What are the cost implications for taking responsibility for a parents home?

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GingerU
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What are the cost implications for taking responsibility for a parents home?

Post by GingerU »

A sole parent owns a house and has put the adult children on the deed. House is fully paid off. The parent wants to remove themselves from the deed and have one adult child take responsibility for the house and related costs as the parent is getting older and having a hard time with the bills now that they are on fixed income. Only that one child is willing to take on the responsibility and the others are ok to hand their ownership over completely to that one child. Are there any gotchas the child who is assuming the house needs to consider? None of the children currently live with the parent.
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Re: What are the cost implications for taking responsibility for a parents home?

Post by Carefreeap »

GingerU wrote: Wed Jul 06, 2022 4:48 pm A sole parent owns a house and has put the adult children on the deed. House is fully paid off. The parent wants to remove themselves from the deed and have one adult child take responsibility for the house and related costs as the parent is getting older and having a hard time with the bills now that they are on fixed income. Only that one child is willing to take on the responsibility and the others are ok to hand their ownership over completely to that one child. Are there any gotchas the child who is assuming the house needs to consider? None of the children currently live with the parent.
The first gotcha is that the child would miss out on the stepped up value if the child(ren) had inherited the house. Depending on the value of the home it could be a big deal.

The second is that the parent would need to file a gift return with the iRS.

I recommend before you proceed further that you and the parent seek the advice of a competent estate atty before this situation becomes a bigger mess.
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Re: What are the cost implications for taking responsibility for a parents home?

Post by LittleMaggieMae »

What arrangement will you have with your siblings for care of the house? Will it be your sole responsibility to pay for the upkeep of the house (new roof, plumbing issues, new appliances, hiring a housekeeper or lawn service) etc... who will make decisions about your parent's care while they are in the house (what if they need something "modified" so they can remain in the house - grab bars in the bathrooms or setting up a bedroom on the first floor??) Who will pay for that?

I'm not sure why the house would need to be passed on to a family member to "help with the expenses" of keeping the house. Or is that the intended trade off - you get the value of the house eventually - but you are the sole provider of $$ as needed to help keep your parent in the house?? Are you able to afford a second house? Everything you do for your house (including cleaning, repairs, maintenance, decorating) you will need to do for your parent's home. Do your siblings want nothing to do/no say in how their parent's affairs are handled? That's totally ok. But the dynamics of that might not play out the way you all expect it to. What happens when YOU need help caring for the parent - your sibs might not be interested in helping. OR your sibs might be over critical of what you are doing (as they have no say in it). You should probably assess how this will play out in the future - you know your siblings we do not.

You could be shouldering some big expenses in the future - with an asset you can't sell (well, maybe take a HELOC or HEL but that's still an expense).
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Re: What are the cost implications for taking responsibility for a parents home?

Post by barberakb »

Have you looked into a reverse mortgage?
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Re: What are the cost implications for taking responsibility for a parents home?

Post by GingerU »

LittleMaggieMae wrote: Wed Jul 06, 2022 5:04 pm What arrangement will you have with your siblings for care of the house? Will it be your sole responsibility to pay for the upkeep of the house (new roof, plumbing issues, new appliances, hiring a housekeeper or lawn service) etc... who will make decisions about your parent's care while they are in the house (what if they need something "modified" so they can remain in the house - grab bars in the bathrooms or setting up a bedroom on the first floor??) Who will pay for that?

I'm not sure why the house would need to be passed on to a family member to "help with the expenses" of keeping the house. Or is that the intended trade off - you get the value of the house eventually - but you are the sole provider of $$ as needed to help keep your parent in the house?? Are you able to afford a second house? Everything you do for your house (including cleaning, repairs, maintenance, decorating) you will need to do for your parent's home. Do your siblings want nothing to do/no say in how their parent's affairs are handled? That's totally ok. But the dynamics of that might not play out the way you all expect it to. What happens when YOU need help caring for the parent - your sibs might not be interested in helping. OR your sibs might be over critical of what you are doing (as they have no say in it). You should probably assess how this will play out in the future - you know your siblings we do not.

