Legal Question in Real Estate Law in Pennsylvania
Buying fathers home
My brother has moved in with my father and has been talking about having my father give him the house for a dollar in good will and in turn he would have the home appaised now, and at the time of my fathers death he would give all the siblings their share of my dads property. In the meantime
he wants to do alot of renovating to the home with his own money and knows the value will go up with the remoldling. What is in the best interest of my father so he can still have control yet
and isn't taken advantage of. And also what effect would this have on the other children. Is there a better way to handle this, I fear my dad will lose control of things and the rest of us will too.
2 Answers from Attorneys
Re: Buying fathers home
Once the property is transfered the new owner will not be obligated legally to pay the value to other siblings. There should be a written agreement setting forth the obligations of the Parties. Valuation can be fixed before the upgrades are made. Tell your father to consult legal counsel.
Re: Buying fathers home
Certainly a very dangerous way (for your father and the remaining beneficiaries) to proceed. Is he paying your father rent currently? If not, why? He and your father should have a lease, he should pay rent, and at the time of your father's death he will get what he gets through your father's will (remember, your father is free to give him anything he wants). The valuation is tricky because the value of whatever impovements your brother makes may or may not be reflecctive of the date of death value of the property. for instance, if the property is worth 100K today, your brother remodels the basement and kitchen at a cost to him of 25K, does that mean the house is worth 125K when he finishes? Maybe, maybe not. If your dad survives 5 years and on his death the house is worth 200K is all 100K of appreciation the result of what your brother did? Absolutely not. With the guidance of a good estate planning/tax and real estate attorney you can no doubt accomplish everybodies goals - start there.
Good luck!
This is a response to an Internet question and the reply is not intended to be legal advice or and creating an attorney-client relationship. Missing or omitted facts may result in a different reply
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