One of the main objectives of estate planning is to avoid the time and expense of having your entire estate go through probate.
Passing on Real Property.
Historically, when it came to passing on real property, the only way you could do it was:
- By deed during your lifetime,
- Through your Will after your death, or
- By way a of trust, effective either during your lifetime or after your death.
Each one of these options had its own practical, legal and tax consequences.
Plus, since each person’s Will still has to go through probate —although not the costly and time-consuming process we always try to avoid — leaving property through your Will did not avoid probate.
Then Came Beneficiary Deeds.
To help families receive inherited property faster, in Arizona, where we practice, the Legislature has passed A.R.S. § 33-405.
Arizona’s Beneficiary Deed Law allows you to sign and record a deed during your lifetime, that transfers real property to one or more people upon your death—without having to go through probate.
A beneficiary deed can name one or more beneficiaries and can be given to the beneficiary/ies by one owner or multiple owners.
A beneficiary deed can also be used to transfer real property to a trust.
One of the great things about a beneficiary deed is that it does not transfer the property automatically like a normal deed does.
Instead, the property only transfers at your death.
Plus, you can revoke it at any time and do anything you want with the property in the meantime.
Finally, as long as the deed has not been revoked, your beneficiaries will get your property immediately upon your death.
Want to Learn More?
If you would like to learn more about beneficiary deeds or any other trusts and estates tool, contact our experienced trusts and estates attorneys to help you. We offer FREE consultations, and we serve all of Arizona. Our offices are located in beautiful Sedona and we serve Verde Valley as well. We can help you provide and plan for your loved ones. Call us at 928-282-1483 or connect with us on Twitter or LinkedIn, or contact us here.