You could be shouldering some big expenses in the future - with an asset you can't sell (well, maybe take a HELOC or HEL but that's still an expense).
Siblings are not bogleheads (to put it mildly!!) and lack financial responsibility. The willing child has already budgeted for caring for the home/parents reasonable costs so the parent can age-in-place. Not having the siblings reduces stress since they don't want the responsibility anyhow.
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Re: What are the cost implications for taking responsibility for a parents home?

Post by GingerU »

barberakb wrote: Wed Jul 06, 2022 5:16 pm Have you looked into a reverse mortgage?
No, I always feel like those Tom Sellek commercials make reverse mortgages look like a scam. Not sure how safe they are.
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Re: What are the cost implications for taking responsibility for a parents home?

Post by WhyNotUs »

Carefreeap wrote: Wed Jul 06, 2022 4:54 pm The first gotcha is that the child would miss out on the stepped up value if the child(ren) had inherited the house. Depending on the value of the home it could be a big deal.

The second is that the parent would need to file a gift return with the iRS.

I recommend before you proceed further that you and the parent seek the advice of a competent estate atty before this situation becomes a bigger mess.
I agree with the two points but do not see them as gotchas. Filing the gift return with your parent's tax return is no big deal. It is true that the basis will be their basis so there is some homework to adjust their purchase price if there are improvements that warrant adjustment of basis. The other children would provide quit claim deeds. Be sure to buy title insurance.

Waiting until death does not sound like an option in this case, otherwise that would allow the step up basis. It would possible for the other children to file quit claims leaving the sole child as the only other party on the title as well. There is nothing to prevent someone from spending money on a home in which they hold title.
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Re: What are the cost implications for taking responsibility for a parents home?

Post by makingmistakes »

You should pay heed to the first response given. Very sound advice.
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Re: What are the cost implications for taking responsibility for a parents home?

Post by LittleMaggieMae »

GingerU wrote: Wed Jul 06, 2022 5:34 pm
Siblings are not bogleheads (to put it mildly!!) and lack financial responsibility. The willing child has already budgeted for caring for the home/parents reasonable costs so the parent can age-in-place. Not having the siblings reduces stress since they don't want the responsibility anyhow.
I'm gonna also suggest you and your parent look into using the services of an estate attorney. It sounds like you will be the sole provider for your parent. A lot of this kind of stuff is State specific.
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Re: What are the cost implications for taking responsibility for a parents home?

Post by JoeRetire »

GingerU wrote: Wed Jul 06, 2022 5:37 pm A sole parent owns a house and has put the adult children on the deed.
All of the children are already on the deed? Why?
barberakb wrote: Wed Jul 06, 2022 5:16 pm Have you looked into a reverse mortgage?
No, I always feel like those Tom Sellek commercials make reverse mortgages look like a scam. Not sure how safe they are.
Reverse mortgages are not scams, nor are they unsafe. You really should look into them, they seem perfect for the situation you describe - far simpler than your proposed solution.

Maye they should just sell the house and rent for the rest of their life?

I'm assuming you are the one child who would assume "responsibility" for the house? Are you capable of doing that remotely?
Last edited by JoeRetire on Wed Jul 06, 2022 6:11 pm, edited 4 times in total.
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Re: What are the cost implications for taking responsibility for a parents home?

Post by sailaway »

Reverse mortgages are not a scam, but should be understood. The house will either need to be forfeited or the mortgage paid off, for example. If keeping the house in the family is not important, it might be a good option.

One concern with your plan is Medicare claw Medicaid look back period of five years. Again, something important to understand with seniors making large gifts.

Are the siblings all in the deed or beneficiaries on the deed in a state that allows TOD designation? The former will complicate any of your options, as they will need to sign off.
Last edited by sailaway on Wed Jul 06, 2022 9:28 pm, edited 1 time in total.
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Re: What are the cost implications for taking responsibility for a parents home?

