Deed Transferring Real Property into Living Trust - Alabama

This instrument prepared by:
[____________________________________]
[____________________________________]
[____________________________________]

After recording return to:
[____________________________________]
[____________________________________]
[____________________________________]

Send subsequent tax statements to:
[____________________________________]
[____________________________________]

Property Tax Parcel / PIN No.: [____________]

SPACE ABOVE THIS LINE RESERVED FOR JUDGE OF PROBATE RECORDING STAMP

QUITCLAIM DEED — TRANSFER TO REVOCABLE LIVING TRUST

State of Alabama

1. GRANTOR

[GRANTOR FULL LEGAL NAME], [a married person / an unmarried person / husband and wife], whose mailing address is [____________________________________] ("Grantor").

2. GRANTEE / VESTING IN TRUSTEE

[GRANTOR FULL LEGAL NAME], as Trustee of the [TRUST NAME] dated [__/__/____], and any successor trustee then serving under that trust instrument and any amendments to it, whose mailing address is [____________________________________] ("Grantee" or the "Trustee").

The Property is conveyed to the Trustee to be held, administered, and distributed according to the terms of the [TRUST NAME] dated [__/__/____] (the "Trust"). Title vests in the Trustee in trust and in any successor trustee without the necessity of any further conveyance, in accordance with the powers and authority granted to the Trustee under the Trust and under the Alabama Uniform Trust Code, Ala. Code § 19-3B-101 et seq.

3. CONSIDERATION

This conveyance is made for estate-planning purposes only, with no change in beneficial ownership of the Property. The consideration is nominal — One and No/100 Dollars ($1.00) and other good and valuable consideration — the Grantor being the settlor and a beneficiary of the Trust during the Grantor's lifetime.

4. GRANTING CLAUSE

KNOW ALL PERSONS BY THESE PRESENTS, that the Grantor, for and in consideration of the sum stated above, the receipt and sufficiency of which are acknowledged, does hereby REMISE, RELEASE, QUITCLAIM, and CONVEY unto the Grantee, as Trustee as aforesaid, and to the Grantee's successors in trust and assigns, all of the Grantor's right, title, and interest in and to the following described real property (the "Property"):

Property commonly known as: [STREET ADDRESS, CITY, ALABAMA, ZIP]

County: [____________] County, Alabama

Legal Description: See Exhibit A attached hereto and incorporated by reference.

TO HAVE AND TO HOLD the Property, together with all improvements, hereditaments, easements, and appurtenances belonging to it, unto the Grantee, as Trustee, and the Grantee's successors in trust and assigns forever.

5. SUBJECT TO

This conveyance is made subject to:

(a) Ad valorem real property taxes and assessments for the current and subsequent years, not yet due and payable;
(b) Easements, covenants, conditions, restrictions, reservations, and rights-of-way of record;
(c) Applicable zoning, subdivision, building, land-use, and environmental laws and regulations; and
(d) Any mortgage, deed of trust, or other lien of record, which the Trustee takes subject to but does not assume except as separately agreed in writing.

6. PURPOSE; HOMESTEAD AND TAX-EXEMPTION CONTINUITY; TITLE INSURANCE

6.1 Estate-planning purpose. The sole purpose of this conveyance is to fund the Grantor's revocable living trust so that the Property may pass on the Grantor's death under the terms of the Trust without probate administration. The Grantor reserves all rights to amend or revoke the Trust and to direct the Trustee to reconvey the Property to the Grantor at any time.

6.2 Homestead / homeowner's exemption. The parties intend that any homestead exemption, ad valorem tax exemption, or assessment classification applicable to the Property continue uninterrupted following this conveyance. Because the Grantor remains the beneficial owner and a beneficiary of the Trust, the Grantor should confirm with the county Tax Assessor / Revenue Commissioner that the homestead exemption (Ala. Code § 40-9-19 et seq.) is preserved after re-titling, and re-file any required claim.

6.3 Title insurance. Re-titling into a trust can affect an existing owner's title insurance policy. The Grantor should request an endorsement naming the Trustee as an insured, or confirm coverage continuity, with the title insurer before recording.

7. TRANSFER / RECORDATION TAX AND GARN-ST GERMAIN RECITALS

7.1 Alabama deed recordation tax (Ala. Code § 40-22-1). Alabama imposes a privilege/recordation tax of $0.50 for each $500 (or fraction) of the value of the property conveyed, payable to the Judge of Probate before the instrument is received for record.

IMPORTANT — this transfer is generally NOT exempt. Per Alabama Attorney General Opinion 2000-070, the recordation tax is due on a deed to a trustee even where the grantor and the trustee are the same individual, because the tax is imposed on the privilege of recording and is measured by the value of the property, not the price paid. The narrow exemption in Ala. Code § 40-22-1(b)(2) for "deeds or instruments executed for a nominal consideration for the purpose of perfecting the title to real estate" is not generally available for an ordinary trust-funding transfer. Confirm the amount due, and complete the Department of Revenue value-attestation form, with the Judge of Probate before recording.

