Andrew…and others:
Indeed…knowing about quit claims and their use is HUGE!! Note that we ran into an issue in Montana when a member of the generation before me stated on their quit claim deed (after specifying the portions they wanted to include in the LLC that they owned with others) “and any other mineral rights that we own in Montana”!!
This was a huge, broad statement (put in by their legal people several years ago) that made the ancillary probate incredibly difficult for the mineral rights that this person owned on their own as I found out when I tried to work through the ancillary probate.
In effect, while the intent had been to quit claim only those mineral rights that entered into the group LLC, by adding this phrase, they inadvertently added what they owned on their own into that LLC…and it took another quit claim deed to reverse the first…to the tune of many dollars and LOTS of extra time.
Thus, our experience is a word to be very careful and specific as to what you are including in the quit claim!! It can come back to haunt you (or the next generation) if you are not!!
Andrew Babcock said:
David’s quote below, is correct…but I will also add that it is “Quit Claim” not “Quick Claim”
“One additional quick note from Greg’s post…I believe it’s called an ancillary probate and not an auxiliary probate…”
A couple useful things to remember about “ancillary probate” 1) there needs to be an open probate somewhere to anchor the ancillary probate. (don’t close a probate when you know or suspect there is property in another state that needs separate probating) 2) Ancillary probates should be vastly cheaper, quicker, and less hassle than opening a separate probate.
Why do people confuse “quit claim” with “quick claim”? besides sounding so similar, they are a “quick” way to transfer ownership. It is called quit claim because that is in fact what you are doing. You are quitting any claim now and in the future for any rights you had or have in the property.
Important thing to remember…I can quit claim to any of you my interest in your homes or cars or anything I want. I have no interest in any of your stuff but that doesn’t preclude me from quit claiming it.
That is what makes the difference between “quit” and “quick” so important. Many people think it is just a “quick” informal way of transferring ownership between trusting people, or people that don’t want the hassle of Title searches or want to pay anyone to deal with the hassle…quit claiming to yourself is of course the safest and is in fact the most common use for transferring property to oneself into a different form of ownership…don’t accept quit claims from others for real property thinking it is just a “quick claim” of legitimate ownership…think “quick” way to legal nightmare
Quit claim: “if I have any interest in this property, I now transfer that entire interest to you.” (I could write up a document quit claiming my interest in the Tower of London to Greg)
Quick claim: FOUR! (golf humor)