Full question:
I and my wife plan to transfer our home to a Living Trust. Which form do I need to do this transfer of real estate?
- Category: Trusts
- Date:
- State: Texas
Answer:
A living trust in Texas is revocable, meaning you can change or terminate it anytime during the Grantor's lifetime. The Grantor(s) usually retain control over the trust's assets, which has tax implications, as the IRS typically does not treat these assets differently for income tax purposes.
To create a living trust, you need to execute a Declaration of Trust that outlines the trust's terms, including the Trustee's identity. After establishing the trust, you must transfer assets into it, known as 'funding the trust.' For real estate to be included in the trust, you must execute a deed that names the Trust as the Grantee. This deed must then be properly recorded.
In Texas, a valid deed must meet five requirements: (1) it must be in writing, (2) it must be signed by the Grantor at the end, (3) it must include the Grantee's name, (4) it must contain the legal description of the property, and (5) it must be delivered to and accepted by the Grantee. Additionally, the Grantor's signature must be acknowledged or witnessed for the deed to be recorded (Texas Property Code, Section 12.001[b]). An acknowledgment is a process where the signer declares their action before a qualified person, typically a notary public, to authenticate the document and the identity of the signers. Notaries qualified to take acknowledgments are listed in Chapter 121 of the Texas Civil Practices and Remedies Code.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.