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What is a quick claim deed?

Someone told me I should do this on my mom's house. What are the pros & cons?
Status: Open    May 17, 2015 - 09:16 PM

Finance

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Jul 29, 2015 - 10:56 AM

Quitclaim is the correct spelling. It is a deed that conveys all that a person has to someone else without any warranties. So a person could sign a quitclaims deed to the Brooklyn Bridge if they wanted it.

Your question raises questions though. Why do you need to transfer your mother's home? If it is for protection of the home from a nursing-home spenddown and a Medicaid lien, you might want to consult with an Elder Law attorney first. In many states the deed must have been dated at least five full years prior to the Medicaid application. In some states the deed must be recorded for five full years, not just dated.

Jul 31, 2015 - 08:03 AM

I think you are referring to what is called a quit claim deed. Some people think that it is best to go ahead and execute a quit claim deed transferring their parent’s house to themselves before the parent dies in order to avoid probate issues. There are, however, issues to transferring the house in this manner. If you transfer the house and then mom ends up needing Medicaid within five years, she will be subject to a transfer penalty that will delay her receiving any benefits. Also, you will not be able to get the step up in tax basis like you could at her death. A better way to avoid probate is the executed a beneficiary deed or a transfer on death deed that will allow the house to pass to you when she dies without going through probate.
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