For years, homeowners have been told that Transfer on Death Deeds (TODDs) and joint ownership are simple ways to avoid probate and pass a home directly to loved ones upon death. According to Metropolitan Law Group, many families are now discovering that these strategies may no longer provide the protection they expected.
The firm is issuing a public service announcement after seeing a growing number of surviving spouses and beneficiaries become trapped in estate recovery investigations that delay title transfers, cloud ownership rights, and, in some cases, force families into costly probate proceedings.
“Many families believe that if they sign a Transfer on Death Deed or put both spouses on title, the home will automatically pass to the survivor without any problems,” said Attorney Lisa Haster, founder and Managing Attorney of Metropolitan Law Group. “Unfortunately, that is no longer the reality many families are facing.”
One recent case involved a 47-year-old widow whose husband passed away unexpectedly. Prior to his death, he had executed a Transfer on Death Deed naming his wife as beneficiary of their home. The couple believed they had done everything right.
Instead, before title could be transferred into the surviving spouse’s name, notice requirements triggered a government estate recovery review. During that process, it was discovered that the deceased spouse had received public benefits years earlier. Under Minnesota’s estate recovery program, authorized under Minn. Stat. § 256B.15, the state may seek reimbursement from a deceased recipient’s estate for certain medical assistance costs. What the family expected to be a routine transfer suddenly became a complicated legal matter involving government agencies, title restrictions, and probate court involvement.
“The surviving spouse was shocked,” Haster explained. “She thought the Transfer on Death Deed solved the problem. Instead, she found herself facing delays, uncertainty, and legal expenses during one of the most difficult times of her life.”
According to MLG, the issue extends far beyond Transfer on Death Deeds. Many married couples believe that simply placing both spouses on title protects the home from future complications. However, when the first spouse dies, title frequently must be updated to place ownership entirely in the name of the surviving spouse. That transfer will trigger the same investigation and clearance process that applies to Transfer on Death Deeds.
“The public has been led to believe that avoiding probate and protecting the home are the same thing,” Haster said. “They are not. In many cases, these deed-based strategies simply postpone the problem until after a loved one dies.”
The consequences can be severe.
Probate administration is rarely quick or inexpensive. Attorney fees, court costs, personal representative fees, creditor claims, publication expenses, and administrative costs can easily reach tens of thousands of dollars and upward. In Minnesota, probate cases routinely remain open for a year or longer, leaving assets frozen and families unable to fully move forward.
“For some families, what began as an attempt to save a few thousand dollars by using a deed instead of proper planning ends up costing tens of thousands of dollars or more after death,” Haster said.
Metropolitan Law Group states that many of these problems can be avoided through comprehensive trust-based planning.
Unlike Transfer on Death Deeds and joint ownership arrangements, a properly funded revocable living trust is designed to provide continuity of ownership, avoid probate, minimize administrative delays, and create a more efficient transition of assets after death. Trust planning also allows families to address incapacity, blended family concerns, beneficiary protection, and long-term asset preservation within a single coordinated plan.
“A living trust is not just a probate avoidance tool,” Haster explained. “It is a comprehensive strategy designed to keep families out of court, reduce delays, and provide a smoother transition during an already difficult time.”
The firm is encouraging homeowners, particularly married couples, retirees, and individuals who own real estate, to review their current estate plans immediately.
Families should understand:
• A Transfer on Death Deed may not accomplish the goal they intended.
• Joint ownership doesn’t always protect the property after the first spouse dies.
• Minnesota estate recovery investigations could affect their home.
• Their family could be forced into probate despite having a deed-based plan.
• A revocable living trust would provide greater protection, flexibility, and peace of mind.
“Most people don’t discover the weaknesses in their plan until someone dies,” said Haster. “By then, it is too late to fix it. The families who review their planning now have options. The families who wait often discover those options disappeared the moment their loved one passed away.”
About Metropolitan Law Group, LLC
Attorney Lisa Haster is the founder and Managing Attorney of Metropolitan Law Group, a law firm serving families throughout Minnesota, Arizona and Wisconsin. Metropolitan Law Group focuses on helping families protect their homes, preserve wealth, avoid probate, and prepare for long-term nursing home costs with trust-based estate planning.