A beneficiary deed is more commonly known as a transfer on death deed. Beneficiary deeds become effective immediately upon the death of the grantor- or, in the case of joint tenancies, the death of the last surviving grantor- and are often used to avoid the time and expense involved in probate. Only certain states allow transfers of property through beneficiary deeds. Arizona, for example, authorizes the use of beneficiary deeds which expressly state the deed is effective upon the death of the owner and which are executed and recorded. Beneficiary deeds can be revoked at any time prior to the grantor’s death.
[Last updated in June of 2021 by the Wex Definitions Team]