If you own property, you may want to pass it on at some point to a loved one—such as a spouse, child, or sibling. However, knowing the ins-and-outs of this process is essential. To help you and your family avoid hiccups and unnecessary expenses along the way, here are a few points to know about real estate transfers and family law.

What to Know About Family Real Estate Transfers

What kind of deed should I use?

If you’re transferring property to a family member, you’ll want to create a quitclaim deed. The deed states that the transfer will be granted to an individual under certain circumstances—such as when the owner passes away. However, unlike a traditional transaction, quitclaim deeds do not carry warranties. This makes it an ideal arrangement for two parties that have a trustworthy relationship such as close relatives.

Will the transaction be taxed?

One advantage of quitclaim deeds is that no taxes will be owed once the property is inherited. This tax benefit is made possible by identifying the transaction as a transfer or gift rather than a monetary-based sale.

What if there’s still a mortgage?

If there’s a mortgage on the property, it’s still possible to transfer it with a quitclaim deed. However, how the mortgage will be handled must be outlined by the grantor’s trust. For example, they might arrange to pay off the existing mortgage using other assets available from the estate. If no instructions are provided, the grantee will be responsible for making payments.

How do I file the deed?

Every state has different rules for filing a quitclaim deed. If you’re an Oregon resident, you must fill out an official Quitclaim Deed Form (ORS 93.865). Have a family law attorney review the documents to ensure its accuracy and minimize potential issues. Once the form is complete, it must be signed, notarized, and filed with a local land records agency.

If you’re interested in transferring Oregon-based property to a family member, turn to the services of Stayton Law. Specializing in estate and family law, this Marion County, OR, firm is well-versed in trusts and deeds. Taking a personalized approach, these attorneys will work to ensure your assets are transferred in a stress-free and affordable fashion. To learn more about this reputable family law practice, visit them online or call (503) 769-7741.