Deed Transferring Real Property into Living Trust - Illinois

This instrument prepared by:
[____________________________________]
[____________________________________]

Mail recorded deed to:
[____________________________________]
[____________________________________]
[____________________________________]

Mail future tax bills to:
[TRUSTEE NAME], as Trustee
[____________________________________]
[____________________________________]

Permanent Index Number (PIN): [____________]

Property Address: [____________________________________]

SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE

WARRANTY / QUITCLAIM DEED — TO REVOCABLE LIVING TRUST

State of Illinois

EXEMPT-TRANSFER DECLARATION (on the face of the deed)

EXEMPT under the Real Estate Transfer Tax Law — 35 ILCS 200/31-45(e) (deed where the actual consideration is less than $100; transfer to the grantor's revocable living trust for no consideration and no change of beneficial ownership).

Date: [__/__/____]    Signature of Grantor / Grantor's Representative: ____________________________________

1. GRANTOR

[GRANTOR FULL LEGAL NAME], [an unmarried person / a married person / married persons], of [____________] County, Illinois, whose mailing address is [____________________________________] ("Grantor").

2. GRANTEE / VESTING IN TRUSTEE

[TRUSTEE 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 granted to the Trustee under the Trust and under the Illinois Trust Code, 760 ILCS 3/.

3. CONSIDERATION

This conveyance is made for estate-planning purposes only, with no change in beneficial ownership of the Property. The actual consideration is less than $100 — nominal consideration of Ten and No/100 Dollars ($10.00) 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

The Grantor, for and in consideration of the sum stated above, the receipt and sufficiency of which are acknowledged, does hereby CONVEY AND WARRANT [/ CONVEY AND QUITCLAIM] 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") situated in the County of [____________], State of Illinois:

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

Permanent Index Number (PIN): [____________]

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

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

The Trustee, and any successor trustee, is granted full power and authority to protect, conserve, sell, lease, encumber, and otherwise manage and dispose of the Property as provided in the Trust instrument and the Illinois Trust Code.

5. SUBJECT TO

This conveyance is made subject to:

(a) General real estate taxes 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 ordinances; and
(d) Any mortgage or other lien of record, which the Trustee takes subject to but does not assume except as separately agreed in writing.

6. PURPOSE; HOMEOWNER 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, and so the Property may be managed during any incapacity of the Grantor. 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 Homeowner / homestead exemptions. The parties intend that any general homestead exemption, senior, or other property tax exemption 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 Assessor / Chief County Assessment Officer that the applicable homestead exemptions are preserved after re-titling into the Trust (Illinois generally permits homestead exemptions for property held in a qualifying living trust occupied by the trust beneficiary), 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-TAX EXEMPTION AND GARN-ST GERMAIN RECITALS

7.1 Illinois real estate transfer tax exemption (35 ILCS 200/31-45(e)). The Illinois Real Estate Transfer Tax Law imposes a state tax of $0.50 per $500 of value or fraction of $500 (35 ILCS 200/31-10). A county board may impose an additional county tax of $0.25 per $500 or fraction under 55 ILCS 5/5-1031; that section incorporates the exemptions in 35 ILCS 200/31-45. This conveyance is EXEMPT because the actual consideration is less than $100 — 35 ILCS 200/31-45(e) — being a no-consideration transfer into the Grantor's own revocable living trust with no change in beneficial ownership. When the § 31-45(e) exemption applies, no PTAX-203 (Illinois Real Estate Transfer Declaration) is required; instead, an exempt notation must appear on the face of the deed (see the Exempt-Transfer Declaration above and the PTAX-203 instructions).

7.2 Municipal transfer taxes. Many Illinois municipalities (including the City of Chicago) impose their own real estate transfer tax with separate rates, exemption criteria, and stamp requirements. Obtain any required municipal transfer-tax exemption stamp or letter from the city or village before presenting the deed for recording. Some home-rule municipalities require a municipal stamp even for exempt transfers.

7.3 MyDec. Where the county participates in the Illinois Department of Revenue's electronic transfer-tax declaration system (MyDec), a declaration or exempt entry may be required to be processed electronically even when no tax is due. Confirm the county recorder's MyDec practice.