Post by LittleMaggieMae »

GingerU wrote: Wed Jul 06, 2022 5:37 pm
barberakb wrote: Wed Jul 06, 2022 5:16 pm Have you looked into a reverse mortgage?
No, I always feel like those Tom Sellek commercials make reverse mortgages look like a scam. Not sure how safe they are.
I believe you can search the Boglehead threads for info on reverse mortgages.

I don't know much about them... but the way they are talked about makes it seem like it's a better deal for someone with an eye popping, amazingly large amount of home equity and very little other money. For your median or just above median household income with a house that goes with that income - it's probably not the best of options.

I'm assuming the family house isn't worth an eye popping, amazingly large amount of money - as your siblings are willing to forgo any inheritance from it's sale...
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Re: What are the cost implications for taking responsibility for a parents home?

Post by JoeRetire »

Carefreeap wrote: Wed Jul 06, 2022 4:54 pm
GingerU wrote: Wed Jul 06, 2022 4:48 pm A sole parent owns a house and has put the adult children on the deed. House is fully paid off. The parent wants to remove themselves from the deed and have one adult child take responsibility for the house and related costs as the parent is getting older and having a hard time with the bills now that they are on fixed income. Only that one child is willing to take on the responsibility and the others are ok to hand their ownership over completely to that one child. Are there any gotchas the child who is assuming the house needs to consider? None of the children currently live with the parent.
The first gotcha is that the child would miss out on the stepped up value if the child(ren) had inherited the house.
Seems like that ship has already sailed, based on "has [already] put the adult children on the deed"?
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Re: What are the cost implications for taking responsibility for a parents home?

Post by GingerU »

sailaway wrote: Wed Jul 06, 2022 5:46 pm Reverse mortgages are not a scam, but should be understood. The house will either need to be forfeited or the mortgage paid off, for example. If keeping the house in the family is not important, it might be a good option.

One concern with your plan is Medicare claw back period of five years. Again, something important to understand with seniors making large gifts.

Are the siblings all in the deed or beneficiaries on the deed in a state that allows TOD designation? The former will complicate any of your options, as they will need to sign off.
Might not be an issue as siblings are transferring their ownership to one sibling. Parent can stay on the deed to minimize changes.
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Re: What are the cost implications for taking responsibility for a parents home?

Post by BarbBrooklyn »

sailaway wrote: Wed Jul 06, 2022 5:46 pm Reverse mortgages are not a scam, but should be understood. The house will either need to be forfeited or the mortgage paid off, for example. If keeping the house in the family is not important, it might be a good option.

One concern with your plan is Medicare claw back period of five years. Again, something important to understand with seniors making large gifts.

Are the siblings all in the deed or beneficiaries on the deed in a state that allows TOD designation? The former will complicate any of your options, as they will need to sign off.
I believe you mean MEDICAID. The 5 year lookback (in some places, it's now 30 months) would be my main concern.
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Re: What are the cost implications for taking responsibility for a parents home?

Post by 123 »

GingerU wrote: Wed Jul 06, 2022 7:07 pm Might not be an issue as siblings are transferring their ownership to one sibling. Parent can stay on the deed to minimize changes.
If the siblings gift ownership they each may need to file a gift tax return if the value gifted exceeds $16,000 (for calendar year 2022).
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Re: What are the cost implications for taking responsibility for a parents home?

Post by JoeRetire »

GingerU wrote: Wed Jul 06, 2022 4:48 pm A sole parent owns a house and has put the adult children on the deed. House is fully paid off. The parent wants to remove themselves from the deed and have one adult child take responsibility for the house and related costs as the parent is getting older and having a hard time with the bills now that they are on fixed income. Only that one child is willing to take on the responsibility and the others are ok to hand their ownership over completely to that one child. Are there any gotchas the child who is assuming the house needs to consider? None of the children currently live with the parent.
It's not really clear what you are looking for here.

If you are asking "are there any gotchas if I take on the responsibility of paying all of my parent's bills?", then the answer is "maybe".

