The word interspousal originates from two words: inter-between and spouse, hence the word interspousal. An interspousal grant deed is also known as a spousal grant deed or a transfer between two spousal deeds. This is a legal document that allows married couples to be able to transfer their properties from one spouse to another.
Note that this kind of deed agreement is done mostly when you and your spouse want to change the title of their property. The interspousal is used to avoid tax reassessment of property and creditors’ claims.
Also, as you read through this article, you will learn more about the Interspousal Grant Deed. Starting from its definition, the reason why it is needed, the requirements and some benefits involved. You will finally see the steps involved in creating one.
Definition
An interspousal grant deed is an instruction or instrument in written form that transfers the ownership of real estate from one spouse to another in the same marriage. Although it is a warrantless deed, this can also mean that the grantor who is transferring does not guarantee the title’s validity aside from their right to transfer it.
Furthermore, interspousal grant deeds are typically used when one spouse wants to change the title of their property. But rather without pulling another property tax or when another spouse is also added to the title of the estate property.
Purpose of an Interspousal Grant Deed
As earlier stated, an interspousal grant deed serves more purposes as it relates to the transfer of property from one spouse to another. And hence, the primary purpose is to facilitate an easy and worthy transfer of ownership that does not affect these spouses.
Apparently, this deed also allows married couples to give each other property without tax requirements catching up to them. Hence, this process is rather considered a tax-free transfer between spouses.
In a normal situation, this type of deed is used primarily in estate planning because, with it, spouses can reallocate any property ownership and also adjust plans accordingly for their estate. By transferring property between spouses, assets and properties can be shared properly at events of death.
Additionally, by using an interspousal grant deed, you can also maintain joint tenancy status. This status means that any surviving spouse will automatically inherit the property without going through the heat of the several processes involved.
Finally, the primary purpose of an interspousal grant deed is to help build a clear, tax free and straightforward transfer of property between spouses. And it also aids in estate planning and clarifying property ownership at times of death.
Requirements To Create a Valid Interspousal Grant Deed
There are some requirements that follow creating a valid grant deed.
1. Legal Capacity
Legally, both spouses must possess the capacity to enter into a legal contract, like a transfer of property. This can also mean that they should be of legal age, which is usually 18 years and older. This is the first requirement, as it ensures that this agreement does not fall under a legal incapacitation that would prevent them from making these decisions.
2. Marital Status
And this is due to the fact that this transfer can only be done between spouses who are legally married. Hence, an interspousal grant deed can not be used by unmarried couples, especially for property transfers.
3. Property Description
The description of this grant deed must be clearly stated. This description may include the property being transferred, the location, the legal description and any other relevant details also.
4. Signatures
Now both spouses must sign the Interspousal Grant Deed together, indicating their agreement to the transfer. In some states, the signatures may also require notarization.
5. Consideration
Note that the Interspousal Grant Deed is sort of a gift between spouses and does not require any monetary involvement. It is also important that it be included in the deed that the reason for the transfer is for love and affection without any other consideration.
6. Recording
Furthermore, after signing the deed, it should be recorded with the local county recorder’s office. And this is to make sure that property ownership is officially updated and recognized locally as well.
7. Property Valuation
In some cases, especially when there is a transfer of property with a significant value, there is a need for valuation. It is necessary to obtain a professional property valuation, which is used to determine the market value of the property.
Finally, it is vital that you consult a legal professional or real estate expert who can help you check if all requirements are met. And also ensure that the interspousal grant deed is properly executed according to state laws.
Benefits of an Interspousal Grant Deed
An interspousal grant deed has several other advantages that come with transferring property between spouses.
1. Avoidance of Gift Tax
The first benefit to be considered here is the fact that it allows spouses to transfer property between themselves without seeing tax included in their taxes.
2. Simplified Process
Also, the process of transferring a property using this deed is relatively simple and straightforward. You, as a spouse, are not required to pay any fees in the process or go through any complex legal procedures either.
3. Maintaining Joint Tenancy
Another benefit is seen when one spouse transfers property to the other using an interspousal grant deed. And it helps maintain the joint tenancy status as well, and hence, at the incidence of death, the property will automatically pass to the surviving spouse.
4. Retaining Property Rights
With an interspousal grant deed, you and your spouse can still retain your rights to the property. These rights will include the ability to sell, mortgage and transfer the property in the near future.
5. Estate Planning
This type of deed can be useful for estate planning purposes, as it allows spouses to reallocate property ownership and adjust their estate plans accordingly.
6. Clarification of Ownership
An interspousal grant deed can be used to clarify the ownership of property between spouses. And this can be particularly useful when there might be confusion of any sort.
All in all, you should always remember to consult a legal professional about using an interspousal grant deed, so you will be sure everything is aligned properly.
Steps To Creating An Interspousal Grant Deed
To create an interspousal grant deed, there are a few steps to follow. Kindly note that the steps are different from the requirements. Which was explained earlier.
1. Consult With a Real Estate Attorney
Now, before even venturing into drafting the deed, first consult with a real estate attorney. Go with your documents for inspections, as they are up to date to the requirements. Also, they can make mention of any specific concerns that might be unique to your situation.
2. Carefully Gather Required Information
When going to meet your attorney, carry along all the necessary information about the property. This may include:
- Legal description
- Current title
- Outstanding mortgages
- Any liens.
3. Draft the Deed
When these documents are present, then with the assistance of your attorney or a real estate professional, your Interspousal Grant Deed can be drafted. But you have a part to carefully look out for also, especially the following key elements;
- Legal Description
Make sure that the draft contains a detailed description of the property that is being transferred. Properties like; the address of the property, plot and block numbers, and a metes and bounds description.
- Spouses’ Names
Ensure that in the deeds are clearly stated the full names of you and your spouse, as they appear on the current title.
- Consideration
Also, make sure that the deeds have a specific reason for the transfer, which will be stated clearly. And mostly, the basic reason is always because of “love and affection” or any other adequate consideration.
- Transfer of Title
Also state clearly that the grantor (transferring spouse) is transferring his/her entire interest in the property to the grantee (receiving spouse).
- Notary Acknowledgment
Lastly, always add a notary acknowledgment section, it adds to the validation of the Deeds. Also make sure both you and your spouse sign the deed before a notary club, who will then notarize their signatures.
4. Sign and Notarize the Deed
After you and your spouse have to sign the Interspousal Grant Deed, then the notary will verify your both identities and affix their official seal to the document, acknowledging the signatures on the Deeds.
5. Record the Deed
Next, you record the deed by filing the signed and notarized interspousal grant deed. This step is important because it makes the deed legally recognized and valid. You may need to pay a recording fee when submitting the deed for recording, if applicable.
Where to do Interspousal Grant Deed
Here are some major cities in different states, especially in the USA, where you can find an attorney or legal professional who can assist with an interspousal grant deed.
- New York City, New York
- Los Angeles, California
- Chicago, Illinois
- Houston, Texas
- Philadelphia, Pennsylvania
- Phoenix, Arizona
- San Antonio, Texas
- San Diego, California
- Dallas, Texas
- San Jose, California
- Austin, Texas
- Jacksonville, Florida
- Fort Worth, Texas
- Columbus, Ohio
- San Francisco, California
Conclusion
Conclusively, we have spoken about what an interspousal grant deed is and how valuable it is for married couples looking to transfer their properties between themselves. When you understand the requirements, benefits and steps involved in creating one, you can be sure of protecting your properties.
