Under ARS §33-405 a beneficiary deed can be executed and recorded by the owner of real property to a family member or any other person. The following are answers to some basic questions you may have:
1. When is a beneficiary deed effective?
Answer: Upon the death of the owner of the real property.
2. If a will is executed after a beneficiary deed, does the will control?
Answer: No. A beneficiary deed is not revoked by a will. ARS §33-405(J).
3. Are there any tax issues when a beneficiary deed is recorded?
Answer: No. The recording of a beneficiary deed is not a taxable event.
4. Can a beneficiary deed be revoked?
Answer: Yes. The owner of the real property can record a notice of revocation at any time prior to death.
5. Are there approved forms for a beneficiary deed?
Answer: ARS §33-405(K) has an approved form of a beneficiary deed. In addition, ARS §33-405(L) has an approved form for the notice of revocation of a beneficiary deed.
6. If an income-producing property is transferred by beneficiary deed, is the owner of the income-producing property still entitled to the rent from tenant?
Answer: There is no transfer of ownership by a beneficiary deed until the death of the owner of the rental property. Therefore, the owner of the rental property remains entitled to the rent from the tenant.
7. Can a lender transfer a real property mortgage loan on real property by a beneficiary deed?
Answer: Yes. Any debts secured by a lien on real property can be transferred by beneficiary deed. ARS §33-405(A).
8. What is the cost of a beneficiary deed?
Answer: The cost is only the minimal cost of recording the beneficiary deed in the county in which the real property is located.
Note: Combs Law Group, P.C. offers a $1,500 flat fee, including recording costs, for recording beneficiary deeds on up to three parcels of real property.