Can a property owned by a Revocable Living Trust be transferred using a quitclaim deed? 32 Answers as of April 11, 2013

My parents transferred a second property to a revocable living trust in 2000. Now they want to transfer it to their children. Can this be done using a quitclaim deed?

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Stephens Gourley & Bywater | David A. Stephens
Yes.
Answer Applies to: Nevada
Replied: 4/11/2013
Law Office of Pamela Braynon | Pamela Y. Braynon
If your parents are the trustees of the trust then yes the transfer of land can be done with a quitclaim deed.
Answer Applies to: Florida
Replied: 12/6/2012
Whiteford, Taylor, & Preston | Edwin Fee
I'm not sure there's any reason why someone would need to use a quitclaim deed in particular. The grantor of a revocable trust has the ability to reacquire the property. The best route probably would be for the trustee to convey the property to the grantor, and then the grantor could convey the property to the children. If the trust allows the trustee to make distributions to the children, then perhaps the trustee could convey the property directly to the children.
Answer Applies to: Maryland
Replied: 12/5/2012
Martinson & Beason, PC
Martinson & Beason, PC | Douglas C Martinson II
It can be. The deed would need to be from the trust and signed by the Trustee. A quit Claim Deed means there is no warranty of title to the property. I could Quit Claim the Brooklyn Bridge to you and you would get whatever interest (nothing) that I owned in it.
Answer Applies to: Alabama
Replied: 12/5/2012
Law Offices of Frances Headley | Frances Headley
The property may need to be removed from the trust first. You should consult a estate planning/real estate attorney to review all of the documents and advise you how best to proceed. The use of the quitclaim form of deed should not be problem once you know the best procedure to use.
Answer Applies to: California
Replied: 12/5/2012
    Bullivant Houser Bailey PC
    Bullivant Houser Bailey PC | Darin Christensen
    Yes, by the trustees of the trust. Depending on the circumstances, it would be better to use a bargain and sale or warranty deed.
    Answer Applies to: Oregon
    Replied: 12/5/2012
    Victor Varga | Victor Varga
    Sure.
    Answer Applies to: Maryland
    Replied: 4/11/2013
    SmartWills
    SmartWills | Scott Pesetsky
    Yes, if done correctly. I bill the most when fixing "do-it-yourself" documents done wrong. Have an attorney do it right the first time.
    Answer Applies to: California
    Replied: 12/5/2012
    Woolley Wilson, LLP
    Woolley Wilson, LLP | William R. Wilson
    Yes assuming they are they grantors. Use a special warranty deed to be sure.
    Answer Applies to: Texas
    Replied: 12/5/2012
    Law Offices of Charles R. Perry
    Law Offices of Charles R. Perry | Charles R. Perry
    A quitclaim deed may be used by the trustee of a trust to transfer property to someone else. I would consult with a trusts and estates lawyer to ensure that you prepare and record any other necessary papers, and that you otherwise handle this transaction properly. You want to make sure that the chain of title (in other words, the history of ownership) of the property is 100% obvious to anyone looking at the public records. Verifying this requires a reading of the deed from your parents into the trust, and the proposed deed transferring the property to the children. You also want to make sure that the transfer does not trigger a re-assessment of the property's value that would result in a property tax increase.
    Answer Applies to: California
    Replied: 12/5/2012
    James Oberholtzer, Attorney at Law
    James Oberholtzer, Attorney at Law | James Oberholtzer
    It is better to use a Warranty Deed so the recipients have a potential claim against the grantor and the predecessors in interest (and their title insurance).
    Answer Applies to: Oregon
    Replied: 12/5/2012
    McCleary & Associates, PC
    McCleary & Associates, PC | David M. McCleary
    See an attorney
    Answer Applies to: Michigan
    Replied: 12/5/2012
    Goldsmith & Guymon
    Goldsmith & Guymon | Dara Goldsmith
    In order to avoid a transfer tax in Nevada two deeds should be used. First a trustee 's deed back to the trustees, then a quitclaim deed from the trustees to their children. However, this may not be prudent planning and may cause tax and or Medicaid issues. Your parents should speak with an estate planning attorney before taking this step as it may have adverse consequences that ought to be fully vetted by the owners/trustors. Also if they are looking to use the $5.12 million exemption it is only available at the present time through 12/31/12, so they need to consult an estate planning attorney immediately. All estate planning attorneys are very busy right now working with clients on issues like this.
    Answer Applies to: Nevada
    Replied: 12/5/2012
    Hamblin Law Office | Sally Hamblin
    Would have to read the trust to advise. Trusts are complicated.
    Answer Applies to: Michigan
    Replied: 12/5/2012
    Law Offices of Terrell Monks
    Law Offices of Terrell Monks | Terrell Monks
    In Oklahoma a quit-claim deed would be fine for that use, but it may cause future taxes. Be sure to discuss the income tax implications of such a transfer during the life of the grantor.
    Answer Applies to: Oklahoma
    Replied: 12/5/2012
    Law Offices of Gerald A. Bagazinski
    Law Offices of Gerald A. Bagazinski | Gerald A. Bagazinski
    Yes, You may want to consider purchasing title insurance on the property transfer and getting a warranty deed. Another consideration is to be added to the deed to avoid uncapping the property tax.
    Answer Applies to: Michigan
    Replied: 12/5/2012
    Ben T. Liu Law Office
    Ben T. Liu Law Office | Ben T. Liu
    Yes.
