A quitclaim deed is a document that transfers any interest you may have in a particular piece of property. If you have no interest, the quitclaim deed will transfer no interest. If you own the property outright, the quitclaim deed will transfer that ownership interest to the grantee. However, a quitclaim deed does not promise or represent to a grantee that you have any interest in the property.
Quit claim deed and mortgage responsibility don't go hand in hand. Getting your name off the mortgage is possible when refinancing. Q: I did an act of donation on my house to my ex-husband. He is going to give me a fixed payment once he refinances the home. Is there a way to get my [...]
Transfer on death deed versus a quit claim deed: what's the difference? A transfer on death deed is not the same as a quit claim deed. Q: I have read many articles from you concerning quitclaim deeds. I have a very specific question related to it. Does the IRS say the grantor is giving a [...]
It's better to inherit property from your parents or family members rather than receiving it through a quit claim deed. The tax implications of receiving a property through a quit claim deed are much greater than inheriting a property. When estate planning, it's better to put the property in a will or trust, rather than transfer the property through a quit claim deed.
When deciding how to pass on property to loved ones, there are many choices. You can transfer property now using a quit claim deed. You can transfer property later using a will. Or, you can place your property in a living trust now and set forth your wishes for the disposition of your property in the trust. The living trust can then dispose of your assets upon your death avoiding probate court requirements and you can control the property you own while you are living.
If an elderly relative owns a home and quit claims it to you before going into a nursing home the home may be at risk for the Medicaid lookback rule. The Medicaid lookback rule may allow the government to try to recover medical costs by selling an asset such as a home. How does Medicaid treat quit claim deeds? Discover what documentation to gather to protect the home.
Whenever a home owner transfers all or part of the ownership of a property using a quit claim deed, the person who they're transferring ownership to receives the property interest at the same cost basis that the home owner bought it for. While the percentage of ownership may vary, the cost basis used remains the same regardless of when the transfer takes place. As a result, when you sell a home that you receive through a quit claim deed you'll owe capital gains taxes calculated using the previous owner's cost basis.
When you owe money to creditors they may put a lien on your home. When you sell your home you have to pay off the liens with the proceeds from the sale. Transferring ownership of your home using a quit claim deed will not remove the liens. Using a quit claim deed in this situation may be a fraudulent conveyance.
When you receive ownership to a property through a quit claim deed, you also get the property at the cost basis that the previous owners had. This may lead to capital gains taxes when you sell the home. To know how much capital gains tax you will owe, contact a tax preparer such as an accountant or enrolled agent.