Small Update
I've spoken to my lawyer and my own family. My sister is divorced and was looking into getting a duplex. Move-in would be in late May due to her current lease. She was looking for another single parent to share it with, so this would be a good fit. If I could get somewhere until then, that's perfect. It would be amazing to stay in the house until then as I really don't have the ability to pack up things right now.
My lawyer said that SD may be able to backdate rent from when she took the deed. Because of the area and size of the house, market rent would be between 2600 and 3000 per month. I'm still waiting on word on the life insurance, but it's now looking like it will be released.
Right now, we're thinking of presenting an idea to her once the word comes through. I would accept that she's had ownership since not only when she took the deed over, but the month of her 18th birthday (not getting into when she was a minor, that's just too complicated). I would ask for a 6 month lease, starting Dec 1 through June 1. I would pay her 50,000 immediately as rent for the entire 18 month period, which comes to 2,777 per month. That's very close to market rent. I would also maintain the responsibility for utilities until I move. This would of course be on good faith that I would treat the property well.
While it sucks that SD would get my husband's entire life insurance, this would honestly save me. I would have a stable house until I move into a duplex with my sister, I'd be able to relax and not pack while heavily pregnant or with a fragile newborn. I'd be able to avoid an expensive court case, something SD wants too I imagine. I would also be doing something to leave SD on a better note.
There's no retirement fund, so this is actually a clean break financially, for better or worse.
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I dont understand why OP would be responsible for ALL of the
back rent. If most of the back rent were during the period that her DH was alive, I would think he would be responsible for half, and if his estate had insufficent funds, it is too bad. IDK if the bank account was joint, and what its terms and state law are, as to how much is subject to his creditor's claims, but I really think OP needs to consider and talk to her attorney. Unless the insuranc proceeds were made payable to his estate (poor planning if so), they should not be subject to creditor claims.
ETA -- of course, I dont know if in her state, her DH and her would have joint and several liability for the back rent.
That’s where I was gonna go
Wouldn't you only have to pay rent starting from the point your DH died and you were no longer living there under his occupation of the house?
I would have thought 1/2 was reasonable
They were both living there, and then the estate would be responsible for 1/2, and there may be no estate assets. Of course, with no lease, who knows, but i do think OP needs to SPECIFICALLY ask her attorney. I dont know why calls this a small update, it is massive shift from OP's earlier thread. This is what bothers me about attorneys, unless you ask them very specifically, you can get slanted response, like we can get the eviction delayed, but then OOPS, you will have to pay a lot of rent.
Your SD has made it
Your SD has made it abundantly clear that, above all else, she wants you OUT. There is no point in trying to negotiate anything whatsoever. Find yourself a short-term rental and move in with your sister in May.
You are grasping at straws ...
That sounds like a terrible
That sounds like a terrible deal. You will need that life insurance money. You need to let go of the idea of staying in this house, find a more reasonably priced place for you and your kids and move out. The sooner you sever all ties with SD, the better for both of you.
This is such an awful
This is such an awful situation and I'm so sorry for your devastating unexpected loss. I feel for you and can understand how overwhelming and exhausting the thought of packing up everything and moving out is at this time. However, I agree that the best course would be to find a place to move ASAP. In your financial circumstance, it would be foolish to use the life insurance money to pay that kind of rent due to the market value of the house when you and your kids could move into a two bedroom apt. for much less. I like the idea of moving close to your parents so they can help you with the children (assuming they're willing and able to do so.) Assuming the laws of intestate succession (dying without a will) in your state provide for your husband's personal belongings to go to you, I'd have a sale and try to liquidate as much as possible, not only to raise funds, but to minimize what has to be moved. (Obviously, you'd want to be careful not to sell anything that arguably was SD's.) I also would be sure to explore all the possibilities for life insurance you may not have thought of--was there one from your DH's work? Was there life insurance on a vehicle? The sooner you get started on this, the sooner it will be over and you'll be settled before the arrival of your newborn.
No, NO,, NO
Do not give SD $50,000. She can come up with something and get you out. You will be with out money.
do you really want to spend $2700 a month on rent, who going to pay electric, gas, water, heat, insurance and what else has to be paid. Tv internet .
Then what happens after 18 months ? This is the only large amount of monry you have. This is the only time you can make any type of deal
I would move into a cheaper place, so my money will last longer, maybe with a right to buy. You must look at the long plan. Life is long.
You never said where you lived. If you move a few miles away, can you get a house for $100,000 and something ?
"Then what happens after 18
"Then what happens after 18 months"
She isn't planning on staying 18 months - only 6!! For some reason she thinks she should offer to pay back rent since the time sd turned 18!
Move out. If a judgment is
Move out. If a judgment is given against you for back rent, file for bankruptcy protection. You and those kids need that small nest egg.
