Estate Questions

[cmbpit]

My mother and stepfather are deciding to purchase a house. However, it is only going to be in my mother's name since my stepfather has outstanding debts in his past and I think the bank even took his previous house. Obviously, due to his financial problems, the house could never be in his name. My stepfather also has children from a previous marraige although they are estranged. However, he isn't too keen at this point on me being a co-owner since he got burned in the past financially by his family and neither my mother or stepfather have a will. I feel the only possible method is to put me as the co-owner. If my mother dies, then the house goes to me. Of course, he could live there for the rest of his life.

Bascially, how can everyone protect their intersts to ensure the property goes to me in the event of my their death. I want to avoid inheritence taxes and the possibility of a claim from his children or my mother's ex-husband (my father). What choices do I have?

Thanks.

 

[ALawyer]

Your mother could set up a Living Trust for herself and buy the house in the trust. She would own it during her lifetime; the trust could give him a right to continue to live there after her death for a period of years or his life -- but ideally it would not be a life estate as that means he could decide not to live there and instead rent it out for his lifetime that may be the next 50 years -- on terms the trust would state (so long as he pays all property taxes, maintains it in good repair, pays for repairs and replacements, etc.) and it would go to you on his death.

But get a lawyer to do this right.