House of Representatives

HB 2280

deed effective on owner's death

Sponsors: Representatives Voss, Brotherton, Senator Richardson: et al

 

DPA

Committee on Judiciary

DPA

Caucus and COW

 

X

As Passed the House

 

Adds a provision to Arizona property law that allows a deed to become effective upon the death of the grantor.

 

History

Current law provides for two methods of conveyance of a property interest upon a person’s death.  One is joint tenancy with right of survivorship, which grants the surviving tenant sole interest in the property upon the other tenant’s death.  The other is conveyance of property to a beneficiary through a decedent’s will.

 

Provisions

·                      States that a deed that expressly states that it is not to take effect until the death of the owner transfers the interest to the designated grantee upon the death of the owner.

 

·                      Allows all surviving joint tenant owners of real property to convey an interest in the real property if the deed expressly states that it is not effective until the death of the last surviving owner.

 

·                      Sets forth requirements for the beneficiary deed to be valid.  Specifies that the deed may be used to transfer an interest in real property to a trust estate even if the trust is revocable.

 

·                      Provides that the beneficiary deed is revocable at any time by the owner or any of the owners and sets out procedure to revoke the deed.  The revocation is not effective if the last surviving owner executed the beneficiary deed but did not revoke the beneficiary deed.

 

·                      If an owner executes and records more than one beneficiary deed, the last one recorded is the effective deed.

 

·                      Specifies that this section does not prohibit other methods of property conveyance upon the owner’s death, nor does it invalidate any deed otherwise effective by law to convey title.

 

·                      Defines beneficiary deed as a deed authorized under this section.

 

HB 2280 was amended in the Judiciary Committee as follows:

 

·                      Exempts beneficiary deeds from the requirement of filing an affidavit of value with the county recorder.

 

·                      Changes the title of ARS section 33-405 from Deeds effective on death of owner to Beneficiary deeds.

 

·                      Specifies that the beneficiary may be more than one person, or a successor grantee to whom the original beneficiary’s interest would transfer if the beneficiary were unable to assume ownership.  Requires that a grant to a successor specify the condition on which the interest of the successor would vest.

 

·                      Clarifies that a beneficiary deed will be valid, even if executed by fewer than all of the owners, if the last surviving owner is one who executed the beneficiary deed.

 

·                      Provides formats for the beneficiary deed and revocation.

 

The Judiciary Committee amendment was adopted in Committee of the Whole.  HB 2280 was further amended in Committee of the Whole as follows:

 

·                      Makes clarifying changes.

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·                      44th Legislature                                                                                                                       

·                      Second Regular Session                       2                                                        February 7, 2001

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