The use of a beneficiary deed is one way to avoid probate with your home, which for most people is the largest asset they own.
A beneficiary deed transfers ownership in a residence, subject to any mortgages and liens. to the grantee beneficiaries of your choosing. If you and your spouse want your two grown children to inherit your home at your passing, and to do so without having to go through probate, a beneficiary deed is the perfect way to do so.
Your named beneficiaries take ownership of the home ininstantaneously upon the passing of the last owner of the home. No other documents usually need to be filed.
There is no consideration needed to pass property under a beneficiary deed, but unlike other deeds, they must be filed prior to death in order to be valid. The proper place to file is in the Office of the Recorder of Deeds in the county in which the property is located.
Beneficiary deeds can be revoked or charged at any time by recording (filing) making whatever changes you desire.
If you sell the home to a third party, the beneficiary deed is void and does not act as a cloud on title to delay the sale. Beneficiary deeds can also be used for second homes and unimproved property throughout the state.
For those creating trusts, depending on their distribution scheme, it’s common for the beneficiaries named in the recorded deed to be the trustees and successor trustees of the trust. power of attorney and relatives. If you are hospitalized, a copy should go into your medical records.
Missouri is one of a handful of states in the country which allow the creation and recording of beneficiary deeds and they have become an important and convenient estate planning tool for clients.