All Forum Posts by: Grant Vincent

Thanks. Yes, I understand that part. I thought I may have missed something. Was thinking leveraging inherited house and keeping it as a rental likely greater leverage than selling and using proceeds to buy other property/properties. So you expect greater benefit selling and buying other properties? Probably too many variables to make a blanket statement but might as well ask...

 The step up basis part threw me. Can you explain more?

@Rick Albert Solid suggestions! I like this idea a lot...assuming their financial house is in order. Also considered selling it to buy one or more other smaller properties and moving stepdad into one of those.

@Teri Feeney Styers

Thanks! I will talk through this stuff. Definitely a lot of considerations to discuss.

@Mitch Davidson Well now I feel rude! Just kidding. Glad we discussed it, though. I've stayed in or worked on cabins with everything from real log structural walls to drywall. Both can look good or bad. In the end, it comes down to the total package for me. As a guest, I probably care the most about a good bed and I'm very "function over form" for the most part, but it's got to look good in the pictures to get me there, right? In the end, as a guest, with a good experience on or near the property, I'm open to everything. 

Thanks, @Chris Seveney. There will be an attorney involved. I assume Mom is already working with someone. With luck, that fee may already be paid and this part of the planning included. Will see. May have a long car ride with Mom and Step-dad this weekend to get clarity on everyone's intentions. 

@Teri Feeney Styers...exactly! We want to avoid that sort of mess, uncertainties and probate situations by addressing stuff with clarity up front. My biggest concern is how to structure it to maximize positive benefits and good will without sacrificing too much "control". For example, if I can't afford to keep the house, selling it with a life estate (can I do that?) probably reduces marketability and sale price of the home.

You mentioned spelling out "base rent" among some other obligations. Since this may not come into play until several years from now, is there an accepted standard for establishing a fair future rent price based on market rental rates somehow?

I don't want anyone to feel like I am forcing out Step-dad, but it is a big house and the rent (and upkeep) are more than one person may want to handle. Suppose Step-dad voluntarily chooses to permanently move out on his own while still of sound mind/competence. Can a life estate be terminated pretty easily in such instances?

@Mitch Davidson yeah, as a group we may be overdoing it with the amount of wood inside cabins...both log cabins and non-log cabins. We have 3-5 diff wood textures in a given room. That bothers me a little bit, but some of these places with 1 prevailing wood on the walls and ceilings give sauna vibes. 

@Mitch Davidson and @Kyle H., these points all make a lot of sense. One part I would love to understand better is how do we go about differentiating from a design and furnishing standpoint, particularly furnishings?

Not sure, but I'd say it is more of a matter of thorough diligence and future planning, not really about integrity. And, by that I mean planning for my mother's estate AND my step-father's estate and late-life financial planning, as their finances and estates are pretty separate.

She brought it up to me and asked how we should handle it. Since I am a broker, work with investments, etc. I was surprised to be stumped with how to handle it. Haven't heard of anyone addressing things this way other than life estate. Not sure a life estate adequately accomplishes the intended outcome, anyway.

My instinct is that I would keep the inherited house as a rental property, either after my step-dad passes away or chooses to move out; or, by renting it out to my step-dad for the rest of his life and, after his death, to other tenants. Regardless of my willingness to let my step dad stay for free, I may not be able to afford to do so without him shouldering some of the costs. I think that may be what my mother is hoping to iron out. Of course, some aspects of feasibility depend on how much is owed on the house, the mortgage payment, and amounts of life insurance benefit(s).

Does that clarify?