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Before filing a quitclaim deed, it's a good idea to first consider the potential tax consequences.
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The grantor must pay any taxes owed on the property before conveying it. Upon conveying the property, the grantor must also pay a real estate property tax. If for any reason the grantor doesn't pay these taxes, the grantee could be stuck paying them. Other taxes may apply, such as a gift tax, which the grantor pays if the property is given to a family member as a gift. Some other taxes, such as capital gains taxes, could apply as well.
However, if you're using a quitclaim deed to transfer property into a trust, there usually aren't any taxes imposed. Whether there are taxes depends on what the transfer is for, such as a gift, not on the type of deed.
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If you have any questions about your tax liability, make sure to speak with your financial adviser. Even though a quitclaim deed doesn't require the formalities of title searching as other types of deeds do, you still want your quitclaim deed prepared properly. You may want to consider hiring an attorney or online service provider to prepare the quitclaim deed for you. An offer of membership in our legal plan is not an endorsement or advertisement for any individual attorney. The legal plan is available in most states.
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