Can you do a quick claim on a house?

Question

My father in law owns a house that he wants to give to my husband and I when he retires. The house is already paid off. Can we do a quick claim on the house? How would it work?

Hahahahha shows how much I know about "Quit Claims".....thanks for the correction.

Answer 1

I really think in this case you can't do a quit claim. What I would do is transfer the house, and then the new owners ( you and your husband ) pay the gift tax, its a lot cheaper than paying for a house yourself and you'd be ahead in the game. But contact a financial adviser before doing it on your own.

Congrats!!!
S

Answer 2

No, as there's no such thing as a "quick claim".

Now, if your FIL wishes to QUITCLAIM the home to his son, that's another story!

You, on the other hand (you and your hubby) can't do a thing. His Dad would have to quitclaim it to his son -- or anyone else he chose to give it to.

This isn't necessarily a good idea for him though, as it would be treated as a gift and your FIL may have to pay Gift Tax on the value of the home. There are WAY too many issues that need to be addressed, since the lifetime Gift Tax exclusion is cumulative throughout his life. Without knowing all of the details of his finances and any gifts that he's already given it's not possible to say if any Gift Tax would be due based upon the minimal information provided.

Answer 3

It is called a QUIT claim, and the forms are generally very simple and straightforward. However, I recommend seeking legal advice to accomplish this transfer, since your father-in-law will trigger a GIFT tax liability if this is not handled properly. He is only allowed to give to each of you $12,000 annually without incurring a gift tax. Since I assume that the house is worth far more than that, seek legal advice as to how to do this and avoid most or all of that tax.