Fill and Sign the Michigan Enhanced Life Estate Deed Form

© 2016 - U.S. Legal Forms, Inc.       MICHIGAN ENHANCED LIFE ESTATE DEED [A.K.A. Lady Bird Deed] [Two Individuals / Husband and Wife to Three Individuals] Control Number: MI-08-82 I. TIPS ON COMPLETING THE FORMS The form(s) in this packet may contain “form fields” created using Microsoft Word or Adobe Acrobat (“.pdf” format). “Form fields” facilitate completion of the forms using your computer. They do not limit your ability to print the form “in blank” and complete with a typewriter or by hand. It is also helpful to be able to see the location of the form fields. Go to the View menu, click on Toolbars, and then select Forms. This will open the Forms toolbar. Look for the button on the Forms toolbar that resembles a shaded letter “a”. Click this button and the form fields will be visible. By clicking on the appropriate form field, you will be able to enter the needed information. In some instances, the form field and the line will disappear after information is entered. In other cases, it will not. The form was created to function in this manner. II. TIPS ON FILING THE FORMS Michigan Transfer tax shall be collected on the total value of the land being transferred unless exempt from either or both acts; the exemption(s) must be stated on the instrument . MCLA 207.502, 207.511, MCLA 207.526, 207.533 or a Michigan “Real Estate Transfer Valuation Affidavit” must be filed. A. Exemptions for the Real Estate Transfer Tax (County) are contained in § 207.505: 207.505 Exemptions. Sec. 5. The following instruments and transfers shall be exempt from this act: (a) Instruments where the value of the consideration is less than $100.00. (b) Instruments evidencing contracts or transfers which are not to be performed wholly within this state insofar as such instruments include land lying outside of this state. (c) Written instruments which this state is prohibited from taxing under the constitution or statutes of the United States. (d) Instruments or writings given as security or any assignment or discharge thereof. (e) Instruments evidencing leases, including oil and gas leases, or transfers of such leasehold interests. (f) Instruments evidencing any interests which are assessable as personal property. (g) Instruments evidencing the transfer of rights and interests for underground gas storage purposes. (h) Instruments (i) in which the grantor is the United States, the state, any political subdivision or municipality thereof, or officer thereof acting in his official capacity; (ii) given in foreclosure or in lieu of foreclosure of a loan made, guaranteed or insured by the United States, the state, any political subdivision or municipality thereof or officer thereof acting in his official capacity; (iii) given to the United States, the state, or 1 of their officers as grantee, pursuant to the terms or guarantee or insurance of a loan guaranteed or insured by the grantee. (i) Conveyances from a husband or wife or husband and wife creating or disjoining a tenancy by the entireties in the grantors or the grantor and his or her spouse. (j) Judgments or orders of courts of record making or ordering transfers, except where a specific monetary consideration is specified or ordered by the court therefor. (k) Instruments used to straighten boundary lines where no monetary consideration is given. (l) Instruments to confirm titles already vested in grantees, such as quitclaim deeds to correct flaws in titles. (m) Land contracts whereby the legal title does not pass to the grantee until the total consideration specified in the contract has been paid. (n) Instruments evidencing the transfer of mineral rights and interests. (o) Instruments creating a joint tenancy between 2 or more persons where at least 1 of the persons already owned the property. B. Exemptions for the Michigan (State) Real Estate Transfer Tax Act are contained in § 207.526: 207.526 Written instruments and transfers of property exempt from tax. Sec. 6. The following written instruments and transfers of property are exempt from the tax imposed by this act: (a) A written instrument in which the value of the consideration for the property is less than $100.00. (b) A written instrument evidencing a contract or transfer that is not to be performed wholly within this state only to the extent the written instrument includes land lying outside of this state. (c) A written instrument that this state is prohibited from taxing under the United States constitution or federal statutes. (d) A written instrument given as security or an assignment or discharge of the security interest. (e) A written instrument evidencing a lease, including an oil and gas lease, or a transfer of a leasehold interest. (f) A written instrument evidencing an interest that is assessable