Posted on: 19th May, 2007 04:55 pm
what is valuable consideration? If one souse wants to issue a quitclaim deed to the other, would $1.00 qualify for valuable consideration?
Hi Pamela,
Welcome to the forums.
In order to draft out a valid and binding contract, a valuable consideration is required. The consideration is a promise to perform an act or prevent oneself from doing something that one is legally supposed to do. The consideration can be money or a performance having monetary value or any asset.
Coming to your query, the $1 can be regarded as valuable consideration when one spouse quitclaims his share of interest in property to another.
Take Care
Welcome to the forums.
In order to draft out a valid and binding contract, a valuable consideration is required. The consideration is a promise to perform an act or prevent oneself from doing something that one is legally supposed to do. The consideration can be money or a performance having monetary value or any asset.
Coming to your query, the $1 can be regarded as valuable consideration when one spouse quitclaims his share of interest in property to another.
Take Care
i have heard that if value entered in quit claim deed is less than actual value then tax is due, is it true
Hi Smilovitch,
Welcome to Mortgagefit discussion board.
Yes if the property is transferred for a value which is less than its actual current value then it is considered to be a gift from grantor to grantee and as such any applicable gift taxes are to be paid by the grantee.
To know more about the details of how much gift tax grantor may have to pay and the allowed exemption limits on gift taxes please go through this page: Tax implication of Quit Claim Deed
Do let me know if you have any other questions.
Thanks
Blue
Welcome to Mortgagefit discussion board.
Yes if the property is transferred for a value which is less than its actual current value then it is considered to be a gift from grantor to grantee and as such any applicable gift taxes are to be paid by the grantee.
To know more about the details of how much gift tax grantor may have to pay and the allowed exemption limits on gift taxes please go through this page: Tax implication of Quit Claim Deed
Do let me know if you have any other questions.
Thanks
Blue