Aging baby boomers face the problem of probate of their timeshares. The cost, complication and length of time may be too much for heirs. Instead of going through the pain of probate heirs walk away from the timeshare. To avoid probate timeshare owners can either create a living trust or add an owner as a joint tenant.
Often baby boomers have living trusts to avoid probate. But the funding of the timeshare into the trust is overlooked because of the low economical value of the timeshare and the complications of transfer. If the timeshare is not in the trust, the timeshare is at risk of probate.
Deed and Record prepares quit claim deeds to transfer title of the timeshare out of the baby boomer’s name and into the living trust. In addition to the quit claim deed, the transfer tax exemption report is prepared.
Transfers of title are treated as ownership transfers for transfer tax purposes. Trust transfers are exempt from transfer tax, but an exemption must be claimed. In California the exemption report is called the Preliminary Change of Ownership Report. In Hawaii the report is referred to as P-64B Exemption from Conveyance Tax.
An economical approach to avoiding probate is to add a child on title as a joint tenant. In joint tenancy the deceased owner’s interest disappears and the surviving joint tenant has ownership by operation of law. Transfers to children are often exempt from transfer tax. Or if there is a transfer tax, it is of nominal value due to the low value of timeshare real estate.
The final step is recording the quit claim deed with the proper government authority. In Hawaii recording is with the Bureau of Conveyances a state wide system. In California recording is made by County.
Deed and Record does it all:
1. Determine the precise legal description of the time share, including parcel number, internal control number, map, block and lot number
2. Determine the tax identification number of the time share
3. Determine how title is held
4. Prepare the quit claim deed
5. Prepare transfer documents required by the County Recorder or Bureau of Conveyances
6. File the deed with the County Recorder's Office
7. Return the deed with proof of filing