Minnesota Transfer on Death Deed Survivors

After the death(s) of the grantor owner(s) identified in a Minnesota Transfer on Death Deed, the surviving grantee beneficiary or beneficiaries identified in the Transfer on Death Deed (the “Minnesota Transfer on Death Deed Survivors“), must record in the real estate records of the County in which the real property identified in the Transfer on Death Deed is located, evidence of:

the death(s) of the grantor owners(s);
the identity of the Minnesota Transfer on Death Deed Survivors; and
the absence of any claim for recovery of Minnesota Medical Assistance benefits paid by a Minnesota County on behalf of any of the grantor owner(s).

Minnesota Medical Assistance Claims

The use of a Transfer on Death Deed will not be effective to avoid liability for any valid claim by a Minnesota county agency for reimbursement of Minnesota medical assistance benefits paid on behalf of:

the grantor owner(s),

any predeceased spouse of the grantor owner(s),

identified in the Transfer on Death Deed.

Minnesota Medical Assistance Clearance Certificate – Application

Minnesota Statutes (“M.S.”), Section 507.071, Subd. 23 identifies the procedures for making application for the issuance of a Minnesota Medical Assistance Clearance Certificate, which will be required to be recorded together with a Minnesota Affidavit of Identity and Survivorship – Transfer on Death Deed, regarding:

the death(s) of the grantor owners(s), and
the Minnesota Transfer on Death Deed Survivors:

Any person claiming an interest in real property conveyed or transferred by a transfer on death deed, or the person’s attorney or other agent, may apply to the county agency in the county in which the real property is located for a clearance certificate for the real property described in the transfer on death deed.

M.S. Section 507.071, Subd. 23 identifies that the application must include the legal description for each parcel of property covered by the Clearance Certificate.

Minnesota Medical Assistance Clearance Certificate – Duty

M.S. Section 507.071, Subd. 23 identifies that the County agency responsible for issuing a Minnesota Medical Assistance Clearance Certificate to the Minnesota Transfer on Death Deed Survivors – which could be either:

the County Attorney’s office,

the County Department of Human Services,

shall provide a sufficient number of certificates in order to allow a Clearance Certificate to be recorded in each county in which the real property described in the Transfer on Death Deed is located.

M.S. Section 525.313(c), identifies that:

The county agency shall determine whether the decedent or any of the decedent’s predeceased spouses received medical assistance under chapter 256B or general assistance medical care formerly codified under chapter 256D giving rise to a claim under section 256B.15.
If there are no claims, the county agency shall issue the petitioner a clearance for medical assistance claims stating no medical assistance claims exist. . . .
The county agency shall mail the completed clearance for medical assistance claims to the applicant:

- within 15 working days after receiving the application
- without cost to the applicant or others.

Minnesota Medical Assistance – Recovery of Benefits

M.S. Section 507.071, Subd. 23 identifies that the real property title interests of the Minnesota Transfer on Death Deed Survivors will be subject to the recovery of Minnesota Medical Assistance benefits paid by a Minnesota County on behalf of any of the grantor owners identified in the Transfer on Death Deed:

If the clearance certificate shows the continuation of a medical assistance claim or lien after issuance of the clearance certificate, the real property remains subject to the claim or lien.
The real property described in the clearance certificate is bound by any conditions or other requirements imposed by the county agency as specified in the clearance certificate.

Minnesota Medical Assistance – Satisfaction of Liens

In practice, the County agency responsible for issuing a Minnesota Medical Assistance Clearance Certificate to the Minnesota Transfer on Death Deed Survivors will likely not issue the Clearance Certificate if there are outstanding medical assistance liens against any of the grantor owners, until arrangements are made with the County agency for the payment of any outstanding medical assistance claims.

M.S. Section 525.313(c), identifies that:

If there is a claim, the county agency shall issue the petitioner a clearance for medical assistance claims stating that a claim exists, and the total amount of the claim.

Minnesota Medical Assistance – Claims

M.S. Section 507.071, Subd. 23 identifies that a Minnesota County will be allowed to file a probate claim against the decedent’s estate with respect to any unpaid Minnesota Medical Assistance lien against either:

the deceased grantor owner,

a spouse of any deceased grantor owner,

identified in a Minnesota Transfer on Death Deed.

If the county agency determines that a claim or lien exists under section 246.53, 256B.15, 256D.16, 261.04, or 514.981, the provisions of section 525.313 shall apply to collection, compromise, and settlement of the claim or lien.

Minnesota Medical Assistance – Partial Release of Liens

M.S. Section 507.071, Subd. 23 identifies that a probate court having jurisdiction may issue an order allowing the sale of real property subject to a Minnesota Medical Assistance lien, by providing in part as follows:

A person claiming an interest in real property transferred or conveyed by a transfer on death deed may petition or move the district court, as appropriate,
in the county in which the real property is located
or
in the county in which a probate proceeding affecting the estate of the grantor of the transfer on death deed is pending,
for an order allowing sale of the real property free and clear of any public assistance claim or lien but subject to disposition of the sale proceeds as provided in section 525.313.

