Legal Question in Real Estate Law in North Carolina

Re: Land Deed

Your grandfather should hire the attorney and the transaction may not be simple. First if you prepare the deed yourself, you are liable to make mistakes that could create some title issues down the road.

An attorney would probably charge $75-$100 to prepare a "simple" deed. That would not include any advice. For instance here are some of the things to consider.

Please be aware that lifetime transfers of property may have some or all of the following tax or legal consequences, which you would be wise to consider before deeding property or accepting receipt of property.

1. If by Gift, depending upon the value of the property, gift tax returns and/or gift taxes (Federal and/or State of North Carolina) may be imposed upon the transfer.

2. Advantages of a stepped-up basis obtained when property passes after the death of a property owner could be lost by prematurely making a gift of the property.

3. Once the property has been deeded, the person to whom it is deeded could sell or gift the property to another, or pledge the property as collateral for a loan.

4. Judgments or liens against the person(s) to whom the property is deeded will become a lien on the property.

5. Marital interests of the spouse of the person to whom the property is conveyed

may attach to the property.

6. Benefits of county and municipal ad valorem (property) tax regulations, such

as elderly exemptions and farm deferment tax eligibility may be lost by virtue of this proposed deed.

7. This transfer may delay eligibility or disqualify the Grantor for Medicaid benefits if made within a certain period of time prior to the Grantor�s application for such benefits. (These rules and regulations are constantly being revised and the latest guidelines may be obtained through the local County Department of Social Services)

8. No opinion on the title to the property which is the subject of this deed, and this deed is made without the benefit of a title examination which will be noted on the face of the deed.