Q: Can a life estate be revoked once a lien is placed on the property?

A: What sort of 'life estate' are we talking about? A 'ladybird deed' or a traditional 'life estate'? You need to take that deed to the lawyer who created it (Your parents DID use a lawyer right?) and ask the specific questions to see if there are 'fixes' that can be made.

IDEALLY if this were a ladybird deed rather than a 'life estate' deed things can be done that will protect the property. If they tried to do this themselves and picked the wrong form, all bets are off. Again, bottom line -- seek local legal help!

-- This answer is offered for informational purposes only and does not constitute legal advice or create an attorney/client relationship.

I am licensed to practice in Michigan only. Please seek competent local legal help if you feel you need legal advice

A: I echo the previous commenter's concerns, and recommend you talk to an attorney. But in brief:

1. Will the judgment creditor be able to file a lien on the property since her name is on it? Yes. Under Michigan law, a judgment creditor can file a Notice of Judgment Lien in any county where a judgment debtor owns real property. The lien attaches to any property the judgment debtor owns or becomes an owner of during the time the judgment lien is in effect. Once the Notice of Judgment lien is recorded, the judgment debtor's property cannot be sold or transferred without paying off the judgment creditor. A judgment lien is good for 5 years and can be renewed once.

2. Can the life estate be revoked and/or modified with the consent of all parties prior to her judgment creditor filing a lien on the property? Possibly. All parties could join in a new conveyance of the property which could take the property out of your sister's name. But a savvy judgment creditor might try to undo that by alleging it was a voidable transfer or otherwise fraudulent if your sister did not receive equivalent value for her interest.

3. IF the creditor did file a lien, would it then still be possible to revoke or modify the life estate to remove her name and thereby cancel out the lien? No, not after the Notice of Judgment Lien has been recorded.

As always, you get what you pay for. Be sure to talk to a qualified attorney about your specific situation before choosing to rely on any information you get from internet discussion boards such as this one.