Who Inherits Property with a Beneficiary Deed?
Full Question:
Answer:
If you are named as beneficiary on the deed, it wil pass to you outside the probate process. The beneficiary wil have to work wit hthe lender for paying off the mortgage. By signing and recording a beneficiary deed, an owner of an interest in real property may cause the owner's interest in the real property to be conveyed to people or entities on the owner's death. A beneficiary deed is a special type of deed that doesn't transfer a present interest in property. The interest in real property conveyed by a beneficiary deed does not take effect until the death of the owner, at which time that interest transfers automatically by law to the designated grantee(s) named in the beneficiary deed. A beneficiary deed takes the property out of the probate process as ownership is transferred upon death and no longer part of the decedent's estate that might go through probate or pass under a will. It is sometimes used as an estate planning tool, rather than, for example, a trust. It is considered a separate type of deed from a deed creating a life estate. When a deed is used to create a life estate, it is transferring a present interest and the life estate may be sold or otherwise transferred.
In the case of a life tenant who holds a life estate, when the life tenant dies, their interest may pass to the remaindermen. Title may also return to the person giving or deeding the property or to his/her surviving children or descendants upon the death of the life tenant--this is called "reversion."
A restrictive covenant is a clause in a deed to real property that the buyer (grantee) will be limited as to the future use of the property. All restrictive covenants based on race are illegal. If the property is used for a purpose not allowed by the restrictive covenant, it may revert to another owner.