transfer property on trust

You will want to check with an attorney about which type of deed is best in your situation. Some states require that all deeds be prepared by attorneys so you may not have a self-help option. Once the deed form is prepared, a real estate deed must be filed with your county and you will need to pay a filing fee.

A deed transfer should not affect your mortgage, even if you have a due on sale provision. You should check on your title insurance (if you have any) though . You may be able to simply transfer it to the trust, or your title insurance company may require that the trust buy a new policy.

Once the deed is transferred, you may need to change your homeowner’s insurance to indicate the trust as owner of the property. If you receive a real estate tax exemption, you will want to make sure that is properly applied by showing documentation of the trust to the taxing authority, such as a certificate of trust (a document your attorney can create that certifies the existence of the trust).

Transferring vehicles to a trust

If you would like to transfer ownership of your car or truck to your trust, you need to first determine if your state will allow a trust to hold ownership of a vehicle (check the DMV web site or consult your attorney). You also should call your insurance company to be certain they will continue coverage once the transfer is made. To transfer ownership, you will need to obtain a title change form from your DMV and complete it, naming the trustee (as trustee of your trust) as new owner. Sales tax should not apply to the transfer and if the clerk tries to apply it, you will need to speak to a supervisor. If you own a boat, you will need to follow a similar procedure to transfer title.

Transferring financial assets to a trust

To transfer assets such as investments, bank accounts, or stock to your real living trust, you will need to contact the institution and complete a form. You will likely need to provide a certificate of trust as well. You may want to keep your personal checking and savings account out of the trust for ease of use.

Transferring personal property to a trust

You likely own many things that you don’t have actual written titles or ownership documents for, such as jewelry, furniture, collectibles, and the miscellaneous things that fill your home. To place them in your living trust fund, you can name them in your trust document on a property schedule (basically a list you attach to the trust document that is referred to in the document) and indicate that their ownership is being transferred to the trust. If any of these items are insured, be sure to transfer the insurance to the name of the trust.

What cannot be placed in a trust?

There are some things that cannot or should not be placed in your trust. Individual Retirement Accounts (IRAs) cannot be owned by a trust , so these must remain in your own name, but you can name the trust as a primary or secondary beneficiary. Revocable living trusts are often named as beneficiaries of a life insurance policy. It's a good idea to talk to a lawyer or accountant to understand any tax implications of doing so.

If you purchase or inherit items after you create the trust, you may want to transfer those items to the trust as soon as possible. If possible, when you purchase items, purchase them as trustee of the trust so they are automatically placed in the trust.

Consider a pour-over will

To further protect yourself, you will want a pour-over will . This last will and testament can be prepared by your attorney and will indicate that any items left in your name are transferred to the trust upon your death, so that your trust will be complete and provide all the benefits you created it for.

Double-check your list of assets to be certain you have moved them to your trust. Ensuring that your living trust is properly funded will provide you with the protection you seek and the peace of mind that your affairs are in order.

About the Author

Brette Sember, J.D.

Top 5 Must Dos Before You Write a Living Trust

Making your living trust will be easier if you think it through and gather necessary information before you sit down to do it

May 02, 2022 · 2 min read

Property you should not include in your last will

You want to make sure you have all your assets covered, but did you know that not all property can be bequeathed through a last will and testament?

Mar 02, 2023 · 2 min read

5 myths about trusts you can't afford to believe

A living trust can be an effective estate planning tool if you understand what they can and can't accomplish.

Nov 29, 2022 · 4 min read

Top Five Mistakes to Avoid Writing a Living Trust

A living trust can be an important part of your estate plan, but watch out for errors that could hamper your estate planning objectives or invalidate the trust.

Aug 03, 2022 · 3 min read

Estate Planning: 11 Things to Do Before You Die

With a bit of preparation you can put your mind at ease now and save your loved ones a lot of trouble later.

Aug 03, 2022 · 4 min read

Will vs. living trust: What's best for you?

Whether a living trust is better for you than a will depends on whether the additional options it provides are worth the cost.

Feb 15, 2023 · 3 min read

Do-it-yourself living trust

A living trust is an easy way to plan for the management and distribution of your assets, and you don't need an attorney to do it.

Feb 23, 2023 · 2 min read

Estate Planning Basics

When to use a quitclaim deed

If you’re seeking to transfer ownership of property, a quitclaim deed is a fast and easy method but it's only recommended in certain circumstances.

Jan 09, 2023 · 4 min read

What assets need to be listed for probate?

Determining whether an estate has assets that are not subject to probate can save you time and money. Here are several types of assets that qualify as non-probate assets.

Nov 10, 2022 · 3 min read

Make a living trust: A quick checklist

A living trust is one of the most flexible estate planning options available, but how do you go about writing one? Follow this checklist!

Dec 01, 2022 · 5 min read

5 ways to avoid probate

Taking a few steps now could mean saving your estate — and your loved ones — valuable time and expenses later.

Nov 02, 2022 · 3 min read

Property Owners

What is a quitclaim deed?

Deeds can be complicated and nuanced, taking multiple forms, each with its specific implications and particular best uses.

Feb 03, 2023 · 2 min read

Why sign in to the Community?

Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

How to report the ownership transfer of rental property reported on Schedule E to a trust? The transfer is nontaxable. The trust will file a form 1041 going forward.

View solution in original post

Found what you need?

Already have an account? Sign In

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m Members

2.63m discussions, quick links.

Estimate capital gains, losses, and taxes for cryptocurrency sales

Ready to Try TurboTax?

