Reply to Thoughts on buying a house with my mother....

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]My mother is retiring this year and has asked if my husband and I would go in with her to buy a home that has a MIL suite. She no longer wants to live by herself, but she wants to still live in a house with a yard for her dogs. She's going to put down a 65% down payment and we will take out the remaining mortgage. All three of us will be on the deed for the home and the mortgage, but my husband and I would pay the mortgage, taxes, home insurance, and utilities. My mother would basically be living expense free. She said that she would leave my husband and I the house in her will. This is a home that we would not be able to afford purchasing on our own in a very nice area, so I believe it is a good investment. We will also be able to keep the money we will get from selling our current home which will be around 30k. My husband and I get along very well with my mother and I am happy to live with her as long as we both have our own space. I do have siblings though and I just want to make sure the home would go to my husband and I free and clear if anything happened to her.  Thoughts and concerns? [/quote]

Why does her name have to be on the house at all?  Can't she just give you the money and the house goes in your name and your husband's with the understanding that she'll live in the MIL suite?  [/quote]

Because the OP would get clobbered with taxes.[/quote]

Nonsense. What taxes?
[/quote]

Op here and we were wondering about taxes if she were just to gift it to us. [b]I think it would just go towards our lifetime gift allowance[/b], we would have to file a gift tax form though. Everyone has made some very good points, so thank you so much for the advice. The down payment would be about half of her retirement funds, but she may receive a substantial inheritance. As far as taking her off the deed down the line, would that be difficult? From my research it looks like it would be fairly simple? Once again thank you.[/quote]

Wrong.  It would go towards HER lifetime gift allowance.  It simply reduces the amount she can pass along not subject to gift taxes.  The amount is around $5 million now so unless you’re planning to inherit this much, I wouldn’t be remotely concerned about her estate tax down the road. [/quote]

Actually, the lifetime exclusion is now $12.5 million.  That could change, but it isn't likely to be lowered enough for one house to trigger it.  Seriously -- this is a good place to find out what questions you need to ask, but get advice from a good estate planning attorney.  [/quote]

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