Can I buy my mother's house and lease it back to her for the mortgage amount plus utilities

This is so she can access needed money for more in home care and stay in her home.

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Can you buy your parents home?
of course and you can buy it for $ 10 or FMV or over $ 100K over FMV. It's whatever you can afford & want to do. But if mom should in the future ever need to apply for Medicaid, the house would need to have been bought by you for FMV and mom would have to use the proceeds of the sale as a spend down and used only to pay for her care and her needs. Otherwise, the sale will cause a transfer penalty inquiry on her Medicaid application.

She can rent from you. Rental agreement would need to be totally legit and based on what comparable property is renting for.

If you do these, I would really suggest that you meet with a real estate attorney to draw up all the paperwork on all this so that it is clear that FMV was done (you will need to get the mom's property appraised) and that the rental contract is all above board. If the house has issues with the majors (roof, plumbing, electrical) then you probably want to get it inspected first and then that report is given to the appraiser.The value of the property may be lower than the current tax assessor value and you need to be able to validate why price was below assessors #'s.
Together the inspector & appraiser should cost under 1K and will be important to have if anyone - from family to the state - ever challenges you on your actions or in taking advantage of the elderly.
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