Can a Property Listed in a Living Trust Be Quitclaimed to a Third Party Without Being Removed from the Trust?

If a property has been properly transferred to the Trust (i.e. the Trust has been properly funded and a Quitclaim Deed has been filed using the Trust name), then only the Trustee can transfer the property “back out of” the Trust and to a third party.

The Trust document must also authorize or empower the Trustee to take such action (or grant the Trustee the discretion to transfer the property).

The Trustee, when possessing the proper authority to do so from the Trust document, can transfer property to a third party directly from the Trust without first “removing it” from the Trust.

But if the property was never transferred into the Trust via Quitclaim Deed as required, the Trust nor Trustee never took ownership of the property — and thus the person whose name appears on the Deed can transfer it to another party regardless of whether the Trust document describes or mentions that particular property.

To create a properly funded Trust without the expense of an attorney, see Standard Legal’s Living Trust legal forms software package.

To create a valid do-it-yourself Quitclaim Deed, see Standard Legal’s Quitclaim, Warranty and Survivorship Deeds legal forms software package.