What’s a beneficiary deed

by Daren Adkins

Question: I notice in the Recorder of Deed section of the newspaper that there are different types of deeds listed. What differences are there between these types of deeds?

Answer: This article will discuss another of the most common types of deed – the beneficiary deed. In 1998, the General Assembly passed legislation (§461.025 RSMo.) allowing an owner of property (grantor) to deed his/her property to someone else (grantee) effective only upon the owner’s death. Once the owner dies, the beneficiary deed transfers the property automatically, without the need for the probate court, to the grantee. For this reason, it is referred to as a non-probate transfer. The beneficiary deed has many advantages, the first of which is the avoidance of probate court. Others include the ability to revoke the deed at any time either by selling the property or by recording a revocation of the beneficiary deed, certain tax advantages, simple to create, and the owner retains all rights as before until his/her death. The statute requires that the beneficiary deed be recorded with the Recorder of Deeds office in the county where the property is located before the death of the owner to be effective. No exchange of money or consideration is required for this type of deed. The most important thing to understand is that the person who is receiving the property upon the death of the owner has absolutely no right in or to the property until the owner’s death.