Hey all!
I currently live with my parents while I’m in college. Because of Florence, my parents’ house has been flooded into, and we are now going to find temporary housing. We have house + flood insurance, so we’re going to be alright. Long story short, my dad and I have always talked about rental income as a supplement for their retirement; however, my parents are in their mid-60s now with hopes of living off of social security purely (no retirement saved AT ALL).
My dad took that advice, and is now thinking about buying a new temporary home. After that, they will move back in, and collect rent payments in order to pay off the mortgage. There are some red flags here, but one thing I do not like about this deal is that my dad said he wanted to put my name on the house. Intuitively, I know this holds me responsible for a few things, but what is the extent of my full liability? What could happen if they started neglecting the home?
At this point, it’s in the air. We haven’t ironed any details about who’s going to take out a mortgage or anything. My dad is trying to play it off as a “Avoid the inheritance tax, since it’s in your name!”. “Hey, it will get you started in rental income, like you’ve always talked about”.
I won’t see any income from this, nor do I know specifics on the inheritance tax. At this point in my life, I really just want to buy a home for myself without any added responsibility concerning other property. My dad is not exactly reputable in the housing / owning business department. He’s filed for bankruptcy twice, and had my childhood home foreclosed on. I’m starting to believe he just wants to potentially use my name to avoid creditors coming after his property.
Any thoughts?
Submitted September 17, 2018 at 08:55AM by SlipperyStarfruit https://ift.tt/2pciYqa
