My parents paid for the addition to our home and moved in. We are trying to figure out the financial arrangements. Any advice?

It's a new addition. Shouldn't be much maintenance. Yes, I'd say it's on you. If your parents, though, want a Cadillac "something" and a "Ford" will do? I'd sat that's on them.

If the addition isn't on separate meters for gas, water, electric? Their share is the percentage they represent (as the two of them) compared to the number of people in YOUR household. You have three people, they have two? They pay 40%.

Straighten it all out know. Easier to do earlier on. Good luck! Nice arrangement.

Right. I would see an Elder Law attorney so that something in writing can be prepared that showed there was consideration and it was not a gift. If you give away things of value for nothing, it could impact them later on if they do have to apply for Medicaid.

Please also remember that if your parents need Medicaid later, the addition you are treating as gift will impact their eligibility. Please read the various threads discussing this issue so that you are not surprised later.

Curious why the finance arrangements weren't decided before the addition was placed? This could create some conflict if no one comes to an agreement on who pays for what regarding maintenance/utilities, etc.

Additions can become tricky. Parents paid for the addition, thus improved the value of your home [unless your home was already the highest price home in the neighborhood]. But it will also make an increase in real estate taxes. I would think you would want full rein of the maintenance so it can be done your way, thus you pay for all the maintenance.

Now if cleaning was part of the maintenance, then the parents might decide to pay for a cleaning service on their part of the home.

Utilities is another story. Do you bite the bullet and pay for the extra water, electricity, heat, air conditioning, or will you figure it out as per square feet who pays what.

Good luck, hope you all can come up with a win-win agreement.