Full question:
I have a beneficiary deed on a house my mom owns. She still has a mortgage on the house. If she passes away before I do, would this house automatically go to me or would it go to probate?
- Category: Real Property
- Subcategory: Deeds
- Date:
- State: Arizona
Answer:
If you are named as the beneficiary on the deed, the house will pass to you outside of probate when your mother passes away. However, you will need to work with the lender to pay off the mortgage. A beneficiary deed allows the owner's interest in the property to be transferred to designated individuals upon their death, without going through probate. This type of deed does not transfer ownership until the owner dies, at which point the interest automatically transfers to the beneficiary by law. It is often used as an estate planning tool, differing from a life estate deed, which transfers a present interest in the property. In a life estate, when the life tenant dies, their interest may go to remaindermen or revert to the original owner or their descendants. Additionally, a restrictive covenant may limit future property use, but all race-based restrictions are illegal. If violated, the property may revert to another owner.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.