The bill amends Minnesota Statutes 2022, section 507.071, to improve the regulations surrounding transfer on death deeds, particularly focusing on the rights and protections of grantee beneficiaries. It clarifies that until a transfer on death deed becomes effective, it does not alter the title to the real property but establishes an insurable interest for the designated grantee beneficiary. The bill allows for multiple grantee beneficiaries and specifies the rights of surviving joint tenants when a grantee joint tenant dies before the grantor owner. Additionally, it addresses the recording and revocation of transfer on death deeds, ensuring that deeds recorded incorrectly can still be valid if recorded prior to the grantor owner's death.

Moreover, the bill mandates that insurers provide temporary extended coverage for grantee beneficiaries starting from the date of the grantor owner's death, contingent upon the grantor owner notifying insurers about the existence of the transfer on death deed. It includes definitions, conditions for insurance claims, and necessary warnings regarding the temporary coverage that must be included in the deeds. The effective date for these provisions is set for the day following final enactment, applying to insurance policies issued or renewed in Minnesota on or after August 1 of the year of final enactment.

Statutes affected:
Introduction: 507.071