Legal Question in Wills and Trusts in New Jersey
We live in NJ. My mother, paid cash for her home and for personal reasons, put it in my sisters name, along with her life savings. My mom, thankfully, is very healthy, but recently asked my sister if something were to happen to her, what was she planning on doing with her house and life savings. There are 3 of us. My sister tells her that she would allow our nephew and girlfriend to reside in the house and use my her (my moms) life savings to pay for the house, taxes and whatnot... Then she claims, when that ran out, she would sell moms house and split it 4 ways, including our nephew! My mother said, absolutely not! He's not to be involved at all... My sister says, even if my mom were to draw up a Will, it would be moot, because all cash and house is in my sisters name only. Mom doesn't think!!! Our question is this: If my sister writes a letter, (We each get an original) notorizes it and confirms that the house indeed belongs to our mother and states what is to be done in the future, would that be legally binding and assure that my mothers wishes are carried out? My sister isn't fighting it, but mom wants to be certain that her wishes are carried out.
1 Answer from Attorneys
Unfortunately, putting the house and life savings in your sister's name was a transfer of assets by your mother. This has consequences beyond just where those assets go upon her death. If she needs medicaid and other government benefits within a certain time after the transfer, she would not be eligible to receive the benefits.
Unless your sister transfers everything back to your mother, your mother has no right to direct the disposition or to dispose of these assets. She could possibly go to court to sue for the return of legal title, but then she would have to disclose the personal reasons, which she probably did not want to do in the first place.
It is doubtful that a letter would work. Perhaps, if your sister transfers everything into an irrevocable trust that has all of the conditions governing what happens to the house and money that would take care of your mother's concerns. But there are many issues to be considered even in setting up such a trust.
THIS RESPONSE IS NOT LEGAL ADVICE, SINCE I DO NOT HAVE ALL OF THE INFORMATION THAT WOULD BE REQUIRED, AND I DO NOT HAVE A REPRESENTATION AGREEMENT WITH YOU.
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