Beneficiary Deed

[beegee1]

Hi -

My mom (dad has passed) has set up her home with a beneficiary deed to me, brother, and sister.

So when mom passes the ownership will transfer to us.

My sister has bad credit, judgments, etc. against her.

Will those judgments attached to the property as a whole or just to her third interest?

Thanks!

 

[Ohiogal]

Hi -

My mom (dad has passed) has set up her home with a beneficiary deed to me, brother, and sister.

So when mom passes the ownership will transfer to us.

My sister has bad credit, judgments, etc. against her.

Will those judgments attached to the property as a whole or just to her third interest?

Thanks!

How will you inherit? TIC or JT? What state are you in?

 

[adjusterjack]

Arkansas.

Poster is also over at thelaw.com

 

[beegee1]

Arkansas.
Honestly I am not sure TIC or JT.
Do they have different consequences for her judgements?

thx!

 

[zddoodah]

Just her interest.

The problem is that the property won't be saleable without all three of you agreeing and, if your sister finds out she'll get less or nothing from a sale because her interest is encumbered, she may be reluctant to cooperate. In other words, while only her interest will be encumbered, it could still cause problems for you and your brother.

I suggest you talk with your mother about this. If she shares your concern, then she may want to consult with an attorney about undoing what's already been done (if possible) and possibly creating a trust to hold title to the property. The trust could sell the property after she dies, and the three of you would get your shares of the sale proceeds. Your sister's creditors might still be able to get something from her, but it wouldn't be as likely to impact you and your brother.