Legal Question in Real Estate Law in Massachusetts

Re: Mom and step father owns home

Your question is a bit confusing. The facts mentioned raise the following questions: Is this a gift to you and your brother (i.e. is the fair market value of the property significantly larger than the mortgage? If so, they are making a gift of the equity to you)? and will it be a completed gift (if there are any estate tax issues).

Are both parents competent? Do they understand that by selling you the home, they are exposing the home to your creditors?

Are you all aware that the sale of the home will likely result in acceleration of the mortgage? I.e., you will probably have to refinance, as most mortgages provide for a "due-on-sale" - the mortgage loan must be repaid once the property is transferred (except for certain limited exceptions).

If your parents have to go into a nursing home in the future, this may result in a Medicaid disqualification for a period of time, during which someone will have to bear the costs of the nursing home fees. This assumes that your parents don't have sufficient other resources to pay for long term care for a sufficient period of time.

This is not something which should be done lightly, and you and they would be wise to consult with an estate planning and or elder law attorney.

Please contact our office if you would like to set up an appointment.

Re: Mom and step father owns home

The issue her is there a gift and the implication of the transaction for tax purposes.

The only challenge could from creditors or medicaid, if your parents need to go into a nursing home within 5 years.

You should go over the transaction with an attorney who does both real estate and estate planning.

If you have additional questions please call me.