Can a Clause in a Deed Prevent Property from Being Inherited by an Heir?
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Answer:
I'm assuming you're referring to a deed that has real property go to someone other than a person who would be entitled to inherit under the state laws of intestacy. When someone dies without a will, the person's heirs are specified in the state laws of intestacy, and distribution of the estate is made to the spouse and family members during the probate process. However, in some cases, property passes outside the probate process according to the terms of the deed.
Joint tenancy is a form of ownership by two or more individuals together. It differs from other types of co-ownership in that the surviving joint tenant immediately becomes the owner of the whole property upon the death of the other joint tenant.
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.
