What to do

[jamal123]

What is the name of your state? NH. My father passed away 11/04. In his will he stated his home belongs to my mother, 82 years old, as long as she resides there. If she moves, the house goes to my sister. He incurred a lot of credit card debt. What can my mother do to not lose the house to creditors? She went to a lawyer who is talking about homestead rights, bankruptcy, equalization rates, etc., and scaring both my sister and her. She has lived in this home for over 50 years. Can you please help?

 

[JETX]

In his will he stated his home belongs to my mother, 82 years old, as long as she resides there. If she moves, the house goes to my sister. He incurred a lot of credit card debt. What can my mother do to not lose the house to creditors?

What was the EXACT form of the property title?? Was it in JTROS, Joint tenant, etc.??

 

[rainmand]

50 years is a long time and there's probably a lot of equity in the house. To me it sounds like your Mother is a prime candidate for a Reverse Mortgage. A Reverse Mortgage will enable her to pay off all the credit card debt and she won't have to make any more mortgage payments (as long as she keeps the house as her primary residence). An FHA-insured Reverse Mortgage is perfect for this type of situation and is worth investigating. A good place to start is www.aarp.org.

 

[JETX]

50 years is a long time and there's probably a lot of equity in the house. To me it sounds like your Mother is a prime candidate for a Reverse Mortgage.

That would be an excellent alternative.... IF the Mother had ownership of the property.

From the OP: "In his will he stated his home belongs to my mother, 82 years old, as long as she resides there. If she moves, the house goes to my sister."
It isn't clear from there as who owns the property. It could be Mother... or could be the sister, with a life estate to the Mother.

 

[jamal123]

NH. My mother has a "lifetime interest" in the property. At this point, technically, no one owns the home until my mother passes away, then the home goes to my sister. There was no joint tenancy. The home is actually in my grandparents name - when they passed away, father just took over the house. The deed still shows my grandparents owning it. Why is my mother liable for father's debt? She never benefitted from it - he squandered it.

 

[JETX]

My mother has a "lifetime interest" in the property.

I think your mean a 'life estate'. Simply, this gives her the right to reside in the property until she dies.... but she does not take ownership.

life estate
n. the right to use or occupy real property for one's life. Often this is given to a person (such as a family member) by deed or as a gift under a will with the idea that a younger person would then take the property upon the death of the one who receives the life estate. Title may also return to the person giving or deeding the property or to his/her surviving children or descendants upon the death of the life tenant-this is called "reversion."

[qoute]At this point, technically, no one owns the home until my mother passes away, then the home goes to my sister.[/quote]
Sorry, but I doubt that is the case. If the property was solely owned by your father at his death, it remains the property of his estate. As such, it is subject to claims by his debtors.

There was no joint tenancy. The home is actually in my grandparents name - when they passed away, father just took over the house.

Oh, oh!!! Even more problems. Your assumption is common that somehow a property just 'transfers' to another on the death of the owner. That is not true and the property 'succession' is subject to your state probate laws of succession.

The deed still shows my grandparents owning it.

And if both of your grandparents are deceased, the property is still owned by THEIR estates.

Why is my mother liable for father's debt?

Your mother isn't liable for his debts.... unless she was also a co-applicant, co-signer, etc. No one on this thread said she was.

You need to RUN, don't walk, to a local probate attorney who can hopefully figure out who actually owns the assets of the grandparents estates..... and then the ownership of your fathers estate. This will require a review of the wills or intestate distributions for all the estates. Depending on siblings, it is very likely that several relatives can actually make ownership claims on the property and other estate assets.

 

[jamal123]

State of NH. Thank you all for you advise. The attorney said my mother WAS liable for all of father's bills - even though she never signed anything! He suggested she get a part-time job and notify the creditors that she will pay on a monthly basis. She is 82 years old!! I looked up the records at town hall in my family's name, and all they have recorded is a title deed to my grandparents. No transfer of title to my father.

Question: What is the statute of limitations on adverse possession and can my mother file for one??

 

[JETX]

What is the statute of limitations on adverse possession and can my mother file for one??

In order to assert a claim of adverse possession, the period of adverse use is 20 years. From the NH Revised Statutes:
508:2 Real Actions. – No action for the recovery of real estate shall be brought after 20 years from the time the right to recover first accrued to the party claiming it or to some persons under whom he claims.

She would also have to meet all the other requirements.... which she doesn't.

 

[jamal123]

Mother has been there for over 50 years. What are the other requirements?

 

[JETX]

Mother has been there for over 50 years. What are the other requirements?

First off, it has to be 'adverse'. Clearly, hers wasn't.

In any case, that is by far, NOT the only issue here. I suggest you quit playing 'how abouts' and as noted in my earlier post: "You need to RUN, don't walk, to a local probate attorney who can hopefully figure out who actually owns the assets of the grandparents estates..... and then the ownership of your fathers estate. This will require a review of the wills or intestate distributions for all the estates. Depending on siblings, it is very likely that several relatives can actually make ownership claims on the property and other estate assets."