Buying Mom's Home Below Market

[Account Closed]

Hello,

My family and I (husband and 3 kids) live in my mom's home (dad is deceased) and she lives in a retirement community. Mom asked us to live there at a reduced rent so she didnt have to sell and since it seemed like a good deal, we agreed. We pay $1000 plus utilities (about $500/month), house insurance ($240 month) and I pay for her monthly food and medications ($100/month). We also pay for incidentals (plumbing issues, new appliances, etc). She has money left but we'd like to buy the house from her so we can have more financial stability for us and our kids, one of whom is in college. The home is worth about $625,000 on the market, and we can afford about $475,000. My mom is almost 88 so this amount of cash will last her at least 20 years. The only issue with this is I have two older brothers who have a stake in the home. Both own their own (multi million dollar) homes. If we were to purchase this home at a reduced price, I understand that I would forfeit my share of any future inheritance, which is of course fair. One of my brothers is not open to this idea and as I have had health issues, have lacked the energy to really pursue a conversation about why he feels this way. I'm afraid I sound entitled and hopefully I don't. My main concern is that my mom has enough money to live where she does (which the money for the home plus what she has already will guarantee her). I also want to ensure stability for my kids so they have something to inherit (as their cousins do). Is there a way to accomplish this goal that is fair to my siblings?

[Theresa Harris]

I don't know the tax implications. It is her house to do with as she pleases.  Assuming she was to leave the house to all three of you, why not buy it at market value (minus realtor's fees)?  You'd be paying for 2/3 of the house (your two brother's share though the money would go into her bank account, not to them), so your out of pocket would be about $418K (assuming $625K is market value).  She could rewrite her will so that the remaining money from the sale of the house goes to the two of them?  Yes they'd lose out on a bit of the money because your part of the sale of the house isn't in that account.