A beneficiary deed can offer property owners a direct way of transferring their property’s ownership rights after they pass away. If you are someone who owns multiple real estate properties, this estate planning tool may be a perfect fit for you and your family.
To help provide you with a better understanding of this topic, here are three commonly asked questions about Arizona beneficiary deeds:
What are the legal requirements of a beneficiary deed (BD)?
To create a valid BD in Arizona, it must be:
- Done in writing, signed by the owner or ‘grantor’ and notarized
- Contain the legal description of the property
- Include the full legal name and address of one or more grantees
- Recorded in the deed records in the county where the owner’s property is located
The owner must also provide a clear statement confirming that their property’s transfer of ownership will only become effective after they pass away.
Can I appoint multiple grantees?
Yes, you may name multiple grantees in your legal document. It is highly advisable to appoint an ‘alternate beneficiary’ in case the original beneficiary passes away before you.
Without an alternate beneficiary, your real estate property’s BD will be null and processed through the Arizona probate court.
Does a BD affect my property ownership while I am still alive?
No, a BD does not remove your legal rights as the property owner. Since your BD will only take effect upon your death, you will retain full control and ownership rights to your property during your lifetime.
With careful planning, you can protect your wealth
While owning a final will is important, it is not the only type of legal document that can safeguard your family’s inheritance. By taking your time to enhance your estate plan, you can effectively minimize your estate taxes, avoid probate and leave a legacy for your loved ones.
