Interspousal Transfer Deed: Essential Guide for Property Transfer Between Spouses

Navigating through the complexities of property transfer and property ownership can be daunting. One common scenario that might require attention is adding a spouse to a deed or transferring property between spouses. This is where an interspousal transfer deed becomes crucial.

What is an Interspousal Transfer Deed?

An interspousal transfer deed is a legal document used to transfer property ownership from one spouse to another. This special grant deed avoids the need for a full sale transaction and often carries significant tax benefits because the transfer is not considered a sale.

Why use an Interspousal Transfer Deed?

Property Transfer: When you want to add a spouse to the deed without selling the property.
Property Ownership: To consolidate property ownership in one spouse's name for reasons like estate planning, refinancing, or changing from joint ownership to sole ownership.
Legal Documents Preparation: To ensure that your property transfer complies with state laws and is processed smoothly, professional preparation of legal documents is essential.

Steps to transferring property with an Interspousal Transfer Deed

Consult with Legal Experts: Before making any decisions, consult with a real estate attorney or a legal expert who can guide you through the process of legal documents preparation.
Drafting the Deed: The deed must be correctly drafted, stating the property's full legal description, the parties involved, and the nature of the transaction.
Signing and Notarization: Both spouses need to sign the interspousal transfer deed in the presence of a notary public.
Recording the Deed: Submit the signed and notarized deed to your county recorder's office to officially record the change in property ownership.

Transfer taxes and considerations

Usually, interspousal transfer deeds are exempt from property transfer taxes. However, it's wise to confirm this with your local tax authority and ensure proper documentation.

For more detailed guidance on interspousal transfer deeds and to get professional assistance with your legal documents preparation, call us.