A beneficiary deed is a document that expresses an interest in real property, including any debt to a beneficiary. The person who receives the real property in a beneficiary deed is referred to as the beneficiary. A beneficiary deed expressly indicates that the deed is effective on the death of the owner. The transfer of interest to the beneficiary is associated with all conveyances, assignments, contracts, mortgages, deeds of trust, liens, security pledges and other encumbrances made by the owner. A beneficiary deed is an important document. It allows a smooth transfer of ownership between past and present owners.
A beneficiary deed may delegate to multiple grantees. Such grantees take title of the real property as joint tenants and get a right of survivorship as tenants in common. Sometimes, a beneficiary deed may delegate successor beneficiaries.
In a beneficiary deed, there is no change in current ownership and the owner enjoys absolute control in real property. The owner can sell, gift or exchange the real property even if a beneficiary deed is executed. The owner can annul or cancel the beneficiary deed at any time. Beneficiary deeds are suitable for real properties such as land, homes, ranches, condos, time-share, and mineral interests.