Estate planning often involves finding ways to transfer assets smoothly while minimizing costs, delays, and tax burdens. For Arkansas property owners, beneficiary deeds are a highly effective tool to achieve these goals. At Generations Legal Group, we assist families in protecting millions of dollars in real estate from Medicaid each month and avoiding probate by strategically using beneficiary deeds. Let’s explore how this tool works, its benefits, and how it can fit into a comprehensive estate plan.
What Is a Beneficiary Deed?
A beneficiary deed, also known as a transfer-on-death deed, allows you to designate a beneficiary who will inherit your real estate after your death. Unlike a traditional deed transfer, a beneficiary deed takes effect only upon your death. This means you retain full control over the property during your lifetime, including the ability to sell, mortgage, or manage it. Upon your death, the property transfers automatically to your named beneficiary, bypassing probate.
Key Benefits of Beneficiary Deeds
For example, if you purchased a home for $100,000 and it’s worth $300,000 at the time of your death, the beneficiary’s basis is stepped up to $300,000. If they sell it shortly thereafter for the same amount, there would be no taxable gain.
At Generations Legal Group, we specialize in using beneficiary deeds to protect millions of dollars in real estate from Medicaid estate recovery each month.
Potential Drawbacks to Consider
While beneficiary deeds are powerful, they do have limitations:
These potential issues underscore the importance of consulting with an experienced elder law attorney to ensure that a beneficiary deed fits seamlessly into your broader estate plan.
How Generations Legal Group Can Help
At Generations Legal Group, we understand the intricacies of estate planning in Arkansas. Whether your goal is to avoid probate, protect assets from Medicaid, or minimize tax burdens for your heirs, our team is here to help.
We’ll guide you through the process of creating a beneficiary deed, ensuring it’s properly executed and recorded. We’ll also review your entire estate plan to identify other strategies—such as trusts, wills, or powers of attorney—that can complement this tool and provide comprehensive protection.
Take Control of Your Estate Planning Today
Beneficiary deeds are an efficient, cost-effective way to transfer real estate while avoiding probate, reducing taxes, and protecting your legacy. With the right planning, you can ensure your property passes to your loved ones with minimal complications.
Contact Generations Legal Group today to schedule a consultation. Let us help you safeguard your assets and secure your family’s future.