Q: Is it more beneficial to purchase my parent's home outright, or use QuitClaim or JTWROS?
I am interested in purchasing my parent's home in a very rural area. My parent's no longer work and receive SSI. The home is paid off, but they have a HELOC that is a third of the value of the home. I am married, but would like to keep the family home in our family. Would it be more beneficial for me to be added to the deed via QuitClaim or purchase it? Also, is Quitclaim or JTWROS more beneficial? If added to the deed, I would be responsible for paying off the Heloc which would take a financial strain off of my parents. However, I don't want to make that financial move if my siblings (not currently interested in the property at all) will have the ability to contest or ask for 1/2 of the property upon my parents death. In taking over the property, I would also pay the annual taxes and cover all repairs.
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A: Once both Parents convey the property to you, it is yours. There will be no setting aside except for clear fraud, and a gift is not fraud. The house is not paid off if there is a loan against it such as the home equity note. If you do not assume it, then you are not personally obligated on the Note but take subject to. The property can still be foreclosed and you will probably not get notice of the foreclosure sale. Either a Life Estate/ Remainder Deed or an absolute conveyance to you sounds fine. The JTROS is ok also but means you might not get the property if you predecease one of your Parents.
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