Texas- Quit Claim... Warranty Deed.. Nursing Home...confused
Port Arthur, TX · Member since 2017 · 1 post · 0 votes
My spouse was given a property through a quit claim deed by a family memeber. Documented (10/16) Filed (06/18).
He tried selling the house but quickly found out in Texas he could not use the quit claim deed to sell the house. He is trying to get the person to sign a warranty deed. The problem is the person is in a nursing home and other family members are saying this will affect their Medicaid.
My questions are: Will this affect their medicaid? The quit claim deed was signed while the person was in a nursing home and the price was $10. Also what is the Quit Claim actually for anyway?
I BELIEVE Medicare/Medicaid will clawback any sales made up to 5 years prior to admittance to nursing home. If the property is worth more than $10 this will defiantly look like fraud since all the proceeds are supposed to be used to pay them back.
It certainly LOOKS like an attempt to an attempt to defraud the the government. UNLESS the owner is not receiving any Medicare/Medicaid benefits. (I was going to say or the property was sold at its real value and that money was spent for health care. But unfortunately a ridiculous value was used that no lawyer would defend in court, especially if the property was sold for more than a $1,000 soon after.)
Talk to a Medicare attorney and an elder attorney. The two outcomes I could predict is either they say you and the seller tried to defraud the government or you committed elder abuse and tricked seller out of the property. Ones bad for both of you and one’s only bad for you.
I would go in to it assuming the government ends up being paid the true value by who ever sells the property.
Typically what I've been told in Texas by Real Estate Attorneys is that Quit Claim does not establish ownership in a property, it establishes disownership. The person signing is not transferring title, but saying they no longer have a claim on the property. Most real estate and title attorneys in Texas don't like quit claims and tough and perhaps impossible to get title insurance.
So the problem is, it does not establish ownership. A warranty deed does just that.
Selling the house could disqualify someone from receiving Medicaid....if it brings that persons assets over the state's Medicaid limit for assets. They may have to spend that money first, before they would qualify.
Unfortunately I'm not sure who you ask for the limits and strategy. Maybe Medicaid attorney you hire? Maybe a social worker at the nursing home can help? Maybe a legal aid clinic in your area.
Probably fraud to hide assets or avoid selling for the fair market value.
There may be strategies to transfer ownership depending on the value of the house. Maybe gift deed, or deed of distribution, or maybe family member loans owner money to pay the taxes, then if he/she has no money to pay back, then they could foreclose. A savvy attorney may be able to assist you.
I BELIEVE Medicare/Medicaid will clawback any sales made up to 5 years prior to admittance to nursing home. If the property is worth more than $10 this will defiantly look like fraud since all the proceeds are supposed to be used to pay them back.
It certainly LOOKS like an attempt to an attempt to defraud the the government. UNLESS the owner is not receiving any Medicare/Medicaid benefits. (I was going to say or the property was sold at its real value and that money was spent for health care. But unfortunately a ridiculous value was used that no lawyer would defend in court, especially if the property was sold for more than a $1,000 soon after.)
Talk to a Medicare attorney and an elder attorney. The two outcomes I could predict is either they say you and the seller tried to defraud the government or you committed elder abuse and tricked seller out of the property. Ones bad for both of you and one’s only bad for you.
I would go in to it assuming the government ends up being paid the true value by who ever sells the property.
In my experience, the definition of a quit claim deed throughout the US is:
An instrument of conveyance of real property that passes any title, claim, or interest that the grantor has in the premises but does not make any representations as to the validity of such title.
It is not the Grantor disclaiming an interest in the land only that is not warranted. Generally, it is said the Grantor is not claiming (s)he has any title to convey but whatever interest (s)he has is being conveyed.
Title underwriters prefer insuring title based on a warranty deed because in the event of a claim against the title the underwriter may be able to pursue the Grantor to recoup some or all of the loss it suffers.
There is a lot to unpack on Medicaid and fraud. You need to get an estate planning attorney ASAP.
Quit claim is not effective, most title won't issue with that in chain of title. If capacity of original grantor is in question, thats another problem
There is a lot to unpack on Medicaid and fraud. You need to get an estate planning attorney ASAP.
Quit claim is not effective, most title won't issue with that in chain of title. If capacity of original grantor is in question, thats another problem
In 1998, Stewart Title, probably the 4th largest title insurance underwriter provided the following guidance to its agents. As you'll read title insurance may be written insuring title based on a QCD or with one in the chain of title depending on specific facts:
Dear Associates:
In 1993 we issued a bulletin dealing with quit claim deeds in which we advised agents not to insure a quit claim deed nor insure over a quit claim deed in the back chain of title without underwriting approval. Quit claim deeds continue to make their appearance in claim files. Thus, we decided to issue this new bulletin.
A quit claim deed is not a proper means of conveyance of property in Florida. A quit claim deed does not specifically convey property but merely conveys what ever interest the grantor may have, if any. It carries with it no warranties of title. The doctrine of after acquired property is not applicable with the use of quit claim deed.
In settling an estate and a dissolution of marriage a quit claim deed is customarily used and in those two incidents is acceptable.
In addition, quit claim deeds continue to appear in claim situations involving fraud. Frequently, the deeds are prepared outside of a normal closing. The "prepared by" recital will typically indicate that the deed was prepared by the grantor, or grantee, or by the notary. Typically nominal stamps are paid with the deed. The deed was obviously executed outside of the control of a title agent or an attorney. Sometimes these deeds are presented at closing unrecorded indicating that the grantor in a current closing is the purported owner of the property by virtue of that quit claim deed executed outside of the control and direction of title agent.
SUCH DEEDS SHOULD NOT BE ACCEPTED WITHOUT VERIFYING THEIR AUTHENTICITY WITH THE GRANTOR WHETHER IT IS BEING PRESENTED CURRENTLY OR FOUND IN THE BACK CHAIN.
Accordingly, do not insure a quit claim deed nor insure over a quit claim deed in a back chain, without appropriate underwriting authority approval. The only exception should be in the case of settling an estate, dissolution of marriage, or correcting a prior document.