A Kentucky quitclaim deed is a document that transfers interest in a piece of property from one person (the grantor) to another person (the grantee). You can use it to transfer ownership between family members, such as when adding or removing a spouse in the case of a divorce.
Laws & Requirements
Statute: Kentucky Revised Statutes Chapter 382 – Conveyances and Encumbrances.
Signing Requirements: Kentucky Revised Statutes § 382.130: The grantor must sign in the presence of two witnesses or a notary public/county clerk.
Recording Requirements: Kentucky Revised Statutes § 382.110: All quitclaim deeds in Kentucky must be filed in the County Clerk’s Office of the county where the property is located.
Transfer Tax: Yes. Under Kentucky Revised Statutes § 142.050, there is a real estate transfer tax on the amount paid (if any) computed at $.50 for each $500 value unless exempt.
Additional Documents: Kentucky Revised Statutes § 382.135: All Kentucky deeds must be accompanied by the Consideration Certificate signed and notarized unless there are any exemptions.
How to File
- Secure a Copy of the Property Deed: Obtain the current deed from the county clerk’s office where the property is located.
- Identify Legal Property Description: Find the legal property description on the current deed and copy it verbatim into the quitclaim deed.
- Fill Out Quitclaim Deed Form: Complete the form with the required information, including full names and addresses of the grantor and grantee, marital status, preparer’s details, statement of consideration, property tax mailing address, legal property description, property ID (if applicable), vesting language, and derivation clause.
- Execute the Deed with Notary or Witness: Sign the deed in the presence of a notary public, subscribing witnesses, or county clerk. If married, the grantor’s spouse must also sign.
- File the Quitclaim Deed: Submit the deed to the county clerk in the county where the property is located, or if in multiple counties, where the greater part of the property is situated.#
Costs and Fees
Recording Fees:
- The base rate is $33 for documents up to five pages, with an additional $3 per page over five. Counties may impose extra fees, including $4 for each real property conveyance. It’s advisable to contact the local county clerk for precise fees due at registration.
Taxes:
- Transfer Tax: Kentucky levies a transfer tax on property with consideration, charged to the grantor. Exemptions include government and family transfers, security deeds, and business-related conveyances, among others. The rate is $0.50 per $500 of value or fraction thereof.
- US Gift Tax: No state gift tax, but federal taxes may apply to quitclaim deeds exceeding IRS exemptions. Form 709 is required for taxable gifts.
- Capital Gains Tax: Kentucky imposes capital gains taxes with rates set annually. Local jurisdictions might also tax profits from property sales. Federal capital gains taxes are based on profit, income, and ownership duration, with specifics available through the IRS and Kentucky Department of Revenue.
