In Calif, can a quitclaim deed be recorded at any time ... Is there a time limit after it has been notarized?

Question

For example, my mother wishes to quitclaim her house to when she dies. Can the notarized quitclaim to her property sit in a safety deposit box until her death and then be recorded?

Answer 1

While in theory you could sit on a deed without recording it it might be difficult or impossible to prove your claim if it is not recorded. If the grantor were to sign over their rights to someone else who recorded their deed it would become even more difficult.

For this reason, many states require that all deeds be filed within a short period of time or they become invalid.

I can't think of any possible reason why someone would want to sit on an unrecorded deed. There is no benefit from doing so and many downsides to it.

Addendum: Based upon your additional details, your mother should execute a will and specify in the will whom should receive the property.

Executing a quitclaim deed now would treat the transfer as a gift, not a bequest. Gift Taxes could be due on the transfer depending upon the amount and her lifetime gifting history. The date on the deed would be the date of the transfer of ownership even if it was not recorded and the Gift Tax return would have to be filed now and any Gift Taxes paid now.

If it passes through probate, the beneficiary would receive the stepped up basis and if they sold it for that amount or less there would be no tax. If they received it as a gift they would receive her basis and would probably have a substantial tax debt upon sale. Additionally the Estate Tax exclusion is larger than the lifetime Gift Tax unified credit so a larger estate can be passed tax-free through probate than as a gift.

There are other ways that this can be handled but rat holing a quitclaim deed in a safety deposit box is NOT a good idea. She could transfer the property to a trust and take back a life estate. This would allow her to live there during her lifetime and the property would then pass to the beneficiary upon her death.

Consult with an attorney who specializes in estate planning to determine the best way for your mother to proceed.

Answer 2

Once she is dead, the quitclaim is void. It must be filed before she dies.

Here is what I would suggest....why don't you put the house in a living trust under her name with you as the beneficiary? That gives her full legal control of the house, she can take it out of the trust whenever she wants, no penalty, and you get to skip probate.

Answer 3

IMPORTANT NOTE FOR CALIFORNIA RESIDENTS: The State of California has costly and complex registration requirements for each county in that state to become what they call "legal document assistants". As such, Standard Legal is not registered and bonded for document preparation service in any county in the State of California and cannot provide these services to any California resident. However, Standard Legal Software and the legal forms and documents contained within are valid and binding in the State of California and can be purchased and used by California residents. Further, California residents can also use our free "Attorney Find" service to help find a local attorney to create documents for them.

Contact a lawyer and get a free consultation, therefore you would only be out out of your time and not your money :-)

Answer 4

You need to see a lawyer. You are setting yourself up for
huge estate taxes. go to "We the People" a paralegal firm with branches all over the country and set up a Living Trust.