Can someone quitclaim their share of a home to a relative in order to avoid a lien?

My brother got caught working elsewhere while collecting money from L&I (state unemployment). It is now on his case to pay them back. He meets with a PD in a couple of weeks. Meanwhile, he is concerned that the beach house that he co-owns with his siblings, there are 4 of us, is in danger of being liened. Can he quitclaim his share to one of the siblings?

Asked on March 7, 2011 under Bankruptcy Law, Washington

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Generally speaking, if you transfer property within a specified period of time prior to having a judgement rendered against you the transfer can possibly be set aside as an attempt to defraud creditors.  The time frame varies from state to state and you would need to speak with an attorney in your area as to the specifics here.  In the meantime I would have him hire an attorney to go with him to the hearing and to discuss the possibility of paying them back.  Maybe he can avoid the penalties that will be involved in the matter.  Tell him not to go this alone.  He needs advice on the law.


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