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  • Home
  • About Tom
  • Estate Planning
    • How to Plan Your Estate (Start Here)
    • Revocable Living Trust
    • Inheritance Protection Trust
    • Financial POA
    • Health Care POA
    • Living Will
    • Asset Protection Planning in Arizona
    • Intro to Arizona Domestic Asset Protection Trusts
    • Asset Protection Exemptions in Arizona
    • Protect Home from Creditors in Arizona
    • Car/RV/Mobile Home Titling
  • Fees
    • Estate Planning Fees
    • Estate Administration Fees
  • Scheduling
  • Recent Law Updates
  • Office Info
  • New Client Forms
  • More Articles
  • Bouman Law Firm Blog
  • Probate & Trust Administration
    • How to Administer an Estate (START HERE)
    • Probate in Arizona
    • Small Estate Affidavit
    • Final Arrangements & Organ Donation
    • Trust Beneficiary Notices and Trustee Reports
    • Annuities
    • Debts of Decedent
    • Transfer Real Estate of Nonresident
    • Tax Filings for Estate
    • Duties of Trustee
  • Make a Payment
  • Buy a Book
  • Legal Disclaimers

BOUMAN LAW FIRM blog

What are the disadvantages of using a Beneficiary Deed to avoid probate?

7/20/2016

 
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.

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    Thomas J. Bouman
    Attorney at Law
    Tucson, Arizona

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