Hi Dear,
10 years ago, my parent transfer the house to me through a quitdeed claim (it was recorded), I am paying all taxes and fees these years. Later they were qualified and went into medicaid program.
In this case, will medicaid estate recovery program take away my house medical, will medical recovery program take away my house after my parent pass away?
Appreciate your information.
Dave
As an aside, by paying taxes and upkeep, I will assume that you have been paying quite a lot less than renting a place. I hope you have been a saver.
What were the laws in Ca at that time regarding assets belonging to the ones seeking aide for care?
Then, was the document created as required by the state of Ca., were the grantors named and competent, was the grantee named etc etc?
I read that quit claim deeds are more valid than they once were but there are rules and regulations that must be followed for good reason for the protection of all.
Just a personal quirk of mine, the name of the document indicates that the person signing is conveying his or her claim to the property (and that may be all that is needed). But I always wonder… Are there others who could have a claim such as extended family?
Someone who has the education and experience in these matters and has all the pertinent personal data made available to them could probably alert you to any red flags. That is usually an attorney with the needed background, not just any attorney.
An abstractor or title office could sell you an abstract of title but their expertise is in letting you know what has already happened (been filed) regarding a property, what the history is.
You are wanting to know the future.
There was a real trend on QCD maybe 15? not quite 20 years ago. It was after Hurricane Katrina which is 1 of my big lodestars for time as a lot of folks did QCD on post Katrina property & I did outreach postKatrina. Basically QCD proved to be a bad bad idea b/c property very often had generational heirs so that 1 that signed did NOT have the ability to sign off fully (even though only they lived there seemingly forever to the point they had homestead exemption); OR - this was more sticky - as QCD could not guarantee clear title, they could not easily qualify for lending programs or outright grants or easily sell the property. To get around the unclear title, they would need to get a Quiet Title Action Done. (As in quieting any complaints). Quiet is a kinda like what a title company does in property search history but add to it series of Notices placed in publications wherever old owners now seem to,live or where past tax bill sent lived (kind like what is done for Notices to Creditors for probate) to actively seek out any owners. A title company can’t do Quite Title Action, it has to be done by an attorney, usually a Real Estate attorney. Should anyone come forward, QCD is challenged. During the postKatrina world, none of this could be done in a timely manner so those holding QCDs pretty much got shut out of SBA $, RoadHome $, MDA 150K grant $. And it was hard to sell the property or get $ to renovate as no clear clean title as they had a QCD, as banks would take a hard pass. A big reason why even now you see areas still blighted and untouched in parts of coastal LA & MS. It was a real learning experience for me. Folks were under the impression they could DIY a property transfer via QCD pulled off the web for free so no need to pay for an attorney or title company or Realtor or other experienced professional. & maybe they can but if it goes wrong it’s a costly mistake that bogs down in time & $ to reset.
But 97 makes a good point, when did your parents enter the NH. Most States have a *5 year look back and any transactions transferring assets in that time frame are null and void. So if parents went into care after 5 years after the date of quitclaim, your probably safe.
*I think Cal its 3 years. We have other Californians on the forum so they will confirm if I am right or wrong. Also, Medicaid is MediCal in ur State and I think the asset limit is different than other States. And that is why you need to talk to an elder lawyer because States differ in their laws.
A question...was the house listed as an asset on the application when MediCal was applied for? If you own it, it should not have been.
OR
did they only file QCD as an document onto the property? Like file it as an attachment onto the property’s PPIN like what the county would file if they did a 3’ egress on the west side of property line for new sidewalks type of filing. So they did a QCD but did not actually legally change title to you so they could keep all their over age 65 & homestead exemption perks?
In whose names are tax assessor / collector bills? You pay them but whose name(s) are on the bill?
Who holds a homestead exemption(s)?
Out of curiosity, did your parents own the property via a Warranty Deed and have a Release of Deed of Trust on file at the courthouse at the time they did that QCD to you?
You should be safe if YOU are the only person on the deed of the house in question for more than 5 years. As others have stated, each state has different rules about the the look-back period, so yours might be different.
But on a happy note, if your parents are eligible for Medicaid, they are among the lucky few because the wait list for Medicaid is loooooong. Not everyone who needs it can get it.
Good luck.
See an attorney about this real estate asset but hope it is not a problem because you live in it. You have cared for your parent for at least 10 years and should not get thrown out. However, a Medicaid lien may be placed on the property from your parent's care costs.
My mom and I bought our condo back in 1991 together. My name on title protected my shelter when she had to go to a facility in CA, then later moved to OR near my brother before her funds ran out in 2013 when she suffered too many falls. I still live in the condo with Mom's inherited her half of the estate. However, a $9,270 promissory note is held against the property and is not payable until I die, sell it or be moved out permanently. My remote family has been very generous to keep me in my residence and sending gift money since my only substantial income is SSA benefits. No outstanding mortgage exists, which helps me afford my place!
Quit Claim Deed involves property and real estate laws. By its nature, it is not elder law work. An elder law practice that has a Real Estate attorney affiliated within the practice is what imo you’d want to look for.
R.E. attorney would make sure the chain of title, the conveyance, etc has no issues, & review whatever recorded at the courthouse & if the title was not actually changed a decade ago do whatever now to do that IF that is what is best for how LTC now runs for CA Medicaid (& it’s pretty dramatic changes), and this is where the elder law side of the practice comes into play with their expertise.
If the parents are still alive (I’m guessing that they are), and this is a clusterF as they DIYd it, the attorneys may be able to unthread it as the folks are still around to sign new documents.
On exemptions, we don’t know if the OP had been a full time caregiver living in the home prior to either of the parents entering a NH for the parents for 2 years. So living there with no other job. That would be needed to be able to be eligible for an exemption to MERP estate recovery.
OPs paying taxes, insurance on their parents property is of no concern to Medicaid. If the parents still had a mortgage and OP paid it, Medicaid wouldn’t care about that either. Medicaid is only concerned on the elders income and assets and Medicaid could care less on elders debts and how those get paid. Families get zero credit from Medicaid on paying for stuff. Now if you take this to beyond the grave, then you can file these costs as claims against the Estate in probate. Although based on the posts on this site over the years, most families / heirs don’t have the ability to pay or sense of humor to deal with an elders property for years and years with uncertainty of ownership and then open probate or wait for them to die to move on the Life Estate or Lady Bird Deed.
Our family has never had our belongings or homes claimed but then again everything is not in the name of the client.
I hope this helps--in the case of the pawn it does not need to be there full term--The Id of the pawer proves ownership.
Andy retired CMA /CNA
Oregon and Washington and Colorado