State SealARIZONA HOUSE OF REPRESENTATIVES

 

SB 1218: beneficiary deeds; separate property; nonlapse

PRIME SPONSOR: Senator Leach, LD 11

BILL STATUS: Commerce

                               

 

Overview

Adds clarification to beneficiary deeds regarding conveyance of real property and grantee beneficiaries. ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

History

A.R.S § 33-405 provides for certain conveyances of beneficiary deeds.  A deed that conveys an interest in real property to a grantee beneficiary designated by the owner and that expressly states that the deed is effective on the death of the owner transfers the interest to the grantee subject to all conveyances, assignments, contracts, mortgages, deeds of trust, liens, security pledges and other encumbrances made by the owner.

Additionally, a beneficiary deed may designate multiple grantees who take title as joint tenants with right of survivorship, tenants in common, a husband and wife as community property, or any other tenancy. A beneficiary deed that designates a successor grantee must state the condition on which the interest of the successor grantee would vest.

Provisions

1.       Specifies the interest in real property conveyed by a beneficiary deed is the separate property of the named grantee beneficiary and is not community property, unless otherwise stated in the beneficiary deed. (Sec. 1)

2.       Stipulates a beneficiary deed is void and not applicable to statute relating to substitute gifts of wills if there are no grantee beneficiaries named in the beneficiary deed who survive the owner, unless provided otherwise in the beneficiary deed. (Sec. 1)

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6.       Fifty-fourth Legislature                       SB 1218

7.       First Regular Session                            Version 1: Commerce

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