NonProbate Transfers Missouri

1
Non-Probate Transfers(Missouri)

• Right-of-Survivorship Co-owned Property
• Living (inter vivos) Trusts
• Life Insurance (paid directly to beneficiaries)
• Beneficiary Deeds (1989)
• Transfer on Death (TOD) (1989)
• Payable on Death (POD) (1989)

2
Right of Survivorship Co-ownership vs.
Non-Probate Transfers

• Both automatically transfer ownership at death
• Both avoid probate
• Joint tenancy creates a co-owner during the
  lifetime of the owner (immediate vesting of
  property rights)
• Non-probate transfers give the beneficiary no
  rights in the property until the owner dies (can
  be revoked)

3
Beneficiary Deed (BD) to Pass Real Property
Ownership

• Conveys land title when grantor dies
• Deed must be recorded before grantor dies
• Beneficiary must survive the grantor
• Exception 1 If the beneficiary dies and was
  related to the grantor, then the BD goes to the
  beneficiarys descendants (LDPS Lineal
  Descendants Per Stirpes), UNLESS the BD
  specifically states no LDPS.
• Exception 2 If the beneficiary dies but was
  NOT related to the grantor, then the BD does NOT
  go to the beneficiarys descendants, UNLESS the
  BD specifically states with LDPS.

4
Lineal Descent Per Stirpes

• The term "per stirpes" is a Latin term meaning to
  take by representation. It denotes a method of
  dividing a legacy or inheritance or transfer
  whereby a class or group of distributees take the
  share that their deceased ancestor would have
  been entitled to.
• In other words, they take by their right of
  representing such ancestor and not as so many
  individuals.
• For example, assume that Tom has two children,
  James and Mary. James is living and has one
  living son. Mary is deceased but has two living
  daughters.
• If Tom leaves his estate to his descendants, per
  stirpes , then Tom's estate would be distributed
  equally to members of the class of descendants
  that is closest to Tom in kinship.
• In our example, that would be James and Mary
  since they are both Tom's children. Since Mary is
  not living upon Tom's death, her share of the
  estate passes to her children in equal shares
  i.e., they step into Mary's shoes and take her
  share.
• In this example, James would take 1/2 of the
  estate and Mary's two children would divide her
  share equally. In other words, James would
  receive 1/2 and Mary's daughters would each
  receive 1/4.

5
Lineal Descent Per Capita

• The term "per capita" is a Latin term meaning
  "for each head." It is often used in wills and
  trusts to indicate that each of the named
  beneficiaries should inherit equal shares of the
  estate.
• For example, assume that Tom has two children,
  James and Mary. James is living and has one
  living son. Mary is deceased but has two living
  daughters.
• If Tom leaves his estate to his descendants, per
  capita, then Tom's estate would be divided
  equally among James, James' son, and Mary's two
  daughters.
• Each would receive a 1/4 share of the estate.

6
Revocation of a Beneficiary Deed

• Recording a revocation with county recorders
  office
• Deeding the property to another person (by sale
  or gift)
• A WILL cannot change or revoke a beneficiary deed
  UNLESS in the BD that right is reserved

7
Transfer on Death (TOD) for Personal Property  

• Stocks, bonds, equipment, livestock, grain, 
  right to receive payment under contract
• Can name more than one beneficiary and/or
  contingent beneficiary
• Can be revoked unless expressly made irrevocable
• Does not have to be executed with the formality
  of a will BUT beneficiary designation must be
• Written
• Signed
• Dated
• Acknowledged before a notary public (notarized)

8
Payable on Death (POD) for Bank Accounts
(Checking, Savings, CDs)

• Beneficiarys right to withdraw funds does NOT
  arise until after the grantors death
• POD accounts pass upon the death of the grantor,
  unlike joint bank accounts where any named party
  has the right to withdraw funds before the
  grantor dies
• Advantages
• Still control money in POD accounts
• Can be revoked at any time before the grantor
  dies, unless explicitly made irrevocable