Can a house be deeded back to an estate?

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Can a house be deeded back to an estate?

My mother-in-law deeded her house over to her daughter about a month before she passed away. She knew she didn’t have long left as she had terminal cancer. There is not enough money to pay her bills and all she has is a 2000 Blazer. Her daughter already has the house for sale as she said it is hers. Is it possible her creditors can reclaim the house for payment of her bills?

Asked on May 30, 2009 under Estate Planning, Minnesota

Answers:

B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

I think you need to talk to an attorney about this.  The answer will depend on a number of things, and I'm not a Minnesota attorney.  For sound advice, you need to give someone all of the facts of the case.  One place to look for a lawyer who can help you is our website, http://attorneypages.com

The person who most needs to be concerned with this is whoever is your late mother-in-law's executor or administrator (personal representative of the estate).  That's a fiduciary responsibility, and the person can be held personally liable to the estate for mistakes about assets or claims, in some instances.  A house-sized mistake is usually very expensive.


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