I'm not sure what this would be about NicolaW.

Could you find out which law is being referred to and let us know?

Sounds like nonsense to me. The will may have been made back in 1985, but until the property actually transfers ownership then as I understand it it is what is technically called a "non-vested contingent interest". In other words, it doesn't "vest" in a trustee in a bankruptcy (or convey to a trustee in a Protected Trust Deed) unless the person dies prior to the debtor's discharge.

So as long as your mother-in-law was discharged prior to her mother dying then the trustee should not have any claim over it.

I believe the Accountant in Bankruptcy lost a case in court recently whereby they sought to gather in a life insurance payout when someone's spouse died just after that person had been discharged from a bankruptcy. The Sheriff ruled that a life insurance policy was a non-vested contingent interest and would only be able to be gathered in by the Trustee if the spouse had died prior to the debtor's discharge. I don't see how this is any different.