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My elderly in-laws own a business, residential board and
My elderly in-laws own a business, residential board and care facilities in California. My wife is supposed to be getting this business handed over to her at some point when they decide to retire. The issue is, they have amassed a sizable amount of debt, credit card, personal loans, and most likely multiple loans against the two homes they own and operate as the business. In addition, they have no retirement plans other than my wife continuing to operate the business until they pass. My wife is under the assumption that as long as the business is made into an LLC before the parents pass away, then she will be able to continue to run the business out of these two homes and just assume the mortgages, thereby keeping the business going. Is this true? Will the creditors be able to force the executor of the estate to sell the homes to pay back the debt? What kind of filial responsibility laws will come into play for my wife and/or me? We live in California. … read more
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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).

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