Children are willing to pay full price for parents farm in order to provide much needed income to parents (age 63 and 64). Parents will owner finance over their actuarial life expectancy (20 yrs) with no forgiveness at death, but nonnegotiable and nonassignable. Parents intend to continue to live and farm property, and children and parents are in agreement that parents must be assured of security of home. I am trying to determine the consequences of each option -
1. Children purchase remainder interest, Parents retain life estate.
2. Convey full title to children with reservation to parents of right to use and occupy.
3. Convey full title to children with lifetime lease.
Clients are parents, but they want to make sure children's interests are protected as children are helping them out financially. Are there any different tax consequences to each approach?
Are there any practical differences to each approach?
TIA
Leslie Wizelman, CELA*
P.O. Box 114
Wyalusing, PA 18853
wizelman_at_epix.net
phone 570-746-3844
fax 570-746-3699
www.lesliewizelman.com
*Certified as an Elder Law Attorney
by the National Elder Law Foundation as
accredited by the Pennsylvania Supreme Court
Received on Sat May 06 2006 - 13:10:55 PDT
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