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Mom retired, she owns family home, only her name is on the deed.
Daughter wants to add her name so the house can't be claimed by Medicaid or the government in the event of something bad happening.
She wants to ADD her name, not own outright. Are we looking for a Quitclaim form or something else? All the ones I find are for transferring ownership.
Any help will be much appreciated. Thanks in advance!
You don't simply add a name, you deed (transfer) it from Mom to Mom and daughter. It's best to use a warranty deed, but a QC will accomplish the same thing. However, depending on your state, it's wise to consult an attorney or title company.
There's no such thing as just putting a name on a deed. A deed connotes ownership. If your name is on the deed, then you are a partial owner. Consult an attorney.
There's no such thing as just putting a name on a deed. A deed connotes ownership. If your name is on the deed, then you are a partial owner. Consult an attorney.
I am aware of that, but apparently there is some way to do it where any loans or mortgages on the house are not the daughter's responsibility according to a real estate agent friend. He said it was a Quick claim and she could do it herself but she asked me to look for her since all she found were forms transferring outright sole ownership and that was not what she wanted. That is why I am asking. I looked and saw the same thing. Thanks.
You don't simply add a name, you deed (transfer) it from Mom to Mom and daughter. It's best to use a warranty deed, but a QC will accomplish the same thing. However, depending on your state, it's wise to consult an attorney or title company.
If there is an existing mortgage on the home, quit claiming it to another party is technically illegal. Your mother will be in breach of her mortgage agreement. Mortgages have clauses requiring them to be notified if there is a transfer of any kind on the property. This would include a quit claim.
At that point the lender has the right to call the mortgage loan and demand payment in full. Now they may not do that being content to have the mortgage payments continue. However, if something happens and the loan goes into foreclosure, etc. then every one on the quit claim is fully responsible and would be named in the foreclosure. How will the bank know ? The quit claim has to be recorded and banks have their people in the recording office all the time filing mortgages and searching records. You may or may not get caught.
You also need to check with your state as the rules vary by state, as to how the state handles ownership of the home of a Medicaid recipient. There are look backs periods, regulations on how long a relative has to live in a home and all on the deed have to live in the home to protect it from state seizure, etc.
Again, consult a real estate attorney, not an internet forum. What sounds easy is really quite confusing. The rules change constantly.
Another problem not mentioned is what happens when Mom finally passes away? IIRC, co-owner daughter keeps the original cost for capital gains, not the value on the day of mom's death. Are there other children? What if co-owner daughter decides not to share proceeds of eventual sale of the house? ("Oh, that will never happen....we trust her....."). I've seen more than one situation where it DID happen.
Consult an attorney specializing in elder law in your state.
This query is about my sister who has been handling a bunch of paperwork for my mom regarding a home insurance claim and wanted to get all this overdue business done while our (difficult) mother was in the mood to do it. We've been trying to get her to get her affairs in order for years.
Last night I spoke to my sister and she was giving me a list of things she had to do, and I volunteered to take some off her plate. One of them was finding this Qucik Claim form her real estate friend told her to get. When I did a google search it all sounded way more complicated than she had been told, and it was too late to call any lawyers, so I posted a quick question here hoping to get a response. I thought maybe I was looking for the wrong form but apprently, no, it really is that complicated and we need to just pay a professional. The original mortgage was paid off years ago and we THINK a second mortgage was paid off, but we are unsure about home equity loans and the like and my mom "doesn't remember" depending on how cooperative she feels that day. Sigh. I will let my sis know.
Thanks once again for all the advice. It was quite helpful. City data rocks!
As others have noted, you need to consult with a qualified elder law/real estate attorney. Writing up a Quit Claim Deed is easy, but you have numerous complications involving the Mortgage, Medicare, and inheritance.
I know of a family where the Mother deeded an interest in the property to her three adult children. Once the Mother passed, the children were responsible for sizable tax bills which would have been avoided had they received title as an inheritance. Your situation is well worth a consultation with a qualified attorney. No one on this forum can provide the appropriate advice that you need.
EDIT: Does anyone have power-of-attorney to handle your Mother's affairs if or when she is no longer able to do so? That may be the first thing you try to accomplish. As for mortgages, you can search the records at the title office to see if there are any outstanding liens on the property...and a Title Company can do that for a small fee (which would give you greater assurance that the title search was thorough and complete).
Last edited by jackmichigan; 01-03-2013 at 08:53 AM..
EDIT: Does anyone have power-of-attorney to handle your Mother's affairs if or when she is no longer able to do so? That may be the first thing you try to accomplish. As for mortgages, you can search the records at the title office to see if there are any outstanding liens on the property...and a Title Company can do that for a small fee (which would give you greater assurance that the title search was thorough and complete).
No one has any kind of power of attorney. It has been driving us all crazy for years. She has no kind of will, no end-of-life provisions have been made, no long-term care insurance... she has her pension, social security, medicare and that's it. And she's 80 something years old. She's been highly resistant to any kind of legal changes being made, she doesn't tell anyone waht she's doing in terms of loans or whatnot no matter how much we ask, she hasn't really kept up on home repairs (every once in a while she asks for money to make some mysterious payments that always have to do with home repair, but there are LOTS of things in the house still not done). Finally she had a really big home issue that required an insurance claim to be filed, and she let my sister step in to handle things. Suddenly now she seems cooperative to FINALLY get this stuff done - to the degree it is even possible at this point. So my sister is scrambling to work fast while we can still get her in front of a notary to sign things, before she goes dark on us again.
We are all at our wits end frankly. But what are you gonna do? She's our mother and its our problem to deal with. That's life.
Last edited by Tinawina; 01-03-2013 at 10:28 AM..
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