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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
beneficiary deeds; separate property; nonlapse
Purpose
Declares that an interest in real property conveyed by a beneficiary deed (deed) is the separate property of the named grantee beneficiary and not community property.
Background
Current statute specifies that an interest in real property transfers to the designated grantee beneficiary effective on the death of the owner, subject to all encumbrances. Statute allows a deed to designate multiple grantees who take title as joint tenants with right of survivorship, tenants in common, husband and wife as community property or as community property with right of survivorship, or any other tenancy that is lawful in Arizona. Additionally, deeds can designate a successor grantee beneficiary and must state the condition on which the interest of the successor grantee beneficiary would vest (A.R.S. § 33-405).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Specifies, unless the deed provides otherwise, the interest in real property conveyed by a deed is the separate property of the named grantee beneficiary and is not community property.
2. Deems the deed void, unless the deed provides otherwise, if no named grantee beneficiaries survive the owner.
3. Becomes effective on the general effective date.
Prepared by Senate Research
February 5, 2019
MG/gs