M.S. Section 525.313(e), identifies that:

Any of the decedent’s devisees, heirs, successors, assigns, or their successors and assigns, may apply for a . . . [Court Order] to facilitate the good faith sale of their interest in any real or personal property described in the petition free and clear of any medical assistance claim any time . . .
The applicant must prove an interest in the property . . .
[The Court Order] shall assign the interests in the real and personal property described in the application to the parties entitled to the property free and clear of any and all medical assistance claims.
The net sale proceeds from the sale shall be:
(1)     substituted in the estate according to this section for the property sold;
(2)     paid over to and held by the petitioner . . . ;
(3)     used for payment of medical assistance claims;
and
(4)     distributed according to the [Transfer on Death Deed] after any medical assistance claims are paid.

Minnesota Transfer on Death Deed Survivors

A probate court having jurisdiction may issue an order allowing the sale of real property subject to a Minnesota Medical Assistance lien, by providing in part as follows:

On a showing of good cause and subject to such notice as the court may require, the court without hearing may issue an order allowing the sale free and clear of any public assistance claim or lien on such terms and conditions as the court deems advisable to protect the interests of the state or county agency.

Minnesota Medical Assistance Clearance Certificate – Registered Property

M.S. Section 507.071, Subd. 23 identifies that:

a Minnesota Medical Assistance Clearance Certificate with respect to registered Torrens Property must be recorded by the Minnesota Transfer on Death Deed Survivors in the appropriate County real estate office before a new certificate of title can be issued,

and

the recording of the Clearance Certificate must be identified as a “memorial” in the new certificate of title:

If the real property is registered property, the clearance certificate must be carried forward as a memorial in any new certificate of title.

In practice, the County agency responsible for issuing a Minnesota Medical Assistance Clearance Certificate will not likely issue the Clearance Certificate to the Minnesota Transfer on Death Deed Survivors if there is an outstanding medical assistance lien against any of the grantor owners, until arrangements are made with the County agency for payment of any outstanding medical assistance claims.

Minnesota Transfer on Death Deed Survivors – Document Recording

M.S. Section 507.071, Subd. 20 identifies the documents which must be recorded by the Minnesota Transfer on Death Deed Survivors:

An affidavit of identity and survivorship with a certified copy of a record of death as an attachment may be combined with a clearance certificate under this section and the combined documents may be recorded separately or as one document in each county in which the real estate described in the clearance certificate is located.
The affidavit must include the name and mailing address of the person to whom future property tax statements should be sent.

Effect of Document Recording

M.S. Section 507.071, Subd. 20 identifies the legal effect of filing the documents which must be recorded by the Minnesota Transfer on Death Deed Survivors:

The affidavit, record of death, and clearance certificate, whether combined or separate, shall be prima facie evidence of the facts stated in each, and the registrar of titles may rely on the statements to transfer title to the property described in the clearance certificate.
The recording of such documents provides prima facie evidence of the effective transfer on death of the real property title to the Minnesota Transfer on Death Deed Survivors, but such transfer can be subject to challenge in an appropriate Minnesota probate court on a variety of legal grounds.

Conclusion – Minnesota Transfer on Death Deed Survivors

Having a formal legal education is not a prerequisite to Minnesota Transfer on Death Deed Survivors being able to satisfy the post-death Transfer on Death Deed requirements.

However, satisfying such requirements does require significant legal experience – in part because of the variety of County agencies involved in the process.

If you need any assistance in any Minnesota County with respect to filing the required documents after the death of the grantor owner(s) identified in a Minnesota Transfer on Death Deed, contact attorney Gary C. Dahle, 763-780-8390, or gary@dahlelaw.com.

No claim to original government works.

Gary C. Dahle – Attorney at Law

2704 Mounds View Blvd., Mounds View, MN 55112

Phone: 763-780-8390 Fax: 763-780-1735

Gary@dahlelaw.com

——— Gary C. Dahle Attorney at Law ———

Minnesota Transfer on Death Deed Survivors

Minnesota Medical Assistance Claims

Minnesota Medical Assistance Clearance Certificate – Application

Minnesota Medical Assistance Clearance Certificate – Duty

Minnesota Medical Assistance – Recovery of Benefits

Minnesota Medical Assistance – Satisfaction of Liens

Minnesota Medical Assistance – Claims

Minnesota Medical Assistance – Partial Release of Liens

Minnesota Transfer on Death Deed Survivors

Minnesota Medical Assistance Clearance Certificate – Registered Property

Minnesota Transfer on Death Deed Survivors – Document Recording

Effect of Document Recording

Conclusion – Minnesota Transfer on Death Deed Survivors