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Why does my mother have to sign a ‘removal request’ from the title of the house when she had a quitclaim deed, done in 2005?

ADDITIONAL INFORMATION:

A Quitclaim, which turned ownership of the house to her three kids for one dollar was drawn up in 2005. Mother is now in assisted living and my brother is buying out his two siblings’ share. Why would the lenders’ title company want my mother to sign a ‘removal request’ to get her name off the title? Wouldn’t the Quitclaim have accomplished that? And, if not, will Medicaid consider the date of the quitclaim deed, or date of the removal request when we apply for Medicaid? We are in Massachusetts. No one has been able to answer this question. I have spent hours trying to get a definitive answer. Thank you. Is the term ‘Right of Survivorship, reserving for ourselves the Estate of Homestead’ the phrase that is requiring the ‘removal request? Was the property legally turned over to us with this Quitclaim deed so Medicaid can’t demand the proceeds from the sale of the house?

ANSWER BY MARGARET CROSS-BELIVEAU:

Without reviewing the deed, I cannot give you an answer to your questions. I have a sneaking suspicion that your mother reserved a life estate in the house so that she could legally continue to live in the property.  Currently your brother owns a remainder interest.  He probably won’t qualify for a loan owning only a remainder interest.  If he defaults, the bank would have to wait until your mother passes away before it could sell the house.  This is why the bank wants your mother to sign away her right to live there.  Your mother gifting away her life estate will trigger a disqualification for Medicaid.  You should consult with an elder law attorney.

Legal Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on since each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship. A lawyer experienced in the subject area and licensed to practice in the jurisdiction should be consulted for legal advice.

Beliveau Law Group: Massachusetts | Florida | New Hampshire

The elder law attorneys at the Beliveau Law Group provide legal services for estate and asset protection planning. The law firm has offices and attorneys in Naples, Florida; Waltham, Massachusetts; and Salem, New Hampshire.

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