Pinnacle Legacy Law
Beneficiary Deeds
Powerful Protection
Beneficiary Deeds are legal documents that allow a property owner to transfer ownership of their real property to designated beneficiaries upon the owner’s death. While Beneficiary Deeds can be a helpful estate planning tool, it’s important to keep in mind their limitations and to consult with an experienced estate planning attorney to decide whether a beneficiary deed is the best fit for one’s specific situation.
Here are some things that Beneficiary Deeds can do and cannot do:
Beneficiary Deeds allow real property to be transferred to designated beneficiaries without the need for probate proceedings, which can be lengthy and expensive.
Beneficiary Deeds allow property owners to change designated beneficiaries at any time during their lifetime.
Property owners maintain complete control over the property and can continue to use and manage the property during their lifetime.
Beneficiary Deeds can help ensure that real property is kept within the family by directly passing ownership to designated beneficiaries.
Beneficiary Deeds can include contingent beneficiaries who will receive ownership of the property if the designated beneficiaries have passed away or are unable to take ownership.
Beneficiary Deeds do not provide protection against creditor claims. The real property is still subject to such claims.
Property owners cannot modify the terms of the Beneficiary Deed beyond the designated beneficiaries without executing a new Beneficiary Deed.
Beneficiary Deeds do not prevent potential disputes among beneficiaries, legal heirs, or other interested parties.
Beneficiary Deeds do not shield the property from estate taxes. Once designated beneficiary comes into the ownership of the property, the value will be included in the estate of the designated beneficiary when they pass away.
Having a beneficiary deed can have several benefits, including:
Avoiding probate: Beneficiary Deeds allow real property to be transferred to designated beneficiaries without the need for probate proceedings, which can be lengthy and expensive.
Providing flexibility: Beneficiary Deeds allow property owners to change designated beneficiaries at any time during their lifetime.
Allowing property owners to maintain control: Property owners maintain complete control over the property and can continue to use and manage the property during their lifetime.
Providing for continuity of ownership: Beneficiary Deeds can help ensure that real property is kept within the family by directly passing ownership to designated beneficiaries.
Providing for contingency planning: Beneficiary Deeds can include contingent beneficiaries who will receive ownership of the property if the designated beneficiaries have passed away or are unable to take ownership.
Other important things to know about beneficiary deeds include:
Beneficiary Deeds do not provide protection against creditors: The real property is still subject to such claims.
Property owners cannot modify the terms of the Beneficiary Deed beyond the designated beneficiaries without executing a new Beneficiary Deed.
Beneficiary Deeds do not prevent potential disputes among beneficiaries, legal heirs, or other interested parties.
Beneficiary Deeds do not shield the property from estate taxes. Once designated beneficiary comes into the ownership of the property, the value will be included in the estate of the designated beneficiary when they pass away.
Start protecting your legacy.
Click the link below and schedule a call with a member of our team. We will explain our unique process for working with farmers, ranchers and their families. The call is FREE!