as personal property. (g) A written instrument evidencing the transfer of a right and interest for underground gas storage purposes. (h) Any of the following written instruments: (i) A written instrument in which the grantor is the United States, this state, a political subdivision or municipality of this state, or an officer of the United States or of this state, or a political subdivision or municipality of this state, acting in his or her official capacity. (ii) A written instrument given in foreclosure or in lieu of foreclosure of a loan made, guaranteed, or insured by the United States, this state, a political subdivision or municipality of this state, or an officer of the United States or of this state, or a political subdivision or municipality of this state, acting in his or her official capacity. (iii) A written instrument given to the United States, this state, or 1 of their officers acting in an official capacity as grantee, pursuant to the terms or guarantee or insurance of a loan guaranteed or insured by the grantee. (i) A conveyance from a husband or wife or husband and wife creating or disjoining a tenancy by the entireties in the grantors or the grantor and his or her spouse. (j) A conveyance from an individual to that individual's child, stepchild, or adopted child. (k) A conveyance from an individual to that individual's grandchild, step-grandchild, or adopted grandchild. (l) A judgment or order of a court of record making or ordering a transfer, unless a specific monetary consideration is specified or ordered by the court for the transfer. (m) A written instrument used to straighten boundary lines if no monetary consideration is given. (n) A written instrument to confirm title already vested in a grantee, including a quitclaim deed to correct a flaw in title. (o) A land contract in which the legal title does not pass to the grantee until the total consideration specified in the contract has been paid. (p) A written instrument evidencing the transfer of mineral rights and interests. (q) A written instrument creating a joint tenancy between 2 or more persons if at least 1 of the persons already owns the property. (r) A transfer made pursuant to a bona fide sales agreement made before the date the tax is imposed under sections 3 and 4, if the sales agreement cannot be withdrawn or altered, or contains a fixed price not subject to change or modification. However, a sales agreement for residential construction may be adjusted up to 15% to reflect changes in construction specifications. (s) A written instrument evidencing a contract or transfer of property to a person sufficiently related to the transferor to be considered a single employer with the transferor under section 414 (b) or (c) of the internal revenue code of 1986, 26 U.S.C. § 414 . (t) A written instrument conveying an interest in property for which an exemption is claimed under section 7cc of the general property tax act, 1893 PA 206, MCL 211.7cc , if the state equalized valuation of that property is equal to or lesser than the state equalized valuation on the date of purchase or on the date of acquisition by the seller or transferor for that same interest in property. If after an exemption is claimed under this subsection, the sale or transfer of property is found by the treasurer to be at a value other than the true cash value, then a penalty equal to 20% of the tax shall be assessed in addition to the tax due under this act to the seller or transferor. (u) A written instrument transferring an interest in property pursuant to a foreclosure of a mortgage including a written instrument given in lieu of foreclosure of a mortgage. This exemption does not apply to a subsequent transfer of the foreclosed property by the entity that foreclosed on the mortgage. (v) A written instrument conveying an interest from a religious society in property exempt from the collection of taxes under section 7s of the general property tax act, 1893 PA 206, MCL 211.7s , to a religious society if that property continues to be exempt from the collection of taxes under section 7s of the general property tax act, 1893 PA 206, MCL 211.7s. NOTE: Select the appropriate subsection(s) and enter into the body of the deed. C. If the amount of the consideration paid for the transfer of the property is not stated on the face of the deed, you must complete and file the Michigan “Real Estate Transfer Valuation Affidavit.” It is a state form and is available for download at the following site: http://www.michigan.gov/documents/l4260f_2688_7.pdf III. CONCURRENT OWNERSHIP In the State of Michigan, real property can be held by more than one person (concurrent estates) in the following ways: A. If the Grantees ARE NOT married to each other, they can hold the property as: 1. Tenants in Common: a type of