Quitclaim Deed and nursing home.

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Quitclaim Deed and nursing home.

If I have Quitclaim Deed in my daughter name what can happen to my house if I go
to nursing home.

Asked on January 28, 2017 under Real Estate Law, North Carolina

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

If Medicaid pays for your nursing home care, they can recover the cost from your assets--e.g. from money in your bank account and your real estate. They do this so that the taxpayer doesn't have to pay for your care when you still have money you could use to pay for your own care. To prevent people from hiding assets, such as by transferring them to relatives, they can undo transactions that were done not for fair market value, such as if you quit claim property to a child. The idea is that if you were not paid the fair value for the property, it was not a real transaction: it was a sham, to hide the asset or property. (And if you were paid fair market value, then you'd have the money from it to use to pay for medical/nursing care.) And there is a five-year "lookback" period: that is, to make sure that people do not give away property when they are starting to plan going into a nursing home, they can undo transactions that occured within the last five years; only if a not-fair-market value transaction, like quit claiming, was done more than 5 years ago is it safe. So if you quitclaim it to your daughter and go into a nursing home in the next 5 years, Medicaid can potentially take the home. If you sell it to her for more-or-less fair market value, however, then she could keep it.


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