An Arizona beneficiary deed is special type of deed permitted via statute in Arizona, A.R.S. § 33-405, that becomes active upon the death of the grantor.
The relevant portion of the statute is as follows:
A deed that conveys an interest in real property, including any debt secured by a lien on real property, to a grantee beneficiary designated by the owner and that expressly states that the deed is effective on the death of the owner transfers the interest to the designated grantee beneficiary effective on the death of the owner subject to all conveyances, assignments, contracts, mortgages, deeds of trust, liens, security pledges and other encumbrances made by the owner or to which the owner was subject during the owner's lifetime.
Beneficiary deeds can be useful for a number of purposes including creating life estates in real property after the death of the grantor, avoiding probate of the real property, and others.
Beneficiary deeds are revocable at any time prior to the death of the grantor. As such, the grantor may amend a beneficiary.
Although a beneficiary deed can help to avoid probate because it is not part of the probate estate of the decedent, it is still part of the decedent's taxable estate.
This brief overview of some important considerations associated with Arizona beneficiary deeds is by no means comprehensive. Always seek the advice of a competent professional when making important financial and legal decisions.
Douglas K Cook is an Arizona estate planning lawyer with over 40 years of experience as a practicing attorney. Although Douglas K Cook's office is located in Mesa, Arizona, he represents clients throughout the Phoenix, Arizona Metropolitan area including the following east valley cities: Scottsdale, Paradise Valley, Tempe, Chandler, & Gilbert.
