There are several reasons why parents transfer property to their children. Usually the bottom line is to protect them from inheritance tax or protection from vast debts that could cause the loss of the property. In any event, parents can transfer real estate and other property to a child with or without an attorney. There are simple ways to transfer property but if you are not confident, check with an attorney to execute the activity for you.
Consider transferring a home through a quitclaim deed. The deed transfers ownership whether a mortgage stands on the property or not. Quitclaim forms are available at office supply stores and on the Internet. The quitclaim deed transfers ownership and is filed with the local county register of deeds office. It does not eliminate any financial obligation on the property such as a mortgage by the granter and does not guarantee that the granter has legal rights to transfer the property.
Prepare a warranty deed to transfer ownership and file with the county register of deed office. A new warranty deed guarantees that the person transferring the property has the legal right to do so. You can transfer the property to one or more children. Clear any financial obligations on the property before transferring the deed.
Transferring the title of a manufactured home to your child is conducted through the motor vehicles office or a designated state office that issues a Statement of Ownership and Location document such as Texas. Manufactured homes are personal property. A manufactured home located on land owned by you is real property. The property is eligible for a Statement of Ownership and Location.
Sign the title naming your child as the buyer if you want to transfer an automobile, motorcycle or marine vessel. Check with your state for any age restrictions on owning an automobile. A sale price is usually required when transferring an automobile title. You can issue a bill of sale stating the amount. Check with your state motor vehicle office for details. Some states require a minimum sale price that necessitates payment of sales tax.
When gifting stock to your child, use either your broker or enlist the services of a transfer agent. Follow his instructions on how to transfer the stock. Normally, it requires signatures to the certificate in the presence of a notary public. A transfer is feasible if ownership of the original certificate is at least one year. Tax savings are possible if the child plans to cash the stock and is in a lower income tax bracket.
Check the laws in your state pertaining to property transfers.
Tips and warnings
- Check the laws in your state pertaining to property transfers.