You are leaving QuickBooks.

You have clicked a link to a site outside of the QuickBooks Community. By clicking "Continue", you will leave the Community and be taken to that site instead.

Search Search Please fill out this field.

Trust & Estate Planning

What Is Trust Property? Definition in Real Estate and Trust Types

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

What Is Trust Property?

Trust property refers to assets that have been placed into a fiduciary relationship between a trustor and trustee for a designated beneficiary . Trust property may include any type of asset, including cash, securities, real estate, or life insurance policies. Trust property is also referred to as "trust assets" or "trust corpus."

Key Takeaways

Understanding Trust Property

Trust property is typically tied into an estate planning strategy used to facilitate the transfer of assets upon death and to reduce tax liability . Some trusts can also protect assets in the event of a bankruptcy or lawsuit.

The trustee is required to manage the trust property in accordance with the trustor's wishes and in the beneficiary's best interests. A trustee can be an individual or a financial institution such as a bank. A trustor sometimes called a "settlor" or "grantor" can also serve as a trustee managing assets for the benefit of another individual such as a son or daughter.

Regardless of the role a trustee plays, the individual or organization must abide by specific rules and laws that govern the functioning of whichever type of trust is established. Once property has been transferred to a trust, the trust itself becomes the rightful owner of the assets. In an irrevocable trust, the assets can no longer be controlled or claimed by the previous owner.

Types of Trusts

There are several different types of trusts individuals can establish. But they typically fall under two categories, which are revocable trusts and irrevocable trusts .

Revocable Trust

In a revocable arrangement, the trustor maintains legal ownership and control of trust assets. For this reason, the trustor would be responsible for paying taxes on the income those assets generate and the trust may also be subject to estate taxes should its value breach the tax-exempt threshold at the time of the grantor's death.

Irrevocable Trust

With an irrevocable trust, the trustor passes legal ownership of the trust assets to a trustee. However, this means those assets leave a person's property effectively lowering the taxable portion of an individual's estate. The trustor also relinquishes certain rights to mend the trust agreement. For example, a trustor usually can't change beneficiaries of an irrevocable trust after they have been established. This is not the case with a revocable trust.

A trustor may be referred to as grantor or donor in certain situations.

Payable on Death (POD) Trust

Trusts can be created during an individual's lifetime, or they can be established following the grantor's death. This situation applies to Payable on Death (POD) trusts, which transfer assets to a beneficiary following the death of the trustor. Generally speaking, this type of trust and similar ones are called testamentary trusts because property is actually transferred following the trustor's death. Assets in these trusts flow directly to the intended beneficiaries following the trustor's death, which means they avoid the often long and expensive process of probate . Probate is the legal process of validating and distributing assets outlined in a will. These trusts can also be outlined in a person's will .

Living Trust

Assets within living trusts can be transferred during the trustor's lifetime. For example, several individuals open accounts in trust with banks for the benefit of their children or to help fund their college expenses. A trustee carefully manages the assets held in the account to achieve this goal, but the children don't have complete access to the funds or the freedom to spend income from the fund as they please. An example of this type of arrangement is a unified gift to minors act (UGMA) account. In some cases, beneficiaries such as children would have access to the trust's assets and the income they generate only after reaching a certain age.

By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

One of the ways to decide if you can use a simplified procedure to transfer property is to figure out whether any of the assets have named beneficiaries. That means that the decedent, when alive, named one or more people as beneficiaries to receive the asset when they died. We listed some examples earlier, but here are some common ones:

Another important way is to figure out how the property is owned (the type of title ownership). For example:

Benefits like social security survivor benefits or benefits as a dependent of a deceased veteran can usually be collected without probate court.

It can be difficult to figure out whether you can use a simplified informal process to transfer property. In addition to assets that already have a designated beneficiary (like a life insurance or a bank account), estates with a value of $166,250 or less may qualify for a non-formal probate case. Also, if you were married to, or in a registered domestic partnership with, the decedent, you may be able to follow a simple process to have your property rights determined. Click on the items below for more information on these situations.

Generally, though, deciding if you qualify for a simple procedure may be difficult. So talk to a lawyer if you are not sure. To find a lawyer, contact your local bar association's lawyer referral service or call 1-866-442-2529.

If The Person Who Died Left $166,250 or LESS

Keep in mind, this process CANNOT be used for real property, like a house or land. Talk to a lawyer for help to determine whether you may be able to use another simplified procedure to transfer real property.

To use the simplified process for transferring personal property:

First, figure out if the value of all the decedent’s property (the estate) is $166,250 or less. To do this:

Do not include:

For a complete list, see California Probate Code section 13050 .

If the total value of these assets is $166,250 or less and 40 days have passed since the death, you can transfer personal property by writing an affidavit. There is a special form for this that you can get from most banks and lawyers. Your court’s self-help center may also have this form or a sample you can use to guide you.

To use to Affidavit process:

1. Fill out the Affidavit.

Many banks and other institutions have their own affidavit. So, check with them first and ask for one. Your court's self-help center may also have this form or click for a sample form you may be able to use .

You can list all assets in one affidavit. Or you can do one affidavit for each asset.

2. Attach (to the affidavit):

3. Have the affidavit notarized.

Legally, you are not required to have the affidavit notarized BUT many institutions will ask you to, so it is a good idea to notarize it before you try to use it to transfer the property.

4. If there are other people entitled to inherit the property, they MUST also sign the affidavit.

This shows you all agree that the property listed on your affidavit can be transferred to you.

