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Old 01-18-2018, 08:30 AM
 
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Nevada has a law that allows a real estate deed to be transferred upon death to a grantee (this person would just go to the recorder's office an file an affidavit of death).

Does anyone know if under this scenario there's any issue with selling the home? assuming the home still had a mortgage at the person's passing (i.e. a deed of trust)?

This law was intended to provide people the option to bypass costly probate/ trust establishment costs..... but some have said that title companies don't like these type of scenarios and therefore won't issue title insurance .... which in turns makes it nearly impossible to sell the house.

any feedback is appreciated.
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Old 01-18-2018, 02:04 PM
 
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Make sure there aren't documents that you need other than the deed for the "right of survivorship". Texas has a uniquely weird policy where there needs to be an explicit signed agreement but it might apply in other states too.
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Old 01-18-2018, 02:20 PM
 
Location: Las Vegas
561 posts, read 675,222 times
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Quote:
Originally Posted by FML157 View Post
Nevada has a law that allows a real estate deed to be transferred upon death to a grantee (this person would just go to the recorder's office an file an affidavit of death).

Does anyone know if under this scenario there's any issue with selling the home? assuming the home still had a mortgage at the person's passing (i.e. a deed of trust)?

This law was intended to provide people the option to bypass costly probate/ trust establishment costs..... but some have said that title companies don't like these type of scenarios and therefore won't issue title insurance .... which in turns makes it nearly impossible to sell the house.

any feedback is appreciated.
The reason title companies won't issue insurance is that the Transfer on Death deed is subject to claims against the estate. That is, if Mom signs a deed, but that leaves no assets to satisfy certain claims, the creditor has 18 months to bring a lawsuit. You can't provide clear, marketable title until those 18 months are up.
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Old 01-18-2018, 04:06 PM
 
Location: Lone Mountain Las Vegas NV
18,058 posts, read 10,208,599 times
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LVA can correct me but it is not a problem to sell the home before the grantor dies. At worst you need a quit claim deed from the grantee.

I would think it gets interesting if there is a grantee who does not quit claim. But even then the deed can only transfer the interest in the property held by the grantor. I can see where it might scare off a title co. though.
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Old 01-18-2018, 05:35 PM
 
Location: Las Vegas
561 posts, read 675,222 times
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Quote:
Originally Posted by lvmensch View Post
LVA can correct me but it is not a problem to sell the home before the grantor dies. At worst you need a quit claim deed from the grantee.

I would think it gets interesting if there is a grantee who does not quit claim. But even then the deed can only transfer the interest in the property held by the grantor. I can see where it might scare off a title co. though.
The Deed Upon Death doesn't actually do anything until after the grantor dies. The grantor can still revoke the deed, sell the real estate, and handle it however they wish. If the house is sold before the grantor dies, the Deed Upon Death fails. By itself, it doesn't worry title companies. Since the grantee doesn't actually own anything until the grantor dies, there's nothing for the grantee to quit claim.

What worries title companies is when the grantor actually dies, and the grantee completes the conveyance. They look at the conveyance and realize that there's an 18 month period in which someone might come in and contest the conveyance because the allowable creditors got stiffed. Thus, no title insurance.
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Old 01-18-2018, 06:00 PM
 
Location: Lone Mountain Las Vegas NV
18,058 posts, read 10,208,599 times
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Quote:
Originally Posted by LVAllen View Post
The Deed Upon Death doesn't actually do anything until after the grantor dies. The grantor can still revoke the deed, sell the real estate, and handle it however they wish. If the house is sold before the grantor dies, the Deed Upon Death fails. By itself, it doesn't worry title companies. Since the grantee doesn't actually own anything until the grantor dies, there's nothing for the grantee to quit claim.

What worries title companies is when the grantor actually dies, and the grantee completes the conveyance. They look at the conveyance and realize that there's an 18 month period in which someone might come in and contest the conveyance because the allowable creditors got stiffed. Thus, no title insurance.
Interesting. But that is not a problem in joint tenancy...or is it?

For those interested joint tenancy is the normal way a home is owned by a couple...joint tenancy with right of survival. Basically the entire house is owned by all the joint tenants and it passes to the remain one(s) when an owner passes on.
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Old 01-18-2018, 06:59 PM
 
Location: Las Vegas
561 posts, read 675,222 times
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Quote:
Originally Posted by lvmensch View Post
Interesting. But that is not a problem in joint tenancy...or is it?

For those interested joint tenancy is the normal way a home is owned by a couple...joint tenancy with right of survival. Basically the entire house is owned by all the joint tenants and it passes to the remain one(s) when an owner passes on.
No, that's not an issue with joint tenancy. But there's no reason for a married couple to hold property as joint tenants, at least, not in Nevada. Community property carries all the same characteristics of joint tenancy, with an added bonus of a tax advantage when the first spouse dies. The best way, of course, is to hold it in a trust, where the community property tax advantage is maintained, but the distribution is better controlled.
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Old 01-18-2018, 09:16 PM
 
555 posts, read 769,741 times
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Quote:
Originally Posted by LVAllen View Post
The Deed Upon Death doesn't actually do anything until after the grantor dies. The grantor can still revoke the deed, sell the real estate, and handle it however they wish. If the house is sold before the grantor dies, the Deed Upon Death fails. By itself, it doesn't worry title companies. Since the grantee doesn't actually own anything until the grantor dies, there's nothing for the grantee to quit claim.

What worries title companies is when the grantor actually dies, and the grantee completes the conveyance. They look at the conveyance and realize that there's an 18 month period in which someone might come in and contest the conveyance because the allowable creditors got stiffed. Thus, no title insurance.
thank you this is the exact feedback I was looking for.

My single mother wants to file a deed upon death so that when she passes I can sell her home , pay off her mortgage and keep the balance as inheritance.

However, she, nor I, have the available funds to draft a trust and pay once again upon death. This seemed like a good budget option. But it sounds like I will need to continue to pay the mortgage for 18 months and then sell it.
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Old 01-19-2018, 10:44 AM
 
Location: Southern Highlands
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The best way, of course, is to hold it in a trust, where the community property tax advantage is maintained, but the distribution is better controlled.
It is easy to do this as a Living Trust. All property in a Living Trust avoids probate and the trustee has immediate control. See NOLO https://store.nolo.com/products/onli...st-nntrus.html for example.
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Old 01-19-2018, 12:51 PM
 
Location: Las Vegas
561 posts, read 675,222 times
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Quote:
Originally Posted by Cold Warrior View Post
It is easy to do this as a Living Trust. All property in a Living Trust avoids probate and the trustee has immediate control. See NOLO https://store.nolo.com/products/onli...st-nntrus.html for example.
Trust forms purchased online, whether from NOLO or LegalZoom, are cheap. That's about the only good thing going for them. When I sit down with a client, I talk with them about what is important to them, and we design a plan that meets their specific needs, and covers situations that come up all the time, but the online docs don't protect against (remarriage of surviving spouse, kids' inheritance potentially lost to drug problem or divorce, etc.)
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