Mom and caregiver daughter are buying a house together. How should we title the deed to the house?

I agree with NHWM. Nightmare on the horizon. My husband’s parents went in with a relative to buy a house. When they both within 3 mos of each it was a nightmare. Cost most of the equity in the house to pay attorney fees to untangle.

Oh, this sounds like a nightmare! It’s a guessing game. Life is unpredictable. Do you really want to take on the numerous possibilities of a disaster happening?

Just from a simple practical side, where is the money for any of this going to come from?

What about when repairs are needed? Sure, everyone dreams of being property owners and I want that for anyone who desires that but a person has to have the income to support that dream.

Stormmoen, just another comment about amending the trust: more than likely only the Settlor (your mother, who presumably created the trust) can amend it, unless there are provisions to the contrary.  Just FYI.

Thanks everyone. These are very helpful responses. Mom already has a revocable trust and her assets are already included in it. I’ll work with a lawyer to add the distribution of this asset and any appreciation there may be.
I need to learn more about a caregiver contract.
thanks again.

How are you going to earn an income while providing 24/7 care to a dementia patient? Or is your income from pension/SS?

I think it is important to get legal advise from an attorney who understands Medicaid in your state.

Mother paying for a house which is partially titled in your name will be seen as "gifting" by Medicaid. It seems that, given that your mother doesn't have the income to support the purchase of this home on her own, unless she has excellent LTCI or loads of assets, Medicaid for a long term care facility seems to be in her future.

I posted before seeing Worried's response. At 95, I'm somewhat doubtful that any mortgage lender would loan to your mother, unless she has very significant assets. If the sale would be for cash, that's a different situation.

I didn't read your profile until after my first post, so in retrospect, your mother's purchase of a house would also depend on the state of her dementia.

Does your mother have in place any end of life documents at all? If she does and they're not consistent with the proposal you stated, they would have to be overridden and rescinded for the plan you described to be incorporated into end of life documents.

Tothill's right. Since you have specific plans for appreciation and down payment, you need to consult an attorney to know how to structure this, not necessarily in a deed but in a will or living trust. This is not an issue of how to phrase title in a deed.

And if you're purchasing a home through a realtor, most likely the realtor’s office will prepare the deed, unless you bring in an attorney into the picture. If you're buying directly from a seller with no realtor involved, you're opening yourself and your mother's estate to a world of complications by attempting to accomplish your desires through a deed.

It seems to me that your mother will be financially responsible for the house during her lifetime, a mortgage would factor into account both your incomes, but you pay nothing. That's a statement of fact as I understand it, not a criticism or judgment call.

If your mother (not you) wants the house ownership to cede to you after she dies, an attorney can prepare a deed by which title vests in you and your siblings on your mother's death. That's more straightforward and commonly used; however, it’s NOT a method to accomplish the ¼ division plan, since conveyance isn't of the purchase price but rather the down payment and appreciation. 

That should be in a will or trust, which would contain a clause and language to the effect that your mother intends to “give, devise and bequeath to each of my then living issue (name them) an amount equivalent to a one-fourth interest in the real property located (insert address), consisting of (a) