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Arizona allows individuals to transfer property to a beneficiary through what is known as a beneficiary deed. A beneficiary deed is sometimes referred to as a “transfer on death deed,” or TOD deed. It is a legal document that grants a residential property to a designated beneficiary upon the death of an individual.

Cons To Using Beneficiary Deed Estate taxes. Property transferred may be taxed. No asset protection. The beneficiary receives the property without protection from creditors, divorces, and lawsuits. Medicaid eligibility. ... No automatic transfer. ... Incapacity not addressed. ... Problems with beneficiaries.

The benefits of a Beneficiary Deed include: Probate avoidance. Arizona real property transferred by an Arizona Beneficiary Deed avoids the cost (anywhere from $5,000 to $8,000) and delay of an uncontested probate. This is because the property is not part of the deceased person's probate estate.

A beneficiary deed is a type of deed that transfers property to a beneficiary. Most deeds transfer property in the present. In contrast, a beneficiary deed can be used to make arrangements today to pass down property in the future.

You cannot use your will to revoke or override a beneficiary deed. How ownership is transferred. To get title to the property after your death, the beneficiary must record a certified copy of the death certificate in the recorder's office.