THINKING ABOUT MAKING A DEED CHANGE?
Whether you recently purchased your home or have owned it for a number of years, you may be considering a deed change. This type of legal transaction is known as a title change or deed conveyance. It establishes a legal interest in real property to another individual(s) or removes that interest. For example, you may have owned a home before you were married, but now you would like to add your spouse’s name to the home, so that he or she automatically inherits your interest upon your death; or, you do not have any children and you want to leave your house to a close friend, but you want to avoid including the house in probate.
A deed conveyance is an effective method of modifying title that can save you time, money, and the worry about what will happen to your property upon your passing.
DEEDS AND ESTATES
There are many types of deeds and estates that can be created through a conveyance. It is important to first identify, in any conveyance, what your goal is. This will help determine what kind of deed best suits your needs. Whereas a typical arm’s-length real estate sales transaction utilizes a warranty deed, the same may not be required for a non-arm's-length conveyance from a parent to child through life estate.
Another consideration is what type of estate you want to create through the conveyance. For example, you may be a parent or grandparent getting older in age and you want to leave your home to your child or grandchild upon your death, but you do not want your home to be subject to probate. Therefore, you may be considering a life estate deed as a method to accomplish your goal. A life estate deed is an instrument that retains certain rights regarding the property to you, the grantee, while ensuring that upon your death, your interest passes to the remainderman--in this example, your child or grandchild. There are two types of life estates that can be created: a life estate with powers and a life estate without powers. Both types create a life estate that passes to a remainderman upon death of the grantee, but a life estate with powers allows the grantee to retain the power to sell, transfer, encumber, or otherwise have the freedom to do whatever he or she desires regarding the property. A life estate deed without powers does not contain those same freedoms.
THE LAW OFFICE OF P. HONG LE, LLC CAN HELP
Whatever type of deed conveyance you are considering, the Law Office of P. Hong Le, LLC can help. The Office charges reasonable flat rates depending on the type of deed and estate that best suits your needs, and it will ensure that the deed is reviewed by the respective jurisdiction’s tax office, and ultimately recorded with land records. Contact the Office today to schedule a free consultation regarding the title change and to receive advice on the best way to accomplish your goals regarding your property!