quit claim deed
My mom is 76 and my father is deceased. My mom owns the home. Her and my father paid off the property / house 32 years ago. The house is in my mom's name and for tax purposes and to keep the house out of probate she is wondering if a quit claim deed or a trust would be better. The house will go to me and my sister - 50/50.
The house is on 1.5 acre of water front property and the land value has appreciated a great deal. My sister and I would like to keep the house as a summer home. Any help or ideas out there? 
Hi Kim,
I couldn't believe when I read your question how much it applies to me! I'm wanting info on quitclaims, also. My mom is 89, has her own house built in the 50's and because I have lived with her and cared for her for the last decade or so, wants to leave 3/4 interest in the house to me and 1/4 interest to my 3 siblings. This is ok with them. My brother suggested quitclaiming the house to me now as a way to avoid (IRS?) taxes. Is this legal and wise?
Don't want to take away from your question, but if someone is answering yours, perhaps they can shed some light on mine, too. Thanks.
Hi Kim and Resha,
Two birds with one stone.
It looks like you have a couple of choices depending upon what your family attorney says.
Your mom can create a living trust with you and your siblings and place the property in that trust or she can just add both of you on the deed via a Quit Claim Deed.
The choice is dependent upon the estate.
Check with your family attorney and CPA to see what is the best way to set this up for your mom’s benefit.
Best of luck
John (LV)
Hi John,
Thanks for the quick reply. As my moniker suggests, I am a Newbie in this area. I'm planning a call to the family attorney in the AM-- I'd like to have a little knowledge base before my appointment with her. Any suggestions about where to read about living trusts and quit claims that might be applicable to our situation?
Thanks again,
Resha,
Your attorney should be able to handle this situation very easily.
In the mean time there have been a lot of posts right here on TCI on both subjects, plus a lot more info on others.
Best of luck
John (LV)
Resha & John
Please let me know what you find out if you talk to your attorney. Like you I am trying to gather as much information as possible before seeing an attorney.
I am also wondering what if my mom just added my sister and my name to the current title. (Or would this be the same as a quit claim deed?) My mom lives 5 hours away from me and is a two day car trip for my sister. My situation is not easy since we don't live near each other.
I want the smallest tax implication and want to keep the house out of probate.
Be careful here on quit claim deeds if IRS can find out about it they can TRY I state again I repeat TRY to say it was a gift or a sale or other transaction> ya gotta love the IRS but in reality if they do not know it has been quit claimed ie 5 yrs later after your Mom dies and you are on title well so be it.
I would also be careful with lawyers...they say they know but really do not also with CPAs unless you have exceptional ones and I a betting you do not.
Who to ask well the attorney at a title company or the manager who has worked there for say 20 yrs > I like 1st American they have been the best for silly inane questions and their attorneys are some of the best especially in SF and LA here in CA.
These folk are specialist and handle stump the band problems!!!!
ALso you quit claim deed transfer is very common go and do some research at the library and get some books and read up on it!!!
And if you do go to your attorney make certain he render and written opiniion on your written answer and then make certain he has his E/O insurance!!!!!! If he is wrong and u take the suggestion he pays for any mistake!!!
That is why they make $200 bucks and hour!!!
That is my 2 bits!!!
SKI
Hi SKI,
Just want ask quick question:
What is E/O insurance?
Thanks,
Dmitry.
E/O or "Errors and Ommissions" insurance covers an attorney (or other professional) when they are responsible for making a mistake that causes a financial loss for someone else.
Ironically some attorneys get rich by handling lawsuits against other professionals and getting pay outs from E & O coverage.[ Edited by Lotus on Date 06/23/2003 ]
Errors and Omission