Full question:
My husband and I own our home outright. I want to put the house in my two children's names. My son and married daughter. Is this possible with a quitclaim deed or is a warranty deed better? If I need to ever go to a nursing home, I do not want them to take my home for payment that is why I prefer giving it to my children now before I get older. With any of these Deeds, would it be impossible for them to take the home as payment?
- Category: Medicaid
- Date:
- State: Florida
Answer:
Transferring your home to your children can be done using either a quitclaim deed or a warranty deed. A quitclaim deed transfers whatever interest you have in the property without any guarantees about the title. In contrast, a warranty deed guarantees that you own the property and that there are no claims against it. If you are confident in your ownership and want a simpler process, a quitclaim deed may suffice.
However, be cautious about potential implications for Medicaid eligibility if you later need nursing home care. Transfers made with the intent to avoid paying for care can be challenged as fraudulent conveyances. Under the Uniform Fraudulent Transfer Act, if a transfer is made while knowing that you may incur debts or claims, it could be reversed by creditors.
Medicaid has a 60-month look-back period for asset transfers. If you transfer your home for less than fair market value, you may face penalties when applying for assistance. For instance, for every $4,300 transferred, you could be disqualified for one month from receiving Medicaid coverage for nursing home care. This rule applies to transfers made on or after February 8, 2006, due to the Deficit Reduction Act.
Certain transfers do not affect Medicaid eligibility, such as to a spouse or a child under twenty-one, among others. If you create a life estate deed, it may also impact your eligibility, depending on the specifics of the deed.
To ensure a valid transfer, the deed must be signed, notarized, and recorded in the county where the property is located. Always consider consulting with a legal professional to navigate these complexities and to understand the best option for your situation.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.