Does a Transfer on Death Deed (TODD) Protect the Property or Asset From Minnesota Medicaid (Medical Assistance)?

Many people have the misconception that executing and filing a Transfer on Death Deed (TODD) on their property or a homestead, protects the property from being included as an available asset for qualifying for public assistance like Medical Assistance and/or Long Term Care coverage by the state for a nursing home stay.  Actually a TODD does not really transfer anything until the transferor (owner) passes away, then the transferee (new owner) must file a death certificate (of the old owner) and get a clearance letter from the state Medicaid agency stating that the state agency has no claim against the property for paid out public Medicaid funds.

Essentially the property that is the topic of the TODD still remains an asset of the transferor (owner) until their death, and is included as an available asset for qualifying for public assistance, Medicaid (Minnesota Medical Assistance) or Long Term Care coverage.