Deed Transferring Real Property into Living Trust

This instrument prepared by (KRS § 382.335):
[____________________________________]
[____________________________________]
[____________________________________]

____________________________________
Signature of preparer

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

Send subsequent property-tax bills to (in-care-of mailing address, KRS § 382.135(1)(c)):
[____________________________________]
[____________________________________]

Property Tax Map / Parcel No.: [____________]

SPACE ABOVE THIS LINE RESERVED FOR COUNTY CLERK

DEED — TO REVOCABLE LIVING TRUST

Commonwealth of Kentucky

1. GRANTOR

[GRANTOR FULL LEGAL NAME], [a single person / married to [SPOUSE NAME]], whose mailing address is [____________________________________] ("Grantor" or "First Party").

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 "Second Party" 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 Kentucky Uniform Trust Code, KRS § 386B.1-010 et seq.

3. CONSIDERATION CERTIFICATE (KRS § 382.135)

This conveyance is a gift made for no consideration for estate-planning purposes; there is no change in beneficial ownership, the Grantor being the settlor and sole beneficiary of the Trust during the Grantor's lifetime.

Consideration certificate. Pursuant to KRS § 382.135, the Grantor (First Party) and the Grantee (Second Party) certify that this is a transfer by gift for no consideration. The fair cash value of the Property, in lieu of a stated consideration, is $[____________] as estimated by the parties for the purpose of the transfer tax. The parties swear that the foregoing statements of consideration and fair cash value are true and correct.

4. GRANTING CLAUSE

NOW THEREFORE, in consideration of the foregoing, the Grantor does hereby GRANT, BARGAIN, SELL, CONVEY, and TRANSFER unto the Grantee, as Trustee as aforesaid, and to the Grantee's successors in trust and assigns, the following described real property (the "Property") situated in [____________] County, Kentucky:

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

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

Source of title: Being the same property conveyed to the Grantor by deed dated [__/__/____], of record in Deed Book [______], Page [______], in the office of the Clerk of [____________] County, Kentucky.

TO HAVE AND TO HOLD the Property, together with all improvements, appurtenances, and hereditaments belonging to it, unto the Grantee, as Trustee, and the Grantee's successors in trust and assigns forever, with COVENANT OF SPECIAL WARRANTY of title (the Grantor warranting and defending the title only against claims by, through, or under the Grantor).

5. SUBJECT TO

This conveyance is made subject to:

(a) Ad valorem 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
(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. TRANSFER-TAX EXEMPTION AND GARN-ST GERMAIN RECITALS

6.1 Kentucky real estate transfer tax (KRS § 142.050) — exempt. Kentucky imposes a transfer tax on the grantor at the rate of fifty cents ($0.50) for each $500 of value, collected by the county clerk at recording. Under KRS § 142.050(8), the tax does not apply to a transfer to a trustee, to be held in trust, if the grantor is the sole beneficiary of the trust. This conveyance transfers the Property to the Grantor as Trustee of the Grantor's own revocable living trust, of which the Grantor is the sole beneficiary; accordingly, no Kentucky real estate transfer tax is due.

Place the following exemption statement on the face of the deed: "This transfer is exempt from the real estate transfer tax under KRS 142.050(8) as a transfer to a trustee where the grantor is the sole beneficiary of the trust."

6.2 No due-on-sale acceleration (Garn-St Germain Act). The Property may be encumbered by a mortgage. Under the federal Garn-St Germain Depository Institutions Act, 12 U.S.C. § 1701j-3(d)(8), a lender may not exercise a due-on-sale clause upon "a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property." This conveyance into the Grantor's own revocable living trust is such a transfer and does not accelerate or trigger any due-on-sale clause. The Grantor remains personally liable on any existing note.

7. HOMESTEAD / TAX-EXEMPTION AND TITLE-INSURANCE CONTINUITY

7.1 Homestead exemption. The parties intend that any homestead/disability ad valorem exemption (Ky. Const. § 170) applicable to the Property continue uninterrupted after this conveyance. Because the Grantor remains the beneficial owner and a beneficiary of the Trust, the Grantor should confirm with the county Property Valuation Administrator (PVA) that the exemption is preserved after re-titling and re-file any required application.

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

8. EXECUTION

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

GRANTOR (FIRST PARTY):

____________________________________
[GRANTOR FULL LEGAL NAME]

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

GRANTEE (SECOND PARTY), for purposes of the consideration certificate:

____________________________________
[GRANTOR FULL LEGAL NAME], as Trustee

9. NOTARY ACKNOWLEDGMENT AND CONSIDERATION CERTIFICATE (Kentucky)

The foregoing Deed and the consideration certificate stated in Section 3 were subscribed, sworn to, and acknowledged before me on [__/__/____] by [GRANTOR FULL LEGAL NAME], as Grantor and as Trustee of the [TRUST NAME] [and by [SPOUSE FULL LEGAL NAME]], who certified the consideration / fair cash value stated above to be true and correct (KRS §§ 382.130, 382.135).

____________________________________
Notary Public, Commonwealth of Kentucky
Notary ID No.: ______________
My commission expires: ______________

(Affix notarial seal/stamp)

10. RECORDING AND TAX-FORM INSTRUCTIONS

1. Where to record. Record the original signed and acknowledged deed in the office of the County Clerk of [____________] County, Kentucky — the county in which the Property is located (KRS § 382.110).
2. Transfer tax (KRS § 142.050). This conveyance is exempt under KRS § 142.050(8); place the exemption statement (Section 6.1) on the face of the deed. The county clerk will note the exemption rather than collect the tax.
3. Required deed contents. The deed must contain (a) the preparation statement (KRS § 382.335), (b) the consideration certificate / fair-cash-value statement, signed and sworn by both parties (KRS § 382.135), and (c) the in-care-of mailing address for the tax bill (KRS § 382.135(1)(c)).
4. Recording fees. Pay the statutory county clerk recording fee and any per-page charges.
5. Update collateral records. After recording, (a) notify the property/casualty insurer and add the Trustee as a named insured; (b) confirm the homestead exemption with the PVA; (c) provide a recorded copy and a Certification of Trust (KRS § 386B.10-020) to the title company; and (d) record the deed 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 — metes-and-bounds, or lot/block/subdivision with plat cabinet/slide, including the source-of-title deed book and page. Attach surveys or additional pages as needed.]

____________________________________

____________________________________

____________________________________

Sources and References

• KRS § 382.110 — recording of deeds in the office of the county clerk of the county where the land lies.
• KRS § 382.130 — acknowledgment or proof of execution of deeds.
• KRS § 382.135 — consideration certificate / fair-cash-value statement and in-care-of tax-bill mailing address required in deed.
• KRS § 382.335 — preparation statement ("This instrument prepared by").
• KRS § 142.050 — real estate transfer tax ($0.50 per $500 of value); § 142.050(1)(b)2. (value of a gift); § 142.050(8) (exemption for transfer to a trustee where the grantor is the sole beneficiary; defines "trust" by reference to KRS § 386B.1-010).
• Ky. Const. § 170 — homestead/disability ad valorem exemption.
• KRS § 392.020 — dower and curtesy.
• KRS § 386B.1-010 et seq. — Kentucky Uniform Trust Code; § 386B.10-020 (certification of trust).
• 12 U.S.C. § 1701j-3(d)(8) — Garn-St Germain Act; transfer into a borrower's inter vivos revocable trust does not trigger a due-on-sale clause.

This document is provided for informational purposes only and does not constitute legal advice. Confirm the transfer-tax exemption and the consideration-certificate requirements with the county clerk and consult a licensed Kentucky attorney before executing or recording this deed.