Definately as a loan. Why use up lifetime gift allowance and filing of a gift tax return going each way.
Why not have the OH brother buy the house and have the CA brother hold a mortgage until the OH brother can refinance?
This whole deal can get crazy with the devaluation of real estate that is going on as well as credit markets. I say wait.
Dad's situation may have to be explained better, healthwise. Is Dad living in house? Would a "life estate" be good here? Sale proceeds of sale now would have to go to Dad. Is Dad in nursing home???? Lots of question need to answered with this issue.
If Life Estate is used, nobody has to pay for the house. The OH brother just needs to buy out other siblings after death of Dad. OH brother just pays for all expenses of the house while he lives in it. Life Estate would be in all Siblings names.
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yes, then there would be another gift back. If she pays interest to CA brother, and other arms-length conditions are met, maybe it could be structured as a loan?Leave a comment:
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Thoughts
I may be way off base here, but since he is going to give the money to his sister and she is going to put the house in her name, from a strictly technical viewpoint, it looks suspicously like a gift to me. If it was titled differently, that could change everything.
Also, since it is not his, I would anticipate a problem next year when the house is sold and he is expecting to get paid for the house, which is not his house - it is her's.
LTLeave a comment:
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Handling Home Purchase
What is the best way to handle the following: Dad is incompetent and siblings need/want to buy childhood home in OH. Brother in CA has the cash for it. He wants to send the $$ to sister, also in OH to handle all the paperwork and put it in her name. She will not live in it or rent it. It may possibly be sold to a 2nd brother next summer at same price, at which time CA brother would receive his $$ back. Sister is "middleman." Hope this makes sense. Thoughts, please??
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