Purchasing home for parents

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Latest post Fri, Sep 2 2016 5:48 AM by Drew. 4 replies.
  • Mon, Aug 29 2016 12:18 PM

    Purchasing home for parents

    My wife's parents are selling their home 3 hours south of us and moving closer so that we can care for them and my wife's disabled brother.  We are looking at homes in and around our neighborhood.  My wife's parents will make the down payment and then we will be paying the mortgage on the new home.  Our question is what is the best way for estate planning purposes regarding whose name we put on the deed and the mortgage.  The plan is when they sell their old home they will subtract the down payment amount and put the remainder towards the balance owed on the new home and then my wife and I will continue making the payments.  They will not be putting thier home on the market untill after they move into the home near us.  My wife will be thier sole heir and we will continue to care for her disabled brother.  So how do we handle the deed and mortgage?  Our name? Thier name? Both names?   Also as an aside, who should hold the insurance policy?  Us or them?  Our goal is to make the estate transition as smooth as possible when they pass.

    Thank you

  • Mon, Aug 29 2016 2:58 PM In reply to

    Re: Purchasing home for parents

    major issues:
    Our question is what is the best way for estate planning purposes regarding whose name we put on the deed and the mortgage.

    The only person who can opine intelligently about this question is an estate planning attorney who knows all of the relevant facts about you and your in-laws.

     

    major issues:
    They will not be putting thier home on the market untill after they move into the home near us.

    I take it this means they have the cash to make the down payment without selling their current home.

     

     

    major issues:
    who should hold the insurance policy?  Us or them?

    What insurance policy?  Homeowner's insurance?  Life insurance?  Something else?  And what does "hold the . . . policy" mean?  If you're talking about homeowner's insurance, the owner(s) of record will need to be the named insured(s).

  • Tue, Aug 30 2016 1:59 PM In reply to

    Re: Purchasing home for parents

    ca19lawyer2:

    major issues:
    Our question is what is the best way for estate planning purposes regarding whose name we put on the deed and the mortgage.

    The only person who can opine intelligently about this question is an estate planning attorney who knows all of the relevant facts about you and your in-laws.

     

    major issues:
    They will not be putting thier home on the market untill after they move into the home near us.

    I take it this means they have the cash to make the down payment without selling their current home.

    Yes, they have the cash.

     

    major issues:
    who should hold the insurance policy?  Us or them?

    What insurance policy?  Homeowner's insurance?  Life insurance?  Something else?  And what does "hold the . . . policy" mean?  If you're talking about homeowner's insurance, the owner(s) of record will need to be the named insured(s).

    Homeowners Insurance

     

  • Thu, Sep 1 2016 8:58 AM In reply to

    Re: Purchasing home for parents

    major issues:
    Our goal is to make the estate transition as smooth as possible when they pass.

    There is no such thing.

    Read the following reasons why parents should not own property jointly with their children:

    http://willblog.bsgfdlaw.com/6-reasons-not-to-put-your-child%e2%80%99s-name-on-the-deed-to-your-house/

    Then you, your wife, and her parents consult an elder law attorney for how best to set things up.

     

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    • shall not be infringed.
  • Fri, Sep 2 2016 5:48 AM In reply to

    • Drew
      Consumer
    • Top 10 Contributor
    • Joined on Thu, Mar 30 2000
    • PA
    • Posts 51,369

    Re: Purchasing home for parents

    And wife's disabled brother adds another level of complexity

    Caution...the parents interests might be different than children's or brothers , and it's pretty darn hard for one attorney to properly represent potentially adverse interests .

    In a perfect world , a rental arrangement could be set up to make any losses tax deductible and to prevent assets from being in parents name or brothers name if public need based services are sought , smooth estate issues .......but anticipate that things could change .....

     

     



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