My mom (67) is looking to retire in her home country of Ecuador next year and wants to leave me her house (the one I grew up in). I(31) have no siblings, I'm unmarried, and my dad passed some years back so her plan was always to leave me her house when she retires .My dad always took care of the finances and documents so when he passed I help her will all that stuff. She's going to move back where we have tons of family, COL is low, and life is calm. At that point I'll move into my childhood home and begin renovating. I plan on living there for 10 yrs or more.
She's not looking to make any money off the sale or pull cash out of the equity, she owes about $60K on it. When she retires next year she's going to have about $25K in savings and she'll be able to receive full social security + survivor's benefits. My mom will be going to live with her sister where COL is way low. She carries no debt besides her mortgage. The house is in Utah if that matters.
Things I have in mind/want to accomplish:
- Reduce both my mom's and my tax liability ( I don't have a CPA). I care more about my mom's liability, I don't want any of this to come out of her pocket so I'll pay any taxes.
- Lock me into the historically low interest rate. I was quoted 2.95% earlier today by a lender with a credit score of 743. I haven't signed anything or provided any documents.
- I currently live in a duplex and will continue to live in it until my mom moves. She's going to continue to pay for the mortgage until she moves. It would be great if we can somehow lower the payment she's making for the next year before she moves.
- She refinanced in 2015 at an interest rate of 4.5%.
- I want to be able to pull equity out of the house in a couple years.
Questions I have:
- Do we just put me on the title and then remove her later?
- Is it better for her to sell it to me at market value or for what she owes on it?
- How will this affect both of us tax-wise?
- What is gifting equity and how does that work to our benefit in this case?
- What haven't we considered?
Submitted April 01, 2021 at 12:37AM by ratmouthlives https://ift.tt/2ObCMu1
