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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Is there context missing on why they would gift their house to this sibling specifically? If, as you say, all of you have houses and mortgages of your own right now?

Because this is odd, and I'm trying to understand.

There's got to be more to this.  [/quote]

I am also trying to understand. I think the sibling suggested it and my parents went for it. They also didn't tell us all together. I called one sibling a week after I found out (because my parents asked me not to saying anything to my other siblings when they told me, since they wanted to tell my other siblings) and he still had no idea. I don't think it's intentional, but I think that my parents haven't thought this through and that they're doing this in a way that is really destructive for our relationships. [/quote]

Any insights into your sibling's motivations?  Is she financially literate enough to know the implications for other siblings as well as the tax and estate implications? Does she care if she has good relations with the rest of you?[/quote]

Sibling is jealous and insecure and likes having nice things. Sibling would not be able to afford a very nice house in a very nice area (mkt value is close to $3M), so this is the best way to do it. Sibling definitely does not understand tax implications, but parents will probably take care of that for sibling...and not a concern. Sibling understands that getting house now is better for them than getting house in 30 years from an estate standpoint, since it's worth so much less now than it will be in 30 years and thus, represents a smaller part of the estate. Sibling also understands no mortgage and [b]implications of being able to sell current home [/b][b]and keep equity to invest in market, buy nice things, go on expensive vacations, etc.[/quote]

I thought from OP that sibling does not currently have a house.  So her plan is to get your parent's house for free then sell it?  Somehow, this makes the plan sound even odder..[/quote]

My siblings and I all own houses and my parents are planning on moving from their current house. My parents would give a sibling with a house their house, which means that sibling would have two houses. This would enable that sibling to sell their current home and move into my parent's house. [/quote]

Well there you have  it.  Sibling sells current house and has proceeds for a down payment on your parent's house.  Your parents take back a mortgage at a fair market rate (actually required to avoid gifting implications).  Your sibling gets family house she may be attached to, but no other sibling is worse off. [/quote]

Meant to add even better if your parents simply sell the house to your sister and she gets a mortgage from a bank (if she can qualify).[/quote]

I agree that this would be ideal, but the house is way outside of my siblings budget. There's no way my sibling could afford the mortgage and taxes on the house. To put it into perspective, the house is worth about $3M and my siblings current home is worth about $700K. No idea what my siblings taxes are, but taxes on the house are probably around $30K.[/quote]

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