My 100-year-old mom does not qualify for Medicaid due to cosigning my home 10 years ago, and the value of the home well-exceeding the payoff. She is in a private hospice, paid by me, through her SS and my monthly contribution. I have a durable POA. She has no other assets. Should I "Quit Claim" her off of my home? She has credit card bills from lending my son money in the past, and I fear the creditors will come after my home. Any advice would be welcome.
See an elder law attorney in your own state to discuss options here.
I wish you the best of luck.
Co-signing makes her responsible to make the payment if you default, does not make her the owner. Being on the deed makes her an owner. If just u and her, then she owns half. If you, her, and someone else she owns a third. On Medicaid, homes are an exempt asset.
I would consult with an Elder Lawyer.
"Are quitclaim deeds reported to IRS?
Quitclaims Are Taxable Events
One common myth about quitclaims is the notion that they transfer property tax-free. That's not necessarily so. In fact: Unless the property goes to your spouse, quitclaiming is usually a taxable event and should be declared to the IRS using Form 709."
Source: https://www.deeds.com/articles/is-a-quitclaim-deed-subject-to-tax/#:~:text=Quitclaims%20Are%20Taxable%20Events,the%20IRS%20using%20Form%20709.
https://www.bankrate.com/mortgages/should-you-add-a-co-borrower-to-your-mortgage/. )
If she is a cosigner on the mortgage, that doesn’t mean she owns the house – only that she owns the debt responsibility. Separately, If she’s on the deed, then she’s an owner. Those two things can be independent as I understand it—-two names on the mortgage and two on the deed, or one name on the mortgage and two on the deed, or two names on the mortgage, and one on the deed (a “cosigner”).
But if she’s on the deed, it’s not really your house – it’s “our “ house. I’ll stop there but wanted to clarify this one issue.
I should end with an apology – I’m going to say that, because this is a complex debt question you’ll need to talk to a lawyer, but I think the above distinction will be important to know for that. A quick Internet search suggests that the answer to your question depends on state law: a search for “ can a credit card company put a lien on my house “ shows that the first answer seems like a definite yes in New York, the second search just below is a definite no in Florida.
So this will be a lawyer question, but I think the above might be important..