Legal Question in Bankruptcy in Massachusetts

Bankruptcy Attachment to a Life Estate

My parents in Massachusetts have created a life estate for their home and have designated their four children as equal grantees.

If one sibling files bankrupty in Connecticut, can they force the sale of my parents home while they are alive and living in the home? Also can they put a lien on the property for anything more than this siblings 25% stake in the home?

Thank you.


Asked on 7/16/02, 7:48 pm

1 Answer from Attorneys
Thomas Workman Law Offices of Thomas Workman

Re: Bankruptcy Attachment to a Life Estate

The house is owned by the four siblings. Depending on how the estate for them was established, there may be a portion that can be attached by a creditor. The creditor, if they "forclosed" on their interest, would have to allow the parents to live there for their natural life. This is not a very attractive deal for the creditor. In bankruptcy, that interest may be an asset that will have to be forfieted to the Trustee in Bankruptcy. This is tricky, see an attorney.

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Answered on 7/17/02, 10:07 am


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