-Tip Sheet by Mark W. Bidwell
Often Hawaii timeshares are not funded or omitted from trusts. A timeshare not owned or titled in a trust is at risk for probate. This column explains how quit claim deeds for Hawaii timeshares fund trusts and avoid probate.
How a trust avoids Probate
Real estate is transferred into trust by quit claim deed while the person is living. When the person dies real property is transferred by the successor trustee from the trust to persons who are living as directed in the trust. These documents are filed with the Hawaii Bureau of Conveyances. The successor trustee does not need letters testamentary or an order from the probate court.
Quit Claim Deed Explained
Quit claim deeds do not contain any implied warranties. The owner ‘quit claims’ whatever ownership interest he or she has along with any debt or loans secured by the property. The quit claim owner makes no promises and the property is taken ‘as is.’ A quit claim is the easiest and cheapest way to transfer ownership of a timeshare into a trust.
Form P-64B, Exemption from Conveyance Tax Explained
The State of Hawaii collects a transfer tax on all filings or recordings with the Bureau of Conveyances. But there are exclusions. Transfers in and out of a trust are exempt. To obtain the exclusion, either the Grantor or the Grantee completes Form P-64B, ‘Exemption from Conveyance Tax’ and submits the form with the quit claim deed.
Why Record the Deed with the Bureau?
The deed must be made part of the public record so the world knows there has been a change of title. The deed must be recorded the Bureau of Conveyances to put the world on notice of how the timeshare is titled or owned.
Make it “Legal”
A properly prepared quit claim deed must have a legal description so the Bureau of Conveyances’ office can add the deed to the public chain of title. The legal description is not the street address. The Bureau of Conveyances will not accept a quit claim deed without a legal description.
Mark W. Bidwell, Attorney at Law and CPA, Inactive, is the owner of Deed and Record, a service that prepares quit claim deeds for Hawaii timeshares into or out of trusts, removes former spouses and adds or remove co-owners. The Company records deeds it has prepared with the appropriate government agency. Deed and Record does not offer legal advice or services.
The Company markets through websites, primarily DeedAndRecord.com. The office is located at 18831 Von Karman Avenue, Suite 270, Irvine, California 92612. Phone number is 949-474-0961. Email is Mark@DeedandRecord.com.
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