There are several arguments against the use of Beneficiary Deeds:
Fails to account for potential incapacity of owner. A Beneficiary Deed fails to address the possibility of the owner becoming incapacitated. For this reason, the owner should certainly have an up-to-date financial power of attorney, and consider titling the property in a revocable living trust instead.
Fails to deal with unusual situations. A Beneficiary Deed does not permit the level of customization sometimes needed for unusual or unexpected situations. For example, a Beneficiary Deed is not able to deal adequately with the possibility of minor, disabled, or irresponsible beneficiaries.
Eliminates many planning options. For example, the property owner may wish to transfer the property into an asset-protected trust for benefit of the beneficiary, rather than grant outright ownership. Beneficiary-controlled inheritance trusts can provide substantial creditor and divorce protection, which a Beneficiary Deed cannot.