Family living in multigenerational household seeks advice about finances, ownership
Pandemics and recessions have a way of increasing these numbers, and Pew notes that the numbers of multigenerational households grew rather sharply during the Great Recession of 2007-2009. When you lose your job, and maybe your house, you need to go somewhere, and living with family is often a more affordable option. But it’s a boon for older generations, who may need extra care, and their children, who often need an extra set of hands to watch young children.
So, the fact that you’re moving in together sounds like a great solution — but you raise some interesting questions about how to fund necessary renovations and how much you and your parent should benefit financially.
The best suggestion we can give you is to “buy” into the household with the cash you’re putting up for the renovation. If the property is worth $100,000 and you’re putting in $100,000, you should own the property equally, and share in the expenses equally going forward.
You should have a discussion about what should happen to the property after your mom’s death. Does she want you to own the property outright or will it be shared between you and any other heirs (your siblings, hers or someone else)?
If she wants you to have it and there are other assets, maybe she will make sure her will includes a provision that leaves you the house and the other heirs assets of equal value to her share of the property. So, if, after she dies, the house is valued at $400,000, her half would be worth $200,000. If you get that, will she have other assets worth $200,000 that can be left to a different heir to make things as equal as possible?
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