7.2 Limited due-on-sale protection (Garn-St Germain Act). If the Property is residential real property containing fewer than five dwelling units and secures a real property loan, 12 U.S.C. § 1701j-3(d)(8) bars the lender from exercising a due-on-sale clause for a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and that does not transfer occupancy rights. Confirm every element before relying on the exemption. The borrower remains personally liable on any existing note.

8. EXECUTION

IN WITNESS WHEREOF, the Grantor has executed this Quitclaim Deed on [__/__/____].

GRANTOR:

____________________________________
[GRANTOR FULL LEGAL NAME]

____________________________________
[SPOUSE FULL LEGAL NAME], joining solely to convey and release homestead and dower/curtesy rights, if any (if applicable)

9. NOTARY ACKNOWLEDGMENT (Alabama)

I, the undersigned, a Notary Public in and for said County in said State, hereby certify that [GRANTOR FULL LEGAL NAME] [and [SPOUSE FULL LEGAL NAME]], whose name(s) is/are signed to the foregoing conveyance, and who is/are known to me (or proved to me on the basis of satisfactory evidence) to be such person(s), acknowledged before me on this day that, being informed of the contents of the conveyance, he/she/they executed the same voluntarily on the day the same bears date.

Given under my hand and official seal this ____ day of ______________, 20____.

____________________________________
Notary Public
My commission expires: ______________

(Affix notarial seal)

10. RECORDING AND TAX-FORM INSTRUCTIONS

1. Where to record. Record the original, signed, and acknowledged deed in the office of the Judge of Probate of [____________] County, Alabama — the county in which the Property is located (Ala. Code §§ 35-4-50, 35-4-62).
2. Recordation tax (Ala. Code § 40-22-1). Be prepared to pay the deed tax ($0.50 per $500 of value) plus county recording fees. Complete the Department of Revenue real-estate value form attesting to the actual value of the Property; the Judge of Probate calculates the tax from that value. See Section 7.1 — do not assume an exemption.
3. Recording fees. Pay the per-page recording fee and any indexing/preservation surcharges charged by the county.
4. Update collateral records. After recording, (a) obtain written instructions from the property/casualty insurer on how the owner, Trustee, Trust, and lender should appear on the policy; (b) confirm the homestead exemption with the Tax Assessor / Revenue Commissioner; (c) provide a recorded copy and a Certification of Trust (Ala. Code § 19-3B-1013) to the title company; and (d) record the deed before, not after, any closing on a sale or refinance.
5. Do not substitute an unverified TOD/beneficiary-deed form. This partial audit found that the previously cited § 35-4-272 does not exist in the current Alabama Code. Confirm the currently authorized transfer method with Alabama counsel before using any beneficiary-deed form.

EXHIBIT A — LEGAL DESCRIPTION

[INSERT THE COMPLETE LEGAL DESCRIPTION EXACTLY AS IT APPEARS ON THE GRANTOR'S CURRENT VESTING DEED — metes-and-bounds, or lot/block/subdivision with plat book and page, or government survey (section, township, range). Include the parcel/PIN. Attach surveys or additional pages as needed.]

____________________________________

____________________________________

____________________________________

Sources and References

• Ala. Code §§ 35-4-20 and 35-4-23 — written and signed conveyance; a proper acknowledgment satisfies the statutory witness requirements.
• Ala. Code §§ 35-4-50, 35-4-62 — probate office and county where the land lies for recording.
• Ala. Code § 35-4-63 — proper recording gives notice of the recorded instrument's contents.
• Ala. Code § 35-4-29 — substantial acknowledgment forms for individual and representative-capacity signers.
• Ala. Code § 35-4-271 — limited covenants implied by specified conveyance words.
• Ala. Code § 6-10-3 — alienation of homestead requires the voluntary signature and assent of the spouse.
• Ala. Code § 40-22-1 — deed recordation privilege tax ($0.50 per $500 of value); value-attestation form; penalties.
• Ala. Att'y Gen. Op. 2000-070 — recordation tax is due on a deed to a trustee even where grantor and trustee are the same individual (tax on the privilege of recording).
• Ala. Att'y Gen. Op. 2011-033 — tax is measured by the value of the property, not the price paid.
• Ala. Code § 40-9-19 et seq. — homestead ad valorem exemptions.
• Ala. Code § 19-3B-101 et seq. — Alabama Uniform Trust Code; § 19-3B-1013 (certification of trust).
• 12 U.S.C. § 1701j-3(d)(8) — qualifying residential inter vivos trust transfer
• Alabama Department of Revenue, Recordation Tax (revenue.alabama.gov/tax-types/recordation-tax/).

This document is provided for informational purposes only and does not constitute legal advice. Confirm the deed-tax treatment with the Judge of Probate and consult a licensed Alabama attorney before executing or recording this deed.