Posted on: 04th May, 2007 01:47 pm
My parents are in poor health and are only recieving social security, and owe thousands in credit card bills which they cannot pay, they own their house and are worried that creditors will take from them, so if they quit claim to us three children, will he be free from creditors ? and what are the disadvantages in doing so as far as taxes he or we will be charged?
hi timbo,
welcome to mortgagefit discussion board.
sorry to hear about your parent's health.
about the use of quit claim deed, if they quit claim the house then creditors will not be able to put any claim over it as it will then your property.
but let me also add that if any of the creditors has already placed any lien on the house for recovery of his dues then you will take over the ownership of the house along with the lien and would have to pay it off.
do let me know if you have any other questions.
thanks
blue
welcome to mortgagefit discussion board.
sorry to hear about your parent's health.
about the use of quit claim deed, if they quit claim the house then creditors will not be able to put any claim over it as it will then your property.
but let me also add that if any of the creditors has already placed any lien on the house for recovery of his dues then you will take over the ownership of the house along with the lien and would have to pay it off.
do let me know if you have any other questions.
thanks
blue
"so if they quit claim to us three children, will he be free from creditors ?"
Timbo, if they quit claim the house and their is no judgment lien on the house then you 3 will receive the house free and clear from your parents. But that will not free your parents from the debts that they own to the creditors.
Miller
Timbo, if they quit claim the house and their is no judgment lien on the house then you 3 will receive the house free and clear from your parents. But that will not free your parents from the debts that they own to the creditors.
Miller
Hi Timbo,
If they quit claim the house then it will be considered as a gift and they may have to pay any applicable gift taxes. But there is an annual gift tax exemption limit of $12,000 up to which no gift taxes are due.
You can read about tax implications for your parents because quit claiming the house from this page - http://www.mortgagefit.com/discuss/quitclaim-taximplications.html
If they quit claim the house then it will be considered as a gift and they may have to pay any applicable gift taxes. But there is an annual gift tax exemption limit of $12,000 up to which no gift taxes are due.
You can read about tax implications for your parents because quit claiming the house from this page - http://www.mortgagefit.com/discuss/quitclaim-taximplications.html