You do need a business license. You need to check the zoning for your location to determine if you can run a business out of your home. Usually something like this is ok, but you need to check. Once you know you are zoned properly, a business license shouldn't be an issue.
You do not need insurance, though it would be a VERY good idea. I love new business owners, so if you would like to have a conversation sometime over your business, feel free to call me!
One trust is sufficient for purposes of state law. Whether you should have separate trusts is dependent on your own desires regarding control of the assets.
You will need permission from primary lenders for property that is not your primary or secondary residence.
Debts will not transfer to you AS LONG as you don't mismanage her estate if you are acting as executor. Make sure you do not take anything for yourself until all debts are settled and taxes are paid. A little money for an attorney and CPA to handle this for you will save you time, and will save you from being held personally liable for your mothers debts.
The law is that her property will pass by intestate succession, which is a strict default order of property distribution absent a Will. Intestate succession can get complex and is highly dependent on the family structure, children, husband, parents, siblings - etc.
A visit with a local probate attorney to take a look at the situation and tell you what to expect would be a great investment.
None of the property goes to anyone else. So her friends are out of luck.
If the case was dismissed due to the willful failure of the debtor to follow a court order, the failure to appear before the court in prosecution of the case, or if the debtor requested a voluntary dismissal in response to a creditor’s motion for relief from the automatic stay, then they may be prevented from refiling another bankruptcy for 180 days. Otherwise you can refile immediately.
See 11 USC § 109 (g)
If you believe there is undue influence, you should consult with an attorney immediately. However, if the attorney reasonably believed your mother had capacity, your mother was free to change her will absent a clear clause in (i'm assuming joint will) the wills of your parents that made them binding upon one another.
What is the question?
If you are asking whether Chapter 13 is the best way, or advisable - then maybe at that debt level you should file for BK.
If you were filing in WA, your income would be below the single family average,so you could file for Chapter 7, which is typically the preferred option unless you are trying to protect something like a home.
A better and deeper look at your debts, and the types of debts, would give me a better picture of which chapter would be better for you.
They can challenge the ownership of the property on a number of different fronts but the deed creates a presumption that would be difficult to overcome in court. That may not stop them from filing a lawsuit and attempting a settlement to get something out of you.