QUESTION
How can I deed property out of my parent's trust into my name and transfer my property to my brother for an equal exchange?
Asked on Dec 13th, 2012 on Estate Planning - Oklahoma
More details to this question:
My parents died in 2005, leaving a revocable trust. The trust only has the house remaining in it. My brother and I (the co-trustees and only named beneficiaries) want to do an exchange. I will get the house in the trust, and he will get some property I own for his portion. Essentially, his 'buy-out." Do I only need two deeds (one for the trust house, and one for the land) to do this or is it more complicated?
15 ANSWERS
Trust Attorney serving Cincinnati, OH
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Paul A. Nidich Attorney at Law
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I'm sorry, but this issue needs to be handled by an attorney experienced in 1035 exchanges. No free "question and answer" process can deal with such a complex issue.
Answered on May 23rd, 2013 at 10:44 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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From your recitation of the facts is impossible to know whether it is more complicated. I would suggest you seek the help of an attorney in order to make this transaction proper and binding.
Answered on May 23rd, 2013 at 10:24 PM
Daniel Little
Yes, however, be prepared for a change in the property taxes on the real property that you are transferring to your brother. There is no exclusion for siblings.
Answered on Dec 18th, 2012 at 7:13 AM
William H. Von Willer
For an authoritative answer, the trust document would need to be reviewed, however, in all likelihood, your plan may work if you give proper direction to the trustees.
Answered on Dec 17th, 2012 at 3:35 AM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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Suggest you use a attorney with expertise in real estate exchanges and trust administration, as there may be some tax consequences; in addition the trust needs to be administered; there are specific statutory rules in the administration of the trust to a close before you make the exchange.
Answered on Dec 17th, 2012 at 3:35 AM
Business Law Attorney serving Livonia, MI
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Gerald A. Bagazinski
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There are many different approaches. If you want to retain the house in trust, you do not a deed. If not two deeds. Either way, I would have a short settlement agreement memorializing the terms of your settlement with your brother.
Answered on Dec 17th, 2012 at 3:19 AM
Taxation Law Attorney serving Glendale, CA
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Irsfeld, Irsfeld & Younger LLP
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It MAY be more complicated if tax considerations are important. But probably that's all you need to do, depending on what the trust instrument says.
Answered on Dec 14th, 2012 at 9:20 PM
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There may be tax consequences and a reason to have an underlying written agreement. You should seek both legal and tax counsel.
Answered on Dec 14th, 2012 at 4:12 PM
Real Estate Attorney serving Honolulu, HI
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Zahaby Law Offices
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Yes. It is more complicated because of the potential Estate and Gift tax implications. The Trust is probably irrevocable at this point. The better way to do the exchange is via Trust Amendments, Conveyance Documents and Buy-Sell Agreements.
Answered on Dec 14th, 2012 at 4:11 PM
Starting point is the language of the trust document. If transfer is allowed by that document, you will need two deeds and two excise tax affidavits properly prepared, executed and recorded as a minimum.
Answered on Dec 14th, 2012 at 4:10 PM
You will need to comply with the terms of the Trust. Be sure you to memorize the agreement with your brother as Trustee / Beneficiary. You will need two deeds. You should also look at possible tax consequences.
Answered on Dec 14th, 2012 at 2:15 PM
Probate & Trust Attorney serving Seminole, FL
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Law Offices of Phillip Day, P.L.
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I would go to an experienced estate planning attorney review your case because under Florida homestead rules, the home passes to the surviving children under the homestead statutes. There would have had to have been a petition for determination of homestead but that issue is present and if you simply make the exchange without some form of waiver from your brother, you may be on the losing end of the transaction. Again, please speak to an estate planning attorney for proper guidance in this arena.
Answered on Dec 14th, 2012 at 2:13 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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You would do two separate deeds from the trust to the beneficiary in question. Ideally, you would have an attorney prepare the deeds. It should not be expensive. But that way, you will not run into problems, down the road.
Answered on Dec 14th, 2012 at 2:09 PM
Alternative Dispute Resolution Attorney serving Baltimore, MD
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Whiteford, Taylor & Preston L.L.P.
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Although you might be able to accomplish this with just two deeds, there are also income tax implications, even if the transaction is structured as a like kind exchange.
Answered on Dec 14th, 2012 at 1:35 PM
General Civil Trial Practice Attorney serving Oklahoma City, OK
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Denker & Associates, PLLC
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1 Award
The co-trustees of the trust can deed the property to the trust beneficiaries. Then your brother can deed his interest in the house to you in exchange for a deed to the property he is going to receive. This means there will be three (3) deeds. You could probably do it in two deeds, but I think this is cleaner.
Answered on Dec 14th, 2012 at 1:34 PM