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Richard
Richard, Attorney
Category: Estate Law
Satisfied Customers: 54340
Experience:  29 years of experience practicing law, including tax and estate planning.
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We currently have a residential property that is held in my name, my sisters name an

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We currently have a residential property that is held in my name, my sister's name and my mother's name. Could/should we change title to a trust? Should it be a Revocable Trust? We are concerned about issues that may arise upon our mothers passing. She has a Revocable trust that addresses her assests and leaves them to us as beneficiaries. Can title to the property be held by that trust?
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.


Good afternoon. You don't need to worry about the ownership of the property already owned by you and your sister. With regard to your mother's ownership in the property, if you want to avoid probate, you would want to transfer it to the revocable trust now; otherwise, if her interest is not owned by her trust at death, then the trust agreement is not applicable and her interest in the property would become a probate asset and her will would govern. Another alternative would be to change your ownership in the property to joint tenants with right of survivorship so that upon her death, her interest automatically vests in you and your sister outside probate and outside the terms of the trust.



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Customer: replied 3 years ago.


Currently the property is held as Joint Tenants (Tenants in Common). It sounds like the simplest solution would be to amend the warranty deed to Joint Tenants w/Right of survivorship. If we choose to transfer it to the revocable trust would the process be the same with the recorders office?


 


If we changed it to the Trust, I assume we would use the exemption code B8 (ARS 11-1134) which states: "A transfer from a person to a trustee or from a trustee to a trust beneficiary with only noniminal consideration for the transfer." Is that correct?


 


If we change to Joint Tenants with right of survivorship, should we use the B11 exemption code which states: "A transfer from two or more persons to themselves to create an estate in joint tenancy with right of survivorship."?


 


When transferring to all three names, we used the exemption code (ARS11-1134) as B-3 which states: "A transfer of residential property between family members as described below (defination of family member) with only moninal actual consideration for the transfer."


 


I think it is pretty simple, but I want to be sure I am doing this correctly. Thank you and I look forward to your response.


 

Thanks for following up. I have responded to each of your questions below in capitalized text...


Currently the property is held as Joint Tenants (Tenants in Common). It sounds like the simplest solution would be to amend the warranty deed to Joint Tenants w/Right of survivorship. If we choose to transfer it to the revocable trust would the process be the same with the recorders office? YES, BUT YOU WOULD DO THIS BY QUIT CLAIM DEED RATHER THAN WARRANTY DEED.



If we changed it to the Trust, I assume we would use the exemption code B8 (ARS 11-1134) which states: "A transfer from a person to a trustee or from a trustee to a trust beneficiary with only noniminal consideration for the transfer." Is that correct? YES, THAT HIS CORRECT.



If we change to Joint Tenants with right of survivorship, should we use the B11 exemption code which states: "A transfer from two or more persons to themselves to create an estate in joint tenancy with right of survivorship."? YES, THAT IS CORRECT



When transferring to all three names, we used the exemption code (ARS11-1134) as B-3 which states: "A transfer of residential property between family members as described below (defination of family member) with only moninal actual consideration for the transfer." THAT WAS CORRECT!
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