A beneficiary deed is a type of deed that is used to transfer an interest in real property to another party upon the original deed holder's death. The party who receives the deed is known as the beneficiary. Beneficiary deeds are legally binding, and full legal ownership of the interest in the property transfers to the beneficiary immediately following the death of the deed holder.
Beneficiary deeds are often used when people would like to pass on property to their relatives after they die. For example, a father may set up a beneficiary deed for his son for a vacation home. Following the death of the father, the son would become the full owner of the property. Once a person receives ownership of a property from a beneficiary deed, he or she can decide what is done with the property.