Deed Transferring Real Property into Living Trust - Virginia

This instrument prepared by:
[____________________________________] (Va. attorney / preparer)
[____________________________________]
[____________________________________]

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

Consideration / Actual value: $0.00 (no consideration — see Section 3)

Exempt from recordation tax under Va. Code § 58.1-811(A)(12) and from grantor tax under Va. Code § 58.1-811(C)(1) — transfer to trustees of a revocable inter vivos trust; grantors and beneficiaries are the same; no consideration.

Tax Map / Parcel No. (GPIN): [____________]

SPACE ABOVE THIS LINE RESERVED FOR CLERK'S RECORDING STAMP

GENERAL WARRANTY DEED — TRANSFER TO REVOCABLE LIVING TRUST

Commonwealth of Virginia

1. GRANTOR

[GRANTOR FULL LEGAL NAME], [a single person / [GRANTOR FULL LEGAL NAME] and [SPOUSE FULL LEGAL NAME], [spouses / husband and wife], as tenants by the entirety with the common-law right of survivorship], whose 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 (collectively, "Grantee" or the "Trustee"), whose address is [____________________________________].

The Property is conveyed to the Trustee to hold, manage, and distribute 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. The Trustee is granted full power to sell, convey, lease, mortgage, encumber, and otherwise deal with the Property as provided in the Trust and under the Virginia Uniform Trust Code, Va. Code § 64.2-700 et seq.

3. CONSIDERATION

This conveyance is made for estate-planning purposes only, with no change in beneficial ownership of the Property and for no consideration. The Grantor is the settlor and a beneficiary of the Trust during the Grantor's lifetime; the grantors in this deed and the beneficiaries of the Trust are the same persons. No consideration has passed between the Grantor and the beneficiaries. The actual value of the interest conveyed for recordation purposes is stated on the cover sheet as $0.00.

4. GRANTING CLAUSE

THIS DEED, made this [__/__/____], by and between the Grantor and the Grantee identified above,

WITNESSETH: That for the consideration stated above (none), the Grantor does hereby GRANT and CONVEY with GENERAL WARRANTY and ENGLISH COVENANTS of title unto the Grantee, as Trustee as aforesaid, and the Grantee's successors in trust and assigns, all that certain real property, with improvements and appurtenances, situated in the [County / City] of [____________], Commonwealth of Virginia (the "Property"):

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

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

TO HAVE AND TO HOLD the Property unto the Grantee, as Trustee, and the Grantee's successors in trust and assigns forever, subject to the matters in Section 5.

5. SUBJECT TO

This conveyance is made subject to:

(a) Real estate 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 deed of trust, mortgage, or other lien of record, which the Trustee takes subject to but does not assume except as separately agreed in writing.

6. PURPOSE; TAX-RELIEF AND TITLE-INSURANCE CONTINUITY

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 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 Tax-relief continuity. The parties intend that any real-estate tax relief or exemption applicable to the Property — including elderly/disabled tax relief, disabled-veteran exemption, or land-use (use-value) assessment — continue uninterrupted following this conveyance. Because the Grantor remains the beneficial owner and a beneficiary of the Trust, the Grantor should confirm with the local Commissioner of the Revenue / Assessor that any such relief is preserved after re-titling 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. RECORDATION/GRANTOR-TAX EXEMPTION AND GARN-ST GERMAIN (DUE-ON-SALE) RECITALS

7.1 Virginia recordation and grantor tax — exemption (Va. Code §§ 58.1-801, 58.1-802, 58.1-811). Virginia imposes a state recordation tax (grantee tax) under § 58.1-801 and an additional grantor tax under § 58.1-802. This conveyance is to the trustees of a revocable inter vivos trust in which the grantors in this deed and the beneficiaries of the Trust are the same persons, and no consideration has passed between the grantor and the beneficiaries. Accordingly, this deed is:

• EXEMPT from recordation (grantee) tax under Va. Code § 58.1-811(A)(12); and
• EXEMPT from grantor tax under Va. Code § 58.1-811(C)(1).

IMPORTANT — BOTH citations are required. To exempt the conveyance fully, BOTH § 58.1-811(A)(12) (recordation/grantee tax) AND § 58.1-811(C)(1) (grantor tax) must be stated on the face of the deed. Reciting only the (A)(12) exemption leaves the grantor tax assessable. (As an alternative where the grantor and beneficiary identities or no-consideration predicate do not fit (A)(12), a no-consideration deed of gift may be exempt under § 58.1-811(D), in which case the deed must state on its front page that it is a deed of gift.)

