Many Arizona homeowners want their property to pass to someone they love without the time and expense of probate. One option is a beneficiary deed, sometimes called a transfer-on-death deed.

A beneficiary deed names who will receive the property after the owner’s death. The owner keeps control of the home during their lifetime and may sell it, refinance it, or change or revoke the deed. The beneficiary does not receive a current ownership interest.

To be effective in Arizona, the deed must be properly prepared, signed and recorded with the county recorder before the owner—or last surviving owner—dies. Signing it and leaving it with other estate documents is not enough.

A beneficiary deed can be useful, but it is not a complete estate plan or right for everyone. Multiple owners or beneficiaries, blended families, minor children, debts and a beneficiary’s financial circumstances can create complications. The property also transfers subject to existing mortgages, liens and other encumbrances.

The goal is to make sure the transfer works with the rest of your estate plan and provides for the people you love.

This information is for general educational purposes only and is not legal, tax or estate-planning advice. Every situation is different. Please consult your own Arizona attorney, tax professional and insurance advisor before creating, changing or recording a beneficiary deed.