If you file for bankruptcy
the insurance proceeds would be part of OP's assets and the court would look at assets and liabilites. Not always the best alternative.
true, but she may have to
true, but she may have to spend it between now and then. A judgment and court battle can take more than a year. She doesn't have any property to attach a lien to. Depending on the state there may not be anything SD can take from her -- exemptions for one car, a certain amount of personal belongings etc. She may be unable to collect from. And she will need the $50k to get on her feet. She needs a place to live, health insurance, medical expenses etc. My guess would be she will spend close to that amount in the next year trying to get on her feet away from SD. SSI is exempt.
I think a lawyer would advise SD that SM is likely collection proof or pretty close. Going to all the trouble and expense of a court battle wouldn't be worth it. And even IF SD decides to, the OP doesn't have to pay a lawyer to fight it in court. She can call legal aid, not fight it or just not show up. If SD gets a judgment she still has to collect it. In the meantime the $50k gets them through the next year before the judgment and after that once the judgment comes, BK.
SD gets nothing financially and is out a lot of money for court. You and your bios get through the hard first year and you get a job, get on your feet and start your life over. In your shoes, that's what I would absolutely do.
This requires you to live off of the life insurance proceeds (kept in a separate bank account) for that time though. Save SSI as much as you can and put the kids' in custodial accounts for them separate from yours and use the custodial accounts for their expenses, not yours. SSI sometimes asks you to prove you spent their funds on them, so start saving receipts.
Find out your jurisdiction's exemptions and use the life insurance within those limitations: ie buy a car if you need one and if your exemptions allow one to be exempted no matter its value; if the exemption says "car worth up to $10K, then buy a car just under $10k" and so on.
Think of you and yours right now. SD has the house. Get a six month lease or even approach organizations that help women and families in crisis about temporary family housing until your sister is ready to move.
I really do not see how the OP can spend the 50K on exempt asset
I think SDs lawyer is to file a claim for back rent.
I also think the OP will be getting SS, not SSI.
ETA -- not certain how this back rent came up, it was not in yesterday's thread. I wonder if it was part of the eviction filing.
SSI is what survivors get.
Survivors Benefits is what survivors get. SSDI is what people who have paid into it get.
It doesn't matter. Any funds paid by social security or VA are exempt, by federal law. Different states have laws that would make more exempt as well, but we don't know where she lives.
And if the lawyer files a claim for back rent, they have to serve the OP, then they have to get a court date, then they have to actually get the judgment. That takes a while. If she even shows up to court by herself or responds in any way, it will slow down the process.
$15K on a car + 6 months of living expenses can easily reach that. (car plus $1500 a month for rent x 6 months = $22,500 plus $3000 for first and last/security deposit =25500 + $500 on groceries, diapers x6 months = $28500 + $500 a month on utilities x6 months = 31,500 + car insurance, health insurance, medical expenses for her and three little ones, gas, clothing, all the expenses that will come).
Without knowing her state, we can't know the exemptions.
You don't like my idea, but it absolutely would work and protect her and her little ones. Perhaps she should consult a bankruptcy attorney to see if they agree. A judgment doesn't mean you have to pay it. They also have to collect it from her. And I don't think she owes rent from when her husband was living there, whatever deal they had was between SD and late-DH because she knew nothing about it. Even a legal aid attorney could argue this well enough to slow the process and allow her to take care of her littles while living elsewhere and reducing her assets. $50k will be eaten up very quickly. If it was $500k I would completely agree with you, but it's not. It's enough to get through maybe one year under these circumstances, if she's careful.
Disagree
SS is what retirees, disabled people, widows and children of workers get, if they paid into SS. SSI i swhat people ior dependents of people who did not pay in enough get paid. The diffierence is that SS pays a lot more. I think that matters, but you can disagree.
I think the SD has been planning this action for a while, and can file a lien againt the SM VERY quickly. Not in 6 months.
But SM needs to talk to a lawyer.
I disagree too. SSI is for
I disagree too. SSI is for people who what not worked enough. SS is for workers and spouses and survivors of workers and minor children of deceased parents who worked.
SSDI is what people who are
SSDI is what people who are disabled and otherwise do not meet age criteria for social security and who have enough recent work credits get. It is not welfare, it is an insurance program they've earned. SSI is for those who are disabled and who have not worked enough recently to earn SSDI. Survivors get money from the work record of the person who died and it is just called survivor's benefits. This is my wheelhouse at this point in my life, for various reasons. Not to mention my father worked for SSA.
It does not matter why you get funds from Social Security. They are exempt from creditors except a few federal ones. Your stepdaughter doesn't count. They are exempt from bankruptcy income for calculating income AND for purposes of calculating exemptions. Whatever the reason for it, funds from social security are exempt from collections, creditors and bankruptcy except IRS and other federal government judgments:
https://www.indianalegalservices.org/node/503/can-creditors-take-my-soci...
Are Social Security benefits protected by law?
