Beneficiary Deed in Arizona
Planning for what will happen to your assets when you pass away is crucial. Unfortunately, far too many people put off estate planning because they are busy and think it will be too difficult. It’s never too soon to start taking steps to ensure your final wishes are respected. It doesn’t have to be a complex process, either.
Although it is not recommended, if you want to skip setting up a last will and testament or another type of estate plan, then a beneficiary deed may be right for you. A beneficiary deed can assign your property to the person of your choice in a straightforward way.
If you are interested in learning more about the power and simplicity of a beneficiary deed Arizona, contact an attorney at Brown & Hobkirk, PLLC today. Our Arizona estate planning lawyers can help develop a clear plan for the future to put your mind at ease and your property in good hands.
What is a Beneficiary Deed?
Arizona allows individuals to transfer property to a beneficiary through what is known as a beneficiary deed. A beneficiary deed is sometimes referred to as a “transfer on death deed,” or TOD deed. It is a legal document that grants a residential property to a designated beneficiary upon the death of an individual.
While living, the owner still has complete control over their property and can alter or revoke the deed at any time. They can also sell the property, which has the effect of revoking the beneficiary deed. The document is typically one to two pages long and can be fairly simple for an attorney to prepare.
Who Is a Good Candidate for Creating a Beneficiary Deed?
While a beneficiary deed is not as flexible as a living trust, it is a valuable tool to transfer property to specific beneficiaries. Generally, good candidates for beneficiary deeds include property owners who:
- Are unmarried or single
- Agree on designated beneficiaries
- Do not hold property or other debts
- Do not have a will and want to bypass Arizona’s intestate succession laws
Beneficiary deeds are not generally suitable for owners of properties with joint tenants. If each owner designates their own beneficiary, then the waters can get muddy.
Benefits of a Beneficiary Deed
There are several positive aspects to beneficiary deeds, which make them a popular option for estate planning. One of the perks is that beneficiary deeds are generally easy to prepare. Other benefits of considering a beneficiary deed include:
- Avoiding probate: Property passed to another individual through a beneficiary deed skips the probate process and passes directly to the beneficiary. Probate can be a costly and time-consuming legal process.
- Stay in control: With a beneficiary deed, you continue to control your property until you die. You still have the power to sell, rent, alter, and mortgage the property as you wish.
Deeds can be changed or revoked: A beneficiary deed can be altered or withdrawn at any time. If the property owner changes their mind, they can easily amend the document or revoke it altogether. - Tax benefits: A beneficiary deed does not transfer ownership of a property to the beneficiary until the owner passes away. Therefore, the owner can continue to qualify for local tax benefits like the homestead exemption. Since the property is not transferred until death, it is not considered a gift. If the property is not a gift given during the person’s lifetime, it can be exempt from federal gift taxes.
- Lower fees: Since beneficiary deeds are generally easier to prepare, they can help you save on legal costs.
Requirements for Arizona Beneficiary Deeds
To establish a beneficiary deed in Arizona, the deed must:
- Grant the real estate property to a beneficiary designated by the owner of said property
- Be recorded in the office of the county where the property is located
- Be recorded in the county office before the property owner’s death
- Specify that the deed is effective when the property owner dies
The deed form must also be filled out accurately and adhere to specific formatting standards. For help preparing a beneficiary deed and filing it correctly, consult with an Arizona estate planning attorney.
How to Get an Arizona Beneficiary Deed
There are several ways to get an Arizona beneficiary deed. You could draft the document yourself following Arizona state guidelines and submit it to the correct county office. There are also online services that you can use to complete the deed and submit it on your own once it is notarized.
However, the best option for getting an Arizona beneficiary deed is to work with an experienced estate planning attorney. A lawyer can help you navigate the process, fill out the proper forms, and ensure the documents are complete and accurate before filing them with the correct county office. Although a beneficiary deed is a fairly simple document, a minor mistake in the preparation or filing can be very detrimental. A skilled attorney can also answer your questions about beneficiary deeds and help you decide if one is right for you.
Contact Brown & Hobkirk, PLLC Today
Estate planning doesn’t have to be stressful or overly complicated. If you want to talk about ways to transfer your property to someone you care about, contact the experienced legal team at Brown & Hobkirk, PLLC today. We can alleviate your concerns and build an estate plan that will meet your needs and respects your goals.
Call or contact our office today for a free legal consultation. We serve clients in Scottsdale, Phoenix, Peoria, Chandler, Tucson
and throughout Arizona.