Quitclaim deeds are irreversible. Before you go and add your new spouse to the deed, you need to learn all you can learn about them.
What Is Quitclaim Deed
A quitclaim deed lets you add your new spouse or transfer a property to a buyer in a fast and inexpensive way.
Unlike general warranty and special warranty deeds with covenants, a quitclaim deed has no warranties of the title. the seller can transfer her interest in the property to the buyer
Common uses of Quitclaim Deeds
The Use of Quitclaim Deeds in Divorce
After divorce, a spouse can terminate interest in the joint marital home by ging the other spouse full property rights quickly and inexpensively via a quitclaim deed.
A party who transfers the marital home to a spouse in a divorce needs to make sure that she removes her name from the mortgage as well.
A common mistake made in divorce is one party transfers the title deed to another but fails to do the same with the mortgage, thus remaining responsible for the monthly payments.
Adding Your Spouse to the Deed
After the proposal, party and honeymoon, your next step might be adding your new spouse to the title.
Newlyweds need to be cautioned because a quitclaim deed is an irreversible financial transaction, which makes your new spouse a joint owner of the property.
Pass Your Home to Your Children
Parents can quitclaim their property to their children. Again the quitclaim makes the child or children joint owner or sole owner of the property. You cannot reverse it
Parents who expect to live in the property after the title transfer might want to explore alternative ways.
Also, a quitclaim deed might not be the most tax-efficient way to transfer properties to your kids.
Transfer Property into a Living Trust
Transferring assets into a living trust, including real estate, is one of the best ways to continue enjoying and living in your property and save your children from expensive and archaic probate procedures after you die.
Once you are done setting up your living trust document, you can sign a quitclaim deed transferring the home’s title into your living trust. Properties in your living trust are yours. Your children can’t sell or evict you out of the house prematurely.
Conclusion
Quitclaim deeds are irreversible financial transactions. It would help if you were certain before signing a quitclaim deed adding your spouse to the tile or transferring the title to your children or others.
