Property Lawyer in Jamaica on Transfer Gift

With the increasing cost to probate wills and apply for letters of administration, scores of people are seeking an alternative to estate planning. One such way is by transferring property during the lifetime of the owner. This is referred to as inter vivos gift,  which presents several advantages. This article is written from the perspective of a property lawyer in Jamaica and will discuss the pros and cons of transferring property, particularly real estate during one’s lifetime.

The phrase “Inter Vivos” is Latin for “between living persons.” An inter vivos gift is one that is given during the lifetime of the donor that is, while the donor is still alive. These gifts include personal property and real estate. This article will focus on real estate.

Pros of Transferring Property By Gift

One of the main pros of transfers by gift is that it is more economical compared to the cost to probate a will or apply for letters of administration. Most property lawyer will tell you that if you intend to transfer a property that you own solely to a child or close relative, one option to do so is to add that person to your will as a joint tenant, that way upon your death the beneficiary simply would need to note the death of the to remove the deceased. This is a faster and more economical route than applying for probate or administration of an estate.

An application for probate or letters of administration can costs up to 10% of the value of the estate in legal fees ALONE and an additional 1.5% of the estate for transfer tax whereas an application to note death may costs as low as $120,000.00 in total.

A donor may also elect to transfer the entire property to a beneficiary during his lifetime (inter vivo gift). This can be done by a transfer of gift for love and affection. This too is very fast and economical compare to applying for probate or grant of administration.

Cons of Transfering Property by Gift 

Your property lawyer should explore the pros and cons of real inter vivos transfer of land with you. As seen above you may elect to add your beneficiary’s name to your title as joint tenants or you may move ownership completely from yourself to them. The disadvantage of this is, unlike a will it is very difficult to change. Once you add someone else to your title, you create an automatic legal interest for them. This means that no further change can occur as to ownership of the said property without the beneficiary’s consent. So unlike a will where the testator can completely cut someone out later down the road, you cannot undo the effects of a transfer by gift. Matters are made worse if the entire interest in the land is passed over to a beneficiary and you wish to change your mind. In such case, the beneficiary is the sole legal owner and only he/she alone can effect change on the title.

Do I Need a Property Lawyer to Gift Property?

Consulting with a skilled and knowledgeable property lawyer can ensure that gifts made during your lifetime are correctly done. An experienced property lawyer can help you better understand estate and gift taxes, and help you draft any necessary documents for the transfer of property or assets. A property lawyer can also ensure the best option for you, base your intentions.

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