Can Owners of Property Who Hold the Property in Their Living Trust Avoid Preparing a Transfer Disclosure Statement (“TDS”)?

Can Owners of Property Who Hold the Property in Their Living

Trust Avoid Preparing a Transfer Disclosure Statement (“TDS”)?

Question: Can owners of property who hold the property in their living trust avoid preparing a Transfer Disclosure Statement (“TDS”)?

Answer: Unlikely. People who have living trusts and own their homes in the name of the living trust, have to prepare a TDS, unless the transfer is made by a fiduciary in the course of an administration of a deceased estate, guardianship, conservatorship or a trust. This exemption does not apply to a transfer, if the trustee is a natural person who is the sole trustee of a revocable trust and he or she is a former owner of the property, or an occupant in possession of the property within the preceding year. Therefore, if an owner places their property in a revocable trust for purposes of estate planning, they are required to fill out a TDS.

-Shannon B. Jones, Partner, sbj@sbj-law.com

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