QUESTION
If my grandfather owns land but is in a massive amount of debt, is there any way for me to keep the land from creditors?
Asked on Dec 02nd, 2013 on Estate Planning - Louisiana
13 ANSWERS
Business Law Attorney serving Bingham Farms, MI
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James T. Weiner, P.C.
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Most attempts to protect the land will most likely be considered fraud or a fraudulent conveyance so but yes there is but takes a lot of potentially expensive estate planning that is too complicated to go into in this forum.
Answered on Dec 06th, 2013 at 8:34 AM
Assuming the land is raw land and not his personal residence, his best bet in Nevada would be to put money into exempt assets such as his personal residence up to $550,000 in equity, a retirement fund such as an IRA or 401k up to $500,000, an insurance policy, etc. He also should put the land into an LLC. He may want to consider a Nevada Asset Protection Trust which will protect anything after it has been in the trust for 2 years.
Answered on Dec 06th, 2013 at 8:28 AM
Edwin K. Niles
Alive or dead?
Answered on Dec 04th, 2013 at 9:38 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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It depends. Your grandfather needs to be exceedingly cautious, however, because anything he does at this time could be seen as an attempt to defraud his creditors and it could be overturned, on that basis. Your grandfather should meet with an attorney to review his situation and determine how best to proceed.
Answered on Dec 04th, 2013 at 9:38 PM
David Thomson Egli
Is grandfather alive? Can he file a bankruptcy case and keep the property? If he can't, can he pay or settle his debts with the creditors? Otherwise, transferring title to the land might be considered a transfer defrauding his creditors. If grandfather is dead and a probate is required to transfer the property, you can hope that some or all of the creditors fail to properly follow the claim procedures and their claims don't have to be paid.
Answered on Dec 04th, 2013 at 9:38 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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Probably not. If he tries to transfer it to you or a trust, it will be deemed a fraudulent transfer. And, if he has that much debt, chances are he used the land to secure the debt so even if he does transfer it, the mortgagee will be able to foreclose.
Answered on Dec 04th, 2013 at 9:38 PM
Unless the debts are secured by some collateral other than the land, it will probably be difficult to keep the land if the creditors decide to call in their loans. Check with a bankruptcy attorney for advice.
Answered on Dec 04th, 2013 at 9:37 PM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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No. Probate court will require the creditors to be paid.
Answered on Dec 04th, 2013 at 9:37 PM
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Probably not, it the land is home and may it be protected by a homestead? I suggest he speak with legal counsel to see if there are any available options, including Bankruptcy.
Answered on Dec 04th, 2013 at 9:37 PM
Thomas Edward Gates
No, the land is part of estate and would need to be sold to pay the creditors. There may now be liens on the property.
Answered on Dec 04th, 2013 at 9:37 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Perhaps, but need the details. Generally, however, a person's assets are to be made available to meet their obligations, otherwise the entire system fails.
Answered on Dec 04th, 2013 at 9:36 PM
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Probably not but much more information is needed. Schedule a free consultation with a local attorney to get more accurate information.
Answered on Dec 04th, 2013 at 9:36 PM
Probate Attorney serving New Orleans, LA
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James G. Maguire
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Probably not. It will be part of his estate at his death. If he tries to donate it, his creditors can usually undo that transaction.
Answered on Dec 04th, 2013 at 9:36 PM