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Hello and thank you for allowing me to address your legal question.
Yes, there is a possibility that the home can be taken since the quitclaim to you may be considered a “fraudulent conveyance.”
A fraudulent conveyance occurs when a debtor transfers ownership of his property in an effort to keep his creditors from using it to repay a debt. When that is proved, a bankruptcy trustee can reverse the transfer. Some of the factors that are taken into account when determining whether a transfer is fraudulent include (1) the timing of the transfer, (2) whether the debtor received any compensation for the transfer, and (3) whether the transfer was made to an “insider” (i.e. a relative). There are other factors as well, but those appear to be the most relevant to you based upon your post.
However, you may have an argument that the conveyance was not fraudulent because your son only owned the property on paper…not in substance. In other words, he never gave you compensation for the property when you quitclaimed it to him, he never paid the mortgage or taxes, and he doesn’t reside on the property. Also, your intent in transferring ownership was simply an estate planning tool, and that neither of you ever believed that he truly owned it. It’s a matter of substance over form. I don’t know how a court would rule, but I think you have a decent argument.
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