Ouch, someone didn’t realize the LIGHNING they have in their fingertips when they signed on that. Sounds like Dad was trying to be a “good guy”, however practicing “self-help” law and accountancy are like practicing “self-help” denstistry and brain surgery. You might save money on the deal, but you may not like the results!
I’m no attorney but I know when I need to get one, Dad needs to get one YESTERDAY. I’m pretty sure the creditors can go after the 1/5th interest, whether or not they can get it is a matter of state law, ie homesteaded property.
A friend of mine has an elderly Dad who sold the family home after 49 years and bought a condo 2 years ago. At the time, he put his name and the names of all 4 of his kids on the deed as joint-tenants with rights of survivorship.
Now, one of the daughter’s husband’s business is failing and pushing them both into personal bankrupcy. Since she is listed as an owner, can the bankruptcy court force a sale of this man’s home cause his daughters is a 1/5th owner? Market value of his condo is about $175k w/ no mortgage.