Yes. With the exception of certain federal agencies, creditors cannot garnish or seize Social Security benefits, whether it is retirement, disability, survivor’s benefits, or SSI. Congress has written this protection into law. This means that ordinary creditors such as credit card companies, medical collectors, and loan companies, cannot take Social Security benefits under any circumstances.
Does it matter if the creditor has sued me in court?
No. These protections apply, even if the creditor has a court judgment against you. The court may not order you to pay the judgment out of Social Security money.
Do these protections exist if the Social Security money is deposited into a bank account?
Yes. Even after Social Security funds are deposited into a bank, they are still protected from garnishment or seizure.
What if a collection agency threatens to take my Social Security?
The collection agency may be violating the Fair Debt Collection Practices Act, a federal law that regulates collection agencies. You may have legal claims against the collection agency, and should seek legal advice.
Can government agencies take my Social Security benefits?
Yes, but only under limited circumstances.
First, SSI (Supplemental Security Income) cannot be taken at all.
Only federal agencies may try to take Social Security benefits. Examples of some things the federal agencies can try to take your Social Security benefits for are:
Federally subsidized student loans.
Other loans owed to, or subsidized by the government.
Food stamp overpayments.
You seem to assume that the SD will wait and wait
before filing a lawsuit and getting a lien on bank accounts and or the insurance policy. I agree with other posters, that the saga seems highly unusual, but for OP to bring up the back rent issue makes me wonder if the SD has already filed. Maybe she will come back and tell us more. To say that this "will" work implies the SD will wait before taking legal aciton.
"My lawyer said that SD may
"My lawyer said that SD may be able to backdate rent from when she took the deed."
If this story is true at all, it HAS NOT happened yet. I think none of it makes sense. The lawyer's advice is in SD's best interest with no attempt to argue that she had no lease and no obligation to pay rent while living with her husband.
The back rent is something
The back rent is something the OP is concerned about, not something that has begun yet.
This is not a good idea
at all. Especially when you are not working and social security is not a lot of money. Plus you have no guarantee of the $50,000 so what if it doesn't come through? Then you owe that money, have an eviction on your record, and have engaged in an unnecessary fight for the property.
Several others are correct in saying you just need to move. Find some assistance with packing and moving and just go. Find an apartment with the first month free and sign a six month lease from January-June and then look at your options for sharing a home. Between the current savings, the potential life insurance, and social security you should be good until you can go back to work as long as you are careful about spending.
" 1. I would pay her 50,000
" 1. I would pay her 50,000 immediately as rent for the entire 18 month period, which comes to 2,777 per month."
WOW! I'm glad that I don't make decisions like this! It wouldn't be your responsibility to pay for DH's rent before his passing, and your lodging at his home before his passing. If he did not have a rental agreement to pay rent, he will not be responsible to pay rent, especially after the fact. And wives or girlfriends do not have to pay back rent for a space that has no rental contract for crashing at their husband or boyfriends house lodging.....
....so I'm glad I don't believe lawyers who come up with Ideas like give the only $50,000. life insurance to the person who got the house versus the person with babies and pregnant with no houses.
"He simply explained the law
"He simply explained the law to his client and appraised her of her chances of prevailing in litigation. This is exactly what you pay a lawyer to do-it-yourself give you good legal advice."
Thats not the law. Thats not good legal advice. Thats bad legal advice - and where is the law that states that someone with no rental contract must pay back rent when they did not know that their spouse did not own the house? which statute is that exactly?
I'm so sorry OP you have been
I'm so sorry OP you have been truly screwed over here but agreeing to backdate rent and ha ding over the $50,000 life insurance, leaving you with 0 by May 2020 is not the way to go.
You are 6 months pregnant, you've been a SAHM for some time and have other babies that have just lost their dad to think about. You need to get that 50k to last you as long as possible. It is not fair, it is not going to be easy but it is also not fair or clever to put all your eggs in one basket and be fully financially reliant on your sister by May.
You need to cut the emotional ties to the house. What's important now are your kids. Heck even renting a cheap motel room for a month whilst you find another property for the 6 months between now and May would be cheaper than 50k.
If I were you I would rent a storage unit, move the majority of my stuff into that unit. Have a 6 month period of minimalistic living until the accommodation with your sister is available in May. And in the mean time rent something cheap and small. Your kids are going to need YOU, they dont need to see their mum fighting with their half sister, they dont need the stress of waiting to be evicted or having the police escort them from the property.
They have already lost their dad, they need you and in a few short months you will have a newborn needing you too. A small apartment for a while will be fine.
Get away from SD and focus on them.
I find it suspicious that
I find it suspicious that comments in this thread have been deleted and the OP has not returned.
She returns just to delete
She returns just to delete comments that hit too close to truths she doesn't want to read.
Yep
Yep
Pay to consult another lawyer
Pay to consult another lawyer. Get a second opinion before handing over the bulk of your money. This plan is insane.