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21

Mar
2014

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In Blog
Education
Estate Planning

By Ron Greenwald

The Gift of Real Estate; Q&A

On 21, Mar 2014 | No Comments | In Blog, Education, Estate Planning | By Ron Greenwald

 

During a recent conversation with Caroline Hornblower, a Ticor Title representative, we learned some valuable information about gifting Real Estate and how the transfer should take place.

If I wish to deed my home to my children, what are the proper steps I should take prior to the transfer to make sure there are no title issues after the transfer is recorded?

  1. Check the chain of title to see if there are any liens/changes after your initial policy. Also make sure there are no postponed taxes, as this is more common with seniors.
  2. Check with your tax attorney to make sure that there aren’t any tax ramifications. Ask your attorney the best way to convey the property. If you are not doing it through a title/escrow transaction, it is best to consult an attorney. Title companies take steps to avoid fraud when they find documents that are recorded but not insured, but when the documents are prepared by an attorney, there is more credibility.
  3. From a title perspective, any time there is a deed that is conveyed and not insured, Ticor will go back to make sure that the parties involved intended to transfer the property. We will request an uninsured deed affidavit, which will answer questions such as why the property was transferred, was there consideration, were they in fact the party that executed the Deed? (meaning no money has been transferred) This affidavit will need to be notarized by a qualified notary.
  4. Documents needed in this transfer are a grant deed and a preliminary change of ownership—both need to be signed, and the deed needs to be notarized by a qualified and experienced notary.

Do I need an attorney? Do I need an escrow to make a gift of real property to my children?

It is always good to consult with an attorney, regardless of if your property is in a trust or not. An escrow isn’t necessary unless there is a transfer of money, or you need someone to draw your documents. Again, documents prepared by an attorney are more credible through a title company’s eyes.

If I received a gift of real estate and now the grantor is decreased, what steps will Ticor take to ensure that the gift was not a fraudulent transfer?

Normally, Ticor Title would request an uninsured deed affidavit, but that isn’t possible when the grantor is deceased. In absence of this, we would do the steps below…

–          Time- how long the deed has been recorded?

–          Review trust (if there is one)

–          Go back and check signatures to prior documents

–          Death certificate- cause of death?

–          Competency of the grantor when the property was transferred?

–          Investigate as much as possible based on the info provided by parties involved

 

 

 

I received a gift of real estate 10 years ago from my mother, and now my mom isn’t competent. Would that have an impact on the work that Ticor would pursue to protect themselves and their client against a future claim?

–          Time- how long the deed has been recorded?

–          Investigate time frame- when did she execute the documents?  Ticor may request medical doctor statements to ensure the competency of the mother prior to signing the documents

–          Review trust

–          Go back and check signatures to prior documents

–          Death certificate- cause of death?

–          Competency of the mother when the property was transferred?

–          Investigate as much as possible based on the info provided by parties involved

–          Take statements or affidavits from parties involved

 

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