Ask Me Help Desk - I Have This Neighbor

I Have This Neighbor

That asked if we had any lawyers on our site. It seems he just retired recently and is about to make out a new will. He wants to leave his house and other property to his live in girl friend of many years as he has no family.
His concerns are this. He has kept their finances separate overv the years, however, while he enjoys a A-1 credit rating his girlfriend property is about to go into foreclosure and her credit cards are all maxed out.
He's afraid that if he dies that her creditors will swoop in and take his house away from her. What can he do to protect his house from being taken from her to pay her overdue bills? I already advised him to dump the girlfriend but that's not a option. Can anyone help? Thanks for your time. Tom

There is no way to protect from the situation you describe until the property actually transfers to her name.

Once it is in her name, it is subject to levy or lien.

The only way to keep that from happening, is to transfer the property to someone else.

You'd have to trust someone beyond what may be considered reasonable, to put your home in their name, and hope that they don't get any judgments against them too.

Quote:

Originally Posted by progunr

There is no way to protect from the situation you describe until the property actually transfers to her name.

Once it is in her name, it is subject to levy or lien.

The only way to keep that from happening, is to transfer the property to someone else.

You'd have to trust someone beyond what may be considered reasonable, to put your home in their name, and hope that they don't get any judgments against them too.

He could also consult with an Attorney, put the house in some sort of lifetime trust for her either now (if he trusts this relationship is going to last) or upon his death.

But, yes, once it's in her name, it's subject to seizure/lien.

Look at the possibility of starting a limited company which invests in property and make her the sole director then leave the property to the company. I don't know if this would work but the company is a separate legal entity from her and maybe able to protect her?
You would have to take legal advise but it may be an idea.

Quote:

Originally Posted by speedball1

That asked if we had any lawyers on our site. It seems he just retired recently and is about to make out a new will. He wants to leave his house and other property to his live in girl friend of many years as he has no family.
His concerns are this. He has kept their finances separate overv the years, however, while he enjoys a A-1 credit rating his girlfriend property is about to go into foreclosure and her credit cards are all maxed out.
He's afraid that if he dies that her creditors will swoop in and take his house away from her. What can he do to protect his house from being taken from her to pay her overdue bills? I already advised him to dump the girlfriend but that's not a option. Can anyone help? Thanks for your time. Tom

It's dam awful when a friend won't listen to good advice about dumping. The girlfriend needs to file Chapter 7 and wipe the slate clean. If she is a spender, the ideas above about placing the home in a trust may work out well. But someone will have to look after maintenance and taxes on the home if she mismanages the estate.

Quote:

Originally Posted by tors

Look at the possibility of starting a limited company which invests in property and make her the sole director then leave the property to the company. I dont know if this would work but the company is a seperate legal entity from her and maybe able to protect her?
You would have to take legal advise but it may be an idea.

The cost of this would offset the advantage - and he appears not to want to title the house over to her in any form now for reasons I well understand!

Quote:

Originally Posted by George_1950

It's dam awful when a friend won't listen to good advice about dumping. The girlfriend needs to file Chapter 7 and wipe the slate clean. If she is a spender, the ideas above about placing the home in a trust may work out well. But someone will have to look after maintenance and taxes on the home if she mismanages the estate.

A trustee can be appointed to handle the financial matters.

Thanks for all the advice. I'll pass it along. Regards, tom