QuitClaim Deed

[tiff0922]

Iowa

My grandfather owns a house with his sister that they rent. (Got it from their parents when they died) My grandfathers health has gone down hill and in order for him to be in a Skilled Nursing/Rehab center within 3 hrs of any family, he needs to financially qualify for it. He does not since he owns the house. He would qualify, however, if he did not own the house. Their is a lien on the house (no one is sure how much). Is it possible for him to do a quit claim deed to either his sister and just give her the whole house. Or to one of his children so that he can get the financial assistance he needs for medical costs?

Also, if this is possible, how long does it take? Does it cost a lot of money?

 

[HomeGuru]

Iowa

My grandfather owns a house with his sister that they rent. (Got it from their parents when they died) My grandfathers health has gone down hill and in order for him to be in a Skilled Nursing/Rehab center within 3 hrs of any family, he needs to financially qualify for it. He does not since he owns the house. He would qualify, however, if he did not own the house. Their is a lien on the house (no one is sure how much). Is it possible for him to do a quit claim deed to either his sister and just give her the whole house. Or to one of his children so that he can get the financial assistance he needs for medical costs?

Also, if this is possible, how long does it take? Does it cost a lot of money?

**A: yes but beware.

 

[tiff0922]

Quit Claim Deed

Beware of what?

Let's say we do the quit claim deed to his daughter and he passes away. We then sell the house and the lien is more than the value of the house. What happens then? Is his daughter then responsible for the rest of the lien? Or will that go against his estate?

 

[HomeGuru]

Beware of what?

Let's say we do the quit claim deed to his daughter and he passes away. We then sell the house and the lien is more than the value of the house. What happens then? Is his daughter then responsible for the rest of the lien?


**A: yes since she is the owner of record.

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Or will that go against his estate?

**A: under your scenario the real property is not an estate asset since the daughter owns the property.

 

[divgradcurl]

Beware of what?

Let's say we do the quit claim deed to his daughter and he passes away. We then sell the house and the lien is more than the value of the house. What happens then? Is his daughter then responsible for the rest of the lien? Or will that go against his estate?

Beware that, depending on who is paying for the skilled nursing facility, this type of transfer may either (a) disqualify grandfather from services, or (b) result in the court's undoing the transfer. You should discuss this idea with an estate planning specialist before you do this.

 

[tranquility]

The transfer may be fraudulent as well. When one gifts a house, it is a sale or trtansfer and the lein may need to be satisfied.

 

[FlyingRon]

You need to speak with an elder care lawyer as well. Deeding the house away may disqualify him for medicaid, etc...

 

[HomeGuru]

ditto for all 3 posters above.