Legal Question in Real Estate Law in Michigan

Re: Sale of property

Family friction often arises when one relative cares for another and then expects a share of their assets. The only clean way to do that is for there to be a consentual, documented arrangement. For example, where one child of many is caring for an aging parent, I often recommend that the child charge rent or another fee that is acknowledged by the parent during their life but not actually paid until after they die. It thus becomes another bill of the estate and entitled to payment with priority over the distributions to other family members. Lacking such an arrangement, a family caregiver is entitled to no special consideration.

Your family situation is typical. If your grandmother owns the house, she or her estate is entitled to all of the funds from the sale. Your aunt may feel as though she "deserves" more, but the law will not give it to her absent an enforceable obligation or something in her will.

This response is written based on NJ law. Estate law differs somewhat from state-to-state and you may want to read your answers from MI lawyers carefully to see if MI law differs in any important respect.

See also: http://info.corbettlaw.net/lawguru.htm

Re: Sale of property

I agree with John, but the issue may revolve around what claims and documentation your aunt has, to verify that the care she gave was not gratuitious, but that she was entitled to compensation, and/or reimbursement for any expenses she may have incurred. There are several additional questions I have, that are not covered by your facts. (1) By what authority from your grandmother will you be selling the house - just to assist her, or has she given you a Power of Attorney to sign documents for her? (2) If she has given you a POA, is she competent to do so? (3) Where will she move to if the house is sold and how will those costs be paid? (4) What will happen to the sales proceeds when the house is sold? There may be more information needed to provide a better response.

Re: Sale of property

My concern about your question is your 100-year-old grandmother's mental capacity. If she is not mentally competent, any documents she signs now will be voided. Because your mother is her only child, the property will likely pass to your mother by operation of law upon your grandmother's death.

Bottom line is that you may not be able to create any documents to exclude your aunt unless your grandmother makes it clear that this is her wish rather than yours, and your grandmother has the mental capacity to sign documents expressing her wishes.

Re: Sale of property

Your aunt could make a claim once your grandmother passes away, but technically she is not entitled to anything under the law - she is simply seeking some sort of compensation for her time spent taking care of her relative.

It's also rude to ask for the money now while your grandmother is still alive. If you feel there are going to be problems once grandma passes, have your grandma meet with an estate planning lawyer and set up her will NOW to make her intent clear and to hopefully avoid any estate disputes once she has passed on.