"depending upon state law, you might wind up in probate court which can be a hassle and you and your husband will incur additional expenses."
I have been reading quite a few of you posts and feel you are really an expert in this area of tax laws.
But I do want to ask you why this type of transfer could end up in a probate court in some states? Is the quitclaim form or process not completely legal in those states? What if the transfer is done with a Grant Deed and recorded in the county office in place of a quitclaim form?
Thank You.
Although there have been many comments made in this three year old thread, this is a legal question. I would advise speaking with an attorney to understand the details of a quitclaim deed versus a grant deed.
see this link for a lawyer's take on pros and cons if such deeds.
https://www.redfin.com/blog/what-is-a-quitclaim-deed/?msockid=3e2117998d1967073eb702978cdd66a5
the gift tax implications would be if one party was making a gift of some or all of their interest to a non-spouse. if the value was over the gift tax limit a gift tax return should be filed. Income tax implications, with a gift the donee receives the lower of the donor's tax basis or fair market value. if depreciation was taken, the donee would be responsible for reporting the depreciation recapture when the property was sold.