The house in question, apparently belonged to the parents. Also, apparently, in TN you cannot pass it on to your kids to avoid having it as an asset. I suspect they could have sold it to the kids, but I'm not sure. They should have had someone who does trust or estate stuff give them better advice.
susie
"...apparently, in TN you cannot pass it on to your kids to avoid having it as an asset. I suspect they could have sold it to the kids, but I'm not sure."
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This is the one red flag I see.