When planning for your future, you want to have as much control as possible over your assets. One of the most reliable and legally binding tools to grant this control is a beneficiary deed. In this article, we will provide an overview of what a beneficiary deed is, how it works and the benefits of using one.
What Is a Beneficiary Deed?
A beneficiary deed is an option for transferring real estate after a person dies. This type of deed transfers the title to a named beneficiary without requiring the involvement of the court system. In essence, the grantor of the beneficiary deed designates a person to receive the rights to the real estate upon the grantor’s passing. These deeds are allowed in most states that follow equitable conversion or Uniform Probate Code rules.
How Does a Beneficiary Deed Work?
Since a beneficiary deed provides a direct transfer of the real estate without the need to go through the probate process, it enables the person making the transfer to maintain ownership until death. Once the grantor passes away, the beneficiary of the deed then obtains title to the property without having to navigate the endless paperwork and court related business of the probate process.
Benefits of a Beneficiary Deed
The primary benefit of using a beneficiary deed is that it saves time and money. By avoiding the probate process, you circumvent the expenses often associated with appeals, court costs, taxes, attorney fees and other administrative paperwork. Additionally, because the title of the real estate automatically transfers from the grantor to the beneficiary, family members are given the peace of mind that their assets will be transferred seamlessly according to their wishes.
A beneficiary deed is a valuable tool for financial planning and protecting your assets. By understanding how it works and the benefits it offers, you can make sure you have the best financial plan in place for your future.