5. To have the property transferred to you, give the affidavit to the person, company, or bank that has the property now.

NOTE: Make sure the case is not already in probate court. If it is, you cannot use the affidavit process unless the personal representative of the estate agrees in writing to let you do so.

If You Were Married to or Were a Registered Domestic Partner of the Person Who Died

If the surviving spouse/partner is legally entitled to all of the property, a more complicated probate procedure may not be required. For example, a couple that was married for decades may only own “community property,” which belongs to the surviving spouse/partner and is confirmed by the court in the spousal property petition case.

Free in Office Consultation: 1-877-435-7411 Tap Here To Call Us

How Do I Transfer Property from One Trust to Another Trust?

Unlike a last will and testament, estate planning through a living trust involves the transfer of title to assets during your lifetime. For example, if you want your house to be part of a revocable living trust, you must execute and file a new deed transferring ownership from yourself to the trustee—which in most cases is also you. Failure to properly transfer an asset means a probate court may determine it is not part of the trust at all and should pass instead under your will.

San Diego Court Finds New Trust Sufficient to Transfer Real Estate

What about cases where you create a new trust and want to transfer assets into it from an earlier trust? A San Diego appeals court recently addressed this question. In this case a man, now deceased, created a revocable living trust in 1985, into which he transferred a parcel of real property located in San Diego. The man created a second, irrevocable trust in 2009, which listed the same property on the schedule of trust assets. The man did not, however, sign a deed transferring the property from the 1985 trust to the 2009 trust.

After the man’s death, litigation ensued among the man’s relatives over which trust actually owned the property. This was important because each trust named different successor trustees and beneficiaries. The man’s daughter sought probate court approval for the 2009 trust. His grandson argued in favor of the 1985 trust.

The probate court agreed with the grandson’s argument that the San Diego property was never properly transferred from the 1985 trust to the 2009 trust. The daughter appealed. On April 13, the California Fourth District Court of Appeal issued a published decision reversing the probate court and siding with the daughter. First, the Fourth District said the deceased was not required “to execute a separate deed in order to transfer the [San Diego] property to the 2009 trust.” The deceased’s statement in the 2009 trust that, “I transfer to my Trustee the property listed in Schedule A, attached to this agreement,” was sufficient to manifest his intent “to convey real property in California.”

Second, given that the deceased was the “sole trustee” of the 1985 trust, and that trust was revocable at any point during his lifetime, the Fourth District held that his “signature on the 2009 trust was ‘sufficient to convey good title’” from one trust to the other.

Get Advice from a California Estate Planning Lawyer

The Fourth District’s decision does not mean you should ignore the formalities of transferring assets into a trust—or even from one trust to another trust. The circumstances of each person’s estate planning differ. For instance, if you create a living trust where you and your spouse are co-trustees, there may be language that requires approval from both of you before transferring any property out of the trust.

An experienced San Diego estate planning attorney can review your situation and help you decide on whether a trust may be beneficial. Contact the Law Office of Scott C. Soady if you would like to speak with an estate planning lawyer today.

Home » Self-Help » Probate » Property Transfers » Probate Trusts

Yahoo Finance

S&P Futures

Dow futures, nasdaq futures, russell 2000 futures, bitcoin usd, cmc crypto 200.

Can I Transfer Property into a Trust?

If a trust is part of your estate plan, your assets will need to be transferred into it at some point. Most of the time, this is a fairly simple process that requires nothing more than listing the assets as part of the trust. However, transferring real estate property into a trust is more complicated. A new deed has to be issued and filed, insurers must be notified and, sometimes, permission must be obtained from the lender. Failure to properly transfer real property like a person's home into a trust means your estate will have to go through probate after your death, likely adding considerable time and expenses to the process of settling your estate. Talk to a financial advisor about your plans for your estate.

Trust Basics

Trusts are widely used in estate planning so estates can avoid going through probate and maintain privacy. The terms of the trust ensure the wishes of the property owner are adhered to and their property gets distributed to the proper beneficiaries.

There are many different types of trusts , including living trusts, revocable and irrevocable trusts. However, they all become effective when assets are transferred into them.

There are some restrictions on the types of assets that can be transferred into trusts. For example, IRAs can't be placed directly in a trust like other assets can (although the same effect can be achieved by naming an IRA as the beneficiary of the trust ).

Otherwise, assets that can be placed in a trust include:

Cash and bank accounts

Brokerage accounts

Securities such as stocks and bonds

Business interests

Life insurance

Collectibles, art and other personal property

Placing personal property like jewelry, furniture and, sometimes, vehicles, can be as simple as including the property on a list of assets drawn up when the trust is created.

Other asset transfers can be more complicated. Stock and bond transfers are generally handled through a brokerage or the financial institution that is holding them for the owner. Life insurance is often not included in a trust. Instead, the beneficiary designations of the policy may be changed to name the trust as the recipient of the payout.

Transferring Real Property into a Trust

Real property , including a person's personal home and any real estate investments, calls for a different set of steps. Essentially, a new deed has to be created that names the trust as the owner of the property. The new deed also must be recorded at the courthouse.

The transfer can be accomplished with two types of deeds. A quitclaim deed is the easiest and most commonly used. It is often possible for a trust owner to create a quitclaim deed without the help of an attorney. The other type, a warranty deed , involves a guarantee that the person transferring ownership has the right to do so and that no outstanding liens will interfere with the transfer. Warranty deeds cost more because involve checking for liens.

