I have had 39 viewers and no replies. Is this so hard? An attorney told me the only way to protect myself from Uncle Sam/Medicare was to have deed transferred to my name until I can buy the property. Hard to get them (parents)to give that deed up. Their house is on the line if I should all of a sudden decide to become a completely irresponsible jerk. Parents are in their 70’s and this is not small stuff for them. Any other real life solutions or security measures I can take for them? Thanks in advance for some experienced advice.
I need to know how to set up legal structure for property. I do not have lots of cash to pay a lawyer therefore the dilemma. I know this info is available through this group so all experienced advice is sought.
Situation: My parents have mortgage on “my” property. They live in another state, I am in MD. I pay the mortgage and am putting cash into the place, to renovate. They get tax benefits. They are resistant to investing any cash into it, so I am conservatively making improvements. It’s my baby. Interest only mortgage, must refi in 4 years. I want to do so in a year or ASAP, buy them out, but doubt that I am in a correct financial situation to do so presently. It is in a high growth area and I am not worried about coming out ahead when it is appraised. Parents will be happy to be out of the deal and get paid back their downpayment and a small percentage.
ISSUE: Legal protection for me. WHAT TO DO? I am not on the deed. Should I add myself to the deed with them? Will that protect me in case of his death or hers? This is part of their estate and can be attached in case they or one of them has to go to assisted living. How to separate it without doing an LLC or is that what I have to do? Dad wrote his own partnership agreement but it would not hold water and the mortgage is not in a partnership name. (They own 66% I get 33 %.) This was my house prior to their stepping in, I went through a divorce…What is first right to survivorship? Or is this something his lawyer could write into his will …that the property is mine, upon his death, in which case the mortgage would be paid off (mortgage insurance) and my mother would be paid back and free of anxiety about this. I am paying the mortgage on time, every time. For her, owning her home outright and being debt free is the ultimate accomplishment. They say will not go to a lawyer with me or pay for one. I think they understand now how they are putting me at risk.
There has to be a simple two or three step solution so that I am protected, considered an owner and they do not have to feel anxiety about their risk. They took the cash out of their home to finance this deal. They are $275 thousand dollars richer on paper, I am paying for it. I have nada to show for it. They are willing to do what has to be done but I need to actually put it in front of them to make it happen. Thank you. ???