Unfortunately most title companies will not pay the proceeds to a third party. In fact, most insurance companies will not insure a title company that pays proceeds to a third party because it may complicate the transaction and can result in an insurance claim being made (if for example the proceeds are paid to the wrong third party).
Also, please keep in mind that government programs (such as medicare) have a 60 month look back period, so that any transfers made during that time frame, which do not have fair consideration paid, can result in the denial of government subsidies.
Some parents will quit claim their residence to the children,and then allow the children to sell the home, and then the children, as legal owners, keep the proceeds.
The children will need to pay taxes on the capital gains as they do not receive the stepped up tax basis that they receive if they inherit the property.
It can also involve gift tax: information here:
If certain steps are taken, the property won't be subject to reappraisal resulting in a higher property tax bill: