Beneficiary or Transfer on Death Deed or TOD - Husband and Wife or Two Individuals to Husband and Wife or Two Individuals
Title 18. Property.
Subtitle 2. Real Property
Chapter 12. Conveyances.
Subchapter 1. General Provisions.
18-12-608. Beneficiary deeds Terms Recording required. (Amended March 9, 2007 by Act 243)
(a)(1)(A) A beneficiary deed is a deed without current tangible
consideration that conveys upon the death of the owner an ownership
interest in real property other than a leasehold or lien interest to a grantee designated
by the owner and that expressly states that the deed is not to take
effect until the death of the owner.
(B)(i) A beneficiary deed transfers the interest to the designated grantee effective upon the death of the owner, subject to:
(a) All conveyances, assignments, contracts, leases, mortgages, deeds of trust, liens, security pledges, oil, gas, or mineral leases, and other encumbrances made by the owner or to which the real property was subject at the time of the owner's death, whether or not the conveyance or
encumbrance was created before or after the execution of the beneficiary
deed; and
(b) A claim for reimbursement of federal or state benefits
by the Department of Health and Human Services from the estate of the grantor or the interest acquired by a grantee of the beneficiary deed under Section 20-76-436.
(ii) No legal or equitable interest shall vest in the grantee until the death of the owner prior to revocation of the beneficiary deed.
(2)(A) The owner may designate multiple grantees under a beneficiary
deed.
(B) Multiple grantees may be joint tenants with right of survivorship, tenants in common, holders of a tenancy by the entirety, or any other
tenancy that is otherwise valid under the laws of this state.
(3)(A) The owner may designate one (1)
or more successor grantees, including one (1) or more unnamed heirs of
the original grantee or grantees, under a beneficiary deed.
(B) The condition upon which the interest of a successor grantee vests, such as the failure of the original grantee to survive the
grantor, shall be included in the beneficiary deed.
(b)(1) If real property is owned as a tenancy by the entirety or as a
joint tenancy with the right of survivorship, a beneficiary deed that
conveys an interest in the real property to a grantee designated by all
of the then surviving owners and that expressly states the beneficiary
deed is not to take effect until the death of the last surviving owner
transfers the interest to the designated grantee effective
upon the death of the last surviving owner.
(2)(A) If a beneficiary deed is executed by fewer than all of the
owners of real property owned as a tenancy by the entirety or as joint
tenants with right of survivorship, the beneficiary deed is valid if the
last surviving owner is a person who executed the beneficiary deed.
(B) If the last surviving owner did not execute the beneficiary deed, the beneficiary deed is invalid.
(c)(1) A beneficiary deed is valid only if the beneficiary deed is
recorded before the death of the owner or the last surviving
owner as provided by law in the office of the county recorder of the county in which the real property is located.
(2) A beneficiary deed may be used to transfer an interest in real
property to a trustee of a trust estate even if the trust is revocable,
and may include one (1) or more unnamed successor trustees as successor
grantees.
(d)(1) A beneficiary deed may be revoked at any time by the owner or, if
there is more than one (1) owner, by any of the owners who executed the
beneficiary deed.
(2) To be effective, the revocation shall be:
(A) Executed before the death of the owner who executes the revocation; and
(B) Recorded in the office of the county recorder of the county in
which the real property is located before the death of the owner as
provided by law.
(3) If the revocation is not executed by all the owners, the revocation
is not effective unless executed by the last surviving owner and recorded
before the death of the last surviving owner.
(4) A beneficiary deed that complies with this section may not be
revoked, altered, or amended by the provisions of the owner's will.
(e) If an owner executes more than one (1) beneficiary deed concerning
the same real property, the recorded beneficiary deed that is last signed
before the owner's death is the effective beneficiary deed, regardless of
the sequence of recording.
(f)(1)This section does not prohibit other methods of conveying
real property that are permitted by law and that have the effect of
postponing enjoyment of an interest in real property until the death of
the owner.
(2) This section does not invalidate any deed otherwise effective by
law to convey title to the interests and estates provided in the deed
that is not recorded until after the death of the owner.
(g) A beneficiary deed is sufficient if it complies with other
applicable laws and if it is in substantially the following form:
"Beneficiary Deed
CAUTION: THIS DEED MUST BE RECORDED PRIOR TO THE DEATH OF THE GRANTOR IN ORDER TO BE EFFECTIVE.
KNOW ALL PERSONS BY THESE PRESENTS THAT:
For a non-monetary, intangible consideration, of value to the Grantor,
I (we) hereby convey to ____________ (grantee) effective on my (our) death
the following described real property:
(Legal description)
________________________________
(Signature of grantor(s))
(acknowledgment)."
(h) The instrument of revocation shall be sufficient if it complies
with other applicable laws and is in substantially the following form:
"Revocation of Beneficiary Deed
CAUTION: THIS REVOCATION MUST BE RECORDED PRIOR TO THE DEATH OF THE GRANTOR IN ORDER TO BE EFFECTIVE.
The undersigned hereby revokes the beneficiary deed recorded on
____________ (date), in docket or book ____________ at page ______, or
instrument number ______, records of ____________ County, Arkansas.
Dated: ____________
_____________________
Signature
(acknowledgment)."
