Legal Question in Real Estate Law in Florida

Re: will vs quit deed

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A Quit Claim Deed takes precedent over the Last Will and Testament because it takes the property out of the estate and is not part of it.

Unfortunately, it is often not the best way to transfer property from one relative to another.

By transferring the property now, you have lost the right for a stepped up basis on the property at the time of the decedent's demise. Your basis will be the amount the grantor originally paid for the house and not the value on the date of his/her death which it otherwise would have been if transferred through probate.

Capital gains taxes on its eventual sale are based on the difference between the purchase price (basis) and the net selling price after various allowable deductions for improvements and costs of the sale.

Scott R. Jay, Esq.