Quick claim deed not filed

[kw1949]

What is the name of your state? Michigan

My inlaw's had a quick claim deed on their home leaving it to my husband and sister inlaw. Several years later my mother inlaw passed away and my father inlaw had his estate drawn up and had another quick claim deed done again leaving his home to his two children. When my husband and sister inlaw sold their father's home they discovered at the closing that the second quick claim deed was not filed and were told that the profit on the home would not be protected from taxes because the second deed was not filed. The closing was yesterday. The whole purpose of a quick claim deed is to protect people from taxes but the lawyer that my father inlaw used never told my husband or sister inlaw that they had to file the quick claim deed upon the death of my father inlaw, so they thought the quick claim deed was already filed. Is there anything that can be done at this point?

Thanks,
Karen

 

[pojo2]

I am confused and it is quit claim. After the property was quit claimed to the brother and siter how did the father quit claim it again? Your husband and his sister might have to pay taxes when the house was sold but since it was quit claimed to them what does that have to do with the estate??????

Or are you saying the parents were also still on the deed??

 

[anteater]

What is the name of your state? Michigan

My inlaw's had a quick claim deed on their home leaving it to my husband and sister inlaw. Several years later my mother inlaw passed away and my father inlaw had his estate drawn up and had another quick claim deed done again leaving his home to his two children. When my husband and sister inlaw sold their father's home they discovered at the closing that the second quick claim deed was not filed and were told that the profit on the home would not be protected from taxes because the second deed was not filed. The closing was yesterday. The whole purpose of a quick claim deed is to protect people from taxes but the lawyer that my father inlaw used never told my husband or sister inlaw that they had to file the quick claim deed upon the death of my father inlaw, so they thought the quick claim deed was already filed. Is there anything that can be done at this point?

Thanks,
Karen

It is a quit claim deed.

I will have to pass on the "can anything be done now" question.

But, you do realize, don't you, that, if the home had been gifted to children, then they would have taken on father's cost basis and the subsequent sale would be subject to income tax on any capital gain? So, your comments about "protection from taxes" is puzzling. As opposed to simply inheriting the home with a cost basis stepped up to the fair market value on the date of father's death.

 

[anteater]

I am confused and it is quit claim. After the property was quit claimed to the brother and siter how did the father quit claim it again? Your husband and his sister might have to pay taxes when the house was sold but since it was quit claimed to them what does that have to do with the estate??????

Or are you saying the parents were also still on the deed??

Sorry, dude. I was typing too slowly. But I'm glad to see that someone else is confused by the OP.

 

[pojo2]

I noticed we were typing together but yes the original post makes NO sense whatsoever.