Deed to Trust
(CO)

Summary

This template is a quitclaim deed used to retitle real property owned by a settlor to a revocable trust. It is for use in Colorado. This template includes practical guidance, drafting notes, and alternate and optional clauses. Colorado statutes include the required language for a quitclaim deed (as well as general warranty deed, special warranty deed, and a bargain-and-sale deed). See Colo. Rev. Stat. §§ 38-30-113–38-30-116. It is best practice for attorneys to use the statutory forms unless the attorney identifies a compelling circumstance that necessitates the use of another form. Colorado law does not prohibit additions or modifications to the statutory forms if the attorney deems such additions or modifications beneficial to the client. The essential terms of a deed include the identity of the grantor, the grantee, a description of the property conveyed and covenants, if any. See Colo. Rev. Stat. §§ 38-30-120–38-30-121. The deed should be recorded in the county where the real property is situated. Check the recording requirements with the appropriate county recorder's office. A document presented for recording in the office of a Colorado county recorder must meet the following requirements: • All deeds must include the legal address of the grantee printed on the face of the document. • A top margin of at least 1" and left, right, and bottom margins of at least ½ inch. • All deeds must be accompanied by a transfer declaration or TD-1000. • Name and address of the person to whom the document should be returned after recording. • The proper consideration and/or sales price should be listed on the face of the deed and on the transfer declaration. Colo. Rev. Stat. §§ 38-50-101, 38-35-109, 39-14-102 and 30-10-406. There is no specific page-size requirement but deeds larger than 8 1/2" x 14" may incur an additional filing fee. Usually, the best source for the legal description is a recent title commitment from the title company that will issue the title insurance policy related to the property. It should also contain information about where the deed should be sent after it has been recorded. Counsel should retain a file-stamped copy of the deed as evidence of recording, since it may take several weeks before the copy of the deed that includes the deed book and page information is received from the clerk of the court. Check if the Colorado county you need to record in offers e-recording since it expedites the recording process. If the subject property is indebted, you should contact the mortgagor to ensure that (1) the account is current, and (2) the deed will not trigger a "due on sale" clause in the note as an unintended consequence of the transfer to the trust. See., e.g., 12 U.S.C. § 1701j-3(d)(8) and 12 C.F.R. §§ 191.2(g) and 191.5. This is usually not a concern when the settlor is presently living on the property. If the property is not the settlor's primary residence, however, address this prior to executing and recording the deed. Colorado passed a constitutional amendment in 1992, the Taxpayer's Bill of Rights (TABOR), freezing all real estate transfer taxes and prohibiting any new transfer taxes. However, there are 12 towns in the mountains and on the Western Slope authorized to impose real estate transfer taxes since no state law prohibited the adoption of local transfer taxes at the time these municipalities established their real estate transfer tax. The towns with authority to issue the real estate transfer tax are Aspen, Avon, Breckenridge, Crested Butte, Frisco, Gypsum, Minturn, Ophir, Snowmass Village, Telluride, Vail, and Winter Park. After TABOR, lawmakers created a documentary fee for property transfers, which essentially function as a transfer tax. Currently, Colorado law authorizes all counties to collect this documentary fee. Colo. Rev. Stat. § 39-13-101 et seq. The transfer of real property from a settlor of a revocable trust to a trustee where consideration is less than $500, is usually exempt from this documentary fee. See Colo. Rev. Stat. § 39-13-104. The individual recording the instrument must claim the exemption at the time a deed is offered for recording by adding a note at the bottom of the deed. See Colo. Rev. Stat. § 39-13-104(2). When recording a deed, you should also draft and record a Statement of Authority to provide prima facie evidence of the authority of the persons named in the document to act on behalf of the trust to convey, encumber, or otherwise affect title to real property titled in the name of the trust. See Colo. Rev. Stat. § 38-30-172 and THE GREEN BOOK STATEMENT OF AUTHORITY (2014). Thereafter, a new Statement of Authority should be recorded whenever there is a change in the identity of the trustee or a change in the trust's mailing address. This deed is for use by an individual, unmarried grantor, but may be modified for co-grantors. Transferring real property to a revocable trust is just one step of the multi-step process for funding a trust as shown in the visual below: Visualization of Revocable Trust Drafting and Funding For a letter providing guidance on transferring assets to a revocable trust, see Letter to Client (Funding of Revocable Trust) (CO). For a full listing of key content on creating an estate plan for an individual with a spouse or partner residing in Colorado, see Estate Plan for Individual with Spouse or Partner Resource Kit (CO).