether a TODD was properly recorded before the owner died, the Minnesota Probate Process Guide covers real estate transfers in detail, including what happens when Torrens property must go through the Examiner of Titles.

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