Detailed Answer
Disclaimer: This article is for educational purposes only and is not legal advice. Consult a qualified attorney to discuss your specific situation.
If you’ve created a revocable living trust or will in Alabama, you must transfer legal title of your real property into your estate vehicle (the trust or probate estate) to achieve your planning goals. Simply naming assets in a trust or will does not move title. Here are the key steps:
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Review the Current Title:
- Obtain a certified copy of your existing deed from the Probate Judge’s office in the county where the property lies.
- Confirm the legal description, current owner name(s), and vesting style (sole ownership, tenancy by the entirety, joint tenancy, etc.).
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Choose the Appropriate Transfer Method:
- Revocable Trust: For estate planning, most use a revocable living trust. The trustee (initially you) holds title, with successor trustees named.
- Beneficiary Deed (if available): Alabama does not currently recognize a statutory transfer-on-death deed for real estate. Instead, use your trust or pour-over will.
- Pour-Over Will: A will that “pours” probate assets into your trust. Real property not retitled pre-death will go through probate and then into the trust under your pour-over will provisions.
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Prepare a New Deed:
- Work with a licensed Alabama attorney or title company to draft a deed transferring your property from yourself (or joint owners) to yourself as trustee of your revocable living trust.
- Include the full name of the trust, date of execution, and legal description of the property.
- Ensure all current owners sign the deed before a notary public and two witnesses, if required by your county.
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Record the Deed:
- Take or mail the signed and notarized deed to the Probate Judge’s office in the county where the land is located.
- Pay the recording fee (varies by county).
- Obtain a certified copy showing the recording information and date.
- Reference Ala. Code § 35-4-90 for recording requirements: Ala. Code § 35-4-90.
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Update Related Documents:
- Contact your mortgage lender if there’s an outstanding loan. Many permits “deed transfers” to a revocable trust without “due-on-sale” acceleration, but lender approval may be required.
- Update homeowner’s insurance to reflect the trust as the insured party.
- Keeps copies of the recorded deed with your other estate planning documents; give copies to successor trustees and your attorney.
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Verify at Death:
- Because the property is already titled in the trust, it avoids Alabama probate and passes directly according to the trust terms.
- If you used a pour-over will only, the property enters probate and must be inventoried, then transferred into the trust as directed by the court.
Helpful Hints
- Start early: Recording the trust deed before incapacity or death avoids last-minute complications.
- Double-check the legal description: Even one typo can delay recording.
- Keep all originals and certified copies in a fireproof safe or with your estate planning attorney.
- Review your trust every 3–5 years, or after major life events (marriage, divorce, new real estate acquisitions).
- Consult an Alabama attorney to confirm county-specific requirements and fees.