partition lawsuit

[Mike]

We own a house with our aunt in which she gifted us 1/2 interest and the other 1/2 interest to go to us at death, or vice versa. It is deeded as joint tenants with right of survivorship, each with 1/2 undivided interest. When she gifted the 1/2 to us we sold our home and moved there and built a 2,000 square foot house (addition) to the property and a 12 x 24 shop, which we used $40,000 of our own money to do and borrowed a mortgage of $84,000 which we solely pay for. My husband built the home himself, there was only a 800 sq. ft. cottage there before. Her niece recently had her sever the deed and give 1/2 interest to her in a life estate deed, meaning 1/2 of everything we did and are paying for too, can she do this, or do we still own the original 1/2 gifted interest and all the improvements, minus any outstanding morgage. Help.

[rachael24]

Im pretty sure she is allowed to do this...from what I have read. I will do some research and make sure though.