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.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).