Except my parents are in so much medical debt that I won't inherit anything. I would have loved to inherit my dads house but there's no way the bank won't just take it to pay off that debt and I definitely can't afford to buy it.
Parents can gift their kids 17k/year tax free. They could gift you fractions of the house over time until you either own it outright, or at least you can keep the portions you DO own when they die.
That's assuming they own their house. Not sure how it works with mortgaging.
You can gift your kids whatever you want. You don't need to worry about the gift tax exemption if you are planning on giving them less than $13 million.
If a gift exceeds the $18,000 limit for 2024, that does not automatically trigger the gift tax. Also for 2024, the IRS allows a person to give away up to $13.61 million in assets or property over the course of their lifetime and/or as part of their estate.
Huh. So as long as he gifts me the house before he dies then I'm good? Of course the issue there is that he's likely to croak before my stepmom does and I'm not sure what would happen with the medical debt then. They can't just take what would then be my stepmoms only residence but she would also be required to pay off that debt if I remember right. It's going to be a clusterfuck either way.
Well I guess thats the plan then. I'll have to talk to my parents about that. Thank you.
It was a property origionally bought by my greatgrandparents and I really wasn't looking forward to seeing it sold off just because my dad has health issues. Now I guess I have a way to keep it.
Look into Medicaid asset trusts more. I'm not your financial advisor. But the process seems simple. The trust owns the house and other assets so they can't be taken from your parents.
What if they transferred the deed to the house for OP for a low price, and then paid rent. That could be way over the $17k limit, and then they'd own the house.
Literally how I bought my house. My mom died and I was a beneficiary on her life insurance. That was my down payment. I call it the Dead Parent Lottery.
On one hand, of course shit is too expensive and wages need to be higher, but on the other, while home priced have increased for sure over the past 2-3 years, the reason they're really unaffordable right now is high interest rates, which adds hundreds to monthly mortgage payments but which is a temporary situation.
There have been periods of high interest rates in the past, and they're always followed by periods of low interest rates. Back when the Fed's interest rate was basically zero for well over a decade prior to 2022, mortgages were cheap, but there were no savings mechanisms where you could get more than 0.5% interest, so everyone plowed their money into the stock market, which put people at higher risk of loss. Now you can find a CD or HYS with a 5.5% APY, which was unheard of before, and which is definitely outpacing inflation right now.
My point is these things come in cycles, and I have hope that mortgages will get cheaper again. This does not mean you will be able to buy a house in Seattle or Boston for the same price as 2005 though, the demand for certain markets has certainly made those markets less obtainable.
home priced have increased for sure over the past 2-3 years,
House prices have been going up faster than wages for a lot longer than that. There was a lot of talk about how unaffordable housing was when the pandemic struck. Then, central banks globally plunged interest rates to practically zero. So money got really cheap for a while and loads of people jacked up their house prices even more.
high interest rates, which adds hundreds to monthly mortgage payments but which is a temporary situation.
They'll come down, yes. But I very much doubt they'll drop as low as before the pandemic. Rates had dropped in 08 after the credit crunch and a lot of central banks had never returned their base rates to their historical average. In my country the central bank had announced a plan in about 2018 to gradually raise the base rate from around 1% to I think it was 4% over the following 5 years.
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Just tell 'em to be patient and distract 'em with some avocado toast! | Spyke
39 replies
That only works if your parents have any money.
Reverse mortgages and Medicaid lookback periods have entered the chat
Only works if your parents ever had any money.
They have money now. I just lent it to them from my void savings account.
Of course I'm spending it all Jimmy! I can't take everything I've ever inherited with me, can I?
That's shitty but I'd wear that like a badge of honor if I were you.
I'm sorry you have lost someone to the cult. I hope you aren't surrounded by people who agree with him.
I know you’re probably kidding but if I was you I’d just fucking lie.
(Morbid joke) Lie about it to get back in the will and when your dad dies, buy a Biden billboard
Have Biden's face etched on his tombstone.
If you're in a position to even possibly get an inheritance, you're incredibly privileged.
BuT We’Re NoT iN a rEcCesSiON! The stock market is fine and profits haven’t been higher in a long time, everything is fine…
Of course the profits are high, everything costs 3x what it did 6 years ago.
Except my parents are in so much medical debt that I won't inherit anything. I would have loved to inherit my dads house but there's no way the bank won't just take it to pay off that debt and I definitely can't afford to buy it.
Are they going to live for a while?
Parents can gift their kids 17k/year tax free. They could gift you fractions of the house over time until you either own it outright, or at least you can keep the portions you DO own when they die.
