I'm selling my home to my older son, the younger son wants to inherit it if the elder son dies. How do we do that?

jinnie110, if Son2 is to get the house upon the death of Son1, what is to happen until he dies? What if he gets a great job offer in a different state and moves? Can he sell the house he bought from you? If it burns down and he uses the insurance to build a new house, does that house have to be left to Son2? What if there is a death or a crisis in his family and he wants to get away from the memories in that house and moves to the other side of town to start over? You can't envision every event that might happen before he dies, and putting restrictions on his ownership of the house doesn't seem to me to be really selling him the house. It is only kind of loaning it to him, for a sum of money.

I hope you can find a less complicated way to honor your sons equally.

Ya know what? I do not regret AT ALL that my 92 year-old mother has no estate or assets to leave to her 7 children!

OK the house has all sorts of issues as Jeanne mentions, but the insurance does also. What type of insurance policy? whole or term? Is the policy paid up in full by you right now and if it is paid up, does it pay a dividend and how is it paid?

If it is whole life policy, is it at the point that there is there a cash value? and if there is a cash value is it payable now in full?

How Is son # 2 getting the policy - like is he just the beneficiary or is he becoming the owner of the policy. The owner of the policy is responsible for paying on it and if they don't the policy will cancel - so keep that in mind if this son is not financially responsible. The actual value of the policy now and then after death will make a big difference in the equalness of what the son's get. You really should get the policy out and talk this over with an investment advisor who hold insurance license so that you and your sons understand how the value is done.

For Medicaid, if there is a cash value on a policy you own, it has to be spent down for Medicaid as cash value is an asset. So if son # 2 is just a beneficary on a whole policy, that money will have to be paid on your care before Medicaid will.But if # 2 owns the policy, then it is not your asset for the Medicaid application.

And is that OK with you? Seems to me if the Son1 is buying the house it is up to him what should happen to it when he dies. Maybe he'd want it to pass to his wife or children is he has any at that time, and then perhaps to his brother if he does not. If he bought a house on the open market there would be no restrictions on what he could do with it upon his death.

Are you selling the house for less than what it is worth? Is that the issue -- that Son1 is getting a "gift" now, and Son2 is not? Can you afford to give Son2 an equivalent gift now, not the full value of the house but the "discount" you are giving Son1? Otherwise things aren't equal until Son1 dies.

Is there any mortgage on the house? Do you intend to continue living in it?

I really think you would be best served by discussing your goals with a certified financial planner or an Elder Law attorney. This is something you don't want to make any mistakes about!