Q: Citation for Maryland Code tax exemption in property transfers to revocable trust.
I need to find the correct citation for the Maryland Code that exempts property transfers from transfer and recordation tax when moving a property from a grantor to a revocable trust where the grantor and the trustee are the same person. This information is needed for inclusion in a warranty deed. Additionally, does specific language claiming this exemption need to be included in the warranty deed for it to be valid, and if so, what should the text of this clause be? There is no specific deadline for obtaining this information, but the sooner, the better. I would appreciate guidance on the relevant sections of the Maryland Code and any advice on drafting the deed.
A:
State transfer tax exemptions are contained in section 12-108 of the Tax Property article of the Maryland Annotated Code. State recordation tax exemptions are contained in section 13-207 of the same article. Local transfer tax codes will vary from county to county. Yes, some jurisdictions in MD require specific additional verbiage for such a deed to be exempt from transfer and recordation tax. The post mentions a warranty deed but it would be quite unusual in Maryland to use a warranty deed for a transfer to the Grantor's Revocable Living Trust.
While deeds are not terribly complex, it is generally prudent to have a real estate attorney prepare a deed (and while the law allows a party to prepare their own deed if they wish, it is illegal for anyone to prepare a deed in MD for another person if they are not an attorney) The cost to have an attorney prepared deed is usually minimal while errors can be very costly to fix.
While not legal advice I hope this helps.
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