Deed Transferring Real Property into Living Trust

This instrument prepared by (and certificate of preparation — Real Prop. § 3-104):
[____________________________________], Attorney / Party
[____________________________________]
[____________________________________]

After recording return to:
[____________________________________]
[____________________________________]

Send subsequent tax bills to:
[____________________________________]

County / Baltimore City: [____________]
SDAT Property Account / Tax ID No.: [____________]

SPACE ABOVE THIS LINE RESERVED FOR CLERK OF THE CIRCUIT COURT RECORDING STAMP

NO-CONSIDERATION DEED (SPECIAL WARRANTY) — TRANSFER TO REVOCABLE LIVING TRUST

State of Maryland

1. GRANTOR

[GRANTOR FULL LEGAL NAME], [single / married], 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 granted under the Trust and under the Maryland Trust Act, Md. Code, Est. & Trusts § 14.5-101 et seq.

3. CONSIDERATION

This conveyance is made for estate-planning purposes only, with no consideration and with no change in beneficial ownership of the Property. The Grantor is the settlor and a present beneficiary of the Trust during the Grantor's lifetime. No sale, purchase, or exchange has occurred.

4. GRANTING CLAUSE

THIS DEED, made on [__/__/____], witnesses that the Grantor, for no consideration, does hereby GRANT and CONVEY unto the Grantee, as Trustee as aforesaid, and to the Grantee's successors in trust and assigns, in fee simple, 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, MARYLAND, ZIP]

County / Baltimore City: [____________]

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

Being the same property conveyed to the Grantor by deed dated [__/__/____] and recorded among the land records of [____________] County / Baltimore City in Liber [____], folio [____].

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, in fee simple.

The Grantor SPECIALLY WARRANTS the Property and will defend the title to the Property against the lawful claims of all persons claiming by, through, or under the Grantor, but against none other.

5. SUBJECT TO

This conveyance is made subject to:

(a) 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, and environmental laws and regulations; and
(d) Any mortgage or deed of trust of record, which the Trustee takes subject to but does not assume except as separately agreed in writing.

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

6.1 Estate-planning purpose. The sole purpose of this conveyance is to fund the Grantor's revocable living trust so 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 reconveyance of the Property at any time.

6.2 Homestead / Homeowners' Property Tax Credit continuity. The parties intend that the Maryland Homestead Tax Credit (which caps annual taxable-assessment increases) and any Homeowners' Property Tax Credit applicable to the Property continue uninterrupted. Because the Grantor remains the beneficial owner and a beneficiary of the Trust, a transfer to a revocable trust does not by itself terminate the Homestead Tax Credit; the Grantor should confirm continuity with the State Department of Assessments and Taxation (SDAT) and re-file any required application.

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 Recordation and transfer taxes — EXEMPT (Tax-Prop. § 12-108(ee) / § 13-207(a)(23)). Maryland deeds are ordinarily subject to State recordation tax (set by each county, expressed per $500 of consideration), State transfer tax (0.5% of consideration), and any applicable county (local) transfer tax (Tax-Prop. §§ 12-103, 13-203). This conveyance is EXEMPT as a transfer to a trust under the circumstances specified in Md. Code, Tax-Prop. § 12-108(ee) (recordation tax), and is exempt from State transfer tax to the same extent under Tax-Prop. § 13-207(a)(23), because it is a transfer for no consideration to a revocable trust in which the Grantor is the settlor and a present beneficiary, with no change in beneficial ownership.

EXEMPTION RECITAL (state on the deed and the Intake Sheet): "This is a no-consideration transfer to a revocable trust in which the grantor is the settlor and a present beneficiary. This instrument is exempt from recordation tax under Md. Code, Tax-Prop. § 12-108(ee) and from State transfer tax under § 13-207(a)(23)."

7.2 County (local) transfer tax — CONFIRM SEPARATELY. Maryland's 23 counties and Baltimore City may each impose their own local transfer tax, and some do not automatically follow the State exemptions. Verify the local-transfer-tax treatment of a trust transfer with the county Office of Finance before recording, and cite any local exemption in Section 3 of the Land Instrument Intake Sheet. Note also: Baltimore City imposes a "yield tax" surcharge on certain high-value transactions.

7.3 No due-on-sale acceleration (Garn-St Germain Act). The Property may be encumbered by a mortgage or deed of trust. 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. 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.