Once either type of deed is prepared, it must be signed by the owner, witnessed by a notary and recorded at the county courthouse. Only then will the property be transferred to the trust.

Property Transfer Considerations

A number of problems can arise when transferring property to a trust. First, the transfer may not happen or may not be effective. This could happen if the owner sold a house that had been transferred to the trust, but then bought a new house and failed to transfer it into the trust. Any new real estate purchases should be recorded with the trust as the owner. If this step is neglected before the estate owner dies, there is no way to avoid probate.

Another problem may crop up if the property is not accurately described. The legal description of the property must be exactly correct for the transfer to take place.

Some mortgages have due-on-sale clauses that require the loan to be paid off if the property is sold or otherwise transferred. To avoid this, check with the mortgage holder and get permission before transferring property into a trust. Lenders will usually agree without calling the loan, but the formality needs to be observed to avoid potential problems.

The Bottom Line

Transferring real estate property into a trust is often an important part of estate planning. If neglected, this can force the estate to go through probate, which may increase costs and compromise the estate owner's privacy. Transferring real estate involves issuing a new deed that names the trust as the owner. The new deed then must be registered at the county courthouse.

Estate Planning Tips

Estate planning is one job where a financial advisor can provide particularly valuable insight and assistance. SmartAsset's free tool matches you with up to three financial advisors in your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you're ready to find an advisor who can help you achieve your financial goals, get started now .

You can pay an attorney thousands of dollars to create a trust as part of your estate plan. For many people, especially those with large or complex estates, this is likely the best approach. However, for those with smaller and more simple estates, online trust-making tools can reduce those costs to as little as zero while producing a legally enforceable document that gets the job done.

The post How to Transfer Property into a Trust appeared first on SmartAsset Blog .

Get Started Get Started

Start typing, hit ENTER to see results or ESC to close

All Articles

5 minute read

Quitclaim Deeds - What You Need to Know

Quitclaim deeds are a reliable way to transfer ownership of real property from one party to another. Learn more about quitclaim deeds here.

Patrick Hicks , @PatrickHicks

Head of Legal , Trust & Will

Share this article

There are a few different methods that can allow you to transfer property and change ownership. One such method, called a quitclaim deed, lets homeowners quickly transfer a property title. This information can be useful for a number of reasons, including as part of an Estate Planning strategy for yourself or a loved one.

Quitclaim deeds are a common but occasionally misunderstood legal tool, and they can be used in several situations. They are known to be one of the quickest methods for transferring property ownership -- but there are a few things to be aware of first. Keep reading to learn everything you need to know about quitclaim deeds and when to use one.

[Are you interested in our deed transfer services? Chat with our member success team or reach out to [email protected] "> [email protected] ]

What is a quitclaim deed?

How does a quitclaim deed work?

Commonly asked questions about quitclaim deeds

Quitclaim deeds & Estate Planning

What is a Quitclaim Deed?

A quitclaim deed is a type of legal document that transfers real estate or land ownership from one individual to another. They are commonly referred to as “quick claim” deeds because of the fast nature of the transactions. In cases where a quitclaim deed is used there is no need for a title search or title insurance, and the property is transferred in as-is condition.

How Does a Quitclaim Deed Work?

A quitclaim deed works by allowing one property owner to sign ownership over to another through a legal contract. The process is completed through the creation of a quitclaim deed form, which should include a description of the property, the date of the transfer, and the names of the individuals exchanging the title. The original property owner, called the grantee, can then sign the deed form to transfer ownership to the new owner, called the grantor.

Quitclaim deeds almost always need to be notarized, and in some states a witness is also necessary. The deed should then be filed with the county clerk to ensure the change in ownership is publicly recorded. The exact process can vary slightly depending on the state the property is located in, but this is generally how a quitclaim deed works.

Who Needs a Quitclaim Deed & When to Use?

Quitclaim deeds can be used in a number of different situations, though they are most common when transferring property between family members or spouses. For example, after a divorce one spouse may sign a quitclaim deed to officially sign over ownership of the home.

In Estate Planning, quitclaim deeds can be used to transfer real estate into a Living Trust. It is often important to gain Trustee "> Trustee approval before moving real estate into a Trust, as quitclaim deeds do not impact existing mortgages. If you are interested in learning more, read our guide on how to transfer real estate into a Living Trust "> how to transfer real estate into a Living Trust .

Quitclaim deeds can also be used to quickly reissue a real estate title in case mistakes were made during the initial transaction. Common examples include spelling errors or missing signatures on the title, which can be corrected through the use of a quitclaim deed.

What are the Advantages of a Quit Claim Deed?

Effective Way To Transfer Titles: Quitclaim deeds can quickly transfer a property title between family members, avoiding the need for a real estate attorney or agent.

Gift Tax Benefits: Quitclaim transfers are often treated as gifts for tax purposes, allowing family members to avoid paying the taxes associated with a traditional real estate sale.

Easy To Use: The forms used are easy to understand and often only require a notary and witness signature to legalize.

New Owner Can Avoid Liens: Quitclaim deeds do not transfer mortgages or tax liens on the property. This means the previous owner is still financially responsible for money owed on the house.

Property Skips Probate: When a quitclaim deed is used to transfer a property before the original owner passes away, the property can avoid going through probate. This is most common in situations of a terminal illness or other health condition.

What are the Disadvantages of a Quit Claim Deed?

No Protections For The Transaction: Unlike warranty deeds "> warranty deeds , a quitclaim deeds does not offer protections for the new property owner. There is no way to guarantee that the property is owned free and clear, and that there are no easements or restrictions. In some cases, the grantor may be withholding other information as well. In these cases, there is not much the buyer can do unless the deed was fraudulent.

