Quote:
Originally Posted by DebbieL
This way:
Your father gives away $192,000 to his kids/spouses and gets $280,000 back if you buy the house (don't forget you don't really know where your fiance will be working, etc.). $400K - $192K = $208K + $280K = $488K
If your father just sells the house:
Let's be conservative and assume he can only get $260K for it after paying realtor fees, etc.
His current portfolio = $400K + $260K = $660K
I know which one I would recommend to him. He could live another 25 years and that money has to last him.
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I will second that if your father wants to gift money to the kids, there are other ways other than discounting the house value.
I might suggest instead of "giving away" a portion of the home sale proceeds he look at a permanent insurance policy or similar and he could tuck the gifts inside that insurance policy which is paid upon his death.
If he lives a long time he could access the cash value of the policy and withdraw the money.