7.2 No due-on-sale acceleration (Garn-St Germain Act). If the Property is encumbered by a deed of trust containing a due-on-sale clause, 12 U.S.C. § 1701j-3(d)(8) bars a lender from exercising that 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," for the residential property described in subsection (d). If every federal condition is met, the lender may not accelerate solely because of this transfer; the transfer does not otherwise modify the loan, and the Grantor remains personally liable on any existing note.

8. EXECUTION

WITNESS the following signature(s) and seal(s) as of the date first written above.

GRANTOR:

____________________________________ (SEAL)
[GRANTOR FULL LEGAL NAME]

____________________________________ (SEAL)
[SPOUSE FULL LEGAL NAME] (if the Property is held by both spouses or to release any marital interest)

9. NOTARY ACKNOWLEDGMENT (Virginia)

COMMONWEALTH OF VIRGINIA )
) to-wit:
[COUNTY / CITY] OF [____________] )

The foregoing instrument was acknowledged before me this ____ day of ______________, 20____, by [GRANTOR FULL LEGAL NAME] [and [SPOUSE FULL LEGAL NAME]].

____________________________________
Notary Public
Printed name: ______________________
Registration No.: ___________________
My commission expires: ______________

(Affix notarial seal)

10. RECORDING AND TAX-EXEMPTION-RECITAL INSTRUCTIONS

1. Where to record. Record the original, signed, and acknowledged deed in the Clerk's Office of the Circuit Court of the [County / City] of [____________], Virginia — where the Property is located (Va. Code § 55.1-345).
2. State the exemption on the face (Va. Code § 58.1-811). Confirm the first page recites BOTH the recordation-tax exemption under § 58.1-811(A)(12) AND the grantor-tax exemption under § 58.1-811(C)(1) (see header and Section 7.1). If proceeding as a deed of gift instead, state on the front page that the instrument is a deed of gift and cite § 58.1-811(D).
3. Cover sheet. Complete any cover sheet / Cover Sheet for Land Records the clerk requires (Va. Code § 17.1-227.1), stating the consideration/actual value ($0) and the exemption citations.
4. Other recording charges. Even when the recordation and grantor taxes are exempt, the clerk's recording fee, the $1.50 Open-Space/Preservation fee, the $1.75 transfer fee (§ 58.1-3314) where applicable, and the technology trust fund fee may still apply. Confirm with the clerk.
5. 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 any tax relief / land-use assessment with the Commissioner of the Revenue; (c) provide a recorded copy and a Certification of Trust (Va. Code § 64.2-804) to the title company; and (d) record this 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 — lot/block/section with the recorded plat/subdivision reference, or metes-and-bounds, and the [County/City]. Include the Tax Map / GPIN. Recite the source-of-title (being the same property conveyed to the Grantor by deed dated [__/__/____], recorded as Instrument No. [____________] / in Deed Book [____], Page [____], among the land records of the Circuit Court of [____________]). Attach surveys or additional pages as needed.]

____________________________________

____________________________________

____________________________________

Sources and References

• Va. Code § 55.1-300 — form and effect of a deed; "grant" as words of conveyance.
• Va. Code § 55.1-345 — recording of deeds in the clerk's office of the circuit court where the land lies.
• Va. Code §§ 17.1-223, 17.1-227.1 — recording requirements; cover sheet for land records.
• Va. Code § 58.1-801 — state recordation tax (grantee tax).
• Va. Code § 58.1-802 — additional grantor tax on conveyances of realty sold.
• Va. Code § 58.1-811(A)(12) — recordation-tax exemption for a deed to trustees of a revocable inter vivos trust where grantors and beneficiaries are the same and no consideration passes.
• Va. Code § 58.1-811(C)(1) — corresponding grantor-tax exemption (must be cited together with (A)(12)).
• Va. Code § 58.1-811(D) — deed-of-gift exemption (alternative; deed must state it is a deed of gift).
• Va. Code § 58.1-3314 — $1.75 local transfer fee on certain exempt deeds.
• Va. Code § 64.2-700 et seq. — Virginia Uniform Trust Code; § 64.2-804 (certification of trust); § 64.2-772 (conveyances to a trust).
• 12 U.S.C. § 1701j-3(d)(8) — limited due-on-sale protection when every residential-property, continuing-beneficiary, and occupancy-right condition is met.

This document is provided for informational purposes only and does not constitute legal advice. To exempt the conveyance from both Virginia recordation and grantor tax, recite BOTH § 58.1-811(A)(12) and § 58.1-811(C)(1) on the face of the deed. Consult a licensed Virginia attorney before executing or recording this deed.