If all beneficiaries designated in the Transfer on Death Deed (TODD) die before you, no transfer shall occur and the TODD is void. It is important to note this because I have prepared a number of TODDs for clients where they have named a single beneficiary such as an only child and not taken into account if that child predeceases the client, then the TODD becomes void. Of course there are solutions around this dilemma.
To maximize the effectiveness of the TODD, it is recommended that you monitor the situation periodically to ensure that the TODD is still valid for the purposes you have intended. This may include having back-up beneficiary designations as well as other more traditional methods like using a trust to ensure that your wishes are carried out as you intended.
For more information, see Minn. Stat. § 507.071.
