Warranty deeds, quitclaim deeds and standard real estate assignment forms are generally acceptable for use in transferring title of real property to the revocable trust. The following article explains what those deeds are, how and when they are used, and what needs to happen when you buy, sell, or refinance your real estate.

Please note that it is always recommended that you contact us at the Wideman Law Center, P.C. when you are entering any kind of transaction involving real estate.

Grantor

The party that is transferring the property. If the property is to be sold to another party, the Grantor is the Seller.

Grantee

The party who is receiving the property. If the grantee is buying the property, then the Grantee is the Buyer.

Notary

The person who verifies that the parties who have signed the deed are in fact the same as those whose names appear on the deed.

Joint Tenants

Joint tenancy can exist when two or more people who have an ownership interest in the same piece of land. Under this type of ownership interest, if one of the parties dies, the deceased person’s interest passes to the remaining owner(s) and not to the heirs of the deceased party. Generally, a joint tenant cannot sell their ownership interest without the consent of the other joint tenants.

Tenants in Common

Tenants in common is another type of ownership arrangement when two or more people have an ownership interest in the same piece of land. Under this type of ownership interest, if one of the owners dies, their interest passes to their heirs or estate. Generally, a tenant in common can sell their interest without the consent of the other owners of the property.

Tenants by the Entireties

When a husband and wife own a piece of property together, they are considered Tenants by the Entireties. If one of the spouses dies, the surviving spouse owns the entire property subject to liens and easements.

Warranty Deed

This type of deed is one in which the Grantor fully warrants good and clear title to the premises. A warranty deed is sometimes necessary to maintain the warranty chain of title.

Quit Claim Deed

A quitclaim deed conveys whatever interest the Grantor has in the property to a recipient who takes the title "as is." This type of deed is most frequently used when property is being transferred between family members.

Life Estate Deeds

This type of deed is frequently used when clients have reason not want to put their real estate into their Trust, but still want to avoid probate when they die. With this form of deed the Grantor gives the ownership of the property to someone else but retains for themselves the right to live in the property for the rest of their lives.

Ladybird Deeds

At The Wideman Law Center we having been using this type of deed more regularly to protect our client’s homestead properties in the event of nursing home admission when the client will be applying for Medicaid Assistance. The reason for this is that Michigan Medicaid law includes that value of a home in a Trust as a countable asset when applying for assistance. Therefore, it is frequently necessary to take the homestead out of Trust when making an application for Medicaid Assistance. It is equally important however, to be sure that the house does not stay out of the Trust and become a possible Probate asset upon the death of the owners. This is important for two reasons; (1) your Trust is designed to avoid the costs and time delays of Probate, so that is the best place for your home if you should die, and (2) now that Michigan has an Estate Recovery law, the state can make a claim on the Probate assets of a Medicaid recipient after they die. The Ladybird deed is a deed that removes the house from the Trust during the time that you are applying for Medicaid Assistance (putting it back into your individual name) and returns it to the Trust after you have passed away; avoiding the need to go to Probate for that asset.