Quitclaim Deed; do I need to take any action?

CKBeck, are you still here?   If you have questions on anything written, please feel free to ask.   We've gone a bit astray from your initial questions.

Igloo, excellent points on the issue of potential liens, and against whom if there are any.  I completely missed that until you raised the issue.   And jogging my memory, if there were secured liens such as a mortgage, conveying title could have been construed as an event of default.

If there was a loan or other encumbrances at the time of recording the QCD, a title search needs to be done as there could be other issues, which I hesitate to mention as it would complicate the situation for the OP.   Best find out first what the situation is. 

As to your latest post and question of POA relevancy, you're right on the potential self dealing.   Good points.  My thoughts were primarily that the parents apparently (and I emphasize that) cognizant to execute a QCD on their own, so there would be no need at all for the OP to have executed anything that could be executed by the parents (as fee holders) then, and that the OP's involvement now might be questioned. 

Your point on whether or not she's been recently involved as a proxy is very relevant.

There was just NO reason for OP to have been involved then, and isn't now, b/c if there are title issues, they need to be addressed as you've advised, by a real estate attorney.  OP's use of POA powers could only muddy the water and raise issues, as you've observed.  I wasn't very clear on that.

Thanks for being so alert!

Quitclaim can pose problems & in more than 1 way. Imho you need to take all the paperwork from the initial mortgage done in 1986 to the current tax collector/ assessor bill to a real estate atty to see what the flaws might be for whatever your folks did in 2006. Once you find that out, those answers will dovetails into whether or not it’s going to be an issue should the folks end up applying for LTC or community based Medicaid.

QCDs sound all easy peasy but ime the only way they work easy is if property is QCD to 1 party under a judges order, like in a divorce decree.

Its not imo ?’s to take to elder law atty, but real estate one initially. What the RE atty will look into will likely be......
- QCD do NOT guarantee ownership. It is only a Warranty Deed that does this. Please please reread Gardens post on WD. It can be difficult or impossible to get lending from a bank or traditional lender on property that was transferred via a QCD as no guarantee of ownership.
This can snowball into your not being able to get a HELOC should you need one or difficulty to sell it in the future to someone who needs to get a mortgage. RE atty will know just how much of an issue this is for the QCD your inlaws did and for getting solid ownership for your state.
- QCDs transfer what your parents “think” they own. So if they actually still had a mortgage on the property in 2006 and there was no Release of Deed (from 1986) of Trust done by the old mortgage holder and filed at the courthouse, the QCD might be invalid as they did not fully own the property at the time of the QCD. They can’t transfer what they do not own.
- same problems as above IF at the time of QCD there were any clouds lurking on the property. Like mechanics lein (like from a roofing co) or any judgements against your folks but placed on thier real property. RE atty will get a title co to ferret out if there’s anything.
- the possibility of “claim” by your BILs, could they have placed any lien onto thier parents property? Or do the parents owe the sons any $, so that there could actually be a “claim” (actually a lien) or is this BIL bluster?
- if need be a RE atty can get a Quiet Title Action done to cure any problems with the QCD and once Quiet is done get a WD issued. Quiet is kinda speciality work, not expensive, but a series of specific items over a 6-8/10 mo period of time. I’ve gotten Quiets done on tax sale deed property, runs few hundred to 2k, my RE atty mainly does site selection clearance work for developers & Quiet is a lil sideline for him, as it is a lot of the same type of paperwork like notices printed in newspapers & deep dive on property history. Not a DIY ime.

? Does bill from the tax assessor read in your & wife’s name?
OR
Is tax assessor bill still in the name of her parents? And are the folks getting tax exemptions, homestead exemptions or other perks of being the property owner? If still in their names, then most likely the city / county and the state views them as the owner. It passes ownership to you all as “right of survivorship” only after they die. This type of paperwork is kinda similar what’s done for LE / Life Estates. Medicaid has a way of dealing with LE & it’s based on IRS actuarial tables, ask the RE guy abt this it’s way way out of my wheelhouse to describe it.

You need clear answers on all this from atty’s in your state. Not DIY. Once you know, then you & the folks can go to see an elder law atty to see just what might be feasible in Medicaid planning for them. Good luck.

Alva gives good advice.   I'll just try to elaborate a little.

Your parents purchased the house, so I assume both of them signed the QCD, and properly filed with the local recorder of deeds or similar governmental body.  Who drafted the QCD?  An attorney?   If not, is everything perfect?  Spelling of names, property description, conveyance language, etc?   One mistake could bring into question the validity of the QCD.

To convey all interest and extinguish your parents' interest, a Warranty Deed should be executed and filed.  That not only eliminates all your parents' interest, but vests title in your name.    

Is there a likelihood that your parents might be in need of Medicaid sometime in the future?    I'm not knowledgeable on this next issue, so it is something that should be addressed by an attorney.   If your parents' rights were quit claimed in 2006, but not extinguished (and this is important) until now, the 5 year look back for Medicaid MAY come into play.   

I emphasize I'm not that knowledgable on this issue, just surmising based on what I've learned over the years.   E.g., a Warranty Deed executed and recorded now could be deemed to fully extinguish your parents' rights when that deed is recorded, moving that date forward in terms of the lookback period.

I emphasize that this is my understanding; it's something to be verified with an attorney.

As to your brothers, that would depend on a will or a Trust, if one exists.   If your parents have executed either, do you know if the house is to be split amongst you and your brothers?  If so, then there is a problem that it's been granted to you.     This should be addressed now, either by a Codicil to a Will, or a Restated Trust, IF the brothers aren't to inherit.    Otherwise, you're going to face a challenge to the Will after death.

The POAs aren't relevant to these issues, which focus on title, proper transfer and extinguishment of rights to the property.

You have financial POA. Please go to an attorney with this question; your parents estate pay for it when it involves their financials. This isn't something that you can afford to be wrong about and you should have expert advice. Law advice, as a Lawyer, medical a Doctor, Financial a CPA and etc. You will get a lot of advice, but from what I have seen it isn't a "quitclaim" that matters; it is how the deed reads. Indeed, if the elder goes into care and requires Governmental assistance, then, following the death of said elder/s the State and Federal Government (Medicaid is a combination of both) can come to collect from the assets remaining in the estate. As you can imagine, a home is an asset. And the Taxpayer should not have to pay for care when an elder still has assets of their own.
As I said, do check things out with an attorney finally. You will get advice from many here, and many are much more knowledgeable about medicaid and quit claim deeds than I am.
Wishing you good luck going forward.