Since you don't live with your parent, you can't be there to protect them should they decide to spend a lot of money. And since you don't live with your parent, you can't be there to notice house and related issues that should be fixed. And since you don't live with your parent, you can't be sure you are seeing all the bills that need to be paid.

It's not something I would try to do remotely, but perhaps it will work out well for you.

I wish you well.
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Re: What are the cost implications for taking responsibility for a parents home?

Post by arcticpineapplecorp. »

GingerU wrote: Wed Jul 06, 2022 5:37 pm
barberakb wrote: Wed Jul 06, 2022 5:16 pm Have you looked into a reverse mortgage?
No, I always feel like those Tom Sellek commercials make reverse mortgages look like a scam. Not sure how safe they are.
did you know there are different types of reverse mortgages? people tend to talk about them as if they're one thing not three (from Larry Swedroe's "The Only Guide You'll Ever Need For the Right Financial Plan"):

1. single purpose reverse mortgage (offered for a single purpose, such as home repairs)
2. home equity conversion mortgages (HECMs)-Backed by the US Dept of Housing and Urban Development (HUD)
3. Proprietary reverse mortgages- loans developed and backed by private companies. Due to their complex nature and infinite variety, Larry didn't cover them in this book.
HECMs tend to cost more compared to other home loans. Fore example, an HECM might involve not only a 2 percent originaltion fee, but also a 2 percent fee for mortgage insurance and a monthly service fee of 0.5 percent. By having insurance on reverse mortgages, homeowners can turn to the government for their loan funds should the company managing the account go under...

Reverse mortgages carry high up-front costs compared to conventional home loans, though it is important to note that these costs (with the possible exception of an application fee) become part of the loan balance. The initial high costs make reverse mortgages prohibitively expensive for the short-term user. The National Center or Home Equity Conversion provides this example. A 75 -year-old single woman gets a $150,000 HECM on her home and finances $6500 in up-front costs as part of the loan. She receives monthly advances of $562 indefinitely, and her home appreciates at 4 percent per year. If this reverse mortgage is paid off two years later, the loan's effective interest rate cost is almost 50 percent! She receives only $13,488 for the life of the loan, compared with $6500 incurred as up-front costs (not counting accrued interest). She would receive $80,928 over the life of the loan if she stayed in the home for 12 years, driving the cost of the loan down to 10.8 percent.

The example demonstrates why reverse mortgages may be more risky for people needing in-home care. If their health condition requires moving into an assisted living or nursing home, the reverse mortgage stops making advances and the loan must be repaid, though some loans have a grace period before repaying starts.

Other points:
...Although the proceeds are tax free, reverse mortgages may impact eligibility for certain need-based public benefits such as Medicaid or Supplemental Social Security Income

During periods of low interest rates, comfortably sustaining withdrawal rates of 3-4 percent from conservatively structured portgolios becomes harder to achieec. On the other hand, periods of low interest rates favor reverse mortgage because low initial rates result in larger payouts or monthly payments. Thus, reverse mortgages can supplement portfolio returns when interest rates are low or falling, and may also help individuals (and their advisors) resist the temptation to stretch for yield by extending maturities or lowering credit quality standards.

Larry Swedroe's "The Only Guide You'll Ever Need For the Right Financial Plan, page 188-189
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Re: What are the cost implications for taking responsibility for a parents home?

Post by Watty »

I agree that reverse mortgages are not a scam. They revised the rules for them about 10 years(?) ago and they are a lot better now. That is not to say that they do not have a lot of potential downsides but in the right situation they can make sense.

GingerU wrote: Wed Jul 06, 2022 4:48 pm Are there any gotchas the child who is assuming the house needs to consider?
A couple of huge "gotchas".

1) The house may not qualify for owner occupied property tax breaks. This could be a big deal.

2) If the child dies, get sued, goes bankrupt, gets divorced etc then the house will be involved and the parent could be evicted. If the child dies or gets divorced then their ex-spouse could end up owning the house.

