In Colorado, a home or real property can transfer from one owner to another by the use of a beneficiary deed. Upon the death of the grantor, the transfer of property passes outside of probate. As with creating a trust or joint tenancy, the use of a beneficiary deed is considered another probate avoidance strategy.
Below of some things you should know about beneficiary deeds when considering one in your estate plan:
- It must be recorded before the death of the the grantor.
- The last recorded deed prevails over all previous deeds.
- The deed will only be effective if the grantor is the last joint tenant to die.
- It overrides a conflicting disposition in a will.
- A beneficiary deed can’t be revoked by a will.
- The grantee must file the death certificate with the clerk within four months of the grantor’s death.
- If beneficiary predeceases the grantor, the transfer lapses.
- A grantor may designate successor beneficiaries.
- A divorce terminates a beneficiary deed.
- It will not trigger a mortgage’s due-on-sale clause.
- A grantor who has executed a Beneficiary Deed is NOT eligible for Medicaid benefits.
- The interest received by the grantee is subject to creditor claims.
A Beneficiary Deed could save your estate thousands of dollars in attorney fees and costs.
This article is for educational purposes only, and does not constitute legal advice about your case or situation. There may be exceptions to the information outlined above. Please speak with an attorney if you have specific questions about your estate plan.