Expert: Charles W. Field - 2/28/2004

Question
My father, purchased my house and was allowing me to pay him back. He was doing the same for my sister. She had some financial problems and couldn't pay, and since he was basically forgiving her, her loan, he also forgave mine. One problem is, he didn not transfer the property into my name (nor my sister to her's). Then last fall he was in an auto accident. (His fault apparently) and rear ended a car.  I am now scared that they may get an lawyer that sees dad owns some property and try to go after it, if the claims are beyond the scope of the insurance.  I'm afraid I could lose my house. I owed dad about 35k, but my house is probably worth 115k at this time since I have put alot of money into it.  Is there anything we can do now to protect our home ?  A lawsuit has been filed but they have never went to court.  Should dad be hiring an attorney or will Insurance take care of it?  I'm at a loss as to what is at risk for my family.  Thanks for any help you can give.

Answer
I would strongly recommend that you, your sister and your father consult with an attorney. If your dad had liability insurance, his company will defend him in a lawsuit. But remember: the attorney assigned to represent him will be mainly concerned about the insurance company's financial liability. Also, if I correctly understand your question about your and your sister's property, you should consider having your father immediately sign a quitclaim or warranty deed on these properties into yours and your sister's name. Again, consult with a local attorney.