Legal Question in Real Estate Law in Michigan

Is it necessary to specify a monetary consideration on a Quit Claim Deed between family members when exempt under MCL 207.526 sec. 6(a) and Act 327 P.A, 1968 /sec. 5(a) as stated by the For the sum of area on the quit claim deed? Michigan The bankruptcy court trustee is trying to take my mother's land that I quit claimed back to her before my bankruptcy. My bankruptcy was finalized in January 2009 and she was just summoned to court, to get a reversal on the transfer, even though she was ill in 2005 and asked me to keep it in my name in case something happened to her. She is well now but disabled and wanted to sell her land to live on so I gave it back to her in 2008. They are saying I did this fraudulently and for no monetary consideration and want the quit claim reversed to pay off my closed debts. I did not hid this fact from them during initial bankruptcy proceedings. They just never did anymore on it until now. 1 1/2 years later.


Asked on 9/04/10, 12:00 pm

1 Answer from Attorneys
Shelly Schellenberg MI & FL private practice

While a quit claim deed is exempt from revenue tax if the amount of consideration is less than $100, when family members start "moving property around" and then declare bankruptcy...it does trigger the suspicion of fraudulent transfer. The court will consider what your intentions were at the time that the deeds were signed. If your mother was really just concerned about her health, she could have quit claimed it to the two of you, making you the sole owner upon her demise, so your claim that she wanted you to keep it in your name "in case something happened to her" rings false. It's for this reason that folks should hire an attorney to draft these documents, to avoid the unintended consequences. If the court reverses the transfer, then the land might be seized and sold by your creditors to satisfy your debts. In that case, you should provide her money to live on.

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Answered on 9/10/10, 6:26 am


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