Transferring Real Estate into a Revocable Trust in Virginia
Appropriate Deed for Transfer
In Virginia, the most suitable deed for transferring real estate from personal ownership into a Revocable Trust is a Quitclaim Deed. This type of deed is commonly used because it transfers the owner’s interest in the property to the trust without making any guarantees about the title. This simplicity makes it ideal for intra-family transfers and estate planning purposes1.
Tax Consequences
Transferring real estate into a Revocable Trust in Virginia is generally exempt from transfer taxes, provided the correct code citation is referenced in the deed2. This exemption helps avoid a large tax bill that might otherwise arise from the transfer. However, it’s crucial to ensure the deed is properly drafted and recorded to maintain this tax-exempt status.
Mortgage Consequences
When transferring a property with an existing mortgage into a Revocable Trust, it’s important to consider the due-on-sale clause typically found in mortgage agreements. Fortunately, under the federal Garn-St. Germain Act, lenders are prohibited from calling the mortgage due solely because the property has been transferred into a Revocable Trust for estate planning purposes3. This means you can transfer your home into the trust without triggering the due-on-sale clause, ensuring your mortgage terms remain unaffected.
Conclusion
Transferring your home into a Revocable Trust can provide significant benefits, including avoiding probate and ensuring your estate is managed according to your wishes. At Bozard Law PLLC, Richard Bozard is here to guide you through each step of the process, ensuring all legal requirements are met and your estate planning goals are achieved.
For personalized assistance, contact Richard Bozard at Bozard Law PLLC, located at 1520 W Main St #201b, Richmond, VA 23220. We’re here to help the people of Virginia with all their estate planning needs.
We use cookies to analyze website traffic and optimize your website experience. By accepting our use of cookies, your data will be aggregated with all other user data.