Was jr’s mother the property owner? Any other siblings? Usual intestate laws say upon death automatically all assets pass to the children.
She was the owner and he's an only child... but only her husband would gain ownership "automatically".
Assets do nothing automatically without a will in most of the U.S., especially in the case of property. You don't just walk into the title office with a death certificate and your ID and get rubber-stamped into ownership (unless you're a spouse, and even then it ain't free). Without a will, it
has to go through the courts. Ownership of the house is subject to the decision of an administrator of estate appointed by, I believe, the probate court in this jurisdiction. This is actually the most-common form of intestate law in the U.S. (it varies by state), and while Junior's the only rightful heir, he still has to endure it. While it's still in Motherfighter's name, technically the house is owned by the State of Michigan until administered to another party via the court. The court can also dispose of the property to settle the decedent's debts, or deny transfer of the title until said debts are settled. Either way, Junior's probably going to have to lawyer up since he couldn't navigate a circle track, much less the legal system. That's money he doesn't have. Hell, he can't afford the court costs or title fees. As a bonus, Motherfighter left some outstanding medical bills.
When property changes hands here--regardless of its sale price, even $0--someone has to pay transfer fees and tax on it. The tax is based on the assessed value, the last appraised value, or the last sale price of the property to preclude selling a house for $200 to dodge taxes. The Boozefighters bought the house sight-unseen for around $36,000; the assessed value of the house was dramatically less. Since they paid cash, no appraisal was done. In most cases, the transfer ("sales") taxes simply come out of the estate. In Motherfighter's case, the house was the only asset other than a maybe-three-digit checking account (she was a compulsive gambler). There could be a couple of grand in tax due on the title transfer, should it happen, or the court may see fit to reduce or waive them. It may not, though, since Junior waited until there was a catastrophe rather than handle it upon Motherfighter's demise. Personal experience tells me the courts take a dim view of those who would circumvent the legal process: "Could you please explain to the court why you've waited until
now, Mr. Boozefighter?" The court could also revoke the homestead exemption until any debts are settled and the house is titled correctly, with retroactive enforcement back to Motherfighter's last breath.
If there
is a will, it's considered a gift and probate isn't necessary. If one just assumes that everything "automatically" goes to the next of kin without a will--again, other than a spouse, in
most cases (in the U.S.)--said next of kin may well be in for a nasty surprise, dependent on jurisdiction. While you might escape debt when you die, your heirs don't. Loan payments, taxes, and medical bills don't magically vanish.
They're part of the estate. If your estate goes to probate, ugly things can happen. Not all estate auctions are voluntary, kids.
There's a good reason I called my sister about this. Not only was it her stock in trade for many years, but she has a similar situation: A neighbor she hates has lived in his parents' house for decades with it still in his father's name. She did her due diligence on the repercussions of notifying the authorities, but ultimately decided it was unwarranted evil at this point. "It's that bad." She keeps that ace in her pocket, though. If her neighbor doesn't fix the title issue, upon his death the house goes to the Probate Court, County of Dickinson, to dispose of as they please. It's not his to bequeath, will or not. That'll be a fun surprise for the kids!
