Quit Claim, Inheritance & Elderly Care

[m1313]

What is the name of your state (only U.S. law)? MICHIGAN

Two elderly sisters own my grandmother's house via quit claim deed that was filed before she passed away.
The intent, of course, was that the sisters would get 50/50 ownership of the property.
Neither of the sisters live in the home or use it as their homestead.

Now, one of the sister's is doing poorly. So my questions are:
1. If one sister requires long-term care does that mean the state can take the property, put a Medicare lien on it, etc.?
2. If one passes, does the property go 100% to the other sister? Or does 50% of the property become part of her estate to be handled via probate?

Thanks.

 

[CSO286]

What is the name of your state (only U.S. law)? MICHIGAN

Two elderly sisters own my grandmother's house via quit claim deed that was filed before she passed away.The intent, of course, was that the sisters would get 50/50 ownership of the property.
Neither of the sisters live in the home or use it as their homestead.

Now, one of the sister's is doing poorly. So my questions are:
1. If one sister requires long-term care does that mean the state can take the property, put a Medicare lien on it, etc.?
2. If one passes, does the property go 100% to the other sister? Or does 50% of the property become part of her estate to be handled via probate?

Thanks.

When--what year--was the quit claim filed?

Please realize that if one sister needs long term care and it must be paid for via government funds (Medicaid), that there is a five year lookback that could result in program inelegibility up to the point the the cost of care exceeds the value of the asset that was transferred/quit-claimed/disposed of. This is relevant should the sister doing poorly be considering signing a quitclaim over to the other sibling to meet Meidcaid asset elegibility.

If neither of the sisters live in the home as their primary residence, then it is logical and expected that such an asset would be liquidated to pay for the needed care.


I cannot speak to the second part of your question.

 

[Mass_Shyster]

I don't know the answer to #1.

The answer to #2 depends on the language in the deed. If it was granted to the sisters as tenants in common, the deceased's share will have to go through probate. If granted to sisters as joint tenants with rights of suvivorship, the property will pass to the surviving sister without going through probate.

 

[tranquility]

Because it is not her home, if long-term care is needed, the house would be an asset that will be counted to see if there is eligibility for state aid. As to the second question, if by joint tenancy with full rights of suvivorship will pass by operation of law and would not require probate. If simply tenants in common, it would pass by probate according to the estate succession.

 

[m1313]

Thank you for your replies. I found out that the deed is "joint tenants with rights of survivorship."