Question:
Just purchased the book. It’s great so far! Skipping around at different sections of the book that are of interest, but plan to read it, front to back.
Just a quick question regarding the transfer of a Quitclaim Deed into a revocable trust that we just created. The Quitclaim Deed includes a statement “For consideration paid and in consideration of ______($_____.00) dollars”. What needs to be entered here in both fields? I was advised to see a tax accountant, for implications of capital gains tax on the transfer of the real estate into the trust belonging to my wife and I. We are the trustees. Or is this some type of excise tax, or other Massachusetts state tax we need to pay? Can you advise what needs to be included in both fields or entries?
Response:
Thank you for your comments about my book. (For other readers of this post, you can check out the book, Get Your Ducks in a Row: The Baby Boomers Guide to Estate Planning, here.)
There’s no capital gains tax on transferring your house or any other property to your revocable trust because you will still be the owners for tax purposes.
In the fields on the deed, fill in “one ($1.00) dollar.” That way there’s no excise tax either because the consideration is so low, just the filing fee.
