My mother is 82 and in failing health. She owns a farm worth $600,000 and is completely paid for. That is her only asset. She has a credit card debt of $30,000. My brother has a plan to not pay off the debt when my mother dies. He wants my mother to sell him the property for $500, and then when my mother dies, the creditors will not be able to collect the $30,000 dollars owed to them because my Mother will not own the farm.
Will thes startegy work?
1 Answer from Attorneys
No, for many reasons.
Transferring assets for less than fair market value to avoid creditors is considered a fraudulent transfer. Your brother would be personally liable for the debt plus costs of litigation.
In addition, a transfer of this type considering your mother's age and health could be considered elder financial abuse- for which there are civil and criminal penalties.
Please arrange for your mother to consult an elder law attorney before the situation deteriorates any further.
I would be willing to speak with her, if needed.