An Arkansas beneficiary deed form lets you name someone to receive your real property at your death without probate. You complete the statutory form with the property’s full legal description and your beneficiary’s name, sign it in front of a notary, and record it with the county recorder in the county where the property sits. The deed must be recorded before you die, or it has no effect. Filing costs $15 for the first page and $5 for each additional page.
What the Deed Does and Doesn’t Do
Under Arkansas Code 18-12-608, a beneficiary deed transfers your interest in real property to a named person, but only when you die. Until then, the beneficiary has no legal rights to the property at all. You can sell it, mortgage it, lease it, or do anything else an owner can do, and the beneficiary cannot interfere.1Justia. Arkansas Code 18-12-608 – Beneficiary Deeds – Terms – Recording Required
The deed is fully revocable. You can cancel it, replace it, or sell the property and make the deed meaningless. You don’t need the beneficiary’s consent, and you don’t have to tell them.
When you die, ownership passes automatically to the beneficiary, subject to any mortgages, liens, or other encumbrances in place at that time, whether created before or after you signed the deed. The property transfers as it stands, debts included. If you sign more than one beneficiary deed for the same property, the one signed last before your death controls, even if an earlier deed was recorded first.
What to Gather Before You Fill Out the Form
Pull these items together first:
- Your current deed. You need the full legal description of the property, which uses metes-and-bounds measurements or lot-and-block numbers. Copy it exactly. A small error can create title problems later. Don’t substitute the street address; it isn’t a legal description.
- Your full legal name and mailing address as they appear on the current deed. If your name has changed since you acquired the property, you may need to reference both names.
- Each beneficiary’s full legal name. If you’re naming more than one, decide whether they take title as joint tenants with right of survivorship or as tenants in common. With survivorship, a surviving beneficiary automatically picks up a deceased beneficiary’s share. With tenants in common, each share passes through that beneficiary’s own estate.
If you can’t locate your current deed, the county recorder’s office or your title insurance company can provide a copy.
Filling Out the Statutory Form
Arkansas law provides a statutory form that your deed must substantially follow. The form states that for a non-monetary, intangible consideration, you convey the described property to your named beneficiary effective at your death.1Justia. Arkansas Code 18-12-608 – Beneficiary Deeds – Terms – Recording Required
At the top, the deed must include a notice stating that it must be recorded before the grantor’s death to be effective. Below that, fill in the grantor’s name and address, the beneficiary’s name, and the complete legal description. Leave room at the bottom for your signature and the notary’s acknowledgment.
One gap in the statute is worth knowing about. The law doesn’t say what happens if your named beneficiary dies before you. Unlike a will, the beneficiary deed statute contains no built-in mechanism redirecting the property to the beneficiary’s heirs. If your beneficiary predeceases you and you haven’t executed a new deed, the property may have to pass through your estate. Naming an alternate beneficiary or reviewing the deed periodically avoids this.
If You Own the Property With Someone Else
If you own the property with another person as joint tenants with right of survivorship or as tenants by the entirety, both owners can sign a single beneficiary deed naming someone to receive the property after the last surviving owner dies. The transfer takes effect only when the final owner passes.
If only one joint owner signs, the deed is valid only if that owner turns out to be the last surviving owner. If the non-signing owner outlives the signing owner, the deed is completely invalid, and the property stays with the survivor with no beneficiary designation attached. Both owners should sign if you want certainty.
Signing and Notarization
The grantor signs the deed in front of a notary public, who completes an acknowledgment certificate confirming your identity and verifying the signature. Arkansas Code 16-47-207 provides standard forms for the notary’s certificate. The beneficiary does not sign and doesn’t need to know about the deed.
Banks, shipping stores, libraries, and law offices typically have notaries on staff. Without notarization, the county recorder won’t accept the document, and an unrecorded deed is invalid.
Recording the Deed With the County
Recording is the step that makes the deed legally effective. File the completed, notarized deed with the county recorder in the county where the property is located. A beneficiary deed not recorded before the grantor’s death has no effect.1Justia. Arkansas Code 18-12-608 – Beneficiary Deeds – Terms – Recording Required
Fees
Arkansas charges a uniform recording fee of $15 for the first page and $5 for each additional page. Most beneficiary deeds fit on one or two pages, so expect to pay $15 to $20.2Justia. Arkansas Code 21-6-306 – Recorders
Formatting
Documents that don’t meet state formatting rules get rejected. The deed must be on 8.5-by-11-inch paper, with a 2.5-inch margin at the top right of the first page for the recorder’s file stamp, half-inch margins on the sides and bottom of all pages, and a 2.5-inch margin at the bottom of the last page. It must be legible and must include the document title and the names of the grantor and grantee.3Justia. Arkansas Code 14-15-402 – Instruments to Be Recorded
Mailing It In
If you record by mail, include a self-addressed stamped envelope so the clerk can return the recorded original. Call the recorder’s office first; procedures vary by county.
Revoking or Replacing a Beneficiary Deed
You can revoke the deed at any time while you’re alive. The process mirrors the original filing. You sign a revocation instrument, have it notarized, and record it in the same county. Arkansas provides a statutory revocation form that identifies the original deed by its recording information, such as book and page number or instrument number, and states that you revoke it. The revocation must be recorded before your death.1Justia. Arkansas Code 18-12-608 – Beneficiary Deeds – Terms – Recording Required
If multiple owners signed the original deed but only one signs the revocation, the revocation is effective only if that person is the last surviving owner. The safest approach is for all original grantors to sign. You don’t have to notify the beneficiary, and you don’t need a reason. If you want a different person to inherit, record a new beneficiary deed naming them.
What the Beneficiary Does After Your Death
Ownership passes automatically at the moment of death, but the beneficiary still has to update the public record. Three steps:
- Obtain a certified death certificate from the Arkansas Department of Health or the county where the death occurred.
- Record an affidavit of survivorship along with the certified death certificate at the county recorder’s office. This links the death to the recorded beneficiary deed and establishes the beneficiary’s ownership in the public record.
- Contact the county assessor to update ownership records so future property tax bills go to the right person.
No probate is required. The beneficiary handles everything directly with county offices.
Taxes, Transfer Tax, and Medicaid
Property passing through a beneficiary deed gets a stepped-up basis under federal law. The beneficiary’s basis for capital gains purposes is the property’s fair market value on the date of your death, not what you originally paid.4Office of the Law Revision Counsel. 26 U.S. Code 1014 – Basis of Property Acquired From a Decedent
Arkansas imposes a real property transfer tax of $3.30 per $1,000 of actual consideration on transactions over $100.5Arkansas Department of Finance and Administration. Real Property Transfer Tax Because a beneficiary deed involves no monetary consideration, this tax generally does not apply to the transfer at death.
If you’ve received Medicaid, particularly for nursing facility care, the state may seek to recover those costs from your estate when you die. Federal law requires states to pursue recovery for recipients age 55 and older who received nursing home or home-and-community-based services.6Medicaid.gov. Estate Recovery The Arkansas Department of Human Services has indicated that assets passing directly to a beneficiary outside of probate may not be subject to estate recovery claims.7Arkansas Department of Human Services. Your Guide to Medicaid Estate Recovery in Arkansas Medicaid rules are complex and change over time, and federal law allows states to expand the definition of “estate” for recovery purposes. If Medicaid recovery is a concern, talk to an elder law attorney before signing a beneficiary deed.