holding the deed to my parents house--what should i be thinking about?
December 18, 2013 3:07 PM Subscribe
My parents are moving to florida (previously
--they ended up in Lehigh Valley). They are also in the midst of filing for bankruptcy, and have asked that I therefore hold the deed to the new house. Help me wrap my head around this.
posted by msjoannabanana to Work & Money (21 answers total)
My parents are probably the world's least financially responsible people. My mom has not worked since the 70s, my father just retired from a job with no pension. They both get social security. My father has filed Chapter 11 twice before in his life, and will be again sometime within the next year. The original goal had been to file prior to closing on their house so they would be in the clear there in regards to their creditors. My father's attorney had advised him that his income for the past 6 months is too high to file, so they are holding off.
Their main source of funds right now is the inheritance my grandfather left my dad. They are paying for the house in cash with this money. Currently my aunt is holding this money for my dad, again, due to the massive number of creditors out for them.
So basically my aunt will be wiring the funds for the purchase, and the contract has been revised to be in my name. I will hold the deed until my parents are in a place where it can be safely transferred back to them
I have mixed feelings about this whole thing, as my parents and I have a very complicated history. I am also SUPER financially responsible and feel a bit put out--if not for me NOT being like them, what would they be doing? Me swooping in and solving their problems is a pattern that kind of brings me back to my childhood o' mess.
Putting the emotional aspects aside, I am wondering what, if any, negative implications there are for me here. This will be closing before Jan 1--what am I looking at tax wise? I am insisting they purchase homeowner's insurance so if god forbid anything happens on their property I am not liable.
My father has assured me he will pay me back for any tax/other expenses I could incur. I would like to have this put in writing. What type of attorney should I be looking for here?
My wife pointed out that there may be benefits to me as well here--since legally I will hold the asset. could I theoretically take a loan out on the house's equity?
Finally, now my parents are throwing around "well, if we transfer it back to us" as opposed to "when we transfer it back" which makes me wonder if this will turn into a longer term arrangement.
Basically, I have no idea where to begin with this, I do plan on consulting on attorney, but any info you could start me off with so I know what I am even talking about with the attorney would be very much appreciated.