A client recently came to our office with a problem arising from a prior deed. The couple owned the real estate but decided to add their daughter and her husband after they acquired the home, to avoid probate upon their death. The significant problem is that the daughter and husband have judgements against them and are likely filing bankruptcy. This will result in half of the interest in the home being subject to the bankruptcy case and could mean that the parents will be forced to sell the house and only receive half of the sale proceeds. I strongly recommend that you do not give someone else an interest in your house, for whatever reason, to avoid this doomsday scenario. Consider a lady bird deed instead, or a revocable trust.
Mitch
Subscribe To This Blog’s Feed