    Answer Applies to: Michigan
    Replied: 12/5/2012
    O'Keefe Legal Services, L.L.C.
    O'Keefe Legal Services, L.L.C. | Sean P. O'Keefe
    In Maryland, likely yes (they would be transferring title as trustee(s)), though it may depend on the terms of the trust. The type of deed relates to the warranties of title the grantor/transferor is making.
    Answer Applies to: Maryland
    Replied: 12/5/2012
    Frederick & Frederick PLC | James P Frederick
    Probably, yes, because a quit claim deed transfers whatever interest is owned. In this type of situation, we normally use a Trustee Deed, however. You need to pay an extra few $ to get a tax certification, but otherwise, it is not that much different.
    Answer Applies to: Michigan
    Replied: 12/5/2012
    Minor, Bandonis and Haggerty, P.C.
    Minor, Bandonis and Haggerty, P.C. | Brian Haggerty
    Yes, but why? A quit claim deed should be your last choice, always. What is the value of this real property? If there is substantial value your parents need to see their accountant to make sure that this gift is a good idea for gift and estate tax purposes; an appraisal might be a good idea; and the assistance of an estate planning lawyer may be called for to prepare a valid deed and review whether the trust document allows such transfers (or whether your parents will need to distribute the property to themselves from the trust, and then make the gift to children).
    Answer Applies to: Oregon
    Replied: 12/5/2012
    Irsfeld, Irsfeld & Younger LLP | Norman H. Green
    Yes, the Trustees can transfer property by executing a quitclaim deed. Be sure they file the required gift tax returns.
    Answer Applies to: California
    Replied: 12/5/2012
    Law Office Of Victor Waid
    Law Office Of Victor Waid | Victor Waid
    No, they must use a trustee's deed. From the trust to the intended transferees.
    Answer Applies to: California
    Replied: 12/5/2012
    Law Offices of Frank D. Granato
    Law Offices of Frank D. Granato | Frank Granato
    Yes, but a grant deed is preferred.
    Answer Applies to: California
    Replied: 12/5/2012
    Neil J. Lehto, Esq.
    Neil J. Lehto, Esq. | Neil J. Lehto
    A quit claim would the appropriate means by which to transfer real estate from your parent's trust to their children. Doing so today, before the end of the year, is fraught with estate planning and tax issues for your parents and their children. Discussing the possible estate planning and tax consequences would require knowing much more about them, their estate and the needs of their children.
    Answer Applies to: Michigan
    Replied: 12/5/2012
    Neal M. Rimer, Esquire
    Neal M. Rimer, Esquire | Neal M. Rimer
    Yes, transfers in and out of a revocable trust can be done by using a quitclaim deed. There are issues of title insurance. When a grant deed is used the title insurance will continue. With a quitclaim, there are a number of issues. There are also issues dealing with taxes. When a gift is made the basis to the donee (recipient) of the gift is the donor's (grantor or transferor) basis. Assets owned for years will not have any tax basis, if a gift is made, for depreciation purposes. Also, if the asset is sold following a gift, there are income taxes to be paid. If a gift occurs following a death, the basis for tax purposes is stepped up to fair market value. A new depreciation basis is set and as a result, there are income taxes to be saved from that depreciation. Also, there will be less of a gain when the asset is sold due to the step up in basis to the date of death value. Before making any decisions of this nature, you should meet with an estate planning attorney and possibly a CPA to go over the total situation and get advice on the alternatives and what is best for the family as a whole. It is also possible to create a major issue with the lender on property if a transfer is made during life. Most promissory notes and deeds of trust have a due on sale clause in them. The lender could demand full payment within 30 days of a transfer. The last issue is how the children take title. As joint tenants? As tenants in common? Should an entity be created to hold title to the property with the children being the members or shareholders or owners? Should you have any questions or wish to discuss this matter further, please feel free to contact me.
    Answer Applies to: California
    Replied: 12/5/2012
    Law Office of Edward M. Burgh, APC | Edward M. Burgh
    If the deed is from the trustee.
    Answer Applies to: California
    Replied: 12/5/2012
    THE BROOME LAW FIRM, LLC
    THE BROOME LAW FIRM, LLC | Barry D. Broome
    Yes. Your financial plan is not complete until it is co-ordinated with your estate plan. Will your family be provided for when you are gone? Without a Will, the court will decide.
    Answer Applies to: Georgia
    Replied: 12/5/2012
    Danville Law Group | Scott Jordan
    Yes, it can be done by quitclaim deed. However, there will be issues with this type of transfer, such as a step-up in the tax basis, gift taxing and so forth.
    Answer Applies to: California
    Replied: 12/4/2012
    Roman Aminov
    Roman Aminov | Roman Aminov
    Sure, you can use a quitclaim, but why wouldn't you use a normal warranty deed? I would speak it over with an attorney before you transfer anything.
    Answer Applies to: New York
    Replied: 12/4/2012
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    Quite possible but make sure you do it right, see an attorney. The property is presently owned by the Trust, not your parents and their quit claim will NOT transfer the title.
    Answer Applies to: Michigan
    Replied: 12/4/2012
    Donaldson Stewart, PC
    Donaldson Stewart, PC | Monica H. Donaldson Stewart
    A quitclaim deed can be used to transfer property from a trust, but a Special Warranty Deed seems to be a more common way to do this. I would recommend that your parents speak with their tax preparer to find out it is best to transfer the house directly from the trust to the children or from the trust back to your parents, and then from them to the children.
    Answer Applies to: Arizona
    Replied: 12/4/2012
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