Responsibility Placed On The New Owner: The new owner can opt to complete a title search before signing a quitclaim deed to protect themselves from difficulties. Essentially, it is up to the grantee to ensure the information on the property is correct before agreeing to the new deed.

For these reasons, it is advised to only use quitclaim deeds when transferring property between family members or trusted individuals. A quitclaim deed would almost never be used during a typical real estate sale, as there is no guarantee that the previous owner has disclosed all of the relevant information about the property.

Does a Quitclaim Deed Avoid Probate?

A quitclaim deed avoids probate because property ownership is transferred while the grantee is still alive. Therefore, ownership has already been transferred by the deed before the grantee’s Estate Plan goes into effect.

Does a Quitclaim Deed Expire?

A quitclaim deed does not expire because it permanently transfers ownership from one party to another. That being said, the new deed must be filed with the county clerk’s office to record the official transfer.

If the new deed is not recorded, it can create legal and financial challenges.

There is not a set deadline to file the new deed, though it is typically recommended to do so as soon as possible following the transfer. Without an official public record, there may be difficulties transferring the mortgage. There can also be difficulties if another family member makes a claim to the property -- which could only be settled by looking at the official deed on file.

Does a Quitclaim Deed Need to be Notarized?

A quitclaim deed does need to be notarized before it can be filed with the county clerk. Depending on the state, a witness signature may also be required.

Is a Quitclaim Deed Considered an Inheritance?

A quitclaim deed is not legally considered an inheritance. Instead, the property transfer is viewed as a gift in terms of the law. This is because the property owner signs the deed while they are still alive, rather than transferring ownership through a Last Will and Testament.

There are some cases where a person who owns property via a quitclaim deed may pass away and leave the property to an heir. In these cases, the property would technically be an inheritance. For legal purposes, the initial quitclaim deed would not be significant unless another ownership claim arose on the property.

What are the Tax Implications of Quitclaim Deeds?

The tax implications of a quitclaim deed are best summarized by the federal gift tax rules "> federal gift tax rules . Because no money is changing hands at the time of transfer, the property is considered a gift from the grantor to the grantee. The gift tax implications would be the responsibility of the grantor, and the value of the home would impact their lifetime gift tax exemption.

During the tax year that the quitclaim deed is issued, the grantor would report the transfer on their tax forms. A property would almost certainly exceed the $15,000 gift tax limit per recipient, but there is a lifetime exemption of roughly $11.5 million to be aware of. Consult with your financial advisor and Estate Planning team so you can choose a tax-forward strategy when it comes to managing your finances.

There are also a few points to be aware of in terms of tax liens and property taxes when it comes to quitclaim deeds. If there are any liens or other taxes owed on the property, the grantor will be required to pay them before the title can officially be transferred. Once the quitclaim deed is successfully filed, property taxes would become the responsibility of the grantee moving forward.

Quitclaim Deeds & Estate Planning - Get Started Today

Quitclaim deeds can be a useful tool in Estate Planning for a number of reasons. Not only do these documents allow properties to avoid the probate process, but they can also be used to supplement the asset in a Trust. Quitclaim deeds can save families time and money when a property needs to transfer hands, as long as the necessary requirements are meant.

While quitclaim deeds are known for their speed and efficiency, they are still legal documents and certain regulations must be followed. Further, there can be various tax implications of transferring a property or land through a quitclaim deed. If you are curious whether a quitclaim deed "> quitclaim deed might be useful to you, reach out to our team today.

There are several ways to transfer property to a loved one, and a quitclaim deed is just one option available. This legal tool can be used to fund a Trust, transfer a property to a loved one, or to assist in settling a divorce. Always remember to follow your state’s requirements and reach out to our team with any questions.

Is there a question here we didn’t answer? Reach out to us today or Chat with a live member support representative!

Recommended for you

View All Articles

Which Estate Plan is best for you?

Find out by taking a simple quiz.

Browse by category

Guardianship, estate planning, end of life planning.

How to Transfer Real Estate Property

Last Updated: October 8, 2022 References

This article was co-authored by Clinton M. Sandvick, JD, PhD . Clinton M. Sandvick worked as a civil litigator in California for over 7 years. He received his JD from the University of Wisconsin-Madison in 1998 and his PhD in American History from the University of Oregon in 2013. There are 12 references cited in this article, which can be found at the bottom of the page. This article has been viewed 47,749 times.

You can transfer real estate by completing a deed. A deed is a legal document which describes the property being sold and must be signed by the sellers. To begin the transfer of real estate, the seller should find a blank deed form and get the legal description of property. Although you usually don’t need a lawyer to transfer real estate property, you should contact an experienced real estate lawyer if you have questions.

Drafting the Deed

Image titled Transfer Real Estate Property Step 1

Image titled Transfer Real Estate Property Step 2

Image titled Transfer Real Estate Property Step 3

You can get the tax number from your property tax bill or by visiting the local tax assessor’s office.

Image titled Transfer Real Estate Property Step 4

Image titled Transfer Real Estate Property Step 5

The form should read something like the following: “This deed, made on June 1, 2015 between Michael J. Smith (‘Grantor’) and Alice K. Jones and Adam Y. Jones (‘Grantees’).”

