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You may also be able to claim her as a dependent. If you bought a SFH with MIL quarters, you could claim Head of Household as well. If you approached her that you'd both benefit, it might ease her concerns about being a burden.
you own the duplex? Will your mom's name be on it anywhere? If not, she will be considered a 'tenant' and you will be considered the 'landlord'. Doesn't matter if there's no lease or money changing hands.
Your homeowners insurance company will be telling you the same thing...you won't get the same coverage for you unit as you would get for hers. She's going to have to get renter's ins to cover her personal items.
I think it's great that you are helping your mom like this...hope it all works out for you guys.
I think it's a great thing you're doing. My only thought is that you need to be prepared to let her stay in the place rent free for the rest of her life if you start that arrangement now. It's nearly impossible to end that sort of arrangement you start it without there being hard feelings.
I would be paying for the duplex in cash (no mortgage). But good point: If I died, she would need to pay the property taxes and maintenance expenses. Her monthly Social Security would cover it in the short-run. Maybe she could rent out my vacant unit (or let a property management company do it for her)? Or just sell the duplex. I will list the duplex in my will / trust. Thanks for sharing.
Consult an elder law attorney. You need to think long-term and consider how it might affect Medicaid eligibility if she needs nursing home care in the future. And while you're at it, if she hasn't done so yet, make sure she has a durable power of attorney, health care power of attorney, and living will.
I think it's a great thing you're doing. My only thought is that you need to be prepared to let her stay in the place rent free for the rest of her life if you start that arrangement now. It's nearly impossible to end that sort of arrangement you start it without there being hard feelings.
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Originally Posted by KayT15
Consult an elder law attorney. You need to think long-term and consider how it might affect Medicaid eligibility if she needs nursing home care in the future. And while you're at it, if she hasn't done so yet, make sure she has a durable power of attorney, health care power of attorney, and living will.
Vini & Kay: Thank you for these considerations. Mom has wanted to create savings for her eighties & nineties when she can't work part-time. She is responsible with money (She currently takes the bus instead of taking out a car loan).
I agree this living situation would have be a long-term arrangement. If I need a house due to future wife & teen kids, I could still let her stay and rent out my vacant unit. Good advice about the legal documents. Thank you.
My late husband made arrangements for his mother along the same lines. He has been gone for 13 years now, but she continues to live in a comfortable home in a safe area. She deserves it, but couldn't have her lifestyle without his planning and financial contributions, and it has given all who love her such peace of mind. I feel so blessed that, even though she is technically my former MIL, I don't have the burden of concern about her safety and comfort.
I am surprised at the negativity. Yes, "renting" to low-lifes who happen to be related to you -- renting to family in THAT sense -- will usually end badly. But the situation the OP describes sounds very different. I think it sounds like a win-win for both him and his mother.
Sky-Blue - bless you for taking care of your mother like this. You must have a heart of gold! I hope whatever you do works out.
I'd check into what ramifications calling this a rental may have in terms of your property taxes, personal income taxes, and building insurance before going through with it. Also there may be additional requirements on the building in terms of fire code, who is allowed to make repairs etc. Your state may be reasonable but in mine, the hassle would not be worth it.
If it were me where I am, I'd by all means offer her half of the duplex but leave the rental aspect of it out of the picture.
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