Montana has just such a statutory animal, called a Beneficiary Deed, which takes effect on the death of the grantor (Montana Code Annotated Section 72-6-121). Since Iowa does not have a corresponding statue (as far as I know), I question the effectiveness of the language contained in this deed.

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Wayne A. Norman, Jr.

The Norman Law Firm, P.C.

Suite 323

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-----Original Message-----
From: realestate-owner@iabar.org [mailto:realestate-owner@iabar.org] On Behalf Of Brad Nelson
Sent: Monday, March 30, 2009 3:40 PM
To: realestate@iabar.org
Subject: [ISBA RealEstate] POD Deed

I just ran across a warranty deed while examining an abstract which contains the following language:

“The execution and delivery of this deed are not intended to constitute, and shall not constitute, a current gift of any legal or equitable interest in the above-described real property to Grantee as this deed is executed and delivered solely for the purpose of expediting and facilitating passage of title (by right of survivorship) to grantee upon the death of grantor, if said grantee survives the grantor.”

The deed is from a mother to herself and her son as joint tenants.

Is there a gift when the deed is delivered?

Does the basis step up at Mom’s death?

This is the first payable on death deed I have seen!  I probably lead a sheltered life.

Bradley J. Nelson

Norelius & Nelson, P.C.

1317 Broadway

PO Box 278

Denison, IA  51442

712-263-4245

712-263-8773 Fax

Norelius & Nelson, P.C.

Notice: This E-mail (including any attachments) is covered by the Electronic Communications Privacy Act, 18 U.S.C. §§2510-2521, is confidential and may be legally privileged. If you are not the intended recipient, you are hereby notified that any retention, dissemination, distribution, or copying of this communication is strictly prohibited. Please reply to the sender that you have received the message in error, then delete it. Thank you.

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