My sister's family of 4 (husband and two toddlers) moved into my parent's house to save money for a downpayment on a future house. Though my sister and her husband often clash with my parents, the children help to break any tension. My parents love spending time with their grandkids, and my sister and her husband appreciate the kids being close with their grandparents.
Lately my sister has been making improvements(?) (removal of mold, birds nests, and critters in the walls) to the house and has demanded my parents pay for it or at least pay her back. These services cost $4k+ and she knows well that my parents are low income. She expresses that she's doing it for her children which makes it hard to argue with her. Though I understand that the improvements are better for everyone under that roof, I can't help but share my parents complaint that, had she never moved in with them in the first place, my parents wouldn't be forced to spend so much money and accommodate the lifestyle she wants for her kids.
My fear upon hearing about the home improvements was that she argue about how she deserves the house when my parents kick the bucket because she has already invested in the home. Lo and behold, she would like to discuss this matter with me and our other sister.
My parents have already told us that they we would each have a 1/3 interest in the home upon their passing. There has been no will or trust to document that as of this time.
I've come up with a few scenarios in which I believe are acceptable:
- I wouldn't mind if she paid out me and our other sister for our interest and taking the house for herself. This would mean she would have to keep living there until my parents pass. My parents are barely 60 so that may be a long time coming, and I don't believe she wants to live with them for that long.
- She purchases the home from my parents at market value NOW. My parents take a percentage of the proceeds to cover rent and taxes and put the rest of the proceeds in a short-term financial asset to save for retirement. This seems like the most viable approach to me without considering tax implications.
My sister often makes moves that are not accommodating to others such as forcing my low-income parents to pay for improvements they cannot afford.
Is there anyway she could take away my interest in the house?
Is my 2nd scenario feasible or what could possibly go wrong?
If you were my sibling, how would you try to take the home for yourself?
TL;DR Sister wants to take my parents house because she has put money into repairs and improvements. What do.
EDIT:
1) My sister is not paying rent, but she is paying utilities.
2) To everyone who is judging us for planning what to do with my parent's assets while they are still alive, what would you prefer us to do? Wait until they pass, argue about what to do with the home, and destroy the last blood relationship we have while all of our parents assets go into probate never to be seen again? One of the first lessons they teach you in personal finance class is that money is not an easy topic of conversation for most people, but a necessary one. My parents have already expressed that my sisters and I each own 1/3 interest in the home, but if my sister believes that she is entitled to more than just her share, what could she possibly do to get her way?
3) Thank you for all of your opinions! After reading the ones up until this hour, I've confirmed that legally defining and binding our interests in a will would be a good move.
Submitted April 23, 2019 at 12:51AM by -justcruisingby http://bit.ly/2Xz0LCf
