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Are you sure your dad has not changed his will? Unfortunately, there are many people in this situation who would try to convince the dad to change the will in his/her favor. I'm not sure about quitclaim deeds, but generally, deeds can be changed by the property owner.
My dad still lives in the home I grew up in. The mortgage is long paid off and he has no debt. He recorded a quitclaim deed that gives my brother and me joint ownership upon his death. Presuming that the property will not be needed to fund health/end-of-life expenses, with a 50-50 ownership stake, how are decisions made regarding the future of the property?
My brother lives in a nice home on adjoining acreage, while I live out of state. Neither of us wants to sell to a third party, but we have differing opinions on what should happen to the property. I want to retire here, mortgage-free, while my brother would prefer to rent the property to one of his wife's relatives.
If we can't agree, does it simply come down to one buying out the other's stake? I am booking an appointment with a real estate attorney as soon as I can get one, but I'd like to be as informed as possible going into that meeting. My brother and I have always been close, so I don't want this to turn into an ugly battle. I know that happens far too often. I would rather walk away and keep the peace.
The way I look at it, your dad isn't dead yet. A lot can happen before then, so keep a copy of your dad's Will, know who and where his lawyer is, and a copy of the quitclaim deed at his death. He could also have to sell the property just because he wants to and needs the money.
It is fine that you see a lawyer or two, but don't get to carried away. Lawyers are expensive and love family disputes. That is for later, when your dad passes away. If your brother lives in the state, he has the advantage as he has more contact with your father. Your father can choose to leave the property to him alone, especially if he has spent more time with your father. Why should YOU get to retire there rent free for your retirement? Just curious. If your brother lives next door, he may have been spending a lot of time with your dad. Caring for an elderly parent is rarely easy.
My sister lived with my mom, and cared for her for about 20 years. My mother left the $800K house to her in her Will. I was not bitter about that, because assisted living and nursing homes are very expensive. Plus, my mother had other properties. The lawyers became involved because my sister and another brother thought that they deserved EVERYTHING. My mom owned 6 properties. There are always the greedy ones that make things difficult.
It is better to sell it and divide the property, or let your brother buy you out or vice versa. You can get it appraised at the time of his death. Your brother can give you a discount, or vice versa. Realtors and closing costs are very expensive. Lawyers are $400.00 an hour, and they charge you for every little thing. Whoever buys it may have a good tax advantage, depending on the state that you live in (property taxes). When the time comes, try to work it all out amicably.
I wouldn't discuss it now, as the house belongs to your father! I cannot tell you what to do and I don't really know your situation. Just think long and hard before making a fuss. It makes everyone defensive. When that happens, it could anger your dad. If you are the one to bring it up, he may decide you are the greedy one. Checking in with a lawyer to know all of your options makes sense.
IF you and your brother have a good relationship, hopefully you two can work things out when the time comes.
My mother threatened to donate all she had to charity if us kids kept fighting over it. LOL. You dad could also choose to leave it to a girlfriend.
Good Luck.
How did he file a quit-claim that activates upon death? I'm not aware of a way to record a quit claim deed that activates at a later date. This does not make sense. I think he may have misunderstood exactly what he was doing.
How did he file a quit-claim that activates upon death? I'm not aware of a way to record a quit claim deed that activates at a later date. This does not make sense. I think he may have misunderstood exactly what he was doing.
He may have completed, signed, and filed a "Lady Bird Deed", properly called an Enhanced Life Estate Deed.
The internet is sketchy as to which States accept these. One on-line list of 15 accepting States does not include Michigan, yet Michigan does accept these! (my older sister, who worked for a law firm, filed one to Deed her house directly to my younger sister and I before her brain tumor surgery in case she didn't survive the surgery).
A perfect example of why you should contact a lawyer rather than the internet for legal advice.
How did he file a quit-claim that activates upon death? I'm not aware of a way to record a quit claim deed that activates at a later date. This does not make sense. I think he may have misunderstood exactly what he was doing.
Most likely, the father conveyed title via a quit claim but retained a life estate. That's not uncommon.
That's not necessarily a good idea as it sets the tax basis on the home at today's value and not the value when the father dies and, depending on the size of the future estate and home value today, could raise a gift tax issue.
1) You buy out your brother's half and live there once you retire - but you WILL have a mortgage since you'll need to buy your brother's half.
2) Your brother buys out your half and becomes a landlord to relatives. You use funds to buy your retirement home.
3) You both become landlords to whoever moves in and share equally in all rent revenues as well as maintenance expenses.
4) You sell the property and split the proceeds evenly.
Thank you for summarizing the options so succinctly, I appreciate it. And thanks to the rest of you who weighed in. Some of you confirmed what I already suspected, and others pointed out considerations I hadn't thought of.
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That's not necessarily a good idea as it sets the tax basis on the home at today's value and not the value when the father dies and, depending on the size of the future estate and home value today, could raise a gift tax issue.
My sister lived with my mom, and cared for her for about 20 years. My mother left the $800K house to her in her Will. I was not bitter about that, because assisted living and nursing homes are very expensive. Plus, my mother had other properties. The lawyers became involved because my sister and another brother thought that they deserved EVERYTHING. My mom owned 6 properties. There are always the greedy ones that make things difficult
Similar story with my wife's sister. Except she never took care of the Mother.Talked her into naming her co owner with survivorship. Just mooched and ended up with a nice (paid for) house in a great community outside of Washington, DC. worth now in the $850k range.
My wife and the other sister ended up with less than 20% of the estate between the two of them.
If your brother lives in the state, he has the advantage as he has more contact with your father. Your father can choose to leave the property to him alone, especially if he has spent more time with your father. Why should YOU get to retire there rent free for your retirement? Just curious. If your brother lives next door, he may have been spending a lot of time with your dad. Caring for an elderly parent is rarely easy.
I am my father's primary caregiver and companion. Since my mother became terminal in 2015 (and died a year later), I have spent 4-6 months out of every year here. I handle all of Dad's affairs, keep tabs on his health, take care of the house, etc. I leave my own family (husband and 2 sons) and life in another state to do this.
Despite living next door, my brother rarely spends time with Dad, almost never calls, and does virtually nothing for him in terms of maintaining the home. If he did, I wouldn't need to be here so much.
ETA: I do not believe I am entitled to the house; it is my dad's to do with what he wants. I merely want to know how decisions are made when neither stakeholder owns greater than 50%.
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