There are a variety of reasons to engage in estate planning. One of the more common reasons is to ensure that assets can easily be transferred to loved ones after death. Most of these assets have to be transferred after validating the testator’s will and paying off creditors during the probate process.
Engaging in estate planning can have the added benefit of aiding with the transfer of your assets to intended loved ones without having to pass through the probate process. You have to take proactive measures such as funding a trust or drafting transfer-on-death deed documents.
Minnesota is one of 27 states that have transfer-on-death deed statutes in place. It may save your loved ones the burden of having to wait for the probate process to wrap up to assume possession of a property. Take time to learn more about this legal process.
What does a transfer-on-death deed process entail?
This process allows you to continue living in and in control of your property up until your death. Possession of and control over your property only transfers to your intended recipients following your passing. The transfer-on-death deed process avoids the probate process, ensuring seamless possession of the property from one owner to the next.
This transfer-on-death process is revocable, meaning you have full control to reverse your decision to transfer the property to the pre-designated recipient at any time.
Are there any downsides to pursuing a transfer-on-death deed?
One of the biggest drawbacks to pursuing a transfer-on-death is that Medicaid can seize the property as repayment for their payouts after an insured’s passing. Medicaid generally does this to recoup the high-cost medical expenses or nursing home care that individuals often require at the end of their lives. As you might imagine, this could mean that the recipient of the property would effectively become homeless.
Other asset protection options include Medicaid planning that you can engage in to potentially minimize your financial exposure. You may find it ideal to pass on a property via a trust to be a better option for you to pursue as well. You’ll want to carefully weigh all the options available to ensure that your final wishes can be carried out as you’d planned.