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Well I've searched and searched and I've found a lot of related info, but nothing that answers this specific question. My gf's mom wants to add my gf and her brother to the deed of her mom's house. The idea is that if anything happens to her mom, the house will automatically transfer to my gf and her brother.

They looked into getting a quit claim deed. But some1 told me that if they fill out the quit claim deed and submit it to the county, this will trigger a change in ownership and therefore a reassessment of the property taxes. Is this true?

I've been told that instead, they should fill out the quit claim deed, have it notarized (MI also requires that it be witnessed), and then hold on it. The quit-claim deed should should be registered w/ the county only AFTER their mom passes away. This will delay the property tax increase for as long as possible. Her mom is only in her 50s, so it could easily be 30+ yrs before anything happens to her.

I searched the State of Michigan website and I found that parent-to-child transfers are exempt from the State Real Estate Transfer Tax, but I couldn't find any info about delayed filing of a quit claim deed.

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi simken,

Welcome to this forum.

If you wish to delay the recording of the quitclaim deed in your county recorder's office you may face problem in near future. So do not delay in recording the deed. Without recording the deed, it will not be counted as a valid deed. So consult with an attorney before you take any stapes.

Thanks,
Larry

blue · Posted: Fri Dec 21, 2007 5:01 pm Post subject:

Hi Simken,

Welcome to Mortgagefit discussion board.

I agree with larry that you should not delay to record the deed. Unless and until you record the deed, it will not be a valid deed, even after you notarized the deed. So to avoid any further confusion, better record the quitclaim deed on time.

Do let me know if you have any other questions.

Thanks
Blue

Posted: Wed Jan 02, 2008 11:16 am Post subject:

So... the quit claim deed will "expire" if it isn't registered w/in a given amount of time after it's notarized? And by given amount of time, I'm guessing like 30-90 days.

Well if that's true, it makes it even more important to figure out if it will trigger a reassessment of property taxes. Her mom has lived in the house for about 25yrs, so a reassessment would significantly increase the taxes. And she's in good health, so there isn't any obvious pressing need to do this. So if the prop taxes will be reassessed, it comes down to the increase in taxes vs. the chance that she will pass away. At this pt, it wouldn't be worth doing.

jenkin7 · Posted: Fri Jan 04, 2008 3:31 am Post subject:

Hello,

I think she might try out some other options of transferring the property to her children after she passes away. She may prepare a will or put the property in a trust and name her children as the beneficiaries.

She might also add her son and daughter to the title of the property along with her name and mention rights of survivorship in the deed. In this case, the property will automatically pass on to her children at her death.

She might consult an attorney if that is required.

jheard · Posted: Fri Jan 04, 2008 2:57 pm Post subject:

Don't do a quitclaim deed. Your best bet is to transfer the property to a living trust. This will accomplish what you want without a reassessment.

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.12 Dollars($)

If you choose to do the quit claim, make sure you make it a surviorship deed so that it automatically transfers. If you don't, it will still have to go through probate. Also as far as a new property tax assesment, you won't have to worry about that because there is no sale made thus this will not apply to this transaction.

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quit claim deed and property tax reassessment in MI