Arizona Beneficiary Deed FAQ
Beneficiary Deed legislation passed in August of 2001 under ARS 33-405, which made Arizona one of the first states in the nation to enable its property owners to transfer their Arizona real estate to their heirs probate free!
The Arizona Beneficiary Deed must be recorded prior to the owner’s death and is valid until they revoke the deed, record a new beneficiary deed, or change the title ownership.
With an Arizona Beneficiary Deed, potential problems that homeowners once faced by adding someone on as a joint tenant (such as risking a joint tenant’s credit issues) can be avoided. It is also more cost effective than a revocable living trust, if your estate is relatively simple and does not exceed the death tax exemption amounts.
Q – Is the Arizona Beneficiary Deed for everyone and every situation?
A – No, there are situations where a trust is more appropriate. An Arizona beneficiary deed is ideal if only one person is on full title or their separate share of the title, their estate is under the tax exemption limits for estate tax, and they want a direct transfer to their heir(s) without any potential complicated estate issues.
Q – Can I name more than one person as the Beneficiary?
A – Yes, and if you name more than one, you must indicate how they are to take title upon your death.
Q – Instead of adding a spouse onto title, can I name them on a Beneficiary Deed?
A – Yes, you can name any adult beneficiary on the deed (including a spouse).
Q – My children are on title with me. Can I remove them and do a Beneficiary Deed with one deed?
A – No, you need two deeds; A Warranty Deed to remove them and then a Beneficiary Deed.
Q – If I name two or more Beneficiaries, do they need to sign the deed?
A – No. Arizona amended the law regarding this aspect effective August 22, 2002. It states, in summary, that the named beneficiary does not need to sign, agree to, or even be aware of a Beneficiary Deed.
Q – Does my lender need to approve my Beneficiary Deed?
A – No. This deed is not a transfer in the typical sense; it is like a “will” for your real estate. Your heirs inherit the property directly (free of probate) when you die and they continue all payments and owner obligations.
Q – What does my heir need to do once I die?
A – The property is automatically theirs, however they will need to record an original death certificate to make it a matter of public record that the Grantor is deceased.
Q – I recorded a Beneficiary Deed last year. Why do I get mail with my beneficiary’s name on it?
A – Any mail addressed to your beneficiary comes from solicitors unfamiliar with an Arizona Beneficiary Deed. Rest assured that your properly prepared Arizona Beneficiary Deed says that it conveys “upon your death”.
Q – Can I obtain the correct Beneficiary Deed form at an office supply store and prepare it myself?
A – That depends. Very few stores carry deed forms, you would need to confirm yourself that it complies with both Arizona law and with Arizona recording requirements, and there are a variety of different choices for you to name multiple heirs. So even if you find an Arizona Beneficiary Deed form, unless you are familiar with Arizona deed preparation, it is advisable to have the document prepared for you.
Q – Can I have my Arizona Beneficiary Deed prepared?
A – Yes! Beneficiary deeds are one of the most common deeds we prepare. Please complete the “Contact Us” section below to learn how we can assist you by preparing your Arizona Beneficiary Deed.
None of the content on our website is legal advice. When in doubt, always seek the advice of an Arizona attorney or tax advisor for guidance regarding Arizona real estate or estate planning.