Should You Have a Beneficiary Deed?

Beneficiary deeds are becoming more and more common, and people are asking questions such as: “What exactly is a beneficiary deed?” “What if I change my mind?” “Do I have to record a beneficiary deed, or can I just give it to the beneficiary now?”

Under Arizona law a beneficiary deed is a deed that is executed and recorded during the lifetime of the owner of the home (or other real property), and provides for the transfer of the property only after the owner’s death.

 A beneficiary deed avoids the time and expense of probate. In small estates, especially if no minor children, the use of beneficiary deeds can make a will or revocable living trust unnecessary.

 A Beneficiary deed still allows the owner to sell or mortgage a home during their lifetime. If the owner changes their mind as to the beneficiary, the owner can simply record a revocation of the beneficiary deed.