Brother's debt.

As a general rule, one person is not responsible for the debt of another person unless the person signed an agreement in writing that they would pay the other person’s debt. This might occur, for example, when a person co-signs a loan for another person or signs a guarantee for another person’s loan. A person should be careful when assisting an ill or injured person in obtaining medical care that they do not sign any admissions paper or other document where they are described as the person who will be responsible for paying the bill - unless of course they are agreeable to do so. Your brother’s assets will be become part of his probate estate when he dies and those assets will have to be used to pay his debts. If there are not sufficient assets to pay his debts, then those debts will go unpaid. If you take those assets without paying your brother’s bills, your bother’s creditors can go after you for the amount of those assets. If your brother dies, and you are his only relative, you will be the one most likely to open and administer his probate estate. However, there is no law that requires you to volunteer to handle his estate. Your brother should consider setting up a revocable living trust (also referred to as a grantor’s or settlor’s trust or estate planing trust) to put his two houses and maybe other assets in the trust so that those assets will not have to be probated. They will still be subject to claims by his credits

I agree with Mr. Monahan that you are not responsible for your brother's debts. As far as his estate planning is concerned, I would suggest that you have your brother prepare a Power of Attorney form so that, if his health continues to deteriorate, and he becomes incapacitated, then you will be able to step in and take care of him. I would agree that it would be beneficial to avoid probate. I would suggest that in your brother's case, a trust may be more expensive and more complicated than necessary. Quit Claim deeds on the properties reserving a life estate in your brother and a remainder interest in your name, (or whatever other beneficiaries he wants to include), would eliminate the cost of setting up a trust, while still avoiding probate. Arguably, it might make it more difficult for creditors to pursue you, as well. Obviously, the mortgage bank has a secured interest and you would need to deal with them, one way or another. The unsecured creditors may be without recourse, however. In any event, the POA would help you to take care of your brother while he is alive. The other practical problem you would have would be paying for the taxes, insurance and upkeep on the second property, while you are trying to sell it. Best of luck to you! James Frederick ****************************************** LEGAL DISCLAIMER Mr. Frederick is licensed to practice law in the State of Michigan and has offices in Wayne and Ingham Counties. My practice is focused in the areas of estate planning and probate administration. I am ethically required to state that the above answer does not create an attorney/client relationship. These responses should be considered general legal education and are intended to provide general information about the question asked. Frequently, the question does not include important facts that, if known, could significantly change the answer. Information provided on this site should not be used as a substitute for competent legal advice from a licensed attorney that practices in the subject area in your state. The law changes frequently and varies from state to state.