Legal Definitions - beneficiary deed

A beneficiary deed is a legal document that allows a property owner to transfer ownership of their property to a named beneficiary upon their death. This type of deed is also known as a transfer on death deed.

Beneficiary deeds are used to avoid the time and expense of probate, which is the legal process of distributing a deceased person's assets. Only certain states allow transfers of property through beneficiary deeds. For example, Arizona authorizes the use of beneficiary deeds that are executed and recorded and expressly state that the deed is effective upon the death of the owner.

Here is an example of how a beneficiary deed works:

John owns a house in Arizona and wants to leave it to his daughter, Jane, when he dies. He executes and records a beneficiary deed that names Jane as the beneficiary. When John dies, the house automatically transfers to Jane without going through probate.

It's important to note that a beneficiary deed can be revoked at any time prior to the grantor's death. For example, if John changes his mind and wants to leave the house to his son instead, he can revoke the beneficiary deed and execute a new one naming his son as the beneficiary.