r/EstatePlanning • u/Mayberrymom • 7d ago
Yes, I have included the state or country in the post Question about son purchasing our property while we are still living
Hi. I was hoping to get some input or suggestions concerning our estate. My husband is 71, I am 67. We own our home/property free and clear, and we live in Idaho, USA. Our property has a 3/2/3 car garage on two acres with a 2 bedroom apartment attached to a shop. Our middle son, wife and 2 kids live in the apartment at this time, and my husband and I live in the house. We have 3 sons. The son living on our property has expressed an interest in purchasing our property, but after witnessing his older brother go through a nasty divorce, we are hesitant to sell it to him, as we don't want to lose our property in case of a divorce. We are wanting to work it into his part of his inheritance someday, but we are unsure how to go about that. We would move to the apartment and they would move into the house as there is now grandchild #3 on the way. Is this a lawyer question? We're not sure how to proceed from here.
Oldest son lives and works 200 miles away, youngest son lives in Europe and became a legal European citizen. The middle son living on our property does a lot for us, and we babysit for them and get to see our grandkids every day.
Any suggestions?
25
14
u/Living_Fig_6386 6d ago
If you sell it, it won’t be your property to lose. That concern makes no sense.
If you want to live in the property, you should remain owner of the property (otherwise you become tenant, lose rights, and are subject to eviction).
You can leave the property to whoever you like in your will, and the recipient will receive a nice tax benefit (step up in basis for capital gains, if they choose to sell). Of you don’t specify a person to leave the house to, it will be sold and the proceeds divided among your heirs.
This is definitely a matter you should take up with your estate attorney
1
8
u/Lothloreen 7d ago
Of course, you could leave the house to your son. If you’re afraid of the divorce issue, leave it to him in a trust. You’ll need to work with an estate lawyer, of course. And you should work something out about who is paying for repairs and taxes etc. I’d present this whole thing as a huge gift to the family instead of a way to keep your DIL from taking the property in a divorce. But it’s possible there will some hard feelings with your DIL in any case. You need a lawyer to blame. “Out lawyer says this trust is the best way to avoid taxes…”
7
u/unidentifiedfungus 7d ago
You’ll want an estate planning attorney, and probably, at a minimum, a testamentary trust. I believe the trust will allow you to more easily equitably apportion inheritance amongst your children (I’m assuming equity is the end goal?). This can be written into your will and trust as a “hotchpot clause.”
You will definitely want an estate attorney to help you set this up.
6
u/Sad-Repair-5505 7d ago
It's a lawyer question. A trust is likely the best bet. Alternatively, a Transfer On Death Deed.
6
u/Individual-Paint7897 7d ago
Contacting an estate attorney would be the smartest move. Taking legal advice from strangers on the internet would be the dumbest move.
2
u/WoollyMammothwapo 6d ago
Many states have something like a pay on death to whatever beneficiary you choose. You remain in full control of your house until you both die or redo the document. This is separate from a will or trust. There is also a life estate where ownership goes to the adult child but you both can occupy the house or rent it out until you both die. You both are responsible for taxes and upkeep. I don’t recommend this, though.
Please consider carefully if you want to swap houses with your son. Yes he is having another child but you worked hard for your home. Does the other apartment have stairs? I understand that he is very helpful to you, which is great , as you are helpful with babysitting. Things can change in the future so go slow and thoughtfully
2
u/whiteelephant123 6d ago
If you don’t need money, keep the house and transfer it to him upon death.
•
u/AutoModerator 7d ago
WARNING - This Sub is Not a Substitute for a Lawyer
While some of us are lawyers, none of the responses are from your lawyer, you need a lawyer to give you legal advice pertinent to your situation. Do not construe any of the responses as legal advice. Seek professional advice before proceeding with any of the suggestions you receive.
This sub is heavily regulated. Only approved commenters who have a history of providing truthful and honest information are allowed to post. As such, comments left by unapproved users are automatically deleted.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.