Are beneficiary deeds legal in Arizona?
Arizona beneficiary deeds can’t be used for real estate in other states. You also need to have your completed beneficiary deed notarized, then record it in the county where the property is located. The law itself can be read in section 33-405 of the Arizona Revised Statutes (www.azleg.gov/ars/33/00405.htm).
What are the benefits of a beneficiary deed in Arizona?
The Arizona beneficiary deed form allows property to be automatically transferred to a new owner when the current owner dies, without the need to go through probate. It also gives the current owner retained control over the property, including the right to change his or her mind about the transfer.
Does a transfer on death deed avoid estate tax?
Tax Implications of Transfer on Death Deeds Keep in mind that as long as you’re alive, TOD Deeds have no impact on (or benefit for) your Beneficiary. He or she has no legal rights to the property until after you pass away. That means you pay the property taxes on it until you die.
What are the advantages of a transfer on death deed?
The primary advantage of a transfer on death deed is to avoid the probate process. If a property owner has executed a transfer on death deed, then as soon as the property owner dies, that property passes to the person named. The beneficiary does not have to go to court.
What are the negatives of an Arizona beneficiary deed?
Some of the negatives associated with an Arizona Beneficiary Deed are: 1. Because the property is not transferred until the death of the last owner, the full value of the property remains in the estate of the deceased for estate tax purposes. 2.
What are the pros and cons of a Tod deed?
Another pro of using a TOD deed is that it avoids the requirement of beneficiary consent to beneficiary status. With the life estate-remainder option, the beneficiary must accept his or her role as the beneficiary and be willing to take the property. With a transfer on death deed, that is not the case.
What happens to the property in a beneficiary deed?
A beneficiary deed, or transfer-on-death deed, does just what its name implies – transfers the property to a beneficiary only upon your death. As grantor of the property, you retain ownership and control of the property during your lifetime and can revoke it anytime.
What are the advantages of a transfer on Death Deed?
Another advantage of using a transfer on death deed is that the grantor would fully and freely own the property until his or her death. If the grantor instead created a life estate with a remainder interest, the beneficiary would have an interest in the property during the grantor’s lifetime.
Some of the negatives associated with an Arizona Beneficiary Deed are: 1. Because the property is not transferred until the death of the last owner, the full value of the property remains in the estate of the deceased for estate tax purposes. 2.
What makes a beneficiary deed effective on death?
If real property is owned as joint tenants with the right of survivorship or as community property with the right of survivorship, a deed that conveys an interest in the real property to a grantee beneficiary designated by all of the then surviving owners and that expressly states that the deed is effective on the death…
Who is entitled to a beneficiary deed in California?
B. A beneficiary deed may designate multiple grantees who take title as joint tenants with right of survivorship, tenants in common, a husband and wife as community property or as community property with right of survivorship, or any other tenancy that is valid under the laws of this state.
Can a beneficiary deed be used in another state?
They typically include a page and map reference in the book of maps for Maricopa County (or other Arizona county where the property is located). Arizona beneficiary deeds can’t be used for real estate in other states. You also need to have your completed beneficiary deed notarized, then record it in the county where the property is located.