concurrent estate in which each party owns an undivided interest in the property that will pass to their heirs when the tenant in common dies. Generally their shares are “equal” but may differ in size. 2. Joint Tenants with the Right of Survivorship ( JTWROS) : is a type of concurrent estate in which co-owners have a right of survivorship , meaning that if one owner dies, that owner's interest in the property will pass to the surviving owner or owners by operation of law, and avoiding probate. B. If the Grantees ARE married to each other, they can hold the property as: 1. Tenants in Common – See above 2. Joint Tenants with the Right of Survivorship – See above 3. Tenants by the Entirety - a type of concurrent estate formerly available only to married couples, where ownership of property is treated as though the couple were a single legal person. Like a JTWROS, the tenancy by the entirety also encompasses a right of survivorship, so if one spouse dies, the entire interest in the property passes to the surviving spouse, without going through probate. C. In the attached deed, the preparer will need to indicate how the Grantees will hold the property D. For additional information on the above, see the definitions at: http://lawdigest.uslegal.com/ E. For example: “as Tenants in Common ,” IV. DISCLAIMER These materials were developed by U.S. Legal Forms, Inc. based upon statutes and forms for the state of Michigan. All information and Forms are subject to this Disclaimer: All forms in this package are provided without any warranty, express or implied, as to their legal effect and completeness. Please use at your own risk. If you have a serious legal problem, we suggest that you consult an attorney in your state. U.S. Legal Forms, Inc. does not provide legal advice. The products offered by U.S. Legal Forms (USLF) are not a substitute for the advice of an attorney. THESE MATERIALS ARE PROVIDED “AS IS” WITHOUT ANY EXPRESS OR IMPLIED WARRANTY OF ANY KIND INCLUDING WARRANTIES OF MERCHANTABILITY, NONINFRINGEMENT OF INTELLECTUAL PROPERTY, OR FITNESS FOR ANY PARTICULAR PURPOSE. IN NO EVENT SHALL U.S. LEGAL FORMS, INC. OR ITS AGENTS OR OFFICERS BE LIABLE FOR ANY DAMAGES WHATSOEVER (INCLUDING WITHOUT LIMITATION DAMAGES FOR LOSS OR PROFITS, BUSINESS INTERRUPTION, LOSS OF INFORMATION) ARISING OUT OF THE USE OF OR INABILITY TO USE THE MATERIALS, EVEN IF U.S. LEGAL FORMS, INC. HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. ENHANCED LIFE ESTATE DEED [Two Individuals / Husband and Wife to Three Individuals] KNOW ALL MEN BY THESE PRESENTS THAT: Grantors:       , whose street address is       , in the County of       , State of       ; and       , whose street address is       , in the County of       , State of       , husband and wife Transfer, Convey and Quitclaim to Grantees:       , whose street address is       in the County of       , State of       ;       , whose street address is       in the County of       , State of       ; and       , whose street address is       in the County of       , State of       ; as       , Enhanced Life Estate Deed Page 1 of 3 the real property commonly known as       , in       [City, Township, Village], County of       , Michigan, and described as: Tax Identification No.       See Legal Description Attached as Exhibit A incorporated by reference as though set forth in full Legal Description:       the Premises, for the full consideration of less than $100.00 , subject to any easements and building and use restrictions of record and the lien of taxes not yet due and payable. Grantors reserve during the life of each Grantor a life estate coupled with an unrestricted power to convey, which includes the power to sell, gift, mortgage, lease and otherwise dispose of the premises during the Grantor’s lifetime, pursuant to Land Title Standard 9.3. This conveyance is exempt from the real estate transfer tax under the provisions of MCL 207.505(       ) and MCL 207.526(       ). Date:       (1 st Grantor’s Signature) (2 nd Grantor’s Signature)             Print Name Print Name STATE OF MICHIGAN, COUNTY OF       The foregoing instrument was acknowledged before me this       Enhanced Life Estate Deed Page 2 of 3 (date) by       . Notary Public, State of       My commission expires:             Type or Print Name STATE OF MICHIGAN, COUNTY OF       The foregoing instrument was acknowledged before me this       (date) by       . Notary Public, State of       My commission expires:             Type or Print Name Drafted by and return to:                   Send subsequent tax bills to:                   Recording Fee: State Transfer Tax: County Transfer Tax: $       $       $       Enhanced Life Estate Deed Page 3 of 3 EXHIBIT A Grantors:       Grantees:                   Legal Description:       Enhanced Life Estate Deed Exhibit A