QUESTION
What is the proper way of transferring the house to the beneficiary now?
Asked on Jun 01st, 2014 on Estate Planning - Michigan
More details to this question:
I have a house in my living trust. I have decided to gift the house to the beneficiary now instead of the beneficiary receiving the property after my death. I am receiving different answers on this question. One attorney said a quick claim deed but another said that the property is already in trust so a quick claim deed will not work. This is a second home and not my primary residence.
4 ANSWERS
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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You should confer with an attorney, there are many issues here. The house will have to be deeded from the trust but there are a number of other considerations, including taxes, which should be examined and discussed before you act.
Answered on Jun 04th, 2014 at 9:42 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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There is no such thing as a "quick claim deed." There is a quit claim deed, but whether or not that would be appropriate using a trust is one question. A more important question is what are you hoping to accomplish with this? There could be significant tax issues including gift tax, income tax and property tax. There could also be other complications if you ever need long term care. What you want to do can certainly be done by deed. The question is whether or not it makes sense to do this.
Answered on Jun 04th, 2014 at 9:42 PM
Criminal Defense Attorney serving Southfield, MI
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Law Offices of Ezra N. Goldman P.C.
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The word is Quit - not quick. You can do a Quit Claim deem from the trust to the beneficiary. The bigger concern is gift tax you should discuss this with an accountant. You could end up with a serious liability if you give a person a large gift.
Answered on Jun 04th, 2014 at 9:42 PM
I cannot answer this question without reviewing the terms of the Trust. Generally, however, the grantor of a Living Trust retains the right to remove any assets from the Trust during the grantor's lifetime. If this Trust permits this, then the Trustee can execute a Quit Claim Deed conveying the property to the beneficiary now.
Answered on Jun 04th, 2014 at 9:42 PM