Image titled Transfer Real Estate Property Step 6

Image titled Transfer Real Estate Property Step 7

Executing the Deed

Image titled Transfer Real Estate Property Step 8

Image titled Transfer Real Estate Property Step 9

Image titled Transfer Real Estate Property Step 10

Image titled Transfer Real Estate Property Step 11

Recording the Deed

Image titled Transfer Real Estate Property Step 12

Image titled Transfer Real Estate Property Step 13

You will have to pay a fee in order to record the new deed. [16] X Research source You should call ahead and ask the clerk the amount and acceptable methods of payment.

Image titled Transfer Real Estate Property Step 14

Image titled Transfer Real Estate Property Step 15

If you don’t receive a copy of the deed after eight weeks, you should call the Recorder’s office and ask.

Expert Q&A

About This Article

Send fan mail to authors

Reader Success Stories

Kelly Juarez

Oct 27, 2022

Did this article help you?

Featured Articles

Watch Articles

wikiHow Tech Help Pro:

Develop the tech skills you need for work and life

FREE CASE EVALUATION (480) 418-8448

Tips On Transferring Real Property Into A Living Trust

Tips On Transferring Real Property…

Transfer Real Property Into A Living Trust In Arizona

Jenna’s estate planning attorney suggested she create a living trust. It seemed like the best way for her to pass her property to her heirs. She was confused, however, when her lawyer said she had to ‘transfer’ her real estate to her trust. Wasn’t it enough just to create the trust? No, Jenna needed to learn how to transfer her real property to her living trust.

Creating The Trust

It’s usually a revocable trust . That means if you change your mind, you can change your trust.

As grantor, you write and sign a trust document. You’ll name a trustee and at least one beneficiary. Sign the document before a notary public. There, you’re done, right?

Nope. The trust is empty, waiting to be filled.

Funding The Trust

When you transfer assets to a trust it’s called “funding” the trust. In this blog, we’ll talk about funding the trust with real property, although other types of property may become trust assets. One great thing about living trusts? You continue to control the property even after it’s transferred to the trust.

The trust document includes a list of property that will transfer to the trust. Personal property may not have to be itemized. Real property should be listed separately.

For each piece of real property, you’ll need to prepare, sign, and record a deed. You’re probably thinking, “Oh, no. More legal documents!” They’re necessary, though, and not that hard to complete.

How To Transfer Real Property In Arizona

You’ll need to choose which deed to use: quitclaim or warranty.

Fill in the information at the top of the deed. That tells the county recorder where to send the recorded document. This usually will be you or your attorney.

Complete the names of the parties. Remember, you’re the grantor. The grantee is the living trust (The James and Martha Williams Living Trust, for example).

State the county in which the property is located. Then find the legal description of the property you want to transfer. This is important – the legal description must be correct. A typical legal description might read something like this:

All of Lots 5 and 6 of the Livingston Subdivision as recorded in Book 340 of Maps, Page 24-27 of the Maricopa County Records, City of Gilbert, Maricopa County, Arizona.

The description may contain something more technical like:

Thence South 24°07’20” West, 108.36 feet along said southwesterly right of way line to the point that lies on said southwesterly right of way line to the point of tangency.

Once that’s completed, you’ll need to sign the deed before a notary public.

The final step is critical: You must record the deed with the county recorder within sixty days of signing. Make sure you keep a copy if you mail it to the recorder. The original recorded deed will be returned to the person you named in the first step above.

Some Final Thoughts

The attorneys at the Keystone Law Firm assist clients every day with customized estate planning. To learn more about structuring your assets in a guaranteed estate plan, contact our office today at (480) 418-8448 . We offer services for clients throughout Arizona, including Chandler , Gilbert , Sun Lakes , Tempe , Phoenix , Mesa , Scottsdale , and Apache Junction .

Author: Francisco Sirvent - Keystone Law Firm

Author: Francisco Sirvent - Keystone Law Firm I graduated from the University of Arizona in 2001 with a B.S. in Biosystems Engineering, first in my class. I then entered the legal profession as a law clerk in 2002 and pursued a law degree at Arizona State University, completing the degree in 2006 as one of a handful of students who also obtained a Certificate in Law, Science and Technology. I led the Elder Law Pro Bono project and Christian Legal Society student chapters, and then interned at Arizona Technology Enterprises. I now run a law firm in Chandler Arizona dedicated to helping Arizonans with their Estate Planning, Probate and Family Law needs.

Transferring Property Outside Probate

You may be able to transfer many or all of the assets in an estate without going through a formal probate proceeding. This will make the process shorter and simpler, leaving you with fewer pitfalls to avoid. The types of property that will not need to go through probate include assets for which the decedent named a beneficiary in a document other than a will. Also, assets that the decedent owned jointly with someone else may not go through probate if the type of ownership provides for the co-owner to automatically take over the decedent’s share.

The benefits of probate include formal deadlines for creditors to submit their claims against the estate and greater authority over contentious property division.

Trust Property

Many aging individuals put their property in a living trust so that they can transfer it to beneficiaries without going through probate. The successor trustee to the decedent will transfer the assets to the beneficiaries. This does not involve the executor unless they are also the successor trustee.

Gifts of Property

An individual may reduce the number of assets that pass through probate by transferring some of their property to intended beneficiaries before they die. Assets transferred by gift avoid probate and may help the estate qualify for small estate procedures, but this may also raise issues concerning taxes and debt liability.

Property Held in Joint Tenancy or Tenancy by the Entirety

A surviving co-owner of any property held in joint tenancy will be able to take the decedent’s share of the property without putting the property through probate. They still need to fill out legal documents to establish their ownership of the asset, but this reduces the burden on the executor. In the event that the property was held in a community property state, a different procedure may apply for transferring the property to the surviving spouse, which may be even simpler.

