Reply to SO: Thoughts on sister and her DH buying a house with my mother?

Forum Index » Money and Finances

Reply to "SO: Thoughts on sister and her DH buying a house with my mother?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]I think this is pretty simple:

If they still own the house when your mom dies, her share of the contribution (say she put $500K down) is half yours and half your sister's. So your sister would need to buy you out of $250K if she intends to remain in the house, or you could become 1/4 owner of the house (or whatever it breaks down to being) and when it does sell then you cash out. You need to write this up though, because it needs to be determined if you are getting just your mom's initial investment back or if you are becoming an investor yourself, benefitting from a share of its eventual appreciation. If the house moves forward, you should neutrally bring this up to everyone and ask if this is something they can discuss now to avoid awkwardness later.

If they sell the house before your mother dies, then your mother gets back the investment and it was a loan to your sister. No biggie.

If your mother ends up needing expensive care, or god forbid, you and your sister have to contribute to her care, then it's a moot point anyway. I suppose you could argue that your sister needs to contribute more of a share because she got "free" house of of it, but in the end, if people are struggling and bills need to be paid, the people who have the cash pay them and the people who don't don't. I think you handle this by making sure you don't live above your means in the first place (i.e. if they get a super fancy $$$$ house that sucks up all the funds between them, that is a really bad decision that could potentially affect your later: the goal here should be to plan for everyone's best interests in the future...not pool all money to buy the best house now without setting aside money for the years ahead). [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics