Interspousal Transfer Grant Deed Law and Legal Definition

Interspousal transfer grant deeds are used in certain states for tax advantages among spouses. For example, in California, such a deed is considered a transfer and not a change in ownership under §63 of the Revenue and Taxation Code. It is also exempt from reappraisal under one of the following applicable exclusions from reappraisal:

A transfer to a trustee for the beneficial use of a spouse or the surviving spouse of a deceased transferor, or by a trustee of such a trust to the spouse of the trustor.

A transfer to a spouse or former spouse in connection with a property settlement agreement or decree of dissolution of a marriage or legal separation, or

A creation, transfer, or termination, solely between spouses, of any co-owner's interest.

The distribution of a legal entity's property to a spouse or former spouse in exchange for the interest of such spouse in the legal entity in connection with a property settlement agreement or a decree of dissolution of a marriage or legal separation.