Re: Mom wants to give inherited house to kids

From the intent shown in the facts you have given thus far, a private trust instrument would effectuate the goals of all of the parties best. For prompt, affordable legal assistance in this matter, contact us directly for a free phone consultation.

Re: Mom wants to give inherited house to kids

Living trust is probably your best choice. Give me a call,

Re: Mom wants to give inherited house to kids

To add to the list of desired outcomes, it would also be nice to get a stepped-up basis for possible future capital-gains tax when some future generation decides to sell!

Getting all the desired results including the ability to borrow out the equity, or even list it as an asset on a loan application, will be tough. In order to tap the equity, you'd probably need to be on title, and that would probably trigger the gift tax.

I think a trust is going to be your best solution, but maybe you'd want to go beyond a garden-variety revocable living trust.

Another possibility would be to use a more-or-less standard living trust and supplement it with a home equity line of credit on which your mother is the primary borrower but where by prearrangement with the lender, you also have borrowing power on the line. There are variations on this theme, such as using a power of attorney to give you the right to encumber the property. Just remember, on the whole it's better not to put the house in your names, but to inherit it under the terms of a trust.

Yes, you can live in the house as non-paying "tenants," but I would suggest a long-term lease or contract specifying the conditions of the deal, including who pays taxes, insurance, upkeep, etc.

Any deal you put together should be fair to all concerned and free from coercive influences which could give weight to a court challenge later on.