What Needs to be done?

[HerMajestyLivy]

What is the name of your state (only U.S. law)?

Georgia

My mother and I have recently debated on what needs to be done as far as making sure myself and my daughter our cared for. When open enrollment came about I started my life insurance policy for my daughter to make sure she was good, and my mom increased hers. She doesn't have a legal will stating the house goes to me etc etc. Does it automatically become mine or does She need to go thru a legal process and have official documents in place to ensure we (my daughter and I) can keep the home? She seems to think since I'm here only living child she doesn't need to it would just automatically come to me and I just need to use the insurance to fully pay it off. Also she is currently under bankruptcy. Does that make a difference on keeping the home?

 

[LdiJ]

What is the name of your state (only U.S. law)?

Georgia

My mother and I have recently debated on what needs to be done as far as making sure myself and my daughter our cared for. When open enrollment came about I started my life insurance policy for my daughter to make sure she was good, and my mom increased hers. She doesn't have a legal will stating the house goes to me etc etc. Does it automatically become mine or does She need to go thru a legal process and have official documents in place to ensure we (my daughter and I) can keep the home? She seems to think since I'm here only living child she doesn't need to it would just automatically come to me and I just need to use the insurance to fully pay it off. Also she is currently under bankruptcy. Does that make a difference on keeping the home?

If you are your mother's only child and there are not other grandchildren from siblings of yours that passed before you, then your mother is right. You would end up with the home under intestate laws. Your mother would not have to do anything special to make that happen.

However, the fact that she is currently under bankruptcy could be problematic...very seriously problematic. If she owns the home free and clear its almost impossible that the bankruptcy won't impact that...and won't result in the home being sold.

If she still has a mortgage on the home she would have to reaffirm it via the bankruptcy and not have enough equity that the bankruptcy court would order it sold to go towards her debts.