Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.
A life estate is an asset in a bankruptcy, and would be scheduled on Schedule A.
The value here, is the question.
Without reading all of the deed, if she did not maintain control of the property, ie: she cannot liquidate it, then there isn't much of an issue, since the bankruptcy trustee steps into the debtor's shoes, and can only do what the debtor can do.
If she can't sell it without approval of the remainder, then the trustee cannot either, and the kids won't agree to that, I'm sure!
So, if she has no legal right to sell, liquidate, etc, ..."without powers" then there is no issue in the bankruptcy estate, and the home won't be affected.
So, a careful reading of the 'without powers' section of the deed will be crucial. Have her bankruptcy attorney review the deed docs and consult with an estate attorney/real estate attorney as needed if there is clarification needed.
Thanks for your question, good luck.
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