Basic Questions on Beneficiary Deeds in Arizona

   Under ARS §33-405 a beneficiary deed can be executed and recorded by the owner of real property to a family member or any other person.  The following are answers to some basic questions you may have:

1. When is a beneficiary deed effective?

  Answer: Upon the death of the owner of the real property.

2. If a will is executed after a beneficiary deed, does the will control?

  Answer: No.  A beneficiary deed is not revoked by a will.  ARS §33-405(J).

3. Are there any tax issues when a beneficiary deed is recorded?

  Answer: No.  The recording of a beneficiary deed is not a taxable event.

4. Can a beneficiary deed be revoked?

  Answer:  Yes.  The owner of the real property can record a notice of revocation at any time prior to death.

5. Are there approved forms for a beneficiary deed?

  Answer:  ARS §33-405(K) has an approved form of a beneficiary deed.  In addition, ARS §33-405(L) has an approved form for the notice of revocation of a beneficiary deed.

6. If an income-producing property is transferred by beneficiary deed, is the owner of the income-producing property still entitled to the rent from tenant?

  Answer: There is no transfer of ownership by a beneficiary deed until the death of the owner of the rental property.  Therefore, the owner of the rental property remains entitled to the rent from the tenant.

7. Can a lender transfer a real property mortgage loan on real property by a beneficiary deed?

  Answer: Yes.  Any debts secured by a lien on real property can be transferred by beneficiary deed.  ARS §33-405(A).

8.  What is the cost of a beneficiary deed?

  Answer: The cost is only the minimal cost of recording the beneficiary deed in the county in which the real property is located.

  Note: Combs Law Group, P.C. offers a $1,500 flat fee, including recording costs, for recording beneficiary deeds on up to three parcels of real property.  

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