I would like constructive feedback on an idea I have been thinking about for the past few days. My daughter and son-in-law are in the process of buying a townhouse which they hope will become an investment property as their future earnings grow. She has joked that maybe I would move there when I retire in 7 years but her joke has had me thinking about how this would/could work from a financial point of view. My plan is to have my mortgage paid off by the time I retire. My condo is valued at about $90K and selling it would not have any tax implications under the current tax laws which preclude any capital gains on the sale of home in which the net proceeds are $250K or less. Since the proceeds from the sale would not be considered income I assume that I would then be free to do with that money as I wish. I would not need the money for my daily needs as I would have my pension and plan on drawing SS when I turn 62. I was thinking that I would give the proceeds to them to put toward the mortgage in exchange for living there rent free for a period of time equal to the amount I give divided by the rent that they would normally be charging. For example, if they normally get $1K/month and I give them $80K I would live there for 80 months rent free. I would pay for whatever expenses I incur (utilities/cable/etc) while I live there. I do know that I do not wish to stay where I am after I retire. It would be nice to live close (but not too close) to them and their growing family. Does anyone see any holes in my plan? Are there tax implications or other financial hurdles that I may have overlooked? Does it make sense to do this?