Profile picture for user8418476

Buying home from elderly parent

My 80 year old mother is going into assisted living. She has a town home with about $40k of equity. I would like to buy the property at or near market value, coincidentally satisfying the remaining mortgage and then sell it to an interested known party. I would owner finance the property.
  • June 10 2012 - Greenville
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Answers (5)

Profile picture for sunnyview
You need to get legal advice. Make sure that you are not profiting off the sale personally when you flip it after buying it from your mother or you could be crossing a legal line. Any money from the sale of the townhouse should go for your mother's care.
  • June 11 2012
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Hi..You need to consult with an attorney that specializes in estate planning bbefore you do this. I believe the look-back period is currently 5 years if your mother should need any "aid" financially. Where you are a relative if not buying at full market value you may be liable for the funds if your mother doesn't have enough money to satisfy payments to her facility if you buy her townhouse. Please check it out and most attorneys may offer you an initial consult. Make sure you check what they charge if by the hour or a set fee. Good Luck!
  • June 11 2012
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Profile picture for Ofe Polack
There is too much information missing to provide sensible advice, sorry. Do you have her power of attorney. Are there other heirs beside you? Who will be the buyer? Why isn't the known buyer purchasing the property directly, saving double charges on closing costs? Your best bet is to talk with a real estate attorney so that you will not be stepping on anybody's toes.
  • June 10 2012
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You did not mention the mental estate of your mother. If she is mentally sound and can make informed and educated legal decifsions; it would be easier. If there is any doubt to her mental capacity, you will have to declare her incapacitated by going to court and assigned a legal guardian. 

You  do not mention either if you are the only sibling nor if she has a will.
These are legal matters that would have a lot of weight. 
What you can do and how, will largely be based in the anwser to these questions and other matters.

I will get legal help to ensure nobodies rights or laws are violated.

 One more issue,what are you planning to do with the money. Who is going to be responsible for your mother's expenses.  The government will consider the home an asset, I believe up to 3 years after the sale when it comes to provide benefits.
 
Not sure what your intentions are if it is to help with expenses you might be better off renting.

Any way legal advice is necessary.
  • June 10 2012
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You might have some good thoughts but I would check with a professional estate planner attorney before actually doing anything in your particular state just to make certain that you have done your due dilegence.
  • June 10 2012
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