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Author: bigcaat Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: Selling a house to a family member Date: 6/8/2009 11:10 AM
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1> At what price? fair market price?
If so the tax ramifications would be the same as if it were unrelated parties. (ex: likely cap gains for the seller, mortgage points and interest deductions for the buyer)


Low fair market value.


2> Why purchase it? Is this DIY estate planning? If so - DON'T. Find out what's the best way to keep the most money in the family after she dies. (which may be to just have the house willed to him - ASK A LAWYER) It'll cost you a few hundred to have the lawyer explain the options, but if you make a mistake it can cost you thousands.


She has no savings, no long-term care insurance. If she were to fall ill, we are afraid the house may be taken from him.

Once again, I will suggest they talk to a lawyer. Not sure it will do any good, but I'll suggest it. Do you think it should be an estate lawyer or a tax lawyer?

Thanks for your help. - Both.

Caat
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