How to Avoid Probate with Real Estate: What Minnesota Homeowners Should Know

When someone passes away, their property often goes through a legal process called probate. This process can be time-consuming, expensive, and emotionally stressful — especially when real estate is involved. The good news is that, with a little planning, you can often avoid probate altogether for your home or other real estate assets.

If you’re a homeowner in Minnesota, here’s what you need to know about how to keep your property out of probate court.

What Is Probate, and Why Do People Try to Avoid It?

Probate is the court-supervised process of settling a deceased person's estate. This includes validating the will (if there is one), paying debts, and distributing assets to heirs. When real estate is involved, probate is often required unless specific legal steps have been taken ahead of time.

Why do so many people want to avoid probate? Because it can be:

• Slow — often taking months or longer

• Expensive — with legal fees, court costs, and filing requirements

• Public — probate records are available to the public

Avoiding probate helps ensure that your loved ones receive your property quickly, privately, and with less stress.

How Real Estate Enters Probate

If a person dies owning real estate in their name alone — with no co-owner, beneficiary designation, or trust — that property must go through probate before it can legally be transferred to heirs.

However, Minnesota offers several ways to transfer ownership without involving the court.

Ways to Avoid Probate with Real Estate in Minnesota

Here are some effective strategies Minnesota homeowners can use to avoid probate with real estate:

1. Use a Transfer on Death Deed (Also Known as a “Deed on Death”)

Minnesota offers a legal tool called a Transfer on Death Deed (TODD), sometimes referred to as a “Deed on Death.” This document allows you to name a beneficiary (or multiple beneficiaries) who will automatically inherit your property when you pass away.

Key benefits include:

• You retain full ownership and control of the property during your lifetime

• The deed can be revoked or changed at any time

• After your passing, the property transfers outside of probate

• It’s simple and affordable compared to creating a trust

This is one of the easiest and most commonly used probate-avoidance tools in Minnesota. It’s ideal for cabins, primary residences, or investment properties that you want to pass on with minimal red tape.

2. Own Property Jointly with Rights of Survivorship

If you co-own real estate with someone else — such as a spouse — and the deed is titled as “joint tenancy with right of survivorship,” then ownership automatically passes to the surviving owner when one person dies.

This method avoids probate for the first owner who passes, but the surviving owner would still need to take additional steps to avoid probate when they pass in the future.

3. Place the Property in a Revocable Living Trust

A revocable living trust is a legal entity that holds your property during your lifetime and names a successor trustee to manage it after your death. Assets held in the trust do not go through probate.

While setting up a trust may require more paperwork and upfront cost, it’s a strong option if you have:

• Multiple real estate holdings

• A blended family

• Specific instructions about who should receive your property and when

Trusts also offer privacy, control, and can simplify the estate process overall.

4. Consider a Life Estate (With Caution)

A life estate deed allows you to retain the right to live in your home for the rest of your life, while naming someone else to inherit the property when you pass. The transfer happens automatically without probate.

However, life estates can limit your ability to sell or refinance the home and may have Medicaid and tax implications, so be sure to consult an attorney before using this option.

Why Planning Ahead Matters

Whether you own a lakeside cabin, your primary residence, or a rental property, the way your real estate is titled will determine how easily your heirs can access it after you're gone.

By taking the right steps now — such as using a Deed on Death, joint ownership, or a trust — you can spare your loved ones from the burden of probate and ensure that your property goes where you intend it to.

Need Guidance on Real Estate Planning in Minnesota?

As a licensed real estate agent, I work with clients at every stage of life. Whether you're buying, selling, or thinking ahead to how your assets will be passed on, I can help you understand your options and connect you with trusted estate planning professionals.

Let’s make a plan that protects your legacy.
📧 jennifer@mnpropertyjam.com | 📞 612-990-3863 | 📍 Based in Minnesota and proudly serving clients the NW Metro