When transferring the ownership of real estate or property to your loved one or a trust, you must sign off your legal claim to the property or asset under consideration. The fastest way of doing this is by using a quit claim deed.
A quit claim deed is a legal document used by a property’s owner to relinquish their legal interests in that property. It can be helpful in helping you qualify for government programs such as Medicaid.
Reducing your assets is essential to Medicaid planning
You must meet your state income and assets limit requirements to qualify for Medicaid. If you have considerable assets, you may not be eligible. However, you can use a quit claim deed to transfer your property to other family members or into a trust when restructuring your finances to qualify for long-term care.
For instance, you can transfer your family home to your child if you intend them to own it after you are gone or to a trust designated to your heirs. A quit claim deed will help effect the change in ownership rapidly, with a minimum of fuss.
However – and this is important to note – a look-back period of 60 months applies when filing for Medicaid. All property transfers and other transactions done during the previous five years will come under scrutiny and can be included in your assets when determining your eligibility for Medicaid. That means any use of a quit claim deed would need to be planned out well in advance of your need.
Therefore, it is essential to ensure you do everything right and avoid costly mistakes that could hurt your chances of qualifying for Medicaid. Learning more about your other options is crucial in planning for your future.