Moving into parents house - how to compensate sibling

[caslerst]

What is the name of your state? CA

Here is my situation: My Mother-In-Law (MIL) no longer wants to live in her house (too big, FIL passed away 8 months ago). My wife and I want to move in and it's okay with MIL.

The problem: My Sister-In-Law How do we compensate her? She is not getting her inheritance now but when my MIL passes (she's only 58), she and my wife are the only benificiaries. Should we buy a house, let my MIL live in it and when she passes my SIL gets that house?

The house (My MIL is leaving) is worth $550-600k. My wife and I do okay but we could not afford to buy the house at market price and we don't want to buy it at a discounted price because of capital gains if we sell it in 20 years.

Is there a standard way to handle a situation like this?What is the name of your state?

 

[curb1]

You should be paying the market rate of rent. Anything else is not fair for your sister in law (or mother in law), if it is your desire to be fair. Otherwise, the fair thing would be for mother in law to just sell the house and get something she would like.

 

[seniorjudge]

Whatever agreement you come to, make sure your lawyer has everyone sign it.

 

[divgradcurl]

Whatever agreement you come to, make sure your lawyer has everyone sign it.

Agreed. It might be best just to rent from MIL, and then let the house pass to the two sisters in probate, then you can figure out if you want to buy out the sister's interest. That may MIL can afford to rent or buy another place, and sister's interest is protected.