![]() He brings a highly systematic approach to the practice of law, which is critically important when wading through the complex, and often bizarre, legal requirements associated with estate and trust law. ![]() Bouman provides legal counsel in the areas of estate planning, estate settlement, and asset protection. There will also be a nominal recording fee in the county where the property is located. How much does a Beneficiary Deed cost?Īn estate attorney may prepare a Beneficiary Deed for approximately $250 to $750. Thus, real estate that is owned free and clear should be titled in the name of a living trust.ħ. Property titled in a living trust is almost guaranteed to avoid court involvement in the event of incapacity. Unfortunately, they are notorious for not working when they are needed most. The drawback of this plan is reliance on a financial power of attorney for incapacity planning. This annoyance can be avoided by leaving the property in personal name, but adding a Beneficiary Deed naming a living trust as beneficiary. Lenders and title companies often require the property to be transferred out of trust temporarily, and charge higher closing costs for the privilege. Many people who place real estate into living trusts learn this can be a headache when they need to refinance a mortgage loan. How can a Beneficiary Deed work in conjunction with a Living Trust? Beneficiary-controlled inheritance trusts can provide substantial creditor and divorce protection, which a Beneficiary Deed cannot.Ħ. For example, the property owner may wish to transfer the property into an asset-protected trust for benefit of the beneficiary, rather than grant outright ownership. For example, a Beneficiary Deed is not able to deal adequately with the possibility of minor, disabled, or irresponsible beneficiaries. A Beneficiary Deed does not permit the level of customization sometimes needed for unusual or unexpected situations. Fails to deal with unusual situations.For this reason, the owner should certainly have an up-to-date financial power of attorney, and consider titling the property in a revocable living trust instead. A Beneficiary Deed fails to address the possibility of the owner becoming incapacitated. Fails to account for potential incapacity of owner.There are several arguments against the use of Beneficiary Deeds: What are the disadvantages of using a Beneficiary Deed? If the owner dies, and the property is still subject to the mortgage lien, the beneficiary or beneficiaries must assume the payments (in some cases) or qualify for a new loan in order to keep the property.ĥ. What if the property has a mortgage lien?Ī property owner may record a Beneficiary Deed even if the property is held subject to a mortgage lien. The deed may also be revoked by recording a Revocation of Beneficiary Deed in the county where the property is located.Ĥ. Parent may sell the property without permission of the child. When Parent dies, assuming she still owns the home, the adult son need only record a death certificate and the property is his.ĭuring Parent’s lifetime the child has no rights to the property. Parent signs and records a Beneficiary Deed, effective upon Parent’s death, naming the adult son as beneficiary. Parent wants her adult son to inherit the residence if she dies. Thus, it is possible to add a Beneficiary Deed to jointly owned property, but it would not be effective until the death of the last remaining owner.įor example, Parent owns a primary residence in Phoenix. Probate only occurs when the last remaining owner dies. It should be noted that property held as “joint tenants with right of survivorship” or “community property with right of survivorship” will not be subject to probate if one of the owners dies. The need for a probate action to transfer a property upon death is eliminated if a Beneficiary Deed was recorded prior to the property owner’s death. Probate is the court-supervised process of transferring assets from a deceased person to the persons who inherit. ![]() The primary reason for using a Beneficiary Deed is to avoid probate when the owner dies. What are the advantages of using a Beneficiary Deed? It must be recorded in the county where the property is located while the property owner is still alive.Ģ. A Beneficiary Deed is a type of real estate transfer deed that takes effect upon the death of the property owner.
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