Home / Legal & Financial / How to Transfer Property Titles Before Death to Secure Your Legacy

How to Transfer Property Titles Before Death to Secure Your Legacy

By: Serena Tanner • Edited by: Ani Lahiri • Subject Matter Expert Reviewed by: Sarah-Jane Williams, LL.B(Hons) • 7 cited sources • Updated Oct 17, 2024

By transferring property titles before death, you take control of your finances and benefit your heirs. Plan ahead, and your loved ones may avoid the lengthy probate process and take control of their new property smoothly and efficiently, leaving both you and your recipients with peace of mind. This guide addresses the most common ways people secure their financial legacy before death by transferring property titles.

Key Takeaways

• Transferring property before death helps skip probate and costly fees.
• Despite saving probate fees, transferring property while living may come with other costs.
• Several methods allow you to transfer property on your terms.

What Are the Benefits of Transferring Property Before We Pass Away?

First and foremost, transferring property before death provides both you and your loved ones with peace of mind. You can all know your affairs are arranged, and when the time comes, things may be easier in an already stressful time. Preplanning for this can help avoid probate, reduce estate taxes, and ensure your property is distributed how you want. 

How Do I Transfer a Property Title to a Family Member?

Ultimately, the exact logistics of transferring property titles to family members depends on state regulations. Typically, you can sell, gift, or pass down property using various means. However, some states may impose additional taxes depending on how you choose to process the transfer.

It’s a good idea to consult with a local attorney to understand the exact process of transferring property titles in your jurisdiction. This ensures you do everything legally and no surprises arise. 

What Are the Costs Associated With Transferring Property?

The exact costs associated with transferring property depend on several factors. You’ll likely encounter fees such as:

• Legal fees
• Stamp duties
• Registration fees
• Surveyor fees
• Mortgage-related costs
• Taxes
• Inspection fees

To better prepare yourself for the costs, it’s best to research the specific costs in your area. 

Ways to Transfer Property During Your Lifetime

You have several options for transferring your property titles before death. These may include living trusts, transfer-on-death deeds, joint tenancy with the right of survivorship, or gifting the property.

Living Trusts

A living trust helps you avoid probate and its fees. It starts with a declaration of trust, which works similarly to a will. As the trustee, you are responsible for the trust and its property^[1].

Transfer the property to the trust. This includes signing a deed transferring your property from yourself as an individual to yourself as the trustee.

Then, name the people who will inherit the trust’s property after your death. You can change or rescind a revocable trust at any time during your life^[2].

Irrevocable trusts — common mechanisms for reducing assets to qualify for public funding — can only be changed in limited situations.

Sarah-Jane Williams, unregistered barrister

Transfer on Death (TOD) Deeds

Many states allow for TOD deeds, which operate like regular deeds to transfer real estate. However, they take effect only after you have died.

You name the beneficiary of the property and an alternate beneficiary in case the first one is no longer alive at the time of your death. Without an alternate, the property will be placed in probate.

You must sign and notarize the deed. In some states, you’ll need witnesses. Then, file it with the land records office where your property is located^[3].

Joint Tenancy With Right of Survivorship

Joint tenancy with the right of survivorship (JTWROS) protects equal co-owners of a property. If you own property with someone, you can structure the ownership so that when one joint owner dies, their property ownership automatically transfers to the other owner. It allows the property to skip probate.

This can only be established if the co-owners:

• Acquire the assets at the same time
• Have the same title
• Have an equal share of the assets
• Have the same right to possess the asset^[4]

Gifting the Property

You may also gift property to your heirs before death. However, you may be liable for taxes if you give the property for less than its fair market value. For example, if you sell the home to your child for the remainder of the mortgage, but it’s worth double or triple the balance, you may be responsible for the gift tax^[5]. 

However, annual and lifetime gift tax exclusions can reduce your tax liability. In 2024, the annual exclusion is $18,000 per recipient^[6]. Don’t worry, though — once you exceed the annual limit, the amount will be subtracted from your lifetime exclusion, which, as of 2024, is $13.61 million. However, this amount is projected to reduce to around $6 million in 2026, when the Tax Cut and Jobs Act of 2017 expires^[7].

Common Property Title FAQs

Smart Financial Planning Now Maximizes Your Heirs’ Inheritance

By taking control of your finances now and beginning to transfer property titles before death, you help maximize your heirs’ inheritance. You protect your generational wealth from probate fees while ensuring your property is transferred according to your wishes. To truly maximize how much of your wealth is left behind, consider consulting with a legal team and financial advisor well-versed in the process. With smart estate planning now, you’ll be free to enjoy peace of mind for yourself and your loved ones. 

Written by Serena Tanner

Serena Tanner attended the University of Washington, where she earned a degree in philosophy after many detours delving into human rights, law, psychology, and social work. Health and holistic wellness topics continue to hold a special place in her heart. When she's not reading or writing, she can be found exploring the Pacific Northwest with her two children and dogs.

---

Edited by Ani Lahiri

Anitra Lahiri earned her bachelor's degree in English from NYU and holds certifications in Yin Yoga, Prenatal Yoga, Reiki I and II, Natural Health, and SMART Recovery Facilitator Training. She is also completing her 500-hour hatha yoga teacher training in December 2024. By leading addiction recovery meetings, teaching yoga, and writing about wellness, Anitra helps people all over the world bounce back from addiction, incarceration, or traumatic life events. Her passion is encouraging people to tap into their inner wisdom. https://anitralahiri.com/

---

Subject Matter Expert Sarah-Jane Williams, LL.B(Hons)

Sarah-Jane Williams is a seasoned writer with a robust legal background, holding an LL.B (Hons) Bachelor of Laws and a Bar Training Course certification with a 'Very Competent' grade. She was called to the Bar at Lincoln's Inn. Her expertise as a legal SME is complemented by her diverse writing portfolio covering law, senior care, culture, and travel. With over a decade of writing experience, Sarah-Jane's work spans a wide range of subjects from engineering and health to pet care and spiritualism. Her global perspective is enriched by extensive travel and residences across four continents, enhancing her cultural insights and intercultural communication skills. Sarah-Jane's multifaceted background, including roles in housing, research, and advisory capacities, adds depth to her writing, making her a versatile contributor to any niche.