Deed question

[Messen]

What is the name of your state (only U.S. law)? Delaware

My wife and I are building a new home through. My mother in-law has asked us to include her by allowing her to reside in an attached in-law suite. She has offered to pay for all costs associated with building the in-law suite. We expect that will be over $200,000.


Here are my questions:


1. How should we deed the house to avoid gift taxes, yet ensure there are no conflicts related to inheritence when she passes?
2. If we include her on the deed, will my wife's siblings have any claim on the home?
3. If my wife and I should die first, how do I ensure the home passes to my children?
4. Is the remedy to this situation a living trust for the three of us?

 

[GaAtty]

GaAtty

A living trust is not a good idea. I notice that you said your mother-in-law asked you to "include her" and "offered to pay all costs". I did not read that she demanded to be on the deed. So why are you complicating things by trying to do that? Just put the house in the name of you or your wife or both or whatever you agree and let mom-in-law live there. If you and your wife die first, you presumably will have a will that leaves the property to your children. If you include your mother in law on the deed, then yes, in the event of her death WITHOUT A WILL it is possible that you could become joint owners of the property with your mother in law's other children. That is usually a complicated situation, and one to be avoided. On the other hand, if you are considering an addition to the house that costs as much as a new house, it seems that you should not be cheap about paying a substantially lower amount to consult an attorney who does real estate, probate, trusts, or general practice. It will cost much less that the costly error that you could make by doing this yourself.