BoodaGazelle
Recycles dryer sheets
- Joined
- Mar 1, 2017
- Messages
- 284
DW and I are co-owners (17%) with her parents' home, which they could not have bought without us. They are unable to keep it up, so we moved them to be nearer DW's sisters. To be able to sell the house, we had to do 12 years of maintenance and repairs, amounting to about $20,000. We did this with 100% documentation and transparency to all of the siblings. We also understand that 17% of what we paid was our share.
The house is still on the market, but we expect it to sell soon. We do not have any formal lending agreement or note with respect to the money we fronted them (i.e., their share of the $20K). We are now thinking we made a mistake by not getting some type of written agreement, just in case something happens to them, and even more importantly, so that the IRS could not look at that money as something they were trying to hide from their estate, were they forced to go on Medicaid in a nursing home.
Is this a "too bad, too late" thing, or could we still get a note drawn up for them to sign while they are still able to? If so, we would want (I think) for it to be collateralized by their share of the real estate equity, and payable to us on closing of the sale.
Am I on the right track? Or is this a "definitely get a lawyer" time?
Thanks,
Mitch
The house is still on the market, but we expect it to sell soon. We do not have any formal lending agreement or note with respect to the money we fronted them (i.e., their share of the $20K). We are now thinking we made a mistake by not getting some type of written agreement, just in case something happens to them, and even more importantly, so that the IRS could not look at that money as something they were trying to hide from their estate, were they forced to go on Medicaid in a nursing home.
Is this a "too bad, too late" thing, or could we still get a note drawn up for them to sign while they are still able to? If so, we would want (I think) for it to be collateralized by their share of the real estate equity, and payable to us on closing of the sale.
Am I on the right track? Or is this a "definitely get a lawyer" time?
Thanks,
Mitch