Many states allow married couples or people in registered civil unions or domestic partnerships to own assets in tenancy by the entirety. This can be transferred similarly to property owned in joint tenancy, using a sworn statement by the surviving spouse.

Community Property

Any property owned by the decedent with a surviving spouse as community property with right of survivorship goes to the surviving spouse by law. However, this option is not available in most states. Other community property states allow a spouse to designate some or all of their property as community property under a community property agreement. Even if there is no community property agreement, and the property is not explicitly held as community property with right of survivorship, the surviving spouse still may be able to gain access to it without probate.

A car inherited through a transfer-on-death provision still needs to be reregistered to the new owner.

Less than half of the states allow a car owner to register the vehicle on a transfer-on-death form. You can check the car’s registration to see if there is a TOD beneficiary. Otherwise, you can contact the motor vehicle agency in the decedent’s state to see if there may be another efficient alternative to probate to transfer the vehicle. Some states offer streamlined ways to transfer a vehicle to a surviving spouse or to transfer a vehicle that has little value.

Income and Securities

A surviving spouse usually can receive any remaining income or wages that had not yet been paid to the decedent. Otherwise, the decedent’s children can receive this money. If the decedent registered stocks, bonds, or mutual funds on a transfer-on-death form, those can pass to the beneficiary automatically. If the decedent co-owned savings bonds with someone else, the other owner can receive them without probate. Or, if they named a payable-on-death beneficiary, that person can receive the bonds.

Payable-on-Death Accounts

A beneficiary of a payable-on-death bank account should be able to claim the money in the account without going through probate. They probably will not even need the assistance of the executor. A Totten trust or revocable trust account will follow the same process as a payable-on-death account and will not involve the executor directly.

Life Insurance, Retirement and Health Savings Accounts, and Pension Plans

Unless the decedent named their own estate as the designated beneficiary of a life insurance policy, its proceeds will go to the beneficiary named on the policy without the need for probate. There is an exception if all of the primary and alternate beneficiaries on the policy have died, but this is uncommon.

Some state laws provide that divorce severs the ex-spouse’s right to a payable-on-death account, but some do not.

Special Issues Involving the Transfer of Real Estate

Under state law, a decedent’s primary residence may be classified as their “homestead.” This may mean that it is automatically transferred to their surviving spouse or children without probate, even if a will provides otherwise. Homestead property also may be protected from creditors.

About half of the states permit a property owner to transfer real estate in a transfer-on-death deed. The decedent must have recorded this deed before their death in the county where the property is located. The beneficiary can take title to the property without assistance from the executor.

Last reviewed November 2022

Probate Contents

Related Areas

IMAGES

A trust is not the only way to transfer property
Get Your Rights 'Transferred' to Yourself
Property118
How to Transfer Property Out of Trust
When the sale of a trust can lead to Transfer Duty
Transferring property into a trust: What you need to know

VIDEO

Transfer property in to trust #consumerlaw
Collecting Assets as a Trustee
Transfer of property Act Part 5 definition
General Warranty Deed
4 Cheap Dividend Growth Stocks to Buy in March 2023!
Transferring real estate into a trust

