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Effect of Quitclaim Deed on Taxes and Medical

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  • 05-05-2009, 02:13 PM
    vikusik
    Effect of Quitclaim Deed on Taxes and Medical
    :confused:My question involves real estate located in the State of: California.

    Hello,

    Both of my parents are in their early 60s and own a house. They are looking into the future with the hopes to get the state Medicare since they will not be able to afford the health insurance. They were thinking of transfering the property to me under the quickclaim deed, but the load on the house is going to stay under their names.

    Two questions:

    1. Will they be able to get Midecal/Medicare benefits 5 years after the transfer?
    2. I do not own any property right now but am planning a purchase in the near future. How will the transfer affect my taxes, if any, and will this property that is going to be under my name (not the load however) affect, if at all, my ability to get a decent loan on the house?

    I hope this makes sense!! Thank you so much for your help - it's really appreciated.
  • 05-06-2009, 09:17 PM
    Mr. Knowitall
    Re: Effect of Quitclaim Deed on Taxes and Medical
    Odds are that the transfer would violate the terms of their mortgage, and trigger an acceleration clause making it come immediately due. They should read their mortgage contract.

    We don't know their financial situation five years in the future. We don't know if they'll be seeking Medicaid five months into the future. If they wish to plan their estate to avoid Medicare spend-down, they should consult an estate planning lawyer who handles Medicaid issues.

    If you own real estate, you pay property taxes on your real estate. If you hold loans against your real estate, the loans affect your ability to get additional loans.
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