posted 2 months ago
I've seen a lot of cases where the good kid moves back home to care for the aging parent after being promised that the family house will be theirs after the death of the parent.
Then the good kid ends up homeless or forced to move back to an apartment. Dream shattered.
Why? Three reasons.
1. Parent doesn't want to sell the house to the kid until death. But old people often require extensive medical care before death. They rack up extreme medical or long term care bills and the property gets huge liens from medicare/medicaid. The property cannot be transferred without those amounts being payed, and a lienholder can occasionally force a sell. Encumbered properties are hard to sell. Sounds like you are planning for a nursing home at a point in time that is ever approaching. If you don't plan around the liens, you are planning to lose the house.
2. Parent is a human being. Human beings, no matter how sainted they are in the loving eyes of a child, are flawed. Old people rack up big unknown debts and use the house as collateral or listen to some tv has been celebrity parasite and get a (EVIL!) reverse mortgage. Upon death, reverse mortgage holder immediately beings foreclosure. Old people are often lonely and bored. I cannot easily count how many times I've heard "Daddy wouldn't give the property away to an online eastern European prostitute or marry her and move her in" , "Mommy would never give the house to a church who's told her that's a guarantee she won't go to hell" or "Daddy would never rack up 1/2 million in online gambling debts". You must always plan around the one universal human trait- frailty of will. If you read this and think "Dad will never do this" you are in the danger zone. This first one happened to me. Online prostitute, 89 year old man. My wife and I had 30 minutes to pack our possessions and leave while a SWAT team watched with an AR on my wife and dog. I am lawyer, former cop, had been telling everyone about online prostitute's manipulations. I trusted in rationality and reason. Lived in a trailer park on an asphalt pad for three months as a result.
3. Siblings and other relatives come out of the wood work upon death of the property holder. ALWAYS!!! Sometimes unknown siblings. The will or trust is set up right before death or there isn't one, and now it is a huge court battle. Sometimes, they don't wait until death and call social services on you for "manipulating" the old man, or get the old man to let them move in - after all he owns and controls the property. Here's a truth of court- the system is set up for compromise. Optimists and the naïve think they win or lose on the merits or truth. The truth is that cases get settled by a compromise. You and hubby then get compromised out of the house or legal billed out of the house due to a relative. You must plan for these fights, or you are default planning on moving out.
Do not trust or hope or allow your Dad to maintain the ability to leverage the property after you move in. Wills and trusts can be revoked, and there's no way you would know. Rather than trust your father have your father trust you. He sells you the house, you give him a lifetime tenancy in exchange. A lawyer can draw this up for you. Before making this deal, and even before moving in, run a title search on the property and find out what the encumbrances are now. Do not trust on depend or other relatives.
You might have thought of these things before and acted on your concerns. You didn't, probably because of love and concern for your Dad. Have total love and concern for you and your hubby's future. Protect yourselves. Showing your hubby that you care more for his future than your Dad's feelings will also help him out.
Lastly, you do you, but I am an older meaner person with a lifetime of experience concerning the various forms of human misery and chicanery. Being a tenant in my parents home, renting only a portion of it, sounds like a dehumanizing compromise. That's a crop full of trouble waiting to happen. I'd never do it. The first time your Dad tells your husband "This is my home and I'll evict you unless... " you'll be making a choice between your husband's pride and your father's affection.
I don't mean to rain on your parade. I am not offering legal advise. I am just writing because no one else is offering a real world based analysis of this situation and Permies should stick together.
The Oregon bar association can help you find a lower cost property attorney, the law school has a legal clinic. All of these processes are best begun with a calm, honest, caring discussion between you three.