Sandra is transferring her Larimer County investment property into her revocable living trust. The deed states the consideration as $0 because no money is changing hands. The county clerk assesses the documentary fee based on the property's fair market value of $400,000. Sandra objects, stating the fee should be zero because the consideration is $0. Which party is correct?
Correct Answer
A) Sandra is correct; transfers into a revocable living trust by the same owner are exempt from the documentary fee
Under C.R.S. § 39-13-104, certain transfers are exempt from the Colorado documentary fee, including transfers to a revocable trust where the grantor is also the trustee or a beneficiary and retains control of the property. A transfer by an individual into their own revocable living trust is a recognized exemption because there is no true change in beneficial ownership. Sandra's transfer qualifies for this exemption, and the fee should not be assessed.
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