How does a Beneficiary Deed function?

A Beneficiary Deed serves a distinctive function in real estate transactions as it conveys ownership effectively while the grantor is still alive, but it includes stipulations that only take effect upon the grantor’s death. The correct understanding relates to its capacity to ensure that the transfer of property does not occur until after the grantor has passed, making option B accurate in highlighting its key characteristic: if a Beneficiary Deed is recorded after the grantor's death, it becomes void.

This means the property will not be transferred to the designated beneficiaries and instead will likely fall into the estate and be distributed according to the grantor's will or the laws of intestacy, depending on the situation. A Beneficiary Deed allows the grantor to maintain ownership and control of the property during their lifetime while facilitating an easier transfer process to beneficiaries upon their death, thus simplifying certain aspects of estate planning.