Dealing with Debt

questions & answers

Question: My uncle is 82 and terminally ill. He's got $75k in credit card limits...he's taken out 50K in cash advances has transferred into his sons accounts. He owns a home with his wife, but his name is coming off of the house. He's done this to leave some $ to his heirs. His wife will pay the minimums on the credit cards after his death until she sells the house, then gift that money to her daughter. What's the legal ramifications of this after his death to his heirs. There will be no estate.

Answer: It’s important for people to put their specific desires about giving away their property, in a written Will, Living Trust, etc. If your uncle has no such document and truly has zero assets (after legally relinquishing his ownership in the house to his wife alone) then, very little else CAN occur--his sons already received cash (credit card advances), the wife will soon hold title to the house (but she must pay off the credit card debt after her husband's death). The wife as sole owner will have no legal obligation to sell the house or provide any proceeds to the daughter, if she does sell it (to pay off the credit cards or for any other reason). Unless your uncle is giving his wife 100% ownership of house WITHOUT CONDITIONS, they should consult a real estate attorney beforehand. This answer is provided for information only;

QUESTIONS

  • My uncle is 82 and terminally ill. He's got $75k in credit card limits...he's taken out 50K in cash advances has transferred into his sons accounts. He owns a home with his wife, but his name is coming off of the house. He's done this to leave some $ to his heirs. His wife will pay the minimums on the credit cards after his death until she sells the house, then gift that money to her daughter. What's the legal ramifications of this after his death to his heirs. There will be no estate.

STORIES

  • He told me that I could actually get all the money I needed by using my home as collateral. . .
  • I just helped my mother, age 89, deal with her Medicare HMO. . .
  • He told me that I could actually get all the money I needed by using my home as collateral. . .

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