Legal Question in Real Estate Law in California

No, as long as you buy it for fair market value. You have the same rights as any purchaser as long as the transaction is just as fair and arms-length as if you were a stranger. If you pay anything less than fair market value or get any other concessions that a stranger would not get, however, ALL kinds of tax and estate issues come up.

Your grandfather needs to consider creating a new will, or better yet, a living trust. He should consult with an estate planning attorney. Your facts indicate circumstances that could likely lead to a family fight, and clearly appropriate steps should be taken to assure your grandfathers position while living is protected and his wishes at the time of his death are respected.

There are also significant income tax conseguences of a sale vs inheritance that you need to consider.

In summary, a sale usually creates taxable income while an inheritance does not.

This gratuitous response does not create an attorney client relationship. The advice provided herein is generic, may not apply to your circumstances and is not to be relied upon in your actions. An attorney client relationship is created only upon execution of an engagement letter hiring me or my firm.

Your grandfather needs to consider creating a new will, or better yet, a living trust. He should consult with an estate planning attorney. Your facts indicate circumstances that could likely lead to a family fight, and clearly appropriate steps should be taken to assure your grandfathers position while living is protected and his wishes at the time of his death are respected.

There are also significant income tax conseguences of a sale vs inheritance that you need to consider.

In summary, a sale usually creates taxable income while an inheritance does not.

You should also consider that if you buy the house the proceeds from the sale go to the beneficiaries designated under the will. Is that what he wants?

This gratuitous response does not create an attorney client relationship. The advice provided herein is generic, may not apply to your circumstances and is not to be relied upon in your actions. An attorney client relationship is created only upon execution of an engagement letter hiring me or my firm.

He can transfer it to you as a gift before he passes, but other heirs may attack the transfer and try to set it aside, claiming you exercised undue influence.