COMMENTS

How to Transfer Property into a Trust
To transfer a property into a trust, you will need a new deed with the name of the trust. Here's what you need to do. Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators How Much House Can I Afford? Mortgage Calculator Rent vs Buy Closing Costs Calculator
How to Transfer Real Estate Property Into a Trust
The process of transferring real estate into a trust is fairly straightforward and consists of creating a new deed that changes ownership of the property to the trustee and name of the trust. You can also fund the trust with other assets, like cars and boats, in the same manner. Key takeaways
Trust Transfer Deed
How to Transfer Property into a Trust In California, in order to transfer property into a trust you must change title of the asset from the grantor's name to the trustee's name. Trust Transfer Deed The type of deed required for this transfer is the trust transfer deed, which must be recorded with the county recorder's office.
Putting Your House Into A Trust
The main benefit of putting your house in a trust is to bypass probate when you pass away. All your other assets, regardless of whether you have a will, will go through the probate process. Probate in real estate is the judicial process that your property goes through when you die.
How to Transfer Real Property Into a California Living Trust
In California, real property is assigned to a trust using a grant deed. A grant deed is a notarized form that states the owners of the property give the property to the trust. The owner is the ...
How to Transfer Assets Into a Living Trust: 12 Steps
How to Transfer Assets Into a Living Trust Download Article parts 1 Assessing Your Assets Before Transferring to the Living Trust 2 Transferring Your Assets to Your Living Trust 3 Ensuring Orderly Dispersal of the Assets of Your Living Trust Other Sections Tips and Warnings Related Articles References Article Summary
How to Transfer Property Out of a Trust After Death
How to Transfer Property Out of a Trust After Death - SmartAsset After the trust owner dies, the beneficiary can transfer property out of the trust by using a Trustee's Deed transferring ownership of the property. Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right Loading Home Buying Calculators
When Should You Put Your House in a Trust?
Transferring assets via a trust is a private process. Probate can also drag out in certain cases, potentially costing a significant amount of money and lasting for months or even years. Trust assetsare only passed on according to the instructions in the trust document, so you can help your heirs avoid a long and costly probate.
Property Transfer Among Family Members
While property transfers can be useful to accomplish a particular goal, not all taxpayers consider the tax consequences. There are other non-tax related issues to consider before attempting the property transfer by deed, will, or trust. Thus, here are common property transfer scenarios between family members and the respective tax implications:
Putting A House Into A Trust-The Pros and Cons Explained
Since your house has a title, you need to change the title to show that the property is now owned by the trust. To do this you need to prepare and sign a new deed to transfer ownership to you as trustee of the trust. Besides Putting A House Into A Trust, Are There Other Assets I Should Consider Putting Into A Trust?
How to Transfer Property Out of Trust
Transferring property out of a trust can be simple or nearly impossible, depending on which kind of trust you formed. How Revocable Trusts Work Typically, you act as the trustee if you form a revocable trust. You retain control of the property you place into it. You can sell it or move it back out of the trust as you see fit.
How to Transfer Property Held in a Trust
Trustee Signatures. Trustees are the parties empowered with the authority to transfer ownership of trust assets. A trust may have one trustee or co-trustees, which is common with married couples. A trust's conditions may require co-trustees to agree to asset transfers, or they may allow co-trustees to act independently on behalf of the trust.
Transfer Property Into a Trust
How to Transfer Real Estate Into a Trust First, you'll need to prepare and sign a new deed for the property. You'll usually need a grant form or quit claim form to transfer the deed. The forms vary by state and there are some nuances to the process.
Transferring assets into a living trust: Can you do it yourself?
To transfer ownership, you will need to obtain a title change form from your DMV and complete it, naming the trustee (as trustee of your trust) as new owner. Sales tax should not apply to the transfer and if the clerk tries to apply it, you will need to speak to a supervisor.
Solved: How to report the ownership transfer of rental property
"The transfer is nontaxable." From a federal income tax perspective, the transfer does not need to be reported (since there is obviously no consideration being paid) and the trust will take a carryover basis in the property (accumulated depreciation included).
What Is Trust Property? Definition in Real Estate and Trust Types
Once property has been transferred to a trust, the trust itself becomes the rightful owner of the assets. In an irrevocable trust, the assets can no longer be controlled or claimed by the...
Simplified Procedures to Transfer an Estate
It can be difficult to figure out whether you can use a simplified informal process to transfer property. In addition to assets that already have a designated beneficiary (like a life insurance or a bank account), estates with a value of $166,250 or less may qualify for a non-formal probate case. Also, if you were married to, or in a registered ...
How Do I Transfer Property from One Trust to Another Trust?
The man created a second, irrevocable trust in 2009, which listed the same property on the schedule of trust assets. The man did not, however, sign a deed transferring the property from the 1985 trust to the 2009 trust. After the man's death, litigation ensued among the man's relatives over which trust actually owned the property.
Probate Trusts
Authorize transfer of a trust or trust property to or from another state or country. Direct transfer of a testamentary trust from one county to another. Approve removal of a testamentary trust from court supervision. Determine the reasonableness of payments for legal services. You can petition the Court for other reasons, too.
How Can My Beneficiaries Transfer Property Out of a Trust After Death?
Transferring property out of a trust is the trustee's job. Generally, after the trustor passes away, the trustee notifies the trust's beneficiaries, enacts the trust's conditions and the...
Trusts and Estates Outline
The benefit of this is that it avoids probate administration. Because the trustee holds legal title to the trust property, there is no need to change title by probate administration upon the death of the settlor. This is a will trust and is generally preferred over the testamentary trust. Pay-On-Death (POD) and Transfer-On-Death (TOD) Contracts
Deeds to Transfer Ownership of Real Property
Ownership interest in a house is called 'title,' and a deed is the legal vehicle used to transfer that title, or ownership, between parties. Regardless, the deed is the legal document used to prove title. The parties named on a deed can be individuals, groups of individuals, companies, and even estate planning instruments such as a Trust.
Can I Transfer Property into a Trust?
If a trust is part of your estate plan, your assets will need to be transferred into it at some point. Most of the time, this is a fairly simple process that requires nothing more than listing...
What is a Quitclaim Deed?
A quitclaim deed works by allowing one property owner to sign ownership over to another through a legal contract. The process is completed through the creation of a quitclaim deed form, which should include a description of the property, the date of the transfer, and the names of the individuals exchanging the title.
PDF COMMON EXEMPTIONS TO DOCUMENTARY TRANSFER TAX R&T = Revenue and ...
transferring property. The Documentary Transfer Tax is imposed on all instruments when the purchase price or value . of interest conveyed, less the value of any liens or encumbrances, exceeds $100. ... If the deed transfers the property into a living trust "This conveyance transfers an interest into a Living Trust. R&T 11930" OR "Grantee ...
How to Transfer Real Estate Property: 15 Steps (with Pictures)
You can transfer real estate by completing a deed. A deed is a legal document which describes the property being sold and must be signed by the sellers. To begin the transfer of real estate, the seller should find a blank deed form and get the legal description of property. Although you usually don't need a lawyer to transfer real estate ...
Guide On Transferring Property Into A Trust
The trust document includes a list of property that will transfer to the trust. Personal property may not have to be itemized. Real property should be listed separately. For each piece of real property, you'll need to prepare, sign, and record a deed. You're probably thinking, "Oh, no. More legal documents!"
Transferring Property Outside Probate
Trust Property Many aging individuals put their property in a living trust so that they can transfer it to beneficiaries without going through probate. The successor trustee to the decedent will transfer the assets to the beneficiaries. ... About half of the states permit a property owner to transfer real estate in a transfer-on-death deed. The ...