Advice Needed

[island1fox]

He wouldn't be living WITH family. Near but not with. The condo would be investment property for his daughter and SIL.

Dil,

My bad. I misunderstood !

 

[pickup]

Sounds like a phone call to Dave Ramsey might be in order.

We know off the bat, 22 k in the form of a gift just leaves the remaining 58k to be considered.

Too bad it isn't December, you could have given them 22k then and another 22k the next month which would be a new tax year, just leaving 36k the amount in consideration in terms of taxable income

 

[UpstateNYUPSer(Ret)]

I think Upstate should plan further ahead then that.
You can`t always assume you`ll be walking around a be healthy.

What if you get sick, can`t walk, or you are in bed ridden.

I`m sure the US has nice retirement homes/condos/apartments, that have a nurse on hand, some even supply meals, ofcourse entertainment, too.

I think your daughter and inlaw would be getting sick and tired of you being around too much, and if you become a burden on them even more so.
Situations where your daughter might get into, that she can't go to work, because you're sick.

I know I sound rough - but if you ever need that $90K back because of emergencies, - well it won't be there anymore.

Klein, I would be willing to bet that I am far more prepared for this than you are at this point. I have a long term care insurance policy in place, my will has been drawn and my end of life wishes established, my final requests (bake and shake) are already bought and paid for.

The home would be theirs to do with as they wish. They would be the landlord and I would be the tenant. I will not be living with them--that is the last thing either of us would want. I will only be 58 when I retire. I want to move from where I am now as there really is not that much to do here. I want to be close to them and any grandchildren that may eventually come. My son has already said that he will be moving after graduation this fall.

My first thought is that I would take the proceeds from the sale of my condo and simply apply it to their mortgage and, if there are no tax issues for either of us, this is what I would probably do. I know that doing this will help them immensely by paying down their mortgage and allowing them to focus on their principal residence.

 

[dilligaf]

Dil,

My bad. I misunderstood !

No biggie.

 

[UpstateNYUPSer(Ret)]

We know off the bat, 22 k in the form of a gift just leaves the remaining 58k to be considered.

Too bad it isn't December, you could have given them 22k then and another 22k the next month which would be a new tax year, just leaving 36k the amount in consideration in terms of taxable income

While it really wouldn't be a gift, as I would be receiving a benefit,, this sounds like it may be the best way to go forward with this.

 

[dilligaf]

Klein, I would be willing to bet that I am far more prepared for this than you are at this point. I have a long term care insurance policy in place, my will has been drawn and my end of life wishes established, my final requests (bake and shake) are already bought and paid for.

The home would be theirs to do with as they wish. They would be the landlord and I would be the tenant. I will not be living with them--that is the last thing either of us would want. I will only be 58 when I retire. I want to move from where I am now as there really is not that much to do here. I want to be close to them and any grandchildren that may eventually come. My son has already said that he will be moving after graduation this fall.

My first thought is that I would take the proceeds from the sale of my condo and simply apply it to their mortgage and, if there are no tax issues for either of us, this is what I would probably do. I know that doing this will help them immensely by paying down their mortgage and allowing them to focus on their principal residence.

Sounds like you have everything covered, other than the tax issues. ​You have planned well. Kudos.

 

[pickup]

Or you could in addition to income gifts (below the threshold of taxes) , after the sale of your house, you can start draining your accounts via an atm card,$400 dollars a day and give them the cash. You just have to do it so that it that it doesn't register that they got the money. I.E. they use the cash for every day stuff while they deposit their paychecks and keep a good portion of the proceeds of those checks in the bank while they spend your undocumented cash gifts on groceries,etc.

Obviously, I am stretching here and putting this scenario in a rather gray area. You can definitely get away with this atm swipe and give scenario if done to a lesser degree. Think about it.

 

[Anonymous 10]

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?

I think you should move to an Internet cafe. All the free wifi you want and with this and all your free time you could take over moreluck's post count lead and be the grand champion and ruler of the brown cafe. The. You can take the 80 gees you have and buy the brown cafe once and for all from Cheryl and dominate this place like a dictator.

 

[pickup]

While it really wouldn't be a gift, as I would be receiving a benefit,, this sounds like it may be the best way to go forward with this.

Yes, I get that. You can always "lower" the rent on paper so that your agreement is in on paper and binding, but in reality you are paying more. Get it?

 

[moreluck]

Remember, as a renter, you lose your mortgage deduction......

 

[cachsux]

Give away all the money, move to Canada where they will apparently provide for you hand and foot even though you provide nothing towards the common good (apparently), and then spend the rest of your days making annoying posts around the internet.

 

[moreluck]

The odd/uncomfortable part is......if your dishwasher breaks, do you call the landlords? It could get weird.

 

[klein]

MY niece , as you know, she just got "baked and shaked".
They took care of the body (took it from the hospital, to the "bakery", and bottled it).

Was $1000 even. Pretty fair price.
MY brother (her dad) arranged that, because , yeah, at her young age of 35, she didn't think about it.
Not because of money, (she's was richer then most of you are ).

BUt, I don't feel getting that arranged either, heck, who knows where I'll be ending my last breath ?
Might not even be in this city I currently live, so no sense arranging it.

 

[UpstateNYUPSer(Ret)]

I think you should move to an Internet cafe. All the free wifi you want and with this and all your free time you could take over moreluck's post count lead and be the grand champion and ruler of the brown cafe. The. You can take the 80 gees you have and buy the brown cafe once and for all from Cheryl and dominate this place like a dictator.

I think you should Google the word "constructive". Dave.

 

[UpstateNYUPSer(Ret)]

The odd/uncomfortable part is......if your dishwasher breaks, do you call the landlords? It could get weird.

This is why we would need to have a lease and treat this as any other tenant/landlord relationship, except that this tenant would be more than happy to babysit the grandchildren.

Yes--the dishwasher breaks I call and complain.

 

[pickup]

The odd/uncomfortable part is......if your dishwasher breaks, do you call the landlords? It could get weird.

I never understood the need for a dishwasher, seems to me , if you just used the space that dishwasher takes up, for drying purposes. It would work just as well . Even when you put stuff in the dishwasher, you still have to handle it and even prewash it if you left it sitting there. Almost the same amount of work handling that you would spend washing it.

But I digress.

 

[dilligaf]

This is why we would need to have a lease and treat this as any other tenant/landlord relationship, except that this tenant would be more than happy to babysit the grandchildren.

Yes--the dishwasher breaks I call and complain.

Dad's close and dad wants to babysit. If I were your daughter I'd be saying YES!

 

[cachsux]

MY brother (her dad) arranged that, because , yeah, at her young age of 35, she didn't think about it.
Not because of money, (she's was richer then most of you are ).

To use her as another shot against us is disrespectful of her memory. Typical for you but still disrespectful. RIP

 

[dilligaf]

I never understood the need for a dishwasher, seems to me , if you just used the space that dishwasher takes up, for drying purposes. It would work just as well . Even when you put stuff in the dishwasher, you still have to handle it and even prewash it if you left it sitting there. Almost the same amount of work handling that you would spend washing it.

But I digress.

I'd give my eye teeth for a dish washer. Mines broke.

 

[UpstateNYUPSer(Ret)]

Dad's close and dad wants to babysit. If I were your daughter I'd be saying YES!

His parents and sister also live nearby.

Like I said--I want to live close, but not too close.