From primary residences to vacation homes, people often leave their real estate to loved ones after they pass away. If you plan to do this, you should hire an attorney to draft a beneficiary deed as part of your estate plan. This way, you will retain full control over the property until your death. To prepare for your discussion with an attorney, below is more information about beneficiary deeds.

What Is a Beneficiary Deed?

Unlike regular deeds, a beneficiary deed is unique because the grantor can revoke it at any time. The current owner will maintain complete control of the property during their lifetime, which means they have the right to live in, sell, or mortgage the house without the beneficiary’s interference. Once the current owner—as well as any other grantors die—the courts will transfer property ownership directly to the beneficiary. After an attorney drafts the beneficiary deed, you must file it with the county land records office. If you choose to change the beneficiary, you will need to create a new deed. 

What Should You Consider?

One of the most significant aspects of this deed is the ability to bypass probate for your loved ones when you pass away. By creating a beneficiary deed, the courts will not have to verify the document before transferring ownership. After you file the deed with the county office, officials will later receive the original owner’s certificate of death to know that the real estate can immediately go to the inheritor.

Whether your loved ones can pay the fees associated with the estate is also significant. As the beneficiary doesn’t receive the real estate in the current owner’s lifetime, the property won’t be subject to gift taxes. If there’s a reverse mortgage on the home, the new owner can quickly begin working with the lender to sign the paperwork over to their name or begin selling the house.

For help creating beneficiary deeds, trusts, and other aspects of a comprehensive estate plan, contact the attorneys at Hackworth, Ferguson & Thompson in Piedmont, MO. Since 1973, residents throughout southeast Missouri have been depending on the partners to provide outstanding customer service while helping them navigate estate planning, social security, and family law matters. Visit them online for more information about their practice areas. Call (573) 223-4247 to schedule a consultation.