Inheriting the House
My Story: Ailing Parents and Financial Questions
Future Inheritance Is Expensive Now
My mother has recently gifted half of her house to me and half to my disabled sister with my older brother designated as the trustee of that half. Although my mother is technically supposed to pay property taxes as part of her lifetime rental agreement, I don't think she will be able to. We will obviously not evict her from her house, so responsibility for paying taxes and upkeep will fall to me. My mother is 85 and in good health, so it could be 10 years or more before I actually inherit the value of half the house. As my own finances are already tight, I would rather not put out my own money for such expenses. What would be the best option for paying expenses along the way, and minimizing interest expenses on any sort of a loan?
You might consider having your mother look into a "reverse mortgage." She can use the equity in her home to live on, without it affecting your monthly expenses. Check out the AARP sight for more information aarp.org.
Mary in CT
Use Mom's Money First
Your mother is receiving Social Security. Take the amount for taxes for the house right off the top each month through the bank. Your mother will have the rest for her personal expenses. Help her make adjustments to her spending if needed, but this way, she will keep her word and you will be able to handle your expenses.
If Mom keeps all of her income and if she eventually needs to go to a nursing home, all that she has will go to them before she can go on Medicaid.
Take the Next Step:
- If you haven't looked for a lower mortgage rate in the past year you could be wasting money each month. Use our simple tool that compares different lenders to see what your monthly mortgage payment could be. It's private, only takes a minute and could show you how to save thousands!
Share your thoughts about this article with the editor: Click Here
Debt is preventing me from taking a vacation this year or the vacation I'd like to take this year! Tell us: Yes, debt is affecting my vacation plans! or No, we're going exactly where we want to go but we'd love to learn make our trip as inexpensive as possible!
More Money-Saving Tips for Your Home
- 6 cheap, effective home security solutions
- 5 frugal ways to expand your living space
- Top 10 DIY mistakes made by home 'handymen'
- How we saved $34k in interest on our mortgage before closing
- Buying an insurance-friendly car
- Tips for painting a basement floor Readers' Solutions
- This week's Readers' Tips
- Should I use a HELOC for home remodeling and repairs
- Find the best mortgage rates in your area
- 3 ways to use a mortgage calculator
- Mortgage calculator: Calculate your payment and more
- Home equity calculator: HELOC vs. line of credit
- How much can additional payments save me on my mortgage?
- Who offers the most home insurance discounts?