How Does a Beneficiary Deed Work?

There never seems to be an easy time to sit down and start estate planning, but doing so earlier than needed is usually the best approach. As you start to navigate your plans, it’s a good idea to speak with a lawyer who can help you sort out your options and ensure that, after your death, your wishes are followed.

For many people, their real property (usually their home) is their biggest asset. In planning what will happen to that asset after death, it may make sense to consider a beneficiary deed.

What is a Beneficiary Deed?

A beneficiary deed is a legal document that transfers your property to a named beneficiary upon your death. You retain all ownership rights to the property until your death, when the ownership transfers to a person you name. You can revoke this document at any time, so it isn’t a permanent selection unless you wish it.

Some of the benefits of choosing to utilize a beneficiary deed include making the process simpler, lowering fees, and giving you continued flexibility. To start, the process may help you avoid probate, in which a court would need to approve the validity of the documents and the transfer. Instead, the transfer of ownership becomes effective upon your death. A beneficiary deed also enables you to continue using the property as you’d like and doesn’t hinder you from making choices regarding your property.

Beneficiary deeds must abide by state laws, including obtaining a notarized signature and being recorded by the county. If you’re interested in signing one, or you’d like to discuss your options, I’d recommend you set aside some time with a qualified estate planning attorney. This will guarantee you professional advice about your best options, considering your individual circumstances.

The information presented here is for general educational purposes only. It does not constitute legal advice and does not create an attorney-client relationship.