When funding a living trust in FL, is it better to use quitclaim or warranty deed?

Asked almost 4 years ago - Saint Cloud, FL

This is for an investment and a homestead property. Also is the grantee the trustee or the trust itself? I have read some places that say either or. Also upon the sale of the properties is the cash available for my beneficiaries immediately or only after my death?

Attorney answers (4)

  1. Dwight Edward Tompkins

    Contributor Level 11

    1

    Best Answer
    chosen by asker

    Answered . Both deeds will fund the trust, but a Warranty Deed will make the chain of title stronger, which may be helpful in a later sale. The grantee of trust funding deed is the trust, but it is a general rule that the title also identify the trustee as well, and the date of the trust. For example, Joe Smith, trustee of the Smith Family Trust dated January 1, 2011. When the beneficiaries receive any money or assets depends on how the trust is written. Typically, the ultimate beneficiaries do not receive any benefit until the trustor has passed away.

  2. Joseph Franklin Pippen Jr.

    Pro

    Contributor Level 20

    Answered . Both deeds will work. I use a quit claim when the transfer is made from Grantor(you) to Trustee(you) because the the ownership in this example is the same. If the grantor and trustee are different-I use warranty deed.
    The distribution is usually ay death.

  3. Mohammad Ahmed Faruqui

    Contributor Level 11

    Answered . In any situation, you are better off performing a warranty deed rather than a quit-claim deed. Why take the risk that a title insurer later refuses to underwrite at a later sale? Normally this wouldn't happen, but because of the number of foreclosed properties in Florida that may have clouded title, the title insurers have acted strange recently.

  4. Robert L. Brenna Jr.

    Contributor Level 12

    Answered . A Quit claim deed fully transfers the full interest owned by the Grantee. It merely "quits any any all claims" that the grantee has in the property WITHOUT guaranty as to the title. In the case of a stranger who has no interest in the property- ie the Brooklyn Bridge- you will get nothing as the recipient. IF however you transfer your home to your trust- the Quitclaim deed will transfer all ownership interest you have. In this case you need to ask a Florida Title company, or better yet a Florida Licensed Attorney whether in your case you need to use a full warranty deed, because the next concern is how, on the next transfer, a title examiner in your state will satisfy their concern as to what interest you actually controlled at the time of the quit claim. You need to know specifically how it will be interpreted in Florida. (I'm licensed in New York- Not Florida). Additionally, In most states the Trustee is really taking title ONLY as trustee, therefore transfers to the Trustee are in fact transfers to the trust itself. One of the first things taught on first level Trust Courses is that "a trust shall not be lost for want of a trustee" ie a new trustee will take over to complete the trust actions. If no successor has been named, or is unavailable - a Court of Competent Jurisdiction will Appoint one. Get to a Florida Lawyer- and Good Luck. And Happy New Year!
    Bob
    Robert L. Brenna Jr.
    Brenna Brenna & Boyce PLLC
    31 E Main St Suite 2000
    Rochester, New York 14614
    (585) 454- 2000

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