All Forum Posts by: Gary Moore

It's tempting to get defensive, however, I'm thinking I simply explained this poorly.  The good news is that mom is recovering nicely.  What were trying to figure out is where she will live, since her current home has far too many stairs.  Rather than give up the poorly configured home (and it's legacy low tax base), were trying to figure out what options are available to keep the current home and then acquire a second home that is more conducive to someone with daily care needs.  Actually, Katie Lepore explained it very well.  It sounds like we just need to understand the differences between revocable and irrevocable, then determine what we have.  Plus, mom is doing much better, so we'll be able to offer these options to her and allow her to make the best choice.  We're simply looking for ways to take advantage of the existing trust and not lose the tax base on the existing home.

My first post - ever! Unfortunately, my mother-in-law suffered a stroke last week and is currently in the hospital. It's likely she will not regain use of much her right side. This makes it very unlikely she can return to her tri-level home once she leaves the hospital. I'm hopeful that the BiggerPockets community can help us with ideas to put grandma in a better place, while minimizing what Uncle Sam takes for deficit spending.

Three daughters, A, B and C are equal recipients of a home in Northern California which is in a trust. They have power of attorney with the mother recovering from a stroke. There is roughly $750K in equity in the home ($950K home with $200K mortgage), which grandma has owned for 3 decades. The home is a tri-level and is not suitable for grandma to return home to.

Idea 1

Daughter A, wants the house. If the house were sold to daughter A and then daughter B, used her $250K in proceeds to go and buy a home for grandma to live in, while daughter C just took her share in cash.

Idea 2

House is sold to a regular buyer. Daughters A and B each go and buy a new home, while C takes her $250K in cash.

Any ideas on how to minimize taxes with either of the two ideas above, would be greatly appreciated. The sisters all trust eachother, so this allows for greater flexibility in doing something unique. Can't wait to see what ideas roll in. Happy Thanksgiving!

Many thanks,

Gary