One of the most common and popular estate planning strategies involves transferring property into your spouse’s name. This allows you to avoid probate after your death. However, there are several things you should consider before doing so. A few of the more common ways to transfer property are a warranty deed and a quitclaim deed. However, these types of spousal property transfer don’t automatically trigger tax exemptions. You must also advise any lender that holds a mortgage on the property that you are transferring ownership into your wife. A more effective method is to use a transfer on death deed, which avoids probate regarding these assets.

Is father in law a related Property  transaction?

Regardless of the type of deed used, you should consult with an attorney to ensure that the paperwork is prepared correctly. You should also have the deed signed in the presence of a notary public before filing it with the county clerk’s office.

If you transfer an asset into your wife before a divorce, it may be seen as wasting marital funds and could have repercussions during the divorce. It is also important to keep in mind that if you or your spouse spends marital funds before a divorce, the other spouse might be entitled to compensation for the dissipation of assets.

Another consideration is that if you and your spouse execute a quitclaim deed for a piece of real property, this will remove your spouse from the title. This may make the property vulnerable to claims of creditors, unless you purchased an owner’s title insurance policy. Alternatively, you could use a joint tenancy or tenancy by the entirety. These types of arrangements, which require both parties to sign the deed, are not considered to be a complete transfer of ownership and do not prevent creditors from accessing the property.

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