Selling home to 1 of 4 siblings. How to be fair?

[3Hotdogs]

4 Sibs. All are married. 3 Own their own homes and the 4th rents the 2nd floor of our 2 family home. They want to buy it and give us a life estate. We are happy to have this happen. It would give someone to look after us when we reach our dotage. We are in our 70's and in relatively good health.

House is valued at approx. $400k. What would be the value of life estate? That would be subtracted from the appraised value of the house. We would still pay our share of taxes and utility. Should we value the "sale" price based on our paying rent or lower sale price based on our paying no rent?

Original intention was to will the house to the 4 daughters and have them sell the house to divide proceeds. What would be fair to the 3 sibs?

Anything else to be considered?

[democratisphere]

1. Even swap.

In home care has a high value and huge commitment, specially if you live a long life. I would call it an equal trade; house for care commitment.

[MaryMagdaline]

6. Agree. Home care could be 6O to 70k per year per person

If outside aids are needed, the cost could well exceed the value of the real estate. If adult child is the caretaker (not clear from the post) he or she will earn the house through caregiving. It is exhausting, 24 hour per day work. If adult child is paying for aids with his/her own funds, the cost could well exceed a typical mortgage payment.

[3Hotdogs]

8. We are not looking for care. Mostly a guaranteed place to live. They want the house as a guaranteed

place to send their kids.

[MaryMagdaline]

11. Got it. Comments of others here make more sense, then

[3Hotdogs]

7. We would not expect care except for looking in on us and the usual shared meals

which we purchase and share a couple of time per week. We are primarily looking for a guaranteed place to stay until assisted living ,undertaker or whatever.

We share social time.

[rickford66]

2. Get a trusted lawyer and financial adviser.

[LakeArenal]

3. My parents always helped the one who needed it.

He’d help the others as they needed it. Never thought about what was equal.

My in-laws had a family cottage. The sold it to two siblings at the assessed value.

Two decades later when parents died the assessed value was taken from inheritance.

I guess not all families have a final inheritance. But the siblings who had the cottage have way more value than the monetary inheritance.

It’s all good with us.

[enough]

4. Very complicated situation, with many questions.

The first one that leaps out is whether there would be a commitment on the part of the sibling who buys the house to take care of you in old age, and to what level of care? Would they be committing that they would never sell the house as long as you live?

[3Hotdogs]

9. We are mostly looking for a guaranteed place to live. They would not be allowed to sell the house.

We interact socially.... meals and so forth. They are interested in the local elementary school (good ratings) and we all like the neighborhood.

We do not want care beyond looking in once or twice a day to make sure we are still alive.

[keithbvadu2]

5. After the final value is figured, 1/4 to each of the other three.

After the final value is figured, 1/4 to each of the other three.

Make a provision/arrangements in case the house has to be sold while you still need care.

Someone will always think it was not 'fair', so do the best you can.

[3Hotdogs]

10. Selling the house now, will hopefully prevent a problem with Medicaid when we do decline.