Quit Claim deed for house in Ill. signed by owner to 2 adult children. Are children now responsible for tax and other debts?

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Mom signed Quit Claim deed in 2001 giving house equally to her 2 children while maintaining life estate. Her son has mom's Power of Attorney. In 2013 he convinced her to live with him & his wife in another city. Mom is 87 & easily convinced so she moved in with him. He had her cash in all financial accts, about $40,000. Mom pays him $650/mo. for living expenses. She receives social security & a pension from deceased husband. After living with him for a month, he told mom we have to sell her house, she really needs money. I tried to explain to her she has money, but brother cut me off. He will give me no info regarding her assets, expenses, etc. He says she needs to go in a nursing home but can’t get Medicaid until she sells house. Her 2014 property tax statement shows she no longer gets the “Senior Citizen” or “Senior Assessment” freeze & now has a tax debt of over $1,000. He tells me I am responsible for that debt & he had the county change the name on her account from “her” to “her etal”. Am I responsible for the tax debt and other expenses?

3 Attorney Answers

Best Answer
While you are not responsible for the tax debt, you would be wise to consult in person with an estate planning attorney. There are many issues here which need to be addressed and this forum is just not adequate for your needs or the needs of your mother.
Best Answer
A quitclaim deed has transferred legal ownership of the house to the New Owners. As the owners they are now responsible for taxes,upkeep and maintenance. You should sit down with an Estate Planning attorney to get this straightened out. See Avvo.com under the link 'Find-A-Lawyer'.
Best Answer
This strikes me as an elder law issue because of the Medicaid eligibility and benefits planning that is beyond basic estate planning. In IL, her house is an exempt asset (not affecting eligibility) if she is truly able to continue living there and intends to return. If so, then the house may not count against her for Medicaid app. The real question is likely whether can can really continue to live at home and be cared for there, or does she need to move where more care is available. That is a question to ask her doctors' opinion. Again, these are things to discuss with an elder law attorney. I'm including a link below for the National Academy of Elder Law Attorneys and suggest you try the "find a lawyer" link there.

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