When it comes to estate planning, ensuring that your family home remains in the hands of your loved ones without unnecessary delays or complications is crucial. Many people mistakenly believe that transferring property is as simple as filling out a deed. However, when it comes to legal matters like real estate ownership, a DIY approach can often lead to costly mistakes and unintended consequences, especially when you’re trying to avoid Minnesota probate court. This article explains why it’s essential to work with qualified professionals to execute a deed and estate plan in Edina, MN.
The Importance of Properly Executed Deeds
One of the most common issues in estate planning involves real estate deeds. A deed is a legal document that transfers ownership of real estate from one person to another. It seems simple enough, but as estate planning director Phil Ruce notes in his video below, the specific language used in a deed is critical—especially if your goal is to keep your home out of probate court.
In Minnesota, the difference between the phrases “joint tenants” and “tenants in common” can determine whether your family will need to go through probate court after a homeowner passes away. For example, if a property is deeded to “John and Mary as joint tenants,” then upon John’s death, Mary automatically becomes the sole owner of the property without needing to go through probate. However, if the deed reads “John and Mary as tenants in common,” then each individual owns a separate share of the property. Thus, upon John’s death, his share of the property must pass through probate, which can delay Mary’s full ownership of the home.
The Dangers of DIY Real Estate Deeds
Given how important the wording distinctions in real estate deeds are, it’s alarming how many people attempt to handle real estate deeds on their own. A common mistake is failing to include those two critical words—”joint tenants”—in the deed. These errors often lead to families inadvertently ending up in probate, which can be both time-consuming and expensive. The same thing occurs for individuals who create DIY estate plans, believing they are saving money and time by creating their own plan when ultimately their family is forced to pay more in legal fees to resolve the errors in a self-created plan.
In some cases, people attempt to avoid probate altogether by using a quitclaim deed to transfer property directly to a beneficiary, explains a recent Kiplinger article. This method might seem like a quick fix, but it often backfires. For example, if the owners use a quitclaim deed to avoid having the home go through probate, it can create title issues that prevent the property from being sold later, leaving the beneficiaries in a difficult situation. Read more in our article, A Real Estate Deed is The ONE DIY Document I Have to Fix in Court All the Time
The Importance of Precise Wording in the Deed When Transferring Property to a Trust
When transferring real estate property to a trust, the wording of the deed must be precise. For example, if the trust’s name is “Philip Ruce Trust under agreement dated January 1, 1999,” incorrectly listing it as “Phil Ruce Trust” can create significant legal complications. Title companies may flag such errors, leading to costly corrections. If the mistake isn’t caught until after death, resolving it through the court system can be even more expensive and time-consuming. This is why it’s essential to work with an Edina estate planning or real estate attorney who can ensure your deed is correctly worded, protecting your assets and preventing unnecessary legal issues.
Why Professional Help Is Essential
Given the complexities involved in properly transferring real estate, it’s essential to work with a qualified estate planning attorney in Edina who understands the nuances of Minnesota law. A professional can ensure that the right language is used in your deeds and that your estate plan is structured to avoid probate, minimize taxes, and protect your family’s assets from creditors.
The attorneys at Stone Arch Law Office have extensive experience in handling estate planning for families in Edina and throughout Minnesota. They can help you navigate the legal intricacies involved in real estate deeds and trusts, ensuring that your family home stays in the family, free from legal complications.
Protect Your Home and Your Family’s Future
Don’t leave something as important as your family home to chance by using DIY deeds and estate planning. Proper estate planning is about more than just signing a few documents—it’s about securing your family’s future. Ensure your home remains in your family and avoid probate by working with the experienced estate planning attorneys at Stone Arch Law Office. Book a call with our office today if you have questions about a real estate deed or to learn more about creating an estate plan in Edina.
