When to file a quit claim deed. Homestead exemption ramifica

JPol513 · Joined: 29 Jun 2008 Posts: 1 1.32 Dollars($)

When to file a quit claim deed. Homestead exemption ramifications. My mother in law wants to transfer title to her son and daughter via a quit claim deed. One attorney suggests it not be recorded until her death. She is concerned that if it is recorded now she will lose the MI Homestead tax credit ($1200) that she currently is allowed. What problems could be encountered if waiting to her passing to record it and if she records it before her passing will she still be allowed the Homestead exemption?

Thank you.

jameshogg

Hi Jpol,

Welcome to forums.

Your mother-in-law can transfer the title to her son and daughter either by a quitclaim or a life-estate. If she signs by a quitclaim deed, and still wants to claim for the homestead credit, then she will have to sign a written agreement along with the transferees. This agreement should state that your mother-in-law will be allowed to remain in the home till death. And this agreement must be notarized and recorded at the Registrar of Deeds.

Alternatively, if your mother-in-law signs a life-estate, then she need not sign on a separate agreement. The son and daughter will automatically get property after her death just because the life estate deed has been executed.

Thanks

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