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Can a quit claim deed secure a debt using real property? Or are there other ways?

Santa Barbara, CA |

I am 82. My monthly income from SS is $2000. My ONLY asset is the equity of $140,000 in my home. (Value = $300,000, mortgage = $160,000)

I recently had to borrow $53,000 from my daughter and would like to secure the debt, such that she has an interest in my home. I do NOT want to merely have this debt in my will (i.e. to let her inherit $53k more than her siblings---my kids will get equal shares of my estate.) Because if in future i need Medicaid for nursing home care, all the equity in my home may be used for Medicaid's recovery from my estate after I die, and my daughter would lose $53k.

How can I secure the debt using my house? Is it a quit claim deed? Or some other document? Must I transfer to her "quarter" or some fraction of interest, or can I put $53k? Sorry, No $ for atty.

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Attorney answers 4


A quit claim deed is NOT what you need. It will deed away your property and you've already outlined the problems. What you need is a note secured by a Trust Deed. A local real estate lawyer can help and it shouldn't cost too much.

Actively practicing law in Texas. Inactive licenses in Arizona and Georgia. All answers are general in nature and no attorney/client relationship exists in this forum.


As mentioned by attorney Smith you would need real estate attorney to prepare a deed of trust along with note and not quit claim deed.

However before you rush to that option since you mentioned medicaids recovery from your estate you should seek advise of estate planning attorney to be informed about special medi-benefits estate planning for folks like you who have a home to protect against government liens.

So you should be informed about all those issues so that you make the best and efficient decision to protect your assets for your estate.

Best of luck.

In addition to AVVO's disclaimer, please note that by this answer no attorney client relationship is intended mor entered into and unless there is a signed retainer agreement in place, neither me nor anyone in our office has intended to solicit clients nor reprints them. The answers are general in nature and without weighing specifics of particular query. No answer should be relied on in whole or in part, directly or otherwise to act or not to act in pursue of any of your potential claims in law or equity. You should consult with and obtain advise or representation of an attorney to protect your rights regarding your case or matter.


There are two simple ways to protect her loan to you ahead of other heirs or creditors: Convey a Deed of Trust to her, which is like a mortgage...or add her to title via the quit claim or other deed. The choice comes down to how much you want to give her. Do you want to limit her "cut" to her loan amount plus some interest? or do you want to convey a percentage of your current equity PLUS future appreciation?


A deed of trust would secure the debt against the home. A quitclaim deed would give all of your interest in the home to your daughter. A quitclaim deed will most likely trigger a due on sale clause on meaning the entire balance of your mortgage may become due upon the transfer.

Thus, without knowing more about the situation, execute and file with the county recorder a deed of trust.

Morales Law
115 W. Mission Street
Santa Barbara, CA 93101
(805) 845-5405

All content posted on and is for educational purposes only and should not be relied on as legal advice. Any information conveyed to, or by telephone to the Law Offices of Marcus W. Morales does not create an attorney-client relationship until an attorney-client fee agreement has been entered into and signed by both parties.

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