In California, is a Quit Claim better of an InterSpousal Tra

plarson · Joined: 20 Sep 2007 Posts: 2 1.70 Dollars($)

My husband and I own two pieces of property together. We want to both sign off of one so we each have one as our sole and separate property. Is it better to file an InterSpousal Transfer? Are there capital gains, tax ramifications or is it considered a gift if we use this form as opposed to a Quit Claim? What is the difference between the two as far as living in California?

evolovik26 · Posted: Wed Sep 26, 2007 10:04 am Post subject:

Talk to a real estate attorney on this one

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Plarson,

To sign off both of your names from one of the property, you can either use a quitclaim deed or an interspousal deed. Both of the deeds serve more or less the same purpose except for few differences. They are mentioned as follows:

1) Interspousal deed is meant for property transaction among spouses only whereas quitclaim deed is not limited to the use of spouses. It can be used by any person.

2) Interspousal deed is used to convert a community property into a separate property. But a quitclaim deed does not have such provision.

3) In case of quitclaim deed, the heirs of the grantor cannot claim his share of the property after his death, while this situation can be prevented through an interspousal deed.

And as far as the tax is concerned, even if you do a quitclaim or an interspousal transfer of property, you will have to pay a certain amount of gift tax provided you do not qualify for the lifetime gift tax exemption limit.

sara

Hi Plarson,

Depending upon the state where you are in, it can be either interspousal or quitclaim deed. To know more on this, refer to a previous discussion on Which is better - Interspousal or Quitclaim.

Take care and feel free to ask further

All times are GMT - 7 Hours

Page 1 of 1