What is an Interspousal Transfer Deed?
If you live in a community property state and are married, you may have the option of signing an interspousal transfer deed (ITD) to transfer title of your home to your spouse. By signing an ITD, you can avoid probate and the potential for estate taxes upon your death.
Interspousal Transfer Deed explained
In community property states, all property acquired during marriage is considered jointly owned by both spouses, regardless of whose name is on the deed or title. This means that when one spouse dies, their share of the community property passes to the surviving spouse automatically. However, if the deceased spouse had any separate property—property that was acquired before marriage or after Legal separation—the surviving spouse will not inherit that property automatically.
An ITD is a document that states that you are transferring your interest in the property to your spouse. By signing an ITD, you can make sure that your share of the community property passes to your spouse without going through probate. This can save time and money, as probate can be a lengthy and expensive process.
Before signing an ITD, it is important to speak with an attorney to make sure that it is the best option for you and your family. An ITD may not be right for everyone, so it is important to understand all of the implications before making a decision.
An interspousal transfer deed (ITD) can be a helpful tool for married couples who own property in a community property state. By signing an ITD, you can ensure that your share of the community property passes to your spouse without going through probate. However, it is important to speak with an attorney before signing an ITD, as it may not be right for everyone.