What is a Beneficiary Deed?

At Leslie Copeland Law & Mediation, we provide a comprehensive range of estate planning services to ensure your assets are safeguarded and your loved ones are protected. Establishing a basic estate plan is essential for every adult, and our expertise goes beyond that to offer more intricate planning options. At the very least, we recommend having Powers of Attorney and a Will in place.

When it comes to your real estate, you may wonder about the most effective way to transfer ownership and safeguard your home from potential risks such as nursing home expenses or legal issues. One powerful solution we advocate for is the use of a beneficiary deed.

But what exactly is a beneficiary deed? It's a deed that takes effect upon the death of the owner(s). The beneficiaries do not have an ownership interest in the property until the death of the owner.

The advantages for your family members are substantial. A beneficiary deed helps them sidestep the typical tax implications associated with property transfers, such as the capital gains tax, potentially saving them tens of thousands of dollar. By becoming owners at the current value of the property, they receive the full benefit of your generous gift.

Not only does a beneficiary deed benefit your family, but it also shields you and your home from various risks. Unlike traditional transfers that could expose your home to potential seizure in cases of bankruptcy or personal injury lawsuits involving family members, a beneficiary deed keeps your home secure until your passing.

Furthermore, this strategy offers protection against nursing home-related financial liabilities. With a beneficiary deed in place, your loved ones assume ownership of the home upon your passing, and they are not held responsible for any state-paid Medicaid expenses. Thanks to recent legislation like Act 570 of 2021, amending Arkansas Code § 18-12-608(a)(1)(B), your home is transferred free and clear of any such obligations.

Secure your future, protect your home, and provide for your loved ones by consulting with the knowledgeable estate planning attorneys at Leslie Copeland Law & Mediation. We are here to guide you through the process and ensure your peace of mind.