Creating a living trust can help families avoid the cost, time and uncertainty of Probate Court. Each state will have its own specific laws concerning a deed. But here are general guidelines for how to prepare a deed to transfer real estate property into a living trust.
“Concerns Over Owners Getting Alzheimer’s”
The living trust is becoming a more sensible option as children worry about their parents contracting Alzheimer’s or some other form of memory loss. These senior citizens might start making bad financial decisions putting their family’s estate in jeopardy. A living trust can assign a trustee to oversee the assets to ensure that beneficiaries interests are well-served.
To prepare a deed for the transfer of real estate to a living trust, you should first consider visiting the state or county website. The county clerk is likely to have a good template or sample form for the deed. You can choose either a Quitclaim or Grant deed form. Download it from the website or request a physical copy.
Determine the best characteristics for your living trust based on state law. Some states make it more lucrative to hold the real estate under the name of the trust, rather than the trustee. This allows you to change trustees without voiding the original deed if some issue may arise.
On the deed form, fill out the name of current owners, the name of the beneficiaries, the trustee and addresses. State what percentage of the real estate ownership that you will transfer. Make a legal description of the property based on surveying records.
“Complete the Deed in Front of Notary Public”
Once you have filled out all of the requisite information, make some copies. Leave the signature and date line blank. You will need to sign and date the form in front of a notary public.
The next step is to “record” the deed by filing it with the state or county clerk. You might need to pay a fee. This recording process will entail placing a notarized signed copy in the land registry or county clerk’s office. The clerk must stamp your original with a reference number for the public records.