Legal Question in Wills and Trusts in Georgia

Your sister-in-law's bankruptcy has nothing to do with the administration of your mother-in-law's estate. It only becomes an issue if your sister-in-law was a beneficiary of the estate. In that case, any inheritance may become part of the bankruptcy. However, even if she resigns as executor, it will not fix the problem if she is also a beneficiary. She needs to talk to her bankruptcy attorney about this. Any transfer of assets is going to be problematic. While her brother could buy her share, the proceeds from the sale will become part of the bankruptcy estate. Again, your sister-in-law should no nothing untill she talks to the bankruptcy attorney first.

The key thing is to talk to a bankruptcy AND an estate/probate lawyer first.

Bear in mind that doing any transfer of property to circumvent bankruptcy is fraud and can actually land people in jail. So do not do anything with the estate without legal advice.

Your sister-in-law's bankruptcy has nothing to do with the her job as executor.

However, if she is a beneficiary of the estate, her inheritance must be reported in her schedules and may or may not be protectable in bankruptcy depending on the value of her assets. So her half the property, whether or not she sells the property, is affected. A bankruptcy lawyer will be able to determine if the property can be protected or not. (I'd need more information). But selling it will make things worse, and resigning as executor won't change anything either.

If this is happening in Georgia in or near metro Atlanta my office does both bankruptcy and estate work, and I'd be happy to look at details. Call me at 404-768-3509.