There are many options to consider when creating a solid plan for how your property will be dispensed after your death. Your lawyer may propose the inclusion of specific provisions in your will or the creation and funding of a trust. On the contrary, a different proposition might be to use a deed to pass on your property to your heirs. Therefore, If you own legitimate property, it’s important to know the benefits and disadvantages of using a beneficiary deed.

Majority of deeds transfer property at the moment. A beneficiary deed passes on your property to a beneficiary upon your death. However, as grantor of the property, you hold ownership and control your property during your lifetime, therefore allowing you to revoke it anytime.

Benefits of Arizona Beneficiary Deeds:

• Reduced Fees: Beneficiary deeds may reduce fees for managing trusts and more.
• Loans: After signing a beneficiary deed, grantors can still do what they want with their possessions, i.e., mortgaging or selling the possessions.
• No Probate Required: Any possessions transferred through a deed are not required to go through probate.
• Quick Property Transfer: After the grantor passes, transferring the property to the beneficiaries is easy.

 

Disadvantages of Arizona Beneficiary Deeds:

• Beneficiary Problems: This kind of deed allows your heirs to sell or get a mortgage against your possessions immediately after your death, as long as they are not fiscally responsible.
• No Auto-transfer: The property isn’t a part of his or her estate if the beneficiary dies before you.
• Lack of Protection for Assets: Property is given to beneficiaries with no protection from divorces, lawsuits, creditors, etc.
• Taxes: Transferred property can be taxed at a higher rate.
• Eligibility for Medicaid: Your eligibility for receiving Medicaid may be affected. Talking to an elder care attorney about long term care planning is an important part of your estate planning.
• Does Not Address Incapacity: This form of transfer does not protect against any disabilities or incapacities. The possessions can not be sold to pay for your care.

 

Finding an Estate Planning Lawyer

When looking for an attorney, Citadel Law Firm should be your first choice. We are an Arizona family law firm with an excellent track record. Click here for a free consultation and get your affairs in order starting today or call us at (480) 565-8020 we will be pleased to help find the best solution for your family. Our estate planning attorneys in Chandler can help you with your beneficiary deeds.