Bulletin: MO2022005

Dear Associates:

The Missouri Non-Probate Transfer law initially took effect in 1989 and was modified in 1995. RSMo 461.025 provides that:

1. a deed which conveys an interest in real property to the grantee designated by the owner and expressly states that the deed does not take effect until the death of the owner transfers the interest provided to the designated grantee beneficiary
2. effective on the death or the owner, IF the deed
3. Is executed and filed of record with the recorder of deeds in the city or county or counties in which the real property is situated prior to the death of the owner.

The beneficiary deed need not be supported by consideration or be delivered to the grantee beneficiary. The beneficiary deed may also be used to transfer an interest in real property to a trust estate. RSMo 461.025.

461.025. Deeds effective on death of owner - recording, effect. - 1. A deed that conveys an interest in real property to a grantee designated by the owner, that expressly states that the deed is not to take effect until the death of the owner, transfers the interest provided to the designated grantee beneficiary, effective on death of the owner, if the deed is executed and filed of record with the recorder of deeds in the city or county or counties in which the real property is situated prior to the death of the owner. A beneficiary deed need not be supported by consideration or be delivered to the grantee beneficiary. A beneficiary deed may be used to transfer an interest in real property to a trust estate, regardless of such trust's revocability.

2. This section does not preclude other methods of conveyancing that are permitted by law and that have the effect of postponing enjoyment of an interest in real property until the death of the owner. This section does not invalidate any deed, otherwise effective by law to convey title to the interest and estates therein provided, that is not recorded until after the death of the owner.

Underwriting considerations:

Confirm deed recorded prior to death of grantor.

1. Prior to the death of the grantor, the beneficiary shall have no rights in the property by reason of the beneficiary designation and the signature or agreement of the beneficiary shall not be required for any transaction respecting the property.
2. On death of one of two or more joint owners, property with respect to which a beneficiary designation has been made belongs to the surviving joint owner or owners, and the right of survivorship continues as between two or more surviving joint owners.
3. On death of the owner, property passes by operation of law to the beneficiary.
4. If two or more beneficiaries survive, there is no right of survivorship among the beneficiaries in the event of death of a beneficiary thereafter unless the beneficiary designation expressly provides for survivorship among them, and, unless so expressly provided, surviving beneficiaries hold their separate interests in the property as tenants in common. The share of any subsequently deceased beneficiary belongs to that beneficiary’s estate.
5. If no beneficiary survives the owner, the property belongs to the estate of the owner.

Beneficiary deeds in MO are a source of litigation.

Contact your STG underwriter if you have questions or concerns about a specific beneficiary deed after the death of the grantor.

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