Legal Question in Wills and Trusts in Illinois

My grandmother is in declining health, and as such I am trying to help my dad get her "estate" in order. She is very poor, her only assets being a house (which I estimate to be worth 10k-15k only) which has been paid free and clear for years and years, and a life insurance policy (the amount is unknown, he seems to think it will only be enough to pay for a funeral). I'm trying to get my dad to have my grandmother sign the house over to him, as we are considering long term care in a nursing home for her. She also has between 20k-30k in credit card debt. If she does sign the house over but in some unfortunate event dies relatively soon after, what will happen to my dad? Will he be responsible for paying off her credit cards since he "inherited" the house shortly before death? It's hard to be more specific, because at this point she may live for a couple more years or she may die within a few weeks/months (she's 89 with continual health problems, but none of them terminal in and of themselves). They live in Illinois.


Asked on 2/02/11, 5:55 pm

1 Answer from Attorneys
Sanford M. Martin Sanford M. Martin, P.A.

My advice is based on the limited information provided. Important legal considerations for your grandmother and those interested in helping her are:

* Although your father will not be liable for credit card debts in only the name of your grandmother, a creditor could assert that the transfer of the house to your father as a gift was to avoid payment of the credit card debt. Usually, such creditors do not pursue such transfers, but do have a legal claim to make in the case of such transfers, especially if occurring within 1-2 years of death; of course, your mother could sell the house to avoid the issue;

* If your grandmother depends on Illinois Medicaid for health care benefits, you should check with the agency to learn whether such transfers violate its rules for benefits.

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Answered on 2/14/11, 1:36 pm


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