Missouri is one of a few states that allows residents to transfer ownership of real estate through a beneficiary deed, also known as a transfer-on-death deed. A beneficiary deed is a type of real estate deed that can be used to transfer real estate, such as your home, upon the death of the homeowner. This transfer upon death will take place without the real estate going through probate and without the need to jointly title such property with children, spouses, or other intended beneficiaries while the owner is still alive.

In order to be effective, however, the deed must be recorded prior to the death of the owners of the property. Although the homeowner would sign and record the deed now, the transfer of property would not take effect until his/her death. The deed can be revoked, amended by filing a new beneficiary deed or the property can be sold at any time; the beneficiary named on the deed has no rights until the homeowner’s death. Mo. Rev. Stat. § 461.025.

Missouri also allows for a beneficiary deed to be recorded even if the property is subject to a mortgage. If the property is sold prior to the death of the owners, the recorded beneficiary deed has no effect and is a void document.

Since avoiding probate is a central goal for most estate plans, the beneficiary deed is part of nearly every estate plan completed for clients of The Binder Firm.  Contact us if you would like more information.