Bill Drafting TemplateVersion XP 1.0Converted to Office XP      HB1137
           01-12-2005 10:11 BBC003

Stricken language would be deleted from and underlined language would be added to the law as it existed prior to this session of the General Assembly.


      01-12-2005 10:11 BBC003
State of Arkansas          
85th General Assembly     A Bill     
Regular Session, 2005            1137




For An Act To Be Entitled


AN ACT TO AMEND ARKANSAS CODE TITLE 18, CHAPTER 12, SUBCHAPTER 6 TO ADD A SECTION TO CREATE A BENEFICIARY DEED AS A NEW FORM OF CONVEYANCE OF TITLE IN REAL PROPERTY; TO REQUIRE THAT A BENEFICIARY DEED BE REVOKED BY A PERSON SEEKING MEDICAL ASSISTANCE FOR LONG-TERM CARE COSTS AND FOR OTHER PURPOSES.

Subtitle


TO CREATE A BENEFICIARY DEED AS A NEW
FORM OF CONVEYANCE OF TITLE IN REAL
PROPERTY AND TO REQUIRE THAT A
BENEFICIARY DEED BE REVOKED BY A PERSON
SEEKING MEDICAL ASSISTANCE FOR LONG-TERM
CARE COSTS.


BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

     SECTION 1. Arkansas Code Title 18, Chapter 12, Subchapter 6 is amended to add an additional section to read as follows:
     18-12-608. Beneficiary deeds - Terms - Recording required.
     (a)(1)(A) A beneficiary deed is a deed that conveys an interest in real property, including any debt secured by a lien on real property, to a grantee designated by the owner and that expressly states that the deed is not to take effect until the death of the owner.
                 (B) A beneficiary deed transfers the interest to the designated grantee beneficiary effective upon the death of the owner, subject to all conveyances, assignments, contracts, mortgages, deeds of trust, liens, security pledges, and other encumbrances made by the owner or to which the owner was subject during the owner's lifetime.
           (2)(A) The owner may designate multiple grantees under a beneficiary deed.
                 (B) Multiple grantees may be joint tenants with right of survivorship, tenants in common, holders of a tenancy by the entirety, or any other tenancy that is otherwise valid under the laws of this state.
           (3)(A) The owner may designate a successor grantee beneficiary under a beneficiary deed.
                 (B) The condition upon which the interest of the successor grantee vests shall be included in the beneficiary deed.
     (b)(1) If real property is owned as a tenancy by the entirety or as a joint tenancy with the right of survivorship, a beneficiary deed that conveys an interest in the real property to a grantee designated by all of the then surviving owners and that expressly states the deed is not to take effect until the death of the last surviving owner transfers the interest to the designated grantee beneficiary effective upon the death of the last surviving owner.
           (2)(A) If a beneficiary deed is executed by fewer than all of the owners of real property owned as a tenancy by the entirety or as joint tenants with right of survivorship, the beneficiary deed is valid if the last surviving owner is one of the persons who executes the beneficiary deed.
                 (B) If the last surviving owner did not execute the beneficiary deed, the deed is invalid.
     (c)(1) A beneficiary deed is valid only if the deed is executed before the death of the owner or the last surviving owner and is recorded before the death of the owner as provided by law in the office of the county recorder of the county in which the property is located.
           (2) A beneficiary deed may be used to transfer an interest in real property to a trust estate even if the trust is revocable.
     (d)(1) A beneficiary deed may be revoked at any time by the owner or, if there is more than one (1) owner, by any of the owners who executed the beneficiary deed.
           (2) To be effective, the revocation must be:
                 (A) Executed before the death of the owner who executes the revocation and
                 (B) Recorded in the office of the county recorder of the county in which the real property is located before the death of the owner as provided by law.
           (3) If the revocation is not executed by all the owners, the revocation is not effective unless executed by the last surviving owner and recorded before the death of the last surviving owner.
           (4) A beneficiary deed that complies with this section may not be revoked, altered, or amended by the provisions of the owner`s will.
     (e) If an owner executes more than one (1) beneficiary deed concerning the same real property, the recorded beneficiary deed that is last signed before the owner's death is the effective beneficiary deed.
     (f)(1) This section does not prohibit other methods of conveying property 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.
           (2) This section does not invalidate any deed otherwise effective by law to convey title to the interests and estates provided in the deed that is not recorded until after the death of the owner.
     (g) A beneficiary deed is sufficient if it complies with other applicable laws and if it is in substantially the following form:
                             "Beneficiary Deed
           CAUTION: THIS DEED MUST BE RECORDED PRIOR TO THE DEATH OF THE GRANTOR IN ORDER TO BE EFFECTIVE.
I (we) hereby convey to ______________________ (grantee) effective on my (our) death the following described real property:
                             (Legal description)
___________________________
(Signature of grantor(s))
(acknowledgment)."
     (h) The instrument of revocation shall be sufficient if it complies with other applicable laws and is in substantially the following form:
                       "Revocation of Beneficiary Deed
           CAUTION: THIS REVOCATION MUST BE RECORDED PRIOR TO THE DEATH OF THE GRANTOR IN ORDER TO BE EFFECTIVE.
The undersigned hereby revokes the beneficiary deed recorded on ___________ (date), in docket or book ______________ at page ______, or instrument number ___________, records of ________________ County, Arkansas.
Dated: _______________________
______________________________
Signature
(acknowledgment)."

      SECTION 2. Arkansas Code Title 20, Chapter 77, Subchapter 1 is amended to add a new section to read as follows:
     20-77-121. Ineligibility -- Grantor of beneficiary deed.
     (a) A person shall not be entitled to medical assistance under  20-77-102 if:
           (1) The person has in effect a beneficiary deed; and
           (2) The person is otherwise eligible for medical assistance.
     (b) A person who has revoked a beneficiary deed may subsequently apply for medical assistance under 20-77-102 and the property that was subject to the beneficiary deed shall be considered a resource for purposes of determining the person's eligibility for medical assistance.