can she do that.
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can she do that.
I was gifted a property from my mother before she passed. Prior to that she was gifted the property from my grandfather. As a part of his divorce agreement over 10 years ago, my grandfather was supposed to repay his ex-wife the money she put towards the house from either his income or the sale of the house but he never paid her and he never sold the house. He has since passed away and now his ex-wife is threatening to sue me for the money he owed her or take ownership of the house because she was never repaid. Does she have grounds to do that?
Asked on June 18, 2019 under Real Estate Law, Ohio
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 3 years ago | Contributor
It is possible she can undo the transfers of the house and assert a claim against it if we understand the timeline correctly: it appears that he divorced first and agreed to repay her before he gifted the house. If so, "gifting" to a family member property that would otherwise be available to satisfy a known debt might be considered a fraudulent transfer and so could be voided (undone). You are not allowed to hide assets from known creditors (people whom you know you owe money) by transferring them for less-than-fair market value (e.g. giving the asset as a gift) to families and friends.
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