3) The house may show up on college financial aid applications and reduce any financial aid that the grandkids might get.

4) No one plans on it but people from even the best families can develop problems with alcohol, drugs, gambling, mental illness, etc. I have seen things like this happen when you would not have expected it. If the child goes down that road then the house could be lost.

5) It is not clear what they are trying to accomplish by doing this. If this is some sort of stragety to get the parent into some sort of long term care that is paid for by Medicaid then there are all sorts of lookbacks and restrictions. The bigger problem is that even if it works(which it could) then they would be places in a LTC facility that is accepting new people and it has openings. There can be exceptions but that likely is not the sort of place where you would want to put your parent. Many better LTC facilities will late a person stay there on Medicaid if they run out of money but they would require them to show they can pay for a year or more stay to get into the better facility. That is much different than the places that will accept new people that are on medicaid.
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Re: What are the cost implications for taking responsibility for a parents home?

Post by sailaway »

BarbBrooklyn wrote: Wed Jul 06, 2022 7:29 pm
sailaway wrote: Wed Jul 06, 2022 5:46 pm Reverse mortgages are not a scam, but should be understood. The house will either need to be forfeited or the mortgage paid off, for example. If keeping the house in the family is not important, it might be a good option.

One concern with your plan is Medicare claw back period of five years. Again, something important to understand with seniors making large gifts.

Are the siblings all in the deed or beneficiaries on the deed in a state that allows TOD designation? The former will complicate any of your options, as they will need to sign off.
I believe you mean MEDICAID. The 5 year lookback (in some places, it's now 30 months) would be my main concern.
And here I thought I was being so careful at the time. I have fixed the original in a way that acknowledges my error!
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Re: What are the cost implications for taking responsibility for a parents home?

Post by CaptainT »

Things to think about
1. Look back period for benefits
2. If she goes into a care facility what happens to the house. Does sibling who gets house have obligation to keep paying for moms care
3. If sibling sells home when mom is in care facilities is that money just for care of mom or can they spend willy nilly
4. Would other siblings help for care home expenses

This seems likely to result in stress and fights amoung siblings during what will be hard choices as mom goes into care and dies
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Re: What are the cost implications for taking responsibility for a parents home?

Post by ncbill »

Explore moving it into a life estate where the parent has lifetime rights to live there BUT remains responsible for the costs...e.g. property taxes, utilities, insurance.

That way the kid still gets the step-up when the parent dies.

Still subject to Medicaid's look-back, of course.
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Re: What are the cost implications for taking responsibility for a parents home?

Post by Lalamimi »

In Texas, they would lose the over 65 and homestead breaks on property taxes. My neighbor is 94, her house is in a family trust, and her taxes stayed about $600. (been there since 1970s). Ours are $8K, even with both tax breaks.
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Re: What are the cost implications for taking responsibility for a parents home?

Post by Lee_WSP »

This is exactly what a reverse mortgage is for. Or one child buys it for FMV.

I see no advantage to gifting the property.
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Re: What are the cost implications for taking responsibility for a parents home?

Post by barberakb »

GingerU wrote: Wed Jul 06, 2022 5:37 pm
barberakb wrote: Wed Jul 06, 2022 5:16 pm Have you looked into a reverse mortgage?
No, I always feel like those Tom Sellek commercials make reverse mortgages look like a scam. Not sure how safe they are.
You need to look into them to understand them but they definitely aren't a scam...

It actually sounds like a good fit for your issues.
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Re: What are the cost implications for taking responsibility for a parents home?

Post by celia »

From the original post:
GingerU wrote: Wed Jul 06, 2022 4:48 pm …the parent is getting older and having a hard time with the bills now that they are on fixed income.
Possibly this is really the problem and the parent chose a solution that may not be the best. Could there be some cognitive decline starting also? Does the parent get lost or confused easily? Are they losing appropriate choice of words? Do any of the kids live close enough to check on the parent regularly? What do the other children observe?

Meanwhile, maintain homeowners and liability insurance since everyone could be sued if someone is injured on the property.
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Re: What are the cost implications for taking responsibility for a parents home?

