Some people prefer to transfer real estate (even if in name only) to loved ones while they’re alive rather than leave it to them in their will or living trust. This can make things simpler for the intended heir. It can also reduce the value of their estate, which can have tax advantages.
If you’re choosing to transfer a piece of property to an adult child or other relative, it’s critical to follow the appropriate legal steps for the state in which the property is located. Here, we’ll assume it’s located in Washington state.
The necessary documents for a complete ownership transfer
If you’re transferring ownership of a piece of property, whether it’s the home you live in, a vacation home or a rental property, Washington requires you to complete a quitclaim deed.
The owner transferring the property is called the “grantor.” The person to whom it’s being transferred is the “grantee.” Of course, you may have multiple grantors and grantees.
You’ll also need to complete the Washington State Excise Tax Affidavit. The quitclaim deed and the affidavit will need to be filed with the county auditor’s office.
Joint tenancy with right of survivorship
Another way to transfer ownership of a property to your child or other heir while you’re alive rather than waiting until after you’re gone is via joint tenancy with right of survivorship. This makes you co-owners of the property and allows the property to transfer to them after your death without having to go through probate. Under Washington law, a joint tenancy “may be created by a single agreement, transfer, deed, will, or other instrument of conveyance….”
If your goal is simply to help your estate avoid going through probate and make it easier for the property to pass to your intended heir, this can be the simplest way to do it and maybe the preferred way – particularly if it’s your current home.
If it’s a property you no longer use that you intend to leave your child, using a quitclaim deed can relieve you of the responsibilities and expense of ownership if your child is ready to take those on.