ARIZONA STATE SENATE
Phoenix, Arizona
deed effective on
owner’s death
Purpose
Expands laws relating to conveyances and deeds to allow a deed to become effective upon the death of the grantor.
Background
Conveyance of a property interest upon a person’s death may be accomplished by various methods. Probate is a legal proceeding by which a deceased person’s property is distributed to heirs designated by law if he or she dies without a will, or to certain beneficiaries designated by the deceased if he or she dies with a will. Joint tenancy with right of survivorship is a method of co-ownership that gives the surviving tenant sole interest in the property upon the other tenant’s death without probate. Community property with right of survivorship is another method of co-ownership that allows a married couple to hold title as husband and wife while providing for succession outside of probate on the death of either spouse.
Current law in Kansas and Missouri allows for deeds to become effective upon the death of the grantor. According to the State Bar of Arizona, such a method in Arizona that allows an owner to transfer real property upon his or her death would provide an inexpensive way for modest estates that hold real property to avoid the costs associated with probate. The State Bar of Arizona further states that this method would allow owners to transfer real property upon their death without having to give up any current property rights and would allow them to retain full control of the disposition of their property during their lives. H.B. 2280 provides such an alternative method to convey a property interest upon a person’s death by allowing an owner to transfer real property upon his or her death to a designated beneficiary.
There is no
anticipated fiscal impact to the state general fund associated with this
measure.
Provisions
1. States that a deed that expressly states that it is not to take effect until the death of the owner transfers the conveyed interest to the designated grantee beneficiary effective on the death of the owner.
2. Specifies that the grantee may be a multiple grantee or a successor grantee, or both. Requires a grant to a successor grantee to state the condition on which the interest of the successor grantee would vest.
3. States that, in the case of real property that is owned as joint tenants with the right of survivorship or as community property with the right of survivorship, a deed that expressly states that it is not to take effect until the death of the last surviving owner transfers the conveyed interest to the designated grantee beneficiary effective on the death of the last surviving owner.
4. States that the beneficiary deed that is executed by fewer than all of the owners of real property owned as joint tenants with right of survivorship or community property with right of survivorship is valid if the last surviving owner is one of the persons who executes the beneficiary deed. States that the deed is invalid if the last surviving owner did not execute the beneficiary deed.
5. Specifies that a beneficiary deed is valid only if the deed is executed and recorded as provided by law in the appropriate county recorder’s office prior to the death of the owner or the last surviving owner.
6. Allows a beneficiary deed to be used to transfer an interest in real property to a trust estate even if the trust is revocable.
7. Allows a beneficiary deed to be revoked at any time by the owner or by any of the owners.
8. Requires the revocation, to be effective, to be executed and recorded as provided by law in the appropriate county recorder’s office. States that the revocation that is not executed by all the owners is not effective unless executed by the last surviving owner.
9. States that the last beneficiary deed recorded is the effective beneficiary deed if an owner executes and records more than one beneficiary deed concerning the same real property.
10. Specifies that laws relating to beneficiary deeds effective on owner’s death do not prohibit other methods of property conveyance, nor invalidate any deed otherwise effective by law to convey title to the interests and estates provided in the deed that is not recorded until after the death of the owner.
11. Provides formats for a beneficiary deed and revocation of a beneficiary deed.
12. Specifies that the mailing of the notice by the county assessor to the last known address of the deceased owner is deemed a mailing to the beneficiary's last known address until the beneficiary notifies the county assessor of a change of address.
13. Exempts beneficiary deeds from the requirement of filing an affidavit of legal value with the county recorder.
14. Defines beneficiary deed.
15. Provides for a general effective date.
Amendments
Adopted by Committee
Specifies that the mailing of the notice by the county assessor to the last known address of the deceased owner is deemed a mailing to the beneficiary's last known mailing address until the beneficiary notifies the county assessor of a change in address.
JUD 1/23/01 DPA 10-0-0-0 COM 3/21/01 DPA 4-0-2-0
3rd Read 2/6/01 57-0-3-0
Prepared by Senate Staff
March 21, 2001