The transferring of real estate to children may occur when a parent is still alive. Some cases, however, must acknowledge the passing of the father or mother before his or her child may claim ownership to a property. This kind of estate planning is ideal when a parent has multiple properties, which he or she wishes to pass unto children.
Identifying the Title and Quitclaim Deed
The person owning a piece of property, or in this case the parent, is the one holding the title. A title is a record of transactions that took place during his or her ownership. It includes reports such as deeds, mortgage and liens, among many others.
Together with the help of an attorney, you can transfer ownership of your property by using a quitclaim deed. A quitclaim deed requires your full name, your child’s full name, and the property address. It also requires notarization by a law firm or independent lawyer. This kind of conveyance differs by state, which is why it is important to check local laws first. In Townsville, conveyance requires the assistance of an experienced property attorney.
Costs Associated with a Deed Transfer
There is no fixed cost when transferring a deed as it usually differs by state and procedure. If you wish to accomplish the transfer quickly and hassle-free, hiring a real estate attorney is advisable. Deed transfer services typically include title research, the creation of the real estate deed, and the filing of the deed with the county recorder’s office.
Apart from deed services, you also need to pay the taxes associated with your transfer. These include, but are not limited to, real estate transfer tax, gift tax, and federal income taxes. Amounts are based on the fair market value determined by a licensed appraiser. Make sure to check these with your broker and/or attorney.
Transferring property to children is a tedious task but it is one of the best ways to protect your assets. When doing so, make sure to seek the advice of an attorney who has enough experience on the matter. This way, you can ensure legitimacy and the safety of your property.