Equity line of credit debt.

[Zigner]

To be clear, let's say that the entire $170k was borrowed by the BIL and owed to MIL. If BIL and the OP's wife are the only two heirs, then the BIL only owes half of that $170k. The MOST the BIL could owe would be $85k (and it's already been shown that it would be less due to payments made in the past.)

This has been pointed out above, I'm just reiterating it.

 

[tranquility]

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.

Did she have a financial adviser at the time she owned the 401(k)?

 

[curb1]

Bank of America stock that reached $700k prior to the recession would now be worth very close to $175,000. It should be going up in value from here. I think this situation is workable if you can keep on good terms with BIL.

 

[LdiJ]

Bank of America stock that reached $700k prior to the recession would now be worth very close to $175,000. It should be going up in value from here. I think this situation is workable if you can keep on good terms with BIL.

While I don't disagree, its likely/possible that mom spent some of it as well and therefore it really could be around 100k now.

 

[4relvr]

While I don't disagree, its likely/possible that mom spent some of it as well and therefore it really could be around 100k now.

Yeah I'm just not sure of the exact figures but I know she trusted B of A with everything she did.

Why she didn't diversify is a testament to her total trust and belief in B of A.

You would have thought that when she had the cashiers check made out for 120K to her son, it would have thrown up a red flag at the bank and they might have talked to her alone for a few minutes to see if she knew what she was doing and understood what she was about to do.