LA Probate Law Discusses Transferring Real Property into a Living Trust by Grant Deed
The popularity of living trusts, sometimes referred to as “revocable trusts,” has steadily been increasing and becoming the preferred method of transferring property at death in many situations. The main advantage of a living trust is that it avoids probate, a court process that can be very expensive and time consuming. For many people, their most valuable asset is their home. In fact, many living trusts transfer only real property. The process for transferring real property to the living trust in California is fairly straightforward, but an attorney should be consulted before any transfer is finalized. Once we have finalized your revocable living trust, it is then time to “fund” your trust. Funding your trust refers to the process of transferring your assets into the trust – that is changing the legal title to all of your assets in order to conclusively demonstrate that the assets are held in trust. To transfer your assets into your living trust, LA Probate Law will prepare deeds for real property, and/or provide you with detailed instructions for the transfer of other assets such as bank accounts.
An Affidavit Death of a Trustee must be executed, notarized and recorded when a property owner that was a Trustee or Co-Trustee in a Living Trust passes away. When a property owner as a Trustee passes away, the Successor Trustee should contact a law firm to have this document prepared to list the the successor trustee in place of the Trustee in conjunction with the Trust name and date for ease in administration. (All of those real estate documents must be signed by somebody, and this is the successor trustee). This Affidavit Death of a Joint Tenant is recorded when a joint tenant (co-owner of property with right of survivorship) passes away to allow the remaining property owner to have full rights and control over the property that was held in joint tenancy. If a spouse dies and property is held in Joint Tenancy there will be no Probate, however, when the surviving spouse dies, and eventually he or she will, there will be a Probate – it is just delayed. The property should be placed in a Revocable Living Trust to avoid Probate. An Affidavit Death of a Joint Tenant must be executed, notarized and recorded when a Joint Tenant passes away. People that are deceased are not allowed to own real property (or personal property) any longer. You can’t take it with you. Somebody must be in control of the real property’s disposition. This affidavit must be executed, notarized and recorded when a property owner passes away.
Preliminary Change of Ownership Document
All of the above should be recorded as soon as possible after executing and notarizing. For Affidavits, these documents require a notary Jurat not an Acknowledgment. Please do not make this mistake or you will end up preparing a new document. Call a law firm such as LA Probate Law and make sure this is done correctly. Mortgage or Title Companies will not have anything to do with you (due to liability) if the property is not a current transaction they are working on. All property must be recorded in the County where the property is located. If you own property in different States, your estate will have multiple Probates to deal with. The best way to avoid this is to create a Revocable Living Trust and make your Trust the owner of all of your properties, that is, if you have more than one property. A Trust Transfer Grant Deed can also create privacy if the Trust name is not your own name but is something like 450 Enterprise Trust, or LKT Trust, etc. There is no tax consequence for couples transferring property back and forth to one another for any reason; most do this for credit, re-finance or other reasons. There is also no tax consequence for transfers between parents and children or grand-parents and grand-children. However, beware – there is a tax consequence for transfers between siblings.
Steps to Filing Out Information on Deed
Prepare a grant deed by filling out the blanks on the deed with the appropriate information. The deed must include the name of the grantor, the grantee’s name, and the legal description of the property, including the assessor’s parcel number. Name the trust as the grantee, such as “Jane Doe, Trustee of the Doe Family Trust” for example states LA Probate Law. Prepare a “Preliminary Change of Ownership Report.” A copy of the report is sent to the county tax assessor to determine whether the transfer triggers a property tax reassessment. Generally, transfers to revocable trusts do not trigger reassessment, but an attorney should be consulted to make sure. The report requires the name of the grantor, the name of the grantee, the property assessor’s parcel number and the address the property owner wants the tax bills sent to. The grantor must also sign the report. A blank report can usually be obtained at the county tax assessor’s office or at the county recorder’s office. Notify the mortgage lender if the property is subject to a due-on-sale clause in the note. A due-on-sale clause provides that the mortgage balance is due if the property is transferred. Direct the insurance carrier to name the trustee as an additional insured on the policy. Although not required, all communications with the insurance carrier should be in writing. Oral communications should be followed up with a confirmation letter.