[USER]

I have quite a dilemma in our life at the moment. My mother owns a property with close to 75% equity in it ($600,000). Everyone except for my sister still lives in this property which was built in the 1800’s.

My mother recently had a fall down the stairs and we plan to find her an apartment with no stairs to make things safer for her but we don’t want to sell the house.

This is where things get tricky my sister wants to sell the house while my mother and I hope to keep this to pass down for generations to come.

I suspect this is due to her wanting $$ now as the two of us get half once my mother passes.

Is there any way my mother could add me to the deed while still alive or so I can get a second mortgage out to give my sister the money that would be her half of the inheritance as well as some money for my mother to pay for an apartment?

(My mother has very little income due to being retired so qualifying for a loan herself would challenging but if I were to be a co-signer any chance a bank would lend with how much equity is in the property?)

Another question: Could I write a legal agreement if I couldn’t get a loan to pay my sister for what her half would be and then just paying her in installments?

[Lindsay]

Hi loan officer here.
You can take a mortgage and be added to the deed at the same time.

If there is a first loan on the property you may need to qualify with that payment as well.

There are quite a few details that would need to be worked out.

But one big one is removing your sister from the will/trust as she would be paid out and you wouldn’t want to pay her out twice.

If you are in CA I’m happy to answer some more questions, I don’t know specifics in other states, but I can help with general questions.

[René]

Your mom owns the property and does not have to do what your sister wants her to do.

I would not pay her anything right now.

I would also consult with an estate attorney.

Paying out anything before someone is deceased is risky.

[Stacy]

You need to consider that if your mom adds you to the deed then you assume her basis in the property.

This could lead to a huge capital gain if you ever sell the property.

If you inherit after she passes it has a step up in basis to value at date of death (or alternative date up to 6 mos later based on executor decision)

[Roxanne]

Maybe it could be put into a family trust? When in a trust, all members must agree to the sale.

[Caitlin]

Can your mom just sell it to you now so you own it and your mom take the proceeds as cash and can do what she wants with her money until she dies at which point you and your sister would still each get half?

[Chauncey]

If it were me I might wait until after your mom passes and then you could buy your sister out of her shares of the property.

Alternatively, your mom could give your sister a gift now and then put in her will/trust that you get the property after her passing.

[Author]

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