HB2334 - 452R - House Bill Summary

House of Representatives

HB 2334

beneficiary deeds

Sponsors: Representative Voss; Senator Richardson

DP	Committee on Judiciary
DP	Committee on Financial Institutions and Insurance
DP	Caucus and COW
dp	Third Read
x	As Transmitted to the Governor

HB 2334 makes various clarifying and technical changes to Arizona’s beneficiary deed law.

History

Laws 2001, chapter 112 established the beneficiary deed as an additional method of conveying property in Arizona. An owner of real property may record a beneficiary deed with the county recorder in the county in which the real property is located in order to transfer title to the beneficiary upon the owner’s death.

Provisions

· Specifies that the grantee of the beneficiary deed takes the interest in the property subject to all conveyances, assignments, contracts, mortgages, deeds of trust, liens, security pledges and other encumbrances made during the life of the property owner.

· Clarifies that an owner may convey the property to one or more persons using the beneficiary deed and that ownership may be vested in any form that is legal in this State.

· Clarifies that the owner may designate a successor grantee and that if the successor grantee cannot take title, on what condition the interest of the successor grantee vests. (For example, the owner of a property may convey the owner’s property to X, but if X is not alive then to Y, but if Y is not alive then to Z.)

· Specifies that an estate in joint tenancy with right of survivorship or community property with right of survivorship is not affected by the execution of a beneficiary deed that is not executed by all of the owners of the property. Further stipulates that the rights of the surviving joint tenant or surviving spouse in a community prevail over a grantee beneficiary.

· Clarifies that if the property is an estate in joint tenancy with right of survivorship or community property with right of survivorship a revocation of the beneficiary deed is not effective unless executed by the last surviving owner.

· Clarifies that the controlling beneficiary deed is the last deed recorded prior to the owner’s death.

· Provides that no obligation exists to inform the beneficiary of the existence of the beneficiary deed during the property owner’s lifetime.

· Provides that a properly recorded beneficiary deed supercedes any contrary direction in a will.

· Defines the term owner.

· ---------- DOCUMENT FOOTER ---------

· 45th Legislature