Post by SuzBanyan »

barberakb wrote: Thu Jul 07, 2022 5:02 pm
GingerU wrote: Wed Jul 06, 2022 5:37 pm
barberakb wrote: Wed Jul 06, 2022 5:16 pm Have you looked into a reverse mortgage?
No, I always feel like those Tom Sellek commercials make reverse mortgages look like a scam. Not sure how safe they are.
You need to look into them to understand them but they definitely aren't a scam...

It actually sounds like a good fit for your issues.
Because the kids already do-own the home, won’t that have to be undone (Gifted back to Mom) in order to make Mom eligible for a reverse mortgage. Still, depending on the numbers, a reverse mortgage on a home with no current debt may be a way to make sure that Mom can stay in the house while she is capable and still pay the bills.

How messy is it going to be to unwind those prior gifts of an interest in the house to the kids? Obviously, each would have to consent. Why were interests in the home given to the kids in the first place?
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Re: What are the cost implications for taking responsibility for a parents home?

Post by barberakb »

SuzBanyan wrote: Thu Jul 07, 2022 6:46 pm
barberakb wrote: Thu Jul 07, 2022 5:02 pm
GingerU wrote: Wed Jul 06, 2022 5:37 pm
barberakb wrote: Wed Jul 06, 2022 5:16 pm Have you looked into a reverse mortgage?
No, I always feel like those Tom Sellek commercials make reverse mortgages look like a scam. Not sure how safe they are.
You need to look into them to understand them but they definitely aren't a scam...

It actually sounds like a good fit for your issues.
Because the kids already do-own the home, won’t that have to be undone (Gifted back to Mom) in order to make Mom eligible for a reverse mortgage. Still, depending on the numbers, a reverse mortgage on a home with no current debt may be a way to make sure that Mom can stay in the house while she is capable and still pay the bills.

How messy is it going to be to unwind those prior gifts of an interest in the house to the kids? Obviously, each would have to consent. Why were interests in the home given to the kids in the first place?
Maybe I am reading it wrong... But it does say "A sole parent owns a house"
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Re: What are the cost implications for taking responsibility for a parents home?

Post by SuzBanyan »

barberakb wrote: Fri Jul 08, 2022 4:25 pm
SuzBanyan wrote: Thu Jul 07, 2022 6:46 pm
barberakb wrote: Thu Jul 07, 2022 5:02 pm
GingerU wrote: Wed Jul 06, 2022 5:37 pm
barberakb wrote: Wed Jul 06, 2022 5:16 pm Have you looked into a reverse mortgage?
No, I always feel like those Tom Sellek commercials make reverse mortgages look like a scam. Not sure how safe they are.
You need to look into them to understand them but they definitely aren't a scam...

It actually sounds like a good fit for your issues.
Because the kids already do-own the home, won’t that have to be undone (Gifted back to Mom) in order to make Mom eligible for a reverse mortgage. Still, depending on the numbers, a reverse mortgage on a home with no current debt may be a way to make sure that Mom can stay in the house while she is capable and still pay the bills.

How messy is it going to be to unwind those prior gifts of an interest in the house to the kids? Obviously, each would have to consent. Why were interests in the home given to the kids in the first place?
Maybe I am reading it wrong... But it does say "A sole parent owns a house"
The full sentence is “ A sole parent owns a house and has put the adult children on the deed. ”. I assume that putting adult children on the deed meant partial ownership has already been transferred to the 3 adult children.

The OP continued that the “parent wants to remove themselves from the deed and have one adult child take responsibility for the house and related costs as the parent is getting older and having a hard time with the bills now that they are on fixed income. Only that one child is willing to take on the responsibility and the others are ok to hand their ownership over completely to that one child.”

For a reverse mortgage, the house would need to be owned by its occupants and every owner would need to be 62 years old. Thus the need for the kids to give whatever ownership rights they have back to Mom.

