Legal Question in Real Estate Law in Tennessee

Re: sale of real estate to a relative

The question raises many issues. Such a sale will be, in effect a gift to you granddaughter of $149,999.00. It may also disqualify you and your wife from eligibility for Tenncare, should you need coverage for nursing home care, for 5 years, as it is a sale for less than adequate consideration. It will also cause her to have a low basis for tax purposes when she sells.

There are other issues as well. I suggest you contact an accountant and a real estate or estate planning attorney to further explore these and other issues. I do not advise you to proceed.