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Talk2Planes
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Deeding Property to Trustee
Friday, May 16 2008 09:54 PM
I recently created Warrantee Deeds to Trustee (using a sister in law with a different last name as trustee) for some property I own in Tennessee. When I got to the courthouse to file the warrantee deeds to trustee the lady at the window had all sorts of questions about the trust. And basically said we had to pay transfer taxes on the property's if the deeds were filed as prepared. Question do I have to pay and is it normal to pay transfer tax on the new deeds to trustee. The beneficiarys are my wife and I and have not changed. I ended up leaving without getting the deeds filed. I later called the court house and was told I could file quit claim deeds without paying transfer taxes. Is this an acceptable way to put the property in a land trust to avoid the transfer taxes by quit claiming or is paying transfer taxes on filing the new warrantee deeds to trustee a normal part of putting your assets into a trust. Any help is greatly appreciated
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Randy Hughes
SFH Master Advisor
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Re:Deeding Property to Trustee
Friday, May 30 2008 08:10 PM
Dear Talk,
SORRY FOR THE DELAYED RESPONSE. WE HAD A TEMPORARY PROBLEM WITH THIS DISCUSSION FORUM.
SEE MY COMMENTS BELOW IN BOLD.
I recently created Warrantee Deeds to Trustee (using a sister in law with a different last name as trustee) for some property I own in Tennessee. When I got to the courthouse to file the warrantee deeds to trustee the lady at the window had all sorts of questions about the trust. And basically said we had to pay transfer taxes on the property's if the deeds were filed as prepared. Question do I have to pay and is it normal to pay transfer tax on the new deeds to trustee. NO, YOU DO NOT HAVE TO PAY TRANSFER TAX WHEN DEEDING TO A LAND TRUST THAT YOU ARE THE BENEFICIARY OF.
The beneficiarys are my wife and I and have not changed. I ended up leaving without getting the deeds filed. I later called the court house and was told I could file quit claim deeds without paying transfer taxes.YOU COULD USE A QUIT CLAIM DEED BUT IT IS BEST TO USE A DEED TO TRUSTEE.
Is this an acceptable way to put the property in a land trust to avoid the transfer taxes by quit claiming or is paying transfer taxes on filing the new warrantee deeds to trustee a normal part of putting your assets into a trust. Any help is greatly appreciated
IT IS TYPICAL IN SOME AREAS THAT THE RECORDER'S OFFICE IS NOT FAMILIAR WITH "DEED TO TRUSTEE" FORMS. ASK (AT THE RECORDERS OFFICE) FOR THE MANAGER OR SOMEONE WHO IS FAMILIAR WITH THIS TYPE OF TRANSACTION.
Randy Hughes
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tammy714
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Re:Re:Deeding Property to Trustee
Friday, June 06 2008 08:34 PM
I have a question, We were given papers for forcloser on our house
And an Investor saw it was in courts and made us an offer...He then placed our house in truse and has the deed but we still have the mortage. Yesterday we again got forcloser papers stateing they hadnt been making mortage payments since Jan. of 2008
How does this work? I mean they have the house the mortage is still in our name...they have had possion of the house now for 2 years. Can we be held responsiable for the mortage? He had us sign over power of attorney to make desicions in reguards to the house but now hes not keeping his end of the agreement....what do we do? Thank you, Tammy
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Randy Hughes
SFH Master Advisor
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Re:Re:Re:Deeding Property to Trustee
Friday, June 06 2008 10:37 PM
I have a question, We were given papers for forcloser on our house
And an Investor saw it was in courts and made us an offer...He then placed our house in truse and has the deed but we still have the mortage. Yesterday we again got forcloser papers stateing they hadnt been making mortage payments since Jan. of 2008
How does this work? I mean they have the house the mortage is still in our name...they have had possion of the house now for 2 years. Can we be held responsiable for the mortage? He had us sign over power of attorney to make desicions in reguards to the house but now hes not keeping his end of the agreement....what do we do? Thank you, Tammy
THE PROBLEM IS THAT YOU ARE STILL ON THE LOAN AND TECHNICALLY RESPONSIBLE FOR PAYMENTS. YOU NEED TO TALK TO A REAL ESTATE ATTORNEY AS TO WHAT YOU CAN DO NOW. PLEASE CONTACT A KNOWLEDGEABLE REAL ESTATE ATTORNEY ASAP.
Randy Hughes
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Talk2Planes
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Re:Re:Deeding Property to Trustee
Thursday, July 24 2008 01:04 PM
Should your Trustee reside in the same state where the property is located? We live in one state, own properties in another and were planning to use a Trustee that lives in a third state. We do have someone we could use that does live in the same state where the properties are located.
I guess we also need to ensure when we do finally get the documents filed at the courthouse we change address info on where the tax bill is mailed, do we put the tax notice in the Trustees name with their address info?
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Randy Hughes
SFH Master Advisor
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Re:Re:Re:Deeding Property to Trustee
Thursday, July 24 2008 02:33 PM
Talk 2,
SEE MY COMMENTS BELOW IN BOLD.
YOU SAID,
Re:Re:Deeding Property to Trustee
Should your Trustee reside in the same state where the property is located? NO, IN FACT, IT IS BEST IF HE/SHE DOES NOT RESIDE IN THE SAME STATE. We live in one state, own properties in another and were planning to use a Trustee that lives in a third state. THIS IS A GOOD PLAN BUT THE TRUSTEE NEEDS TO BE IN THE SAME STATE AS THE TRUST (I.E. IN YOU ARE USING A FLORIDA LAND TRUST...YOU NEED A FLORIDA TRUSTEE). We do have someone we could use that does live in the same state where the properties are located. AGAIN, WE DO NOT ADVISE.
I guess we also need to ensure when we do finally get the documents filed (JUST THE DEED ONLY!) at the courthouse we change address info on where the tax bill is mailed, do we put the tax notice in the Trustees name with their address info? YES,
Randy Hughes
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