Family Deeds

When a client calls about securing title to realty for a family member, we discuss with them the advantages and disadvantages of three common formats for family deeds. 

Important to most clients is that they can convey realty to a family member in some format to prevent the realty from being controlled by creditor claims in the estate. Deeds that give some ownership rights to a family member at the death of the grantor keep the realty from being a part of the estate. The family member takes the property at death of the grantor with no debts of the grantor attached to ownership of the realty.  It goes to the grantee of the deed automatically at the moment of the grantor's death.

We use a standard document fee schedule for deeds like we do for wills and powers of attorney. We do not charge hourly fees unless the deeds are unusually complicated. To write any deed, we need the last prior deed for the property conveying it to the grantor or the grantor’s family. Clients should understand that we prepare deed drafts, we do not research deeds in the courthouse or certify legal descriptions or titles for the deeds.

We recommend three common formats for deeds to secure realty in family members before the realty would otherwise go into an estate, where it is subject to unsecured creditor claims against estate assets.

Part-Ownership Deeds with Survivorship convey co-ownership interests with the grantor, to one or more children or other grantees, all sharing in the full and immediate ownership rights to the property.

On the death of one grantee—whether the grantor or others—the remaining owners take the deceased grantee’s share, regardless of what a last will and testament might provide. The property does not go into the estate of the deceased grantee.

Traditional Life-Estate Deeds are commonly used to reserve lifetime rights of a grantor for exclusive, personal use of the property. Like a Part-Ownership Deed with Survivorship, the grantor gives up sole ownership of the property by giving up a present ownership interest that blooms only at the death of the grantor.

Importantly, like in a Part-Ownership Deed, the grantor cannot sell the property without agreement of the grantee or grantees. The grantees could hold up sale or demand a share of sale proceeds. Grantors who plan to downsize and move to a different location should not use this deed format. A third format better suits their needs.

Transfer on Death Deeds are best for landowners who want to keep full control and sole ownership of their property in their lifetimes. No immediate conveyance of a property interest is made. The grantees' ownership interests are created only at death of the grantors-if and only if the grantors have not executed another deed or notice to the clerk canceling the transfer on death deed.

The grantors keep sole ownership and can at any time convey the property to another person before they die. This is very helpful to landowners who think they may want to sell all or part of their real estate during their lifetimes and do not want to rely on wills to transfer their real estate which would make them liable for creditor claims. Importantly, this third deed format frees landowners from demands or expectations of a grantee as well as saving the property from debts of both the grantor and the grantee.