When creating an Estate Plan, this is an important document which needs to be included when you transfer the title of the property to a Revocable Living Trust. This document helps to ensure that real property owned by you, will not be subject to probate.
A Trust Transfer Grant Deed allows for real property to be distributed to the beneficiaries, which you named in your Revocable Living Trust. With this document there will be no reassessment of taxes on your property, since you are only altering the “vesting” on the title, and not changing the ownership of the property involved.
Using a Trust Transfer Grant Deed ensures your privacy is maintained, by allowing you to name the “Trust” using something other than your own name. Naming a Trust is similar to naming a business. You may use any name you choose for the Trust. It should be noted that legally the name must include the word “Trust” in the formal documents that are drawn up.
Affidavit Death of a Trustee
If the trustee dies during the lifetime of the Trust, the Affidavit Death of a Trustee will need to be executed, recorded and notarized. An Affidavit Death of a Trustee will need to be drawn up designating the successor trustee as the now acting Trustee, or the co-Trustee as the sole Trustee. This is required by law. All real estate documents need a signature, and this new document will now be executed by the newly acting Trustee.
Affidavit Death of a Joint Tenant
If a co-owner of real property dies when property is held in Joint Tenancy, then the Affidavit Death of a Joint Tenant is used, in order to allow the surviving owner to be given control and rights in relation to the property.
When the surviving spouse passes away, then probate will be applicable if the property is not titled in the name of the Trust and no beneficiary deed is has been recorded. If you want to avoid probate in the future, then the surviving spouse should put the property into a Revocable Living Trust, which then allows probate to be avoided.
Affidavit Death of an Owner of Property
People who are dead are not permitted to own real or personal property. Laws state that someone must have control of decisions being made about property. This affidavit will allow the property to pass to the next in line.
Recording and Notarization
It’s important for the above affidavits to be recorded immediately. Once they are notarized and executed your lawyer will record them for you. They will require a notary Jurat and it’s a mistake to have only an acknowledgment. Your lawyer will ensure that this is handled correctly, so that the title and mortgage companies will work with you.
Your property will be legally recorded in the county where it is located, but if you are the owner of properties located out of state, then multiple probates will need to be dealt with. With a Revocable Living Trust, multiple probates can be avoided. The Revocable Living Trust will be the owner of your properties and therefore probate will be avoided.
Preliminary Change of Ownership Document
The County Recorder Office will require this two page document to be recorded, as it states the name of the person who is transferring property to another, and gives a detailed description of the transaction. This document will be required when recording the deed of the property, or when filing an affidavit which affects distribution of property.
All states use a version of this document, with exceptions for Florida, Wisconsin and Hawaii, who have chosen to use a document that is much more detailed and more difficult to prepare. The Change of Ownership Document needs to be correctly filled out, or the assessor for the county will contact you and will likely reassess the property in question.
When couples are transferring property between themselves there are no tax implications. This is often done for reasons of refinancing or for other credit reasons. When transfers occur between parents, children, grandparents or grandchildren, there will be no tax implications. This does not apply if there is a transfer between siblings, and your lawyer should advise you of this.