Should my aging parents buy a new home in my name?

Question

My parents who are in their 70's are buying a condo in the town they live in. I am an only child and there are basically no other relatives, why should or shouldn't they put their new home in my name. I'm not going to do anything crazy like kick them to the curb.

Answer 1

My elderly mom & I (her only child) are going through rough times getting all of her affairs (documents* etc) in order - in order to avoid having to pay to have a trust put together, and to avoid probate (which is used if needed to transfer titles on things) we are going to add me to the title of her mobile home. She's been paying all of her own bills, but added me to her checking account in case she becomes unable to write the checks etc...

*We did a Will, a Durable Power of Attorney, and an Advanced Medical Directive (like a living trust) so I can take care of things.

I had a lawyer say it's easier than a trust if you have your name on things, but you may want to do it in a way that indicates "Joint Owner with the Right of Survivorship".

I would pay at least for an initial consultation, and then you can always get the forms (from internet or software), have them signed & notarized & witnessed as needed). Each state's rules are different.

Good luck and please get PROFESSIONAL advice!!!!

Many assets (homes, bank accounts etc) are NOT automatically set up to go to you, even if you have a will.

Answer 2

Without putting too fine a point on it, under no circumstances should they put this condo in your name.

What happens when they die? If they put it in their name, as the (presumed) heir, you could choose to either pay it off out of your own funds, pay it out of their estate, or let it go and the bank will take it for the unpaid balance on the mortgage.
If they put it in your name, nothing happens - except that you are responsible for paying the mortgage. If you don't, it damages your credit.

Furthermore, if they miss payments while they're alive, it will hurt your credit. I'm going to go out on a limb here and say that your credit score is more important to you then theirs is to them.

If you get into tax trouble, the government could take their house. If you declare bankruptcy, the debtors probably will take their house. (by the way, I know you are saying you're stable now and won't declare bankruptcy, but over half of all bankruptcies stem from unpaid medical bills while are unforeseeable)



Don't do it.

Answer 3

Are they going to benefit from the interest write offs, and are you willing pay for the property tax? There is nothing wrong with them buying their own home in their name. Just make sure that they have the family trust in place.

Answer 4

Never allow anyone to put your name on anything unless you buy something yourself. You never know what will happen in the future and you could be left paying for something.

Answer 5

If they are taking care of all expenses but just want to put it in your name, then maybe they just want one less thing to take care of when they are gone. Death causes alot confusion and fuss when a couple leave an estate and all. Maybe they just want to leave it to you.

Answer 6

your parents "should" do whatever suits them.

why are you trying to control them, i wonder?

if you are the only heir, the house will go to you (unless their Last Will and Testament states otherwise).

or do you simply wish to make their house payments, and pay their property taxes and utilities for them?

it will be THEIR home, which is likely the reason it will be put into their names?

Answer 7

If it's in your name you pay no Inheritance tax. If they buy in their name you will.

Answer 8

You would want that wouldn't you !