Yes, a will does not take effect until after you die. If you don't own the property when you die, then the person named in your will does not get it.
I can think of very few situations where a quitclaim deed is the right solution. If you make a gift of the property now, then the person receiving your property will own it with your current tax basis in the property. When that person sells it, she or he will have to pay capital gains tax on the difference between your tax basis and the sales price. If you wait and give it to the person when you die, the donee gets a stepped-up tax basis equal to the market value as of their choice of the date of death or six months later. That means that if the donee sells the property right away, there is no tax.
A new alterntive is a revocable transfer-on-death deed. This just became available January 1, 2016. See my website www.sackrosendin.com for more information about revocable transfer-on-death deeds.
Probate takes forever, is expensive, and is annoying. Do your family a favor. Set up a trust, and put all your property, especially any real property, into the trust. Since it is revocable, you can change it, add to it, take property out of it, or even cancel it completely, at any time. We set up such trusts, provide a pour-over will as a back-up for any property that does not make it into the trust, provide you with blank durable powers of attorney for health care and financial decisions, in case you become incapable of making such decisions while still alive, and convey one piece of real property to the trust, usually the family home, for $1500.00. If you would like to hire me to do this, let me know, and I'll send you a list of the information I need.
Dana Sack
Answered on Feb 03rd, 2016 at 4:14 PM