That's assuming they own their house. Not sure how it works with mortgaging.
https://www.fastexpert.com/blog/selling-your-home-to-your-child-what-you-need-to-know/#:~:text=If%20your%20home%20has%20a,responsible%20for%20paying%20gift%20taxes.
You can gift your kids whatever you want. You don't need to worry about the gift tax exemption if you are planning on giving them less than $13 million.
https://smartasset.com/estate-planning/gift-tax-explained-2021-exemption-and-rates
Huh. So as long as he gifts me the house before he dies then I'm good? Of course the issue there is that he's likely to croak before my stepmom does and I'm not sure what would happen with the medical debt then. They can't just take what would then be my stepmoms only residence but she would also be required to pay off that debt if I remember right. It's going to be a clusterfuck either way.
People do that all the time. But there are clawback periods.
Basically people give their kids the house and the kids let them live there free. You can create a irrevocable trust for that very purpose.
https://www.verywellhealth.com/irrevocable-trust-medicaid-4173386
Well I guess thats the plan then. I'll have to talk to my parents about that. Thank you.
It was a property origionally bought by my greatgrandparents and I really wasn't looking forward to seeing it sold off just because my dad has health issues. Now I guess I have a way to keep it.
Look into Medicaid asset trusts more. I'm not your financial advisor. But the process seems simple. The trust owns the house and other assets so they can't be taken from your parents.
Read it and weep: https://www.payingforseniorcare.com/medicaid/look-back-period
That's only relevant if they want to newly apply for Medicaid, right?
Just need to stop transfers 5 years before you apply for medicaid. Easy peasy, lol.
What if they transferred the deed to the house for OP for a low price, and then paid rent. That could be way over the $17k limit, and then they'd own the house.
If you do that, the difference between the low price and the "real" price could be considered a taxable gift.
have you tried pulling up your bootstraps and being born again to a mega rich family?
You don't need to inherit anything to enjoy this guilty pleasure.
https://incendar.com/baby_boomer_deathclock.php
When The Times is insinuating murdering your parents you know we're at the spicy part of late-stage capitalism.
Bump off your siblings too. No need to share.
If it's good enough for the Kingdom of Stormhold, it's good enough for you.
I got a plan of action and cold blood And it smells of defiance I'll just wait for mom and dad to die And get my inheritance
I can't wait to see the clickbait "Ten tips your parents hate to speed up receiving your inheritance!" headlines.
Distribution isn't part of the models. The economy is fine. Eat your dirt.
Literally how I bought my house. My mom died and I was a beneficiary on her life insurance. That was my down payment. I call it the Dead Parent Lottery.
Ash is a badass and a legend.
I dislike my parents so I’m probably the target audience for this article.
Always got time for Ash Sarkar
Image Transcription: Twitter Post
Ash Sarkar, @AyoCaesar
A sign of a healthy economy is when you tell a whole generation to sit tight and wait for their parents to die.
[A Twitter screenshot of an article from "The Times". The headline says "Millennial? Saving for a house? You might need an inheritance."]
On one hand, of course shit is too expensive and wages need to be higher, but on the other, while home priced have increased for sure over the past 2-3 years, the reason they're really unaffordable right now is high interest rates, which adds hundreds to monthly mortgage payments but which is a temporary situation.
There have been periods of high interest rates in the past, and they're always followed by periods of low interest rates. Back when the Fed's interest rate was basically zero for well over a decade prior to 2022, mortgages were cheap, but there were no savings mechanisms where you could get more than 0.5% interest, so everyone plowed their money into the stock market, which put people at higher risk of loss. Now you can find a CD or HYS with a 5.5% APY, which was unheard of before, and which is definitely outpacing inflation right now.
My point is these things come in cycles, and I have hope that mortgages will get cheaper again. This does not mean you will be able to buy a house in Seattle or Boston for the same price as 2005 though, the demand for certain markets has certainly made those markets less obtainable.
House prices have been going up faster than wages for a lot longer than that. There was a lot of talk about how unaffordable housing was when the pandemic struck. Then, central banks globally plunged interest rates to practically zero. So money got really cheap for a while and loads of people jacked up their house prices even more.
They'll come down, yes. But I very much doubt they'll drop as low as before the pandemic. Rates had dropped in 08 after the credit crunch and a lot of central banks had never returned their base rates to their historical average. In my country the central bank had announced a plan in about 2018 to gradually raise the base rate from around 1% to I think it was 4% over the following 5 years.