7.4 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 Deed on [__/__/____].

GRANTOR:

____________________________________
[GRANTOR FULL LEGAL NAME]

____________________________________
[SPOUSE / CO-GRANTOR FULL LEGAL NAME] (if applicable)

9. NOTARY ACKNOWLEDGMENT (Illinois — Individual)

I, the undersigned, a Notary Public in and for said County, in the State aforesaid, DO HEREBY CERTIFY that [GRANTOR FULL LEGAL NAME] [and [SPOUSE / CO-GRANTOR FULL LEGAL NAME]], personally known to me (or proved to me on the basis of satisfactory evidence) to be the same person(s) whose name(s) is/are subscribed to the foregoing instrument, appeared before me this day in person and acknowledged that he/she/they signed, sealed, and delivered the instrument as his/her/their free and voluntary act, for the uses and purposes therein set forth.

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

____________________________________
Notary Public
My commission expires: ______________

(Affix notarial seal / stamp)

10. RECORDING AND TRANSFER-TAX INSTRUCTIONS

1. Where to record. Record the original, signed, and acknowledged deed in the office of the Recorder of [____________] County, Illinois — the county in which the Property is located (765 ILCS 5/28). Cook County and certain other counties have distinct recording practices (and a Torrens system for some parcels).
2. State / county transfer tax. State the exemption on the face of the deed (35 ILCS 200/31-45(e)). When (e) applies, no PTAX-203 declaration is required; confirm the recorder's exempt-stamp wording and any MyDec entry.
3. Municipal transfer tax. Obtain any required municipal transfer-tax stamp or exemption letter (e.g., from the City of Chicago) before recording.
4. Format / identifiers. Include the PIN, the names and addresses of grantor and grantee, the preparer's name and address, and the "mail tax bills to" address (765 ILCS 5/35c).
5. Recording fees. Pay the county recorder's per-document recording fee and any rental-housing-support or other statutory surcharge.
6. 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 homestead exemptions with the county Assessor; (c) provide a recorded copy and a Certification of Trust to the title company; and (d) record before, not after, any closing on a sale or refinance.

EXHIBIT A — LEGAL DESCRIPTION

[INSERT THE COMPLETE LEGAL DESCRIPTION EXACTLY AS IT APPEARS ON THE GRANTOR'S CURRENT VESTING DEED — lot/block/subdivision with reference to the recorded plat (document number, book/page), metes-and-bounds, or condominium unit with reference to the recorded declaration. Include the PIN. Attach surveys or additional pages as needed.]

____________________________________

____________________________________

____________________________________

Sources and References

• 765 ILCS 5/9, 5/10 — statutory warranty and quitclaim deed forms; words of conveyance.
• 765 ILCS 5/28 — recording of deeds in the county where the real estate is situated.
• 765 ILCS 5/35c — recording format; names and addresses of grantor and grantee; PIN.
• 35 ILCS 200/Art. 31 (Real Estate Transfer Tax Law) — § 31-10 (state tax of $0.50 per $500 or fraction); § 31-45 (exemptions); § 31-45(e) (actual consideration less than $100).
• 55 ILCS 5/5-1031 — county board authority to impose $0.25 per $500 or fraction; incorporation of § 31-45 exemptions.
• 35 ILCS 200/31-25, 31-30 — Illinois Real Estate Transfer Declaration (PTAX-203); MyDec electronic filing.
• PTAX-203 Instructions (Illinois Department of Revenue) — declaration not required when an exemption under (a),(c),(d),(e),(f),(g),(h),(i),(j),(l) applies; exempt notation placed on the face of the deed.
• 760 ILCS 3/ — Illinois Trust Code; certification of trust (760 ILCS 3/1013).
• 12 U.S.C. § 1701j-3(d)(8) — qualifying residential inter vivos trust transfer

This document is provided for informational purposes only and does not constitute legal advice. State the 35 ILCS 200/31-45(e) exemption on the face of the deed and confirm any municipal transfer-tax requirement before recording; consult a licensed Illinois attorney before executing or recording this deed.