Pennsylvania Problem

[Mitzi]

My mother died 9 months ago. My brother moved in with her 1 year before that. I am allowing him to live in the home RENT FREE. He is divorced and his children have the run of the property every weekend. Problem is, he is not maintaining the home (cleaning, dusting, vacuuming, minor repairs of leaks, etc.). I pay the taxes from my mother's estate and he pays the utility bills out of his pocket. Am I inviting a problem with such a set up? Should I have an agreement in writing? If I rent the home to him, can I still enter the home when I want?

 

[peter]

As Home Guru sated in another post...living rent free is asking for trouble from the IRS. unless the house is sold within a 2 years, or if its still in probate.

He should pay rent, something reasonable to cover all the taxes, repairs, utilities, mortgage, the estate should NOT be paying anything...

Becuase the other family member if they wish could say your brother by living there rent free is getting more then his FAIR share and everything that the estate paid on the house should be deducted from his share.... but if the family doesnt care well your brother gets more then his fair share...nice deal!

Since he isnt paying rent, you have every right to enter the home, anytime you wish. When he starts paying rent, then you must tell him in advance.

 

[Mitzi]

Peter,

Thank you for your quick reply. Your comments were very helpful. However, I don't understand what the IRS could do. Could you give me a better understanding of why I might be looking for problems with the IRS by allowing my brother to live in the home rent free?

Thank you in advance.

Mitzi