Selling house to a parent with bad credit

[Jonathan M.]

I am considering selling my house to my Mom.

Why: She loves the house, most high cost items have been recently replaced (roof, HVAC, flooring), great neighborhood, great yard and epic treehouse.

Concerns: she has poor credit, some debt, and doesn't upkeep things.

I am considering ways to sell / rent to her, but am not an accountant or very versed in transfer of assets on death. Also, she is acquiring a lump sum of money soon that would be enough to buy a house.

My goals with the transaction:

• my Mom gets a great house that I can maintain
• I am advising my Mom to pay off her current debt, but would rest easier if the asset were shielded from liens she could potentially take out.
• Relatively painless transfer of assets on her death to my siblings.

Some options I am considering:

1. Mom pay off remainder of mortgage with lump sum she is acquiring. Have her put an amount of money into maintenance account. I put in place agreement with her to own until she dies (maybe a life estate). I maintain property.
2. Mom fully purchases house from me. I help her create a land trust to put house into, perhaps deed to a LLC.
3. Mom rent house. Have her prepay as much as possible. It's sad, but she is well known to squander money otherwise.

What are thoughts on these approaches? What am I missing? What accounting and tax concerns should I consider?

Thank you for your input!