Arizona Transfer-on-Death Deed

At a glance

How the deed works

Arizona authorizes a 'beneficiary deed' under A.R.S. § 33-405. A deed that conveys an interest in real property to a grantee beneficiary and that expressly states the deed is effective on the death of the owner transfers that interest to the beneficiary at the owner's death. The instrument must be executed with the formalities of a deed (signed and acknowledged before a notary).

To be effective the beneficiary deed must be recorded, during the owner's lifetime, in the office of the county recorder of the county where the property is located (A.R.S. § 33-405). A beneficiary deed that is not recorded before the owner dies is void. The deed may name multiple grantee beneficiaries and may specify how they take title — for example as joint tenants with right of survivorship, as tenants in common, or as community property with right of survivorship — and may name successor or contingent beneficiaries.

The owner retains complete ownership and control during life: recording the beneficiary deed does not transfer any present interest, gives the beneficiary no rights while the owner lives, and does not affect the owner's ability to sell, mortgage, or otherwise deal with the property. If the owner conveys the property away during life, the beneficiary deed simply has nothing to operate on at death.

Recording & execution requirements

A transfer-on-death deed only works if it is executed and recorded correctly. In Arizona:

• Recording before death: Must be executed and recorded before the owner's death in the county where the property is located.
• Governing statute: Ariz. Rev. Stat. § 33-405 A.R.S. § 33-405 — Beneficiary deeds; recording; definitions · current A.R.S. § 33-405.

Changing or revoking the deed

A beneficiary deed may be revoked at any time during the owner's life. Revocation is accomplished by executing and recording, before the owner's death and in the same county recorder's office, either a formal revocation or a later beneficiary deed that changes or revokes the earlier one. If more than one beneficiary deed has been recorded, the last one recorded before death controls.

A beneficiary deed that is executed, acknowledged, and recorded as required is not revoked by the provisions of the owner's will — a will cannot override a recorded beneficiary deed. Where property is co-owned, the statute addresses whose action is needed to revoke; owners with jointly held property should confirm the mechanics with an attorney licensed in Arizona.

Mortgages, Medicaid & community property

Existing mortgages and liens

A beneficiary deed transfers the owner's interest at death subject to all conveyances, assignments, contracts, mortgages, deeds of trust, liens, security interests, and other encumbrances made by the owner or to which the property was subject during life. The beneficiary takes the property encumbered — an existing mortgage or lien is not wiped out by the death transfer.

Medicaid estate recovery

A beneficiary deed may leave the property exposed to Arizona's Medicaid (AHCCCS/ALTCS) estate recovery, and the scope of recovery can change. The deed does not by itself protect the home from a claim by the state Medicaid agency after the owner's death. Anyone coordinating long-term-care Medicaid with a beneficiary deed should confirm current estate-recovery rules with AHCCCS and an attorney licensed in Arizona.

Community property

Arizona is a community-property state. Arizona is a community-property state. Spouses may hold real property as community property or as community property with right of survivorship, and A.R.S. § 33-405 expressly lets a beneficiary deed direct that grantee beneficiaries take as community property or community property with right of survivorship. For a married couple, coordinating how the current title is held with what the beneficiary deed says is important, because a community-property-with-survivorship interest already passes to the surviving spouse.

State-specific quirks

Where to read next

• Arizona estate & inheritance tax — whether Arizona taxes what you leave behind, and the small-estate probate ceiling, each figure cited to the statute.
• The Executor & Heir’s Guide — the probate deadlines for Arizona, cited to the controlling statute.
• Funding a revocable trust — a common way to keep many kinds of property out of probate.
• ← Back to the transfer-on-death deed comparison

Sources & methodology