A transfer-on-death deed (TODD) allows for the transfer of title of real property to a named beneficiary at the death of the owner, or the last to die of multiple owners. Much like with a determination-of-descent proceeding, transfer of title is not allowed unless sale proceeds are made subject to a proper MA claim (or a statement that there is no MA claim) described in a Certificate of Clearance for Medical Assistance Claims – Transfer on Death Deed (DHS-5893) (PDF) (see pages 3 and 4 of the document).
You, or any person claiming an interest in the real property, may petition the district court for an order determining the validity of the Medical Assistance (MA) claim and allowing sale of the real property for the recovery of MA benefits received. The net sale proceeds from such a sale must be used to pay the MA claim if the claim is determined valid.
When the grantor owner of a TODD dies, the beneficiary of the TODD (the person receiving the property), or the beneficiary’s attorney or agent, may request clearance of MA claims against the TODD grantor owner or the owner’s deceased spouse. To do this, the beneficiary, or the beneficiary’s attorney or agent, must complete and send to the county an Application for Certificate of Clearance for Medical Assistance Claim – Transfer on Death Deed (DHS-5893) (PDF).
The application must include all the following:
Upon receiving an application for a certificate of clearance, you must first determine whether an MA claim exists. If one does, identify which county is the county of financial responsibility. If you are the county of financial responsibility, process the certificate. If another county is financially responsible for the MA member, forward the certificate to that county. However, if there is no MA claim, you must process the certificate of clearance even if you are not the county of financial responsibility.
You must mail a completed clearance within 15 working days after receiving the application. See Minnesota Statutes, section 525.313, paragraph (c).
To process a certificate of clearance, do as follows: