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How To Transfer Property Title To Family Member In Georgia

How To Transfer Property Title To Family Member In Georgia - Transferring Property To A Family Member - Adding A Family Member To Property Title

Wondering how to transfer property to family members in Georgia? 

In this article, you’ll learn about: 

  • how to transfer property (actionable, step-by-step)
  • your options on how to transfer property
  • how to transfer property tax-free

Keep scrolling to learn more.

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How To Transfer Property Title To Family Member In Georgia

Here’s how to property title to a family member in Georgia:

1. Determine the Type of Deed

Picking the type of deed is important in the property transfer process. 

Different deeds offer varying levels of protection and guarantees for the property’s title. 

In Georgia, the most common types of deeds used for transferring property are:

Here’s a detailed explanation of each:

  • Warranty Deed: These are like a promise that the seller owns the property free and clear of any problems. (i.e., unpaid debts or legal claims) It’s the safest type of deed for the buyer. This is because the seller guarantees there are no hidden issues with the property.
  • Quitclaim Deed: A Quitclaim Deed is more of a “no promises” deed. It transfers whatever ownership the seller has, but doesn’t guarantee anything about it. It’s often used in family transfers where there’s trust and not much need for legal guarantees.
  • Special Warranty Deed: A Special Warranty Deed is a mix between the two. The seller only promises that there were no problems with the property during their ownership. It doesn’t cover issues that might have existed before they owned it.

If you need help choosing one, fill out the form on this site. 

Our estate attorneys can guide you through the process. 

Read More: Does A Quitclaim Deed Give You Ownership?

2. Prepare the Deed

Here’s a detailed explanation of how to prepare the deed:

  1. Select the Right Deed Type: Choose from one of the deeds discussed above. Choose based on your need for security in the transfer.
  2. Get a Deed Form: Find a deed form online, at an office supply store, or get one from an estate attorney. We can provide you with one. Make sure it’s specific to Georgia.
  3. Fill Out the Form:
    • Describe the Property: Use the legal description from your current deed or property tax bill, not just the address.
    • Identify the Parties: Write the full legal names of the current owner (grantor) and the new owner (grantee).
    • State the Deed Type: Specify whether it’s a Warranty Deed or Quitclaim Deed.
    • List the Price or Gift: Mention what the new owner is giving in return, even if it’s just a symbolic amount or stated as a gift.
  4. Double-Check the Details: Make sure all the information is correct and complete. Errors can cause big problems later.
  5. Sign and Notarize the Deed: The current owner needs to sign the deed in front of a notary public. This is a legal requirement.
  6. Witnesses: Some places in Georgia might require witnesses when you sign the deed. Check if this is needed in your area.
  7. Optional Review: If you’re not sure about the form or the process, consider having an estate lawyer look over the deed before you finalize it.

Read More: How To Add A Spouse To The House Deed In Georgia

3. Sign The Deed

  • Get a Notary: Find a Notary Public. This is someone legally authorized to witness document signings. They’ll check your ID and watch you sign the deed.
  • Have Two Witnesses: You need two people to witness your signature. One can be the Notary Public, and the other should be someone not involved in the deed.
  • Sign in Front of Them: Sign the deed while both the Notary and your second witness are watching. This is essential for the process.
  • Notary and Witnesses Sign Too: After you sign, the Notary will add their official stamp and signature to the deed. Your second witness will also sign, confirming they saw you sign.
  • Understand What You’re Signing: Ensure you read and fully understand the deed before you sign it. Feel free to ask questions if anything needs to be clarified.
  • Do It Voluntarily: Make sure you sign the deed of your own free will, without any pressure or coercion.
  • Keep a Copy: Once all signatures and stamps are on the deed, keep a copy for your records. The original document gets filed with the county office to complete the property transfer.

Remember, this process ensures that the property transfer is legal and agreed upon. 

Let’s say you’re unsure about any part of the process. 

Fill out the form on this page to talk to an estate lawyer.

4. File the Transfer Tax Form

For Georgia, you need to file the Transfer Tax Form (Form PT-61).

Here are the steps to filing this form: 

  • Understand the Purpose: The PT-61 form is required for all property transfers in Georgia. This includes sales, gifts, or other transfers.
  • Determine If You Owe Tax: Transfer tax is typically $1 per $1,000 of property value. For gifts, it’s based on the fair market value.
  • Go Online to File: Visit the Georgia Superior Court Clerks’ Cooperative Authority (GSCCCA) website and create an account if you don’t have one.
  • Fill Out the Form Online: Complete Form PT-61 on the GSCCCA website. You need to provide details like property address, names of parties involved, and property value.
  • Print the Completed Form: Print a copy of the filled-out form for recording with the deed.
  • Record the Deed and Form: Take the deed and printed PT-61 form to the Clerk of the Superior Court’s office in the county where the property is located to officially record the transfer.
  • Check for Exemptions: Some transfers, such as between spouses or from parent to child, may be exempt from tax but still require the form with the exemption reason stated.
  • Avoid Delays: File the PT-61 form simultaneously as you record the deed to prevent penalties.

5. Record the Deed

The next step is going to be to record the deed. 

  • Check Your Deed: Ensure the deed is correctly filled out. It needs the property’s legal description and the names of the current owner and new owner. Also, confirm the type of deed (warranty, quitclaim, etc.).
  • Get the Deed Notarized: Have the seller sign the deed in the presence of a notary public. This confirms the seller’s identity.
  • Witnesses Required: Get two witnesses for the signing of the deed.
  • Fill Out a Transfer Tax Form: Complete the tax form related to property transfer. (Unless you’re exempt for certain family transfers.)
  • Visit the County Clerk’s Office: Bring the signed, notarized deed and the completed tax form to the Superior Court’s office where the property is located.
  • Pay the Recording Fee: Pay the necessary fee to record the deed, which varies by county and the length of the deed.
  • Record the Deed: Have the Clerk’s office officially record the deed in the county records.
  • Get a Recorded Copy: Get a copy of the recorded deed for personal records, which may involve a small fee.

6. Handle Taxes, Debts, and Mortgage

After you record the deed, here are the next steps. 

You need to update your taxes and the mortgage on the property.

  • Inform the Tax Assessor’s Office: After you record the deed, let the local tax assessor’s office know about the change in ownership. You’ll need to provide them with the details of the property transfer and show them the recorded deed. This step is important because it updates who is responsible for property taxes.
  • Update Homestead Exemption: Let’s say the property you’re transferring has a homestead exemption. (This is a tax break for the primary home.) The new owner must apply to get this exemption in their name. This usually means filling out a form at the county’s tax assessor’s office. Doing this ensures the new owner keeps getting the tax benefits for the property.
  • Deal with Mortgages or Liens: Make sure any debts or claims tied to the property are taken care of. (i.e., a mortgage or liens, which are claims for unpaid debts.) This could mean paying off the mortgage or having the new owner agree to take over the mortgage payments. If there are any liens, they need to be cleared. This step is very important. You need to make sure the property ownership is transferred cleanly, without any debts hanging over it.

7. Keep Copies

To manage and keep copies of your documents, start by making clear copies of:

  • the deed
  • any transfer tax form you filled out
  • all receipts and correspondence related to the property transfer

If possible, color copies are preferable for clarity.

You should keep one complete set of these copies for yourself.

And then provide another set to the new owner.

Store your copies in a safe and secure place in your home.

This would be places like a locked drawer or a safe.

Make digital scans to store on your computer or in the cloud for extra security.

Choose a storage spot that’s dry and cool to prevent damage.

Also, tell a trusted family member or friend about where you’ve stored these documents.

This ensures that someone else knows where to find them if necessary.

Ways To Transfer Property Titles To A Family Member

There are several ways to transfer property title to a family member.  

These strategies include:

Warranty Deed

A warranty deed is used for transferring property with a guarantee. 

The guarantee is that the grantor holds a clear title. 

A warranty deed in Georgia requires:

  • a written document
  • a legal description of the property
  • the grantor’s signature

It provides high legal protection for the grantee.

Quitclaim Deed

This deed transfers the grantor’s interest in the property without warranties.

It requires a written document, a legal description, and the grantor’s signature. 

It is simpler and commonly used among family members. 

But a QCD offers less legal protection.

Gift Deed

Used when the property is given as a gift, not sold. 

The deed must state that the transfer is a gift. 

This method has potential tax implications for both parties involved.

Life Estate

Grants someone rights to the property during their lifetime.

After which it passes to another person.

The deed must specify the life estate and remainder interests.

The life tenant cannot sell the property without the remainderman’s consent.

These are messy for the people who inherit the property.

Trusts

Property is placed in a trust with a trustee managing it for beneficiaries. 

It involves creating a trust agreement and transferring the property title to the trust. 

This can offer tax benefits and help avoid probate.

Read More: Tax Implications Of Transferring Property Into A Trust

Transfer on Death Deed

You can name a beneficiary who will inherit the property upon the owner’s death.

This avoids the probate process.  

The transfer on death deed must be recorded before the owner’s death.

Joint Tenancy with Right of Survivorship

This is joint ownership of property. 

The surviving owner(s) automatically inherit the property when another owner dies. 

It requires a deed indicating joint tenancy and may have tax implications.

Can I Transfer Property To A Family Member Tax-Free?

Yes, you can transfer property to a family member tax-free. 

Here are the different ways to transfer property tax-free to family members:

  • Gift Each Year: You can gift up to $16,000 per year to someone without paying taxes. If you’re married, you and your spouse can each give $16,000.
  • Spread Out Big Gifts: Let’s say the property is worth more than $16,000. You could give part of it one year and the rest in another year to avoid taxes.
  • Gift Tax Form for Large Gifts: If you give more than $16,000 in a year, you’ll need to fill out a tax form. But you probably won’t pay any taxes unless you’ve given away a lot over your lifetime.
  • Use a Quitclaim Deed for Houses: To give a house or land, you can use a simple form called a quitclaim deed. But it’s a good idea to talk to a lawyer to make sure it’s done right.
  • Check with a Tax Expert: Tax rules can be complicated, so it’s best to get advice from a tax professional or lawyer.
  • Capital Gains Tax for the Receiver: The person will have to pay taxes on the profit if they sell it later.
  • Think About Medicaid: Let’s say you need Medicaid soon. Giving away property can affect your eligibility.

Transfer Property To A Family Member

If you want help transferring property to a family member, fill out the form below. 

At The Hive Law, we understand the importance of:

  • protecting your hard-earned assets 
  • ensuring your family’s future
  • not losing everything to creditors and lawsuits
  • properly (and legally) distributing assets 

We only accommodate a limited number of clients each month.

So don’t miss your opportunity to work with our estate lawyers.

Benefits of our estate services:

  • Tailored solutions to fit your unique needs and goals
  • Expert guidance in navigating complex tax and legal matters
  • Preservation of your wealth for future generations
  • Streamlined asset distribution according to your wishes

Avoid the pitfalls of inadequate estate planning strategies:

  • Creditors seizing your assets
  • Lawsuits jeopardizing your family’s financial security
  • Family disputes over inheritance
  • Costly and time-consuming probate processes

Talk soon.

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