HiI am filing chapter 7 in califonia and have a house I live in owned by my father which is in a living will to me. My question is in case m...

Question

Hi

I am filing chapter 7 in califonia and have a house I live in owned by my father which is in a living will to me. My question is in case my father passes away within the 180 days of filing am I better off using system 1 as opposed to system 2? Or does it even matter which system I use.

Answer

First of all, a living will is a power of attorney for health care, so I think you are using the wrong terminology. What I think you meant to say is that your father owns the home that you live in and in his last will and testament, you are the beneficiary of the home.

Is your father in poor health? Is there a mortgage on the property? Your father should create a trust and transfer the house into the trust. This will avoid probate. You can also include language that prevents you from inheriting the home if it becomes subject to creditors.

Since you don't own the home right now, you should use system 2. But, I also suggest that you hire a local bankruptcy attorney for assistance to make sure you are properly advised on what to do.