Inman News
Grandson seeks comeuppance at probate
Can he get back cars, house that Grandma gave away?
January 05, 2009
By Ilyce Glink
Inman News
Q: My father passed away in March. About a year before he died, he gave me the keys to his house and cars. My dad then moved into my grandmother's house. She was his power of attorney until his death.
At the time he died, the house and the cars were all legally in my name. My grandmother is telling me I don't have legal rights over the house or cars. But she does not have the power of attorney anymore.
She gave my father's cars to my uncle even though I paid all of the expenses for the cars, did the maintenance and made sure the title was in my name.
The house has my name on the title and I've put about $20,000 into the plumbing, painting and maintenance of the house for my family and me. My brothers want to tear the house down and get the money for the land.
We're going to probate court in February. I want the house because I've taken the time to clean it and fix it up. What do I do?
A: My condolences on the loss of your father. You need to hire an estate attorney or real estate attorney who can help you figure out what you own at this point. Just because your father left you the keys to his house and cars doesn't mean you own them. If your father not only gave you the keys to the home and cars, but also transferred the title to the cars and home to you, you should be the legal owner of the home and cars.
Your grandmother may be under the mistaken assumption that the power of attorney she had gave her the power to undo actions taken by your father. She would be incorrect. However, if your father was unable to handle his affairs and your grandmother had power of attorney, or had been assigned the right to manager your father's affairs, the transfer of the cars and home to you could be undone by your grandmother.
At this point, you really need the help of an estate attorney to tell you whether your grandmother has any reasonable basis for taking the actions she did. If she did not, those cars are yours and whoever has them should be unable to transfer title to them without getting title from you. You would be entitled to retrieve the cars from them.
In all of this it's critical to know whether your father owned the cars and home when he transferred them to you, whether he had the capacity to transfer them to you, whether he took the necessary actions to actually transfer title to the cars and home to you, and whether there are any other factors that would entitle a third party to contest the transfer of the cars and home to you.
Once you answer these questions, you'll have a better clue of how to proceed with your grandmother and other family members. Even if it turns out that your father did not properly transfer title of the cars and home to you, you might have rights in probate court to part of your father's estate. Once in probate court, you can make your claim to whatever improvements and maintenance expenses you have made to the home and seek reimbursement for them. You should expect to be asked to document the expenses (try to hang onto your receipts) so you can prove what you paid for.
Your attorney should be able to help you further.
Q: I'm a 56-year-old widow. I have good credit and plan to sell my home and buy a smaller home next year. I have recently gone through and closed all my open but unused credit cards, including a department store charge and two Visa cards). I was thinking this would look better on my credit report when I seek a new mortgage.
But my friends are telling me that I've done the wrong thing. They say I should have left these accounts open. Is this true?
The only debt I have is my mortgage and line of credit. I use three major credit cards regularly, mostly for the benefits like cash back, and all are paid off at the end of the month.
Am I on the right track?
A: With so much confusing information out there about fixing your credit history and raising your credit score, it's no wonder that you're getting caught in the cross breeze.
While much of your credit score depends on your available lines of credit, you can cancel some cards as long as the credit accounts you leave open are your longest-standing accounts. You get a bump to both your credit history and score the longer you have been able to successfully manage your accounts.
For example, I have a credit card account that has been open for 20 years. I don't carry a balance on that account (or on any of my accounts), and I wouldn't close it because it is my oldest piece of credit. On the other hand, I have a few store credit cards that I could close and not take much of a hit on my credit history and score simply because this 20-year account is still active.
If you've canceled your oldest accounts, then you may have caused some damage to your credit history. But if the three credit cards you use are your oldest accounts, you probably haven't hurt your credit history or score at all.
Here's one way to tell: Go to AnnualCreditReport.com to get a free copy of your credit history (you're allowed at least one free report from each of the three credit reporting bureaus each year). At the same time, you should opt in to purchase a copy of your credit score from Equifax for less than $10. The Equifax score is most closely tied to the credit score used by mortgage lenders.
If you're thinking about applying for a mortgage or home equity line of credit this year, you'd want to pull a copy of your credit history and score anyway, so this is a good time to do it. Once you have them, check your credit history carefully for errors to be sure that there's nothing else that's pulling down your credit score.
From what you've written, my guess is that you'll be pleased with what you find on your credit history and the corresponding score. The best thing you have going for you is that you're paying all of your bills in full and on time each month. This goes a long way toward giving you a solid credit history and score.
You can't reopen accounts you've already closed, but if you pay your bills on time and in full each month and maintain your oldest credit accounts -- even if you don't carry balances on them -- your credit history and score should stay in good shape.
To get even more valuable advice from Ilyce, visit her Personal Finance and Real Estate Center.
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