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Old 05-21-2017, 03:53 PM   #41
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Since they are both old, why not just tell them to sell the house, and rent a townhouse or apt. No maintenance, no mortgage, no repairs. They are certainly old enough to downsize.
When you consider, property taxes, mortgage, repairs, heat, elec, water, garbage collection, the renting will probably be cheaper per month and free up a couple hundred thousand.
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Old 05-21-2017, 05:48 PM   #42
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Hmm....so are you certain that if you (and siblings?) buy the house from them, that they will indeed maintain the house? What happens when the property tax bill comes due, or a new roof is needed, and they answer "Well, you have the money, are you going to force your mom/dad to pay for this when you have more than us? It's your house, you take care of it. We don't care if we pay the taxes, our name isn't on the title!"

Are you willing to kick them out of the house if when they ask you to pay for something more than you already have? Are they going to pay you back for the car? When? what payment terms?

If they goaded you into buying them a new car, why would real estate taxes be any different?

Perhaps "goaded" is a strong word....but how could two adults, both working in their 70s, need their child to buy them a car, especially after declaring bankruptcy 7 years ago and (assumedly) wiping their debts out? Are they already up to their eyeballs in debt again that they can't afford to buy their own car?? I only see issues coming up with these parents as your tenants. Likely sooner than later.
These are all very very good points.

The car was at our suggestion, so only we are to blame. The plan was to get paid back when the estate was settled in a few months. So we did it to prevent them from getting another payment, since their car had to ... just had to be replaced.

It is more of a charity thing for my in laws, then anything else. I also feel more and more guilty as my wife and I let loose a little with vacations, and retirement plans. The MIL & FIL continue to struggle, and with the other siblings seeing them only for short visits every couple of years, my Wife and I have to deal with the mess when it finally hits the fan.

On top of that if we do nothing, we get the joy of watching them kill themselves working all the time.
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Old 05-21-2017, 06:54 PM   #43
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I wonder if the OP and siblings might be better off just offering the parents a refinancing with an interest only mortgage... it would give the parents cash and their budget financial breathing room. The OP and siblings could gift the interest back to the parents if they wish to. While they should confirm with a lawyer, I suspect as long as it was done arms-length and properly recorded that the mortgage would stand ahead of other creditors (includig Medicaid) if the parents ended up in a nursing home, at which point the OP and siblings would get their money back when the property is sold.
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Old 05-21-2017, 07:05 PM   #44
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Are you sure you have a gift tax problem? You don't unless you anticipate your combined gifts and ultimate estate will exceed $5 million.
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Old 05-21-2017, 07:58 PM   #45
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It is more of a charity thing for my in laws, then anything else. I also feel more and more guilty as my wife and I let loose a little with vacations, and retirement plans. The MIL & FIL continue to struggle, and with the other siblings seeing them only for short visits every couple of years, my Wife and I have to deal with the mess when it finally hits the fan.
...
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You all may be right, that the house burden may not allow them to rest any easier, because they will be back in debt in no time. I jokingly said if we did it, they might go out and buy a super expensive "new car" or something.
Are you wanting to help them out because they have worked all their lives, but never advanced into decent-paying jobs and just have scraped by and you want to share your blessings with them....or is it because your in-laws have spent spent spent (and them some) all their lives and can't/don't want to pay the piper and face the jury for the results of their free-spending ways?

If the latter, don't you DARE feel guilty about living within your means and only now enjoying the fruits of your labor! People need to quit feeling guilty for simply making good choices while the rest of the world burns.
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Old 05-21-2017, 09:17 PM   #46
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They are 73, have declared bankruptcy in the past, spend like drunken sailors, at their...old age still owe a lot of money on a home.......? And you want to do what?

I think someone needs to tell them it's time to be responsible. Go ahead....throw your money at it. It's your life.
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Old 06-11-2017, 05:22 PM   #47
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Further update. As my Wife and I have dove into this to try and understand what is going on, we find out that they financed a refrigerator 2 years ago when it broke. Then recently paid it off with a windfall, and financed a stove and dishwasher which were old but not broken.

The payback windfall is further delayed, against the advice of me and FIL brothers.

The other two siblings are reluctant to address the issue. Though they do appear more receptive to explore it then a few years ago.

So as others have said "don't you dare feel guilty about living below your means all these years." We've (DW &I) have set our date 24 months from now, and if the house goes under so be it. Don't really care that much. Hate to see them suffer, and bust their arse to the end, but if her own blood line isn't willing to step to the plate why should I?

Maybe I was just looking for an excuse to delay.
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Old 06-11-2017, 05:57 PM   #48
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I would structure it like this. Do nothing, let the other 2 siblings enter into this megillah. I dont like family finances intertwined with in laws.
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Old 02-12-2018, 10:07 AM   #49
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Honestly, I think I would let them continue as is, then when health issues demand they stop working, and hopefully canít get to stores as much, have a big yard sale and downsize them to an apartment or condo as needed. There are probably other debts you are unaware of.
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Old 02-12-2018, 10:38 AM   #50
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Thanks for the lesson in the law, but there is still considerable risk when the transfer is between closely related parties such as parents and children. Creditors could go after both the cash and the transferred real estate.
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Don't know where you get the term "transfer" for this situation of a property sale.
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Old 02-12-2018, 01:08 PM   #51
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Don't know where you get the term "transfer" for this situation of a property sale.
You unearthed my post from last May and I had to go back and see what you were even talking about. In any case, a "transfer" can encompass a sale or gift between related parties. You asked where I got it? Perhaps it was in law school.
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Old 02-12-2018, 02:12 PM   #52
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You unearthed my post from last May
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Hey my bad! I responded to this before I looked at the date.
Hope everything turned out ok.
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