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Alright. Upon further investigation - What my grandmother had set up was a trust, and not a will.
Gahh. This is too complex for me.
aaah i thought so, a will is used to just layout who gets what and the executor merely doles out the stuff... i didnt think you could have restrictions and clauses in a will because afterall who is going to see they are carried out? a trust has a trustee which is on going and rides herd forever to make sure things are adheared to
I feel almost crushed that I'm about to dignify that with a reply.
No, it was not safe for her. But my grandmother was also not living there alone like my mother is currently. My mother was there, and so was I. The situation is different.
And to suggest that I MADE this up? Hah. That's nonsense. These are the facts - the only reason I didn't state them at first is because I was asking for advice, and not for you to judge myself or my mother or her financial decisions. I did not think I would have to DEFEND her position in the matter amongst accusations from thick-headed strangers.
I thank the posters that gave me good information. You, however, I do not.
Yes I did !
I spotted the danger of the IRS going after your uncle for the gift tax if she tried that phoney $5 sale of the house to her uncle.
The fact that your mother, your uncle, and you even believed for a minute that phoney scam would work, tells me that your grandma was the only wise one out of the 4.
So my grandmother passed away in December, leaving her home to my mother (who was my grandmothers caretaker, and has lived in the house the majority of her life.)
In the will - it states that the house must be used as a primary residence, and that, upon sale, all proceeds must go toward another home.
My mom is scheming with ways to sell the house and pay off her bills.
She spoke with my uncle, who proposed a "brilliant" idea:
He buys the house from my mom for a low price (5 dollars?), transfers everything, and then using the 5 dollars, my mother would then buy the house back. Their thinking is that this would satisfy the requirement, and then my mother could actually sell the home, and use the funds for whatever she desires.
The question is: Is this legal? And what kind of snags would they encounter?
It's brilliant alright, if you goal is to commit fraud. Pay the taxes, probate fees, etc. and do what every other upstanding citizen does.
This is called a fraudulent conveyance and can be voided by any taxation authority. Then the appraisal from the taxman may be worse.
key words that should set up red flags---" my mom is scheming --"
Most people would use the word--" contemplating"--if they were asking a question about a legal and ethical transaction !
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