Q: What form is needed to fund a living trust with real estate
A: A deed is used to transfer real property to a living trust. The deed must be recorded in the land records of the county in which the real property is located. There are several types of deeds. An attorney can help you prepare and record the right kind with the right claims for exemptions from documentary transfer taxes.
Joel Hassell agrees with this answer
A:
In Colorado, to fund a living trust with real estate, you typically need to transfer the title of the property into the name of the trust. The primary form required for this process is a deed, specifically a quitclaim deed or a warranty deed.
Here are the basic steps:
1. Prepare a New Deed: You will need to prepare a new deed that transfers ownership of the real estate from you (as the current owner) to you as the trustee of your living trust. This deed must include a legal description of the property and other necessary details. Most people use a quitclaim deed for this purpose, but sometimes a warranty deed might be used depending on your situation.
2. Sign the Deed: The deed must be signed by you (or anyone else who is currently on the title) in front of a notary public.
3. Record the Deed: Once the deed is signed, it must be filed with the county recorder’s office in the county where the property is located. This step officially updates the public records to show that the property is now owned by the trust.
4. Notify the Title Insurance Company: After the property is transferred into the trust, it’s a good idea to notify your title insurance company and file a 107.9 form with them. This ensures the trust is properly recognized in the title insurance policy, which can prevent potential issues in the future if the property is sold or transferred. Note: this is a particular issue in some states and Colorado is one of them.
By transferring the real estate into your trust, you ensure that the property will be managed according to the terms of the trust and avoid probate upon your death.
Consult a qualified trust and estate planning attorney in your area for further guidance.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