8. EXECUTION; CERTIFICATE OF PREPARATION

IN WITNESS WHEREOF, the Grantor has executed this Deed on the date first written above.

GRANTOR:

____________________________________
[GRANTOR FULL LEGAL NAME]

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

CERTIFICATE OF PREPARATION (Md. Code, Real Prop. § 3-104(f)). This instrument was prepared by or under the supervision of the undersigned, an attorney admitted to the Maryland Bar, or by a party named in this instrument.

____________________________________
[PREPARER NAME] (Attorney / Party)

9. NOTARY ACKNOWLEDGMENT (Maryland)

I HEREBY CERTIFY that on this ____ day of ______________, 20____, before me, the undersigned Notary Public, personally appeared [GRANTOR FULL LEGAL NAME] [and [SPOUSE / CO-GRANTOR FULL LEGAL NAME]], known to me (or satisfactorily proven) to be the person(s) whose name(s) is/are subscribed to the foregoing instrument, and acknowledged that he/she/they executed the same for the purposes therein contained.

WITNESS my hand and Notarial Seal.

____________________________________
Notary Public
Printed Name: ______________________
My commission expires: ______________

(Affix notarial seal)

10. RECORDING AND TAX-FORM INSTRUCTIONS

1. Where to record. Record the original, signed, acknowledged deed among the land records of the Circuit Court for [____________] County / Baltimore City — where the Property is located (Real Prop. §§ 3-101, 3-103).
2. Land Instrument Intake Sheet (Real Prop. § 3-104). Complete and submit the State of Maryland Land Instrument Intake Sheet with the deed (original deed plus a photocopy). In Section 3, cite the recordation-, State-transfer-, and county-transfer-tax exemptions claimed (Tax-Prop. § 12-108(ee); § 13-207(a)(23); local exemption if any).
3. No Consideration Affidavit. Most county Offices of Finance require a separate notarized No Consideration Affidavit confirming the transfer is for no consideration; attach it.
4. Lien certificate. In most counties, obtain a lien certificate from the county Office of Finance and pay any outstanding obligations before the deed is accepted; the Office of Finance signs off on the Intake Sheet.
5. Recording fees and surcharges. Pay the recording charge and surcharge to the Clerk. Some counties (e.g., Wicomico) collect recordation tax through the county Finance Office on a separate check.
6. Update collateral records. After recording, (a) notify the insurer and add the Trustee as a named insured; (b) confirm the Homestead Tax Credit with SDAT; (c) provide a recorded copy and Certification of Trust (Est. & Trusts § 14.5-1013) to the title company; and (d) record this deed before 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 with subdivision and plat reference, together with the liber/folio of the prior deed and the SDAT tax account number. Attach surveys or additional pages as needed.]

____________________________________

____________________________________

____________________________________

Sources and References

• Md. Code, Real Prop. § 4-101 — deed must be in writing and executed.
• Md. Code, Real Prop. §§ 3-101, 3-103 — recording in the land records of the Circuit Court where the land lies.
• Md. Code, Real Prop. § 3-104 — requirements for recording; Land Instrument Intake Sheet; certificate of preparation; lien certification. (Maryland Courts — Land Instrument Intake Sheet)
• Md. Code, Real Prop. § 4-204 — acknowledgment of deeds.
• Md. Code, Tax-Prop. §§ 12-103, 13-203 — recordation tax and State transfer tax (imposed on consideration).
• Md. Code, Tax-Prop. § 12-108(ee) — recordation-tax exemption: transfer to a trust under specified circumstances. (MGA Statute Text)
• Md. Code, Tax-Prop. § 13-207(a)(23) — State transfer-tax exemption tied to the § 12-108(ee) trust transfer. (Westlaw — § 13-207)
• Md. Code, Est. & Trusts § 14.5-101 et seq. — Maryland Trust Act; § 14.5-1013 (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.
• Maryland State Department of Assessments and Taxation (SDAT) — Homestead Tax Credit.

This document is provided for informational purposes only and does not constitute legal advice. In Maryland, a deed must be prepared by a Maryland attorney or a party to it. Confirm the recordation-, State-transfer-, and county-transfer-tax treatment with the county Office of Finance and the Clerk of the Circuit Court, and consult a licensed Maryland attorney before executing or recording this deed.