I paid off my Mom's mortgage and she signed a quitclaim deed prepared by an attorney. Now, 14 months later, she is contesting it. I purchased the home because she could not afford her house payments. The siblings checked into a reverse mortgage, but that would result in her heirs losing the house. So I paid for it. Can she take the house back from me? I took out a home equity loan on my house to pay off her mortgage. I've been paying on it for 20 months. She has hired an attorney & I'm scared I've made a terrible mistake trying to help out!
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I suggest a financial advisor at this stage. Transferring property back and forth may flag you for an audit and there are state and federal transfer taxes associated with each transaction. It can get a bit hairy. Also, if kept in your name you will have to pay tax on money distributed to siblings . Proceed from the sale may put you in a higher tax bracket. All that aside I'm convicted that money will tear a family to shreds so if you have siblings get them involved fully now. Put all cards on the table for all of them. Good luck!! All will work out in the end.
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