'Mooching' tax

[USAFpj]

Once again, looking for some advice from you guys.

For those (or anyone who has an opinion), that have allowed their children to move onto your land, what is it that you think would be a solid way to say 'thank you'? My Dad bought this land from his Grandmother for pennies on the dollar back in the 80's. Now the Upstate is around 10-20K an acre, and I wouldn't be able to afford any property if it weren't for him. We'll be sharing the responsibility of roughly 140 acres, and I would love to show my appreciation as his only child.

The plan is for him to deed me enough land to build the house on, but we haven't talked much beyond that. He's 61, but like a lot of people these days, works 12hr shifts/ 6 days a week, and will work til the day he dies due to his mortgage.

I'm thinking perhaps to build a large shop that he can have full access to, perhaps $20K cash so I can at least say that a tiny portion of the land is 'mine', or perhaps a monthly stipend to him to help add to his gun collection:laughing:. I don't know, but am looking for any guidance, experience, or recommendations you guys may have. I just don't know if a 'thank you' is appropriate for my ol' man...

 

[George2615]

I think any or all of your suggestions are a great way to thank your Dad. You can't say thank you enough to your parents. I know I didn't and missed my chance. Both parents have been gone over 24 years now and miss them dearly.

 

[sseelhoff]

Once again, looking for some advice from you guys.

For those (or anyone who has an opinion), that have allowed their children to move onto your land, what is it that you think would be a solid way to say 'thank you'? My Dad bought this land from his Grandmother for pennies on the dollar back in the 80's. Now the Upstate is around 10-20K an acre, and I wouldn't be able to afford any property if it weren't for him. We'll be sharing the responsibility of roughly 140 acres, and I would love to show my appreciation as his only child.

The plan is for him to deed me enough land to build the house on, but we haven't talked much beyond that. He's 61, but like a lot of people these days, works 12hr shifts/ 6 days a week, and will work til the day he dies due to his mortgage.

I'm thinking perhaps to build a large shop that he can have full access to, perhaps $20K cash so I can at least say that a tiny portion of the land is 'mine', or perhaps a monthly stipend to him to help add to his gun collection:laughing:. I don't know, but am looking for any guidance, experience, or recommendations you guys may have. I just don't know if a 'thank you' is appropriate for my ol' man...

I am sure that any gesture of gratitude would be appreciated. I like the idea of building him a "communal" shop for him to use, or monthly stipend.

As another thought, have you thought about paying the annual property taxes for the land? That might be a nice way of "paying rent."

 

[Steppenwolfe]

Look him straight in the eye, and tell him he is a good man. Sounds like he raised one...

 

[arrow]

Wolfies idea is certainly a start. If your dad is like me even though I am a bit older than he, I would want and not be looking for any pay back because the most important thing to me is looking after my kids and I do not care what their age. It is a much tougher financial world out there for todays youngins and I am glad to help them when I can. I do suppose their gratitude can sneak up on me when they get me an exorbitant gift such a an air compressor or welder or any other tool they know I like. Or the occasional gift of taking the wife and I out to dinner, or tickets to a popular show or event. All of these little things allow them to show their gratitude which is important to them even though I need none and makes them feel good. I defer to my kids on whatever makes them feel good these days. To me, the greatest gift a child can give to their parents is to know they are "ok and happy". I need nothing else.

 

[Opti-Mist]

Good thing to do. A caution though regarding his mortgage, exactly what does it cover. Sometimes lenders only lend on the buildings and 5 acres max, sometimes there is more to it. Depending on the parcel to be deeded to you, a "Due on Sale" clause might get triggered. You may need to do some research.

I had a 80+ acre property where the mortgaged buildings and 5 acres were not connected to a property line. All of the adjoining land could have been sold with no effect on the mortgaged portion.

 

[dave1949]

Being an only child makes your situation easier--assuming you would be the sole heir to your parents' estate.

First thing I would do is come to an agreement with your parents regarding the future of the land; what does your father want and need, and what do you want and need.

If you can agree to a plan that suits everyone then it's time to talk about how you can go about that. If you want the land and he wants you to have it, maybe the simplest thing is to help pay the mortgage. You would be investing in your own estate so to speak.

Any outstanding mortgage liens on the land will have to be cleared at the time of your father (&mother's ?) passing. You don't just inherit and take over the current mortgage. If estate taxes are involved some families are forced to liquidate property to pay the "death tax."

I would consider consulting a lawyer who deals in estate planning if you and your parents can agree to a goal and terms. Having those arrangements, such as paying toward a mortgage, in writing protects everyone when your father is no longer around to speak for himself, and you may have ways to gain more favorable estate tax treatments.

Easing your father's mortgage load could be the best thing you could give or do for him.

 

[tcreeley]

His mortgage has first lien, regardless of what he deeds you. Get that settled before it comes to an issue, via a real sale/lawyer/ etc.. Otherwise, you could build, he might become ill, and the mortgage holder could walk away with your hard work and his best intentions. Pay for the lawyer and do the legwork. He will just be glad of your interest and assistance in seeing it through. Don't be bashful. His estate debts will also come first unless it is done correctly.

My mother left 35 acres held in common with her third husband's heirs. She was his personal rep. She never finished the process of dealing with the acreage before she passed. The upshot is that 7 signatures are required to proceed to a sale. No one is interested. No sale.
Simple things get messed up.

Good Luck.

 

[newbury]

<snip>My Dad bought this land from his Grandmother for pennies on the dollar back in the 80's. Now the Upstate is around 10-20K an acre, and I wouldn't be able to afford any property if it weren't for him. We'll be sharing the responsibility of roughly 140 acres, and I would love to show my appreciation as his only child.
<snip>

So 140 acres worth 2.1 million.

Our general rule is don't make money off family.

Buying from relatives is sort of the way we inherit land. We bought about 200 acres off an aunt's estate for about half or less the going rate for land in the area. Other relatives were offered the land at the same price.

I'm a couple of years older than your dad and SWMBO and I control about 400 acres, and several houses. IF one of our offspring were to move onto our rural land (all are welcome to) I'd like them to at least pay the taxes and associated operating costs. We've one son w/ wife & child in a house in Virginia. Zillow says fair market rental is about 2k/month. They are paying operating costs of about 6K/year. I'd like to just sell them the house but they don't know how many years they will live in that area.

<snip>
The plan is for him to deed me enough land to build the house on, but we haven't talked much beyond that. He's 61, but like a lot of people these days, works 12hr shifts/ 6 days a week, and will work til the day he dies due to his mortgage. <snip>.

If he is working 72 hrs a week to pay off the mortgage and you EXPECT to inherit it you should be working your butt off to pay a big chunk of the mortgage also. Or he should sell most of it so he could retire.

 

[jaotguy]

in some states , when there are 2 people on the mortgage , whoever is left on the mortgage ( if the other passes ) ... possession automatically reverts to the remaining deed holder ... check the local laws , and maybe loan your father a few bucks and get listed on the deed as an owner....( he sold you part ownership ) .....