Follow
Share

My aging parents can no longer take care of their home and we are buying a larger house to accommodate them moving in with us. We could financially handle the whole cost but they have agreed to pay 25% of the purchase price. The 25% equals $280K. We will be providing 40% and financing the remaining 35%. This is too large for a gift deduction. It is a payment for the additional cost associated with them moving into our house so can we just write out an agreement that this $280K is to cover the additional expense that is incurred by their requirements? They will not be on the deed.

This question has been closed for answers. Ask a New Question.
How wonderful that your parents will help contribute with the purchase of your home. I hope everything goes smoothly and its an easy transition.

One draw back I hope never happens with your family, I had notice when my significant other had put a hefty down payment on his daughter's and son-in-law's first home is now he thinks he has a say on whatever they want to do with their house. Ouch, a lot of unnecessary fights and bickering.
Helpful Answer (0)
Report

My father died without probate, because every account had a beneficiary, his wife owned all the corporate stock, any joint tenancy had rights of survivorship, everything TOD'd (Transfer On Death) except his car, which sold for 6K. So yes, talk to your attorney.
Helpful Answer (0)
Report

On the nolo website (as well as others) they listed the downside of the joint tenancy as it must pass through probate. The tenancy in common would create a gift scenario (it must be equal). At least from what I can see. I guess I should get an elder care attorney.
Helpful Answer (0)
Report

Avoiding probate doesn't have to be complicated. You can take simple steps to ensure that certain types of property pass to your heirs without going to probate court. (To learn about probate and its downsides, see Why Avoid Probate?) One of the easiest methods is to designate a beneficiaries to inherit your bank accounts, retirement accounts, securities, vehicles, and real estate automatically, without probate. See website: nolo
Helpful Answer (0)
Report

Thanks for the input. They are financially well-off and heavily insured so I doubt they would every qualify for Medicaid. The issue with the 25% deed is that it will go through probate and 5-8% to lawyers.
Helpful Answer (0)
Report

If they need Medicaid within five years, it won't matter if they are on the deed or not. Medicaid will not pay the first $280K for their care.
You are correct about the gift being too large and therefore taxable. Talk to your CPA before you do this. Sounds like a bad idea unless they are 25% on the deed. Ask the lawyer to make it a TOD inheritance. Just my opinion.
Helpful Answer (2)
Report

This question has been closed for answers. Ask a New Question.
Subscribe to
Our Newsletter