How wills, transfer-on-death deeds, and payable-on-death designations work together in Arizona

Disclaimer: This article explains general Arizona law and common practice. It is educational only and is not legal advice. Consult a licensed Arizona attorney to apply these ideas to your situation.

Detailed Answer

Short answer: Yes — a will alone does not always accomplish what you want. A will controls only property that passes through probate. Many assets in Arizona pass outside probate (to joint owners or to named beneficiaries). To make sure your daughter actually receives particular accounts or real estate without extra time, expense, or surprises, you often need a transfer-on-death (TOD) deed, beneficiary (POD/TOD) designations, or other nonprobate arrangements in addition to your will.

How a will works in Arizona

A will describes how you want probate property distributed after you die. Probate is the court-supervised process that collects and distributes assets titled only in your name. If an asset is properly titled in your name and has no beneficiary designation, the personal representative uses the will to transfer that asset under Arizona probate rules. See Arizona probate law: A.R.S. Title 14 (Probate).

Which assets bypass probate

Assets that pass outside probate do not get distributed under your will. Common nonprobate assets include:

Bank and brokerage accounts with a payable-on-death (POD) or transfer-on-death (TOD) beneficiary designation;
Retirement accounts and life insurance with named beneficiaries;
Real property that is owned jointly with right of survivorship;
Real property transferred with a recorded transfer-on-death deed (Arizona law allows revocable TOD deeds for real property);
Assets held in a trust.

Because these assets transfer by contract, title rules, or statute, the terms of the beneficiary designation or joint deed control — not the will.

Arizona transfer-on-death (TOD) deeds for real estate

Arizona permits a revocable transfer-on-death deed for real property. A properly executed and recorded TOD deed names a beneficiary who automatically receives the property when the owner dies, without probate. The deed must be recorded while you are alive and can normally be revoked or changed before death. See Arizona property law: A.R.S. Title 33 (Property) for statute citations and recording rules.

Important TOD deed points:

TOD deeds do not eliminate liens, mortgages, or certain title problems that may survive the owner’s death.
A recorded TOD deed can be challenged by creditors or by someone alleging incapacity or undue influence.
TOD deeds can affect Medicaid eligibility and estate planning strategies — a TOD transfer may still be treated as an available asset depending on timing and program rules.

POD (payable-on-death) and beneficiary designations for accounts

Bank, brokerage, and many financial institution accounts often allow a POD or TOD beneficiary. Retirement plans and life insurance use beneficiary forms. When you name a beneficiary, the account passes directly to that person after death and skips probate. If the beneficiary is your daughter and the designation is current, the asset will pass to her even if your will names someone else.

Common scenarios and why relying on a will alone can create problems

If your house is in your name only and you rely on the will to leave it to your daughter, probate is required to transfer title unless you record a TOD deed or retitle the property.
If you have a bank account with a POD payable to someone else, that POD beneficiary gets the money regardless of your will.
If you name your child as beneficiary on a retirement account, that designation controls distribution and bypasses probate — and it may produce income-tax consequences for the beneficiary that a will can’t change.
If you want all assets to go to the same person smoothly and quickly, coordinating your will, TOD deeds, and account beneficiary forms is essential.

What to do next — practical steps

Make a list of all assets, and note title and beneficiary status (sole name, joint tenants, TOD/T-ON-D, IRA beneficiary, life insurance beneficiary, etc.).
For any real estate you want to transfer without probate, consider a recorded TOD deed under Arizona law (record before death; keep a copy in a safe place; tell your daughter where the deed is recorded).
Update POD/TOD or beneficiary forms for bank accounts, brokerage accounts, IRAs, 401(k)s, and insurance policies so they match your intent — name contingent beneficiaries if needed.
Coordinate these documents with your will so there are no unintended conflicts. If conflicts remain, remember that beneficiary designations and title usually control over a will for that asset.
Consider creating a revocable living trust if you want a single probate-avoidance vehicle for many types of assets and more control over distribution timing.
Talk to an Arizona estate planning attorney if you have complex assets, creditor concerns, tax questions, minors or special-needs beneficiaries, or Medicaid planning issues.

Helpful Hints

Review beneficiary designations every few years or after major life events (marriage, divorce, birth, death).
Record a TOD deed for real estate only after you understand the probate, tax, and creditor implications.
Keep copies of signed and recorded deeds and beneficiary forms in a secure place and tell your named successor where they are located.
Use contingent beneficiaries (e.g., your daughter first, then an alternate) in case the primary beneficiary dies before you.
If you leave assets to a minor, use a trust or name a custodial arrangement rather than relying on a direct cash bequest through a will.
Coordination is key: beneficiary designations, account titling, TOD deeds, trusts, and wills should work together rather than contradicting each other.
Arizona has no state-level estate tax, but federal estate and income tax issues can still apply; get tax advice when needed.
For general Arizona probate and self-help resources, see the Arizona Judicial Branch Probate information: Arizona Courts — Probate Self-Service.

In short: a will is important, but it does not replace TOD deeds or POD/beneficiary designations when you want property to move outside probate. Use the right combination of instruments to make the transfer to your daughter smooth, dependable, and aligned with your overall planning goals.