Hey folks, so my dad wants to add me to the title of his home to avoid probate when he passes. He thinks a quit claim deed is the way to go and wants me to sign it with a notary for the title company. He’s pretty healthy, so I don’t think he’s in any rush. I’m just wondering if this is really the best way to handle things. If I sign this, am I liable for anything? Like, do I need to declare the property for taxes? What would be the short and long-term effects of a quit claim deed in my situation? I trust my dad completely, but I want to make sure I understand this stuff before I sign anything.
I don’t think this is the best course of action. He probably needs to put the house in a trust and name you as the trustee. You both should really sit down with an estate planning attorney.
Emerson said:
I don’t think this is the best course of action. He probably needs to put the house in a trust and name you as the trustee. You both should really sit down with an estate planning attorney.
Not familiar with ‘lady bird’ deeds. Is this better than a traditional will? I know with a traditional will you have to open the estate, but the daughter would also get the stepped up cost basis if she wanted to sell.
@Lex
Yeah, a Lady Bird deed can bypass probate and still allow your dad to keep control of the property while he’s alive. It’s a good option to explore.
The grantee of a quit-claim deed doesn’t have to sign it. He should consult an elder law attorney. What he’ll learn is that the best option in Michigan is a ‘ladybird deed’ that keeps him in control while avoiding probate. You won’t be an owner while he’s alive.
@Patton
Transfer on death deed is how you avoid probate without a trust and preserve stepped up cost basis.
Vann said:
@Patton
Transfer on death deed is how you avoid probate without a trust and preserve stepped up cost basis.
Interesting, I need to look into that. Does anyone know how to set that up?
@Chen
You’ll want an attorney for that. Each state has different rules, so it’s best to be safe.
Call an estate planning attorney ASAP. He’s putting his house at risk by making it subject to your creditors and lawsuits. If he goes with a Ladybird deed, that could be a good option. If not, he should consider a revocable trust.
@Oli
I agree, don’t DIY this. Unexpected issues can pop up.
You won’t sign the deed. He’s the one transferring title, so his signature needs to be notarized.
Hadi said:
You won’t sign the deed. He’s the one transferring title, so his signature needs to be notarized.
So I don’t need to worry about being liable until it’s officially transferred?
@Tamsin
Exactly, the deed is his responsibility until it’s recorded.