Legal Question in Wills and Trusts in Michigan

Question about children on deed to parents home.

My 83 yr old Mother has her 3 children on the deed to her house so that when she passes it goes to us to sell or if she needs assisted living itwill have to be sold. Is this a good idea if one of the people is having financial problems. I am not totally aware of the problems, but should they have to declare bankruptcy, would that affect her home. I read in the AARP magazine that if the child gets divorced, declares bankruptcy, gets sued or ends up needing govt. assistance, they could take all or part of her house. She lives in Michigan .


Asked on 10/18/07, 10:35 am

1 Answer from Attorneys
Renee Walsh LawRefs Nonprofit

Re: Question about children on deed to parents home.

You are wise to be concerned. Creditors can attach assets owned by the debtor. Your sibling is a debtor owning the house as an asset and therefore, creditors could collect from that asset.

I ran into a situation like this with a client. The client was in her 80s and had been advised to deed her property to herself and her children. She wanted to go back home, with assisted living, and needed modification in the house to make it handicap accessible. I wanted to get a loan against the house to make the modifications, however, each owner's credit would have had to have been approved for the loan. I had the siblings deed the house back to the client, so she was on the house alone and could get her loan.

Now, if she had wanted to go to a facility that subsidized elderly persons, having the entire house in her name may have excluded her from subsidization because of the amount of her total assets.

If you would like further information or advice, please visit my website at www.lawrefs.com or contact me directly via email.

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Answered on 10/18/07, 2:57 pm


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