As an aside, our former neighbor in her 90’s was recently widowed. Her grandson moved in with her, then she moved out to live with her daughter, leaving the grandson as the only occupant. Yesterday, she came by the house to deal with the cable repairmen and chatted some with my husband. She was distraught and said she wants to sell the house, but her daughter won’t agree. Being typical nosy suburban neighbors, we looked up the deeds online. Sure enough, some part of the house was transferred to the daughter more than 10 years ago. As a result, with rising home values, the daughter might have a substantial capital gains tax bill if the house was sold. She doesn’t remember transferring an interest in the house to her daughter or why they did it. Her next move is out of her daughter’s house and into a senior living apartment. Luckily, she has a pension that allows her to make this choice.
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Re: What are the cost implications for taking responsibility for a parents home?

Post by tibbitts »

celia wrote: Thu Jul 07, 2022 5:24 pm From the original post:
GingerU wrote: Wed Jul 06, 2022 4:48 pm …the parent is getting older and having a hard time with the bills now that they are on fixed income.
Possibly this is really the problem and the parent chose a solution that may not be the best. Could there be some cognitive decline starting also? Does the parent get lost or confused easily? Are they losing appropriate choice of words? Do any of the kids live close enough to check on the parent regularly? What do the other children observe?

Meanwhile, maintain homeowners and liability insurance since everyone could be sued if someone is injured on the property.
I interpreted the comment as a "hard time" being merely that expenses were going up and income not, but it could be what you suggest.
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celia
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Re: What are the cost implications for taking responsibility for a parents home?

Post by celia »

tibbitts wrote: Fri Jul 08, 2022 6:05 pm
celia wrote: Thu Jul 07, 2022 5:24 pm From the original post:
GingerU wrote: Wed Jul 06, 2022 4:48 pm …the parent is getting older and having a hard time with the bills now that they are on fixed income.
Possibly this is really the problem and the parent chose a solution that may not be the best. Could there be some cognitive decline starting also? Does the parent get lost or confused easily? Are they losing appropriate choice of words? Do any of the kids live close enough to check on the parent regularly? What do the other children observe?
I interpreted the comment as a "hard time" being merely that expenses were going up and income not, but it could be what you suggest.
I only brought that up because adult children often aren’t aware until it becomes obvious to an outsider. The changes are so slight and gradual, that they aren’t noticed even by those who see the senior often. I learned that the hard way myself and wasn’t aware I should have stepped in earlier.

Hopefully OP’s parent is still mentally and physically able to care for themself, but just thought that changing the house title was the simplest thing to do. But if this is a sign of cloudy thinking, OP may have more to investigate than originally thought.
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Re: What are the cost implications for taking responsibility for a parents home?

Post by tibbitts »

celia wrote: Sat Jul 09, 2022 4:46 am
tibbitts wrote: Fri Jul 08, 2022 6:05 pm
celia wrote: Thu Jul 07, 2022 5:24 pm From the original post:
GingerU wrote: Wed Jul 06, 2022 4:48 pm …the parent is getting older and having a hard time with the bills now that they are on fixed income.
Possibly this is really the problem and the parent chose a solution that may not be the best. Could there be some cognitive decline starting also? Does the parent get lost or confused easily? Are they losing appropriate choice of words? Do any of the kids live close enough to check on the parent regularly? What do the other children observe?
I interpreted the comment as a "hard time" being merely that expenses were going up and income not, but it could be what you suggest.
I only brought that up because adult children often aren’t aware until it becomes obvious to an outsider. The changes are so slight and gradual, that they aren’t noticed even by those who see the senior often. I learned that the hard way myself and wasn’t aware I should have stepped in earlier.

Hopefully OP’s parent is still mentally and physically able to care for themself, but just thought that changing the house title was the simplest thing to do. But if this is a sign of cloudy thinking, OP may have more to investigate than originally thought.
It was a good suggestion to consider that possibility, but sometimes we forget that 99.9% of competent-by-normal-standards people just do something that seems to make sense to them without analyzing the way Bogleheads take for granted.
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