What is the difference between a Warranty Deed and a Quit Claim Deed?

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By Trisha Applegate

A quit claim deed conveys or transfers whatever interest the Grantor (the person making the deed) has in the property, without making warranties about rights that other people may have in the property. It is usually used when granting land between two people who are well acquainted, such as between divorcing spouses or family members or to transfer your real property into a Trust.

In contrast, a warranty deed conveys title to a Grantee with a guarantee of good clear title to the property free from any interests held by other people. Warranty deeds are the traditional form of deed used in residential home sales between unrelated parties, as it provides a degree of protection to purchasers that the quit claim deed does not offer.

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What is trust funding?

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By Carmen Potterton

People create trusts for a variety of reasons; to avoid probate, to protect a home from a nursing home spend down, to protect a child’s inheritance from creditors/predators, etc. For a trust to fulfill its intended purpose, it has to be funded. Funding is the processing of changing ownership of assets (anything with a deed, title or account number) so that the rules of a trust apply to those assets.

To fund a financial account, such as a checking account, brokerage account or insurance policy to a trust, your financial institutions must be informed that you created a trust and that it is your desire to change the owner and/or beneficiary of the account/policy at that institution. This is accomplished by preparing a letter of instruction or completing company-specific forms that are sent the institution indicating the changes to be made. For example, you may indicate that the ownership of your bank account is to be changed from you personally to you as trustee of your trust. Along with the letter of instruction, most institutions also require specific pages from your trust that show the names of the creators of the trust, the date it was created, names of the current trustees and the successor trustees. In addition, a trust memorandum is also sent to show that the current trustee has the power to make the requested change of ownership or beneficiary.

Funding can be complex and, for most of us, should not be a do-it-yourself project. Make sure that your attorney includes funding all of your assets to your trust(s) as part of your fee. The attorneys at Cooper, Adel & Associates fund the trusts we prepare for our clients. We would be happy to do the same for you. Give us a call if we can assist.

Do I have to legally value my assets as they go into the living trust?

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Answer:  No.  There is no reason to legally value your assets as you place them into your living trust.  It is helpful, however, for you to have an understanding of the value of your assets so that you can properly plan strategies to reduce estate taxes. 

 

 

How are new assets placed into my living trust after it is created?

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Answer:  New assets are placed into your name as trustee of the trust in the same manner as when you created the trust.  For example, if you buy a new CD, the CD should be titled in your name as trustee of your trust.