Why Beneficiary Disclosure Is Required on Deeds
When someone holds title to real estate as a trustee, the public record does not show who benefits. This statute closes that gap.
Any deed to or from a trustee must list the trust beneficiaries by name and address. The deed can also point to a recorded document with that information.
Every deed or conveyance of real property, or an interest in real property, located in this state which is executed after June 22, 1976 in which the grantee is described as a trustee or acts as a trustee shall disclose the names and addresses of the beneficiaries for whom the grantee holds title and shall identify the trust or other agreement under which the grantee is acting.
A.R.S. § 33-404(A)This applies to both incoming and outgoing deeds. If a trustee buys property, the deed must include beneficiary details. If a trustee sells or transfers property, the same disclosure applies.
What Happens When Beneficiaries Change
The duty does not end at the original recording. If the trustee learns of a beneficiary change after the deed is recorded, they must notify the county recorder. They have thirty days to file that notice.
The notice must include the legal description of the property. It must also list the current beneficiaries by name and address.
There is one exception. If a beneficiary dies, their interest may pass to others already named in a prior recording.
In that case, no new filing is needed. But if a new beneficiary enters the picture, the thirty-day clock starts.
Any conveyance of real property or an interest in real property which does not include the disclosures required by this section with respect to the property so conveyed is voidable by the other party to the conveyance.
A.R.S. § 33-404(E)Failure to disclose has real effects. The other party can void the deal within two years of recording.
A buyer who pays fair value is still protected, even if the disclosure was missing. For families who hold real estate in a living trust, keeping these disclosures current matters. Outdated records can slow down sales and create title problems.