Equity line of credit debt.

[4relvr]

So, the lady decided to give a gift to her son.

OK.

Then my wife IS responsible for half of the debt or she loss the home to foreclosure, correct?

Thank you for your time

 

[Zigner]

However, when he received the 120K, the MIL was diagnosed to be in the beginning stages of Altzeimers

That doesn't mean she wasn't mentally competent to make a gift.

 

[4relvr]

Does brother-in-law have the financial ability to make this right? If it was a gift, the money is his.

BIL is not financially able to make it right.

What I was hoping to do was to assume the ELOC and any other expenses she may have had and keep the home for a rental.

Don't know if he would agree to it or not but worth a try.

 

[4relvr]

That doesn't mean she wasn't mentally competent to make a gift.

I know. However, I knew her pretty well and knew she would have never done this in her right mind.

But, unfortunately doing the right thing by my BIL, is not required by law.

Thank you all for your time

 

[curb1]

A suggestion is to keep this as amiable as possible. This could be a difficult situation depending on the disposition of brother-in-law.

 

[4relvr]

A suggestion is to keep this as amiable as possible. This could be a difficult situation depending on the disposition of brother-in-law.

agreed. TY

 

[Zigner]

I know. However, I knew her pretty well and knew she would have never done this in her right mind.

Yet, even according to your numbers, she gifted $50k before there was ever a concern. Apparently, she would do this when she's "in her right mind."

 

[4relvr]

Yet, even according to your numbers, she gifted $50k before there was ever a concern. Apparently, she would do this when she's "in her right mind."

Actually, the 30K she loaned him in 2006-2007 was secured by a promissory note which he stopped paying on in may of 2010 and still owes 17K.

The rest I'm not sure about.

 

[tranquility]

Actually, the 30K she loaned him in 2006-2007 was secured by a promissory note which he stopped paying on in may of 2010 and still owes 17K.

The rest I'm not sure about.

The note would be an asset of the estate.

 

[curb1]

What are "all her assets including her home"? What is the value of "all of her assets?

 

[LdiJ]

I think that the obvious is kind of being ignored here.

Normally in a situation like this the house would be sold to retire the equity loan and then the remainder of the proceeds split between the two heirs. The question is whether or not the brother's share of the remaining proceeds should be reduced by the amount of money that he has already received. Obviously, the remainder of the 30k loan note (17k) would reduce his share by that amount. The question remaining is the 120k that was used to pay for the down payment on his home.

If I were the brother, I would consider myself as having received 137k of my share early. Unfortunately, the brother may not look at it that way.

 

[tranquility]

I think that the obvious is kind of being ignored here.

Normally in a situation like this the house would be sold to retire the equity loan and then the remainder of the proceeds split between the two heirs. The question is whether or not the brother's share of the remaining proceeds should be reduced by the amount of money that he has already received. Obviously, the remainder of the 30k loan note (17k) would reduce his share by that amount. The question remaining is the 120k that was used to pay for the down payment on his home.

If I were the brother, I would consider myself as having received 137k of my share early. Unfortunately, the brother may not look at it that way.

Even if the note was in the trust (which is not a known fact yet), brother would "inherit" half of the remainder and trust distribution would not be reduced by the full amount.

 

[curb1]

I agree and that was the reason for my questions, "What are "all her assets including her home"? What is the value of "all of her assets"? Perhaps there are enough of other "assets" to make this a workable situation. Otherwise this will be messy.

 

[4relvr]

I agree and that was the reason for my questions, "What are "all her assets including her home"? What is the value of "all of her assets"? Perhaps there are enough of other "assets" to make this a workable situation. Otherwise this will be messy.

I am not really sure of the total assets besides her 401k, her home, and a 30k CD.

Sadly, her 401K was worth almost 700k in 2007 but is now worth a little over 100k. It was 100% BofA stock to whom she worked for for 40+ years.

Her home could sell for as much as 600k on a good day.

The BIL doesn't have the integrity to voluntarily accept responsibility for at least the 120k (I don't think)
We will find out in the near future.

 

[curb1]

Lots of lessons here. Firstly she shouldn't have had all of her retirement in one company. But, the B of A stock has almost tripled from its low during this recession.

There should be enough assets to considerably soften the situation. BIL should deduct from the other assets what he ethically owes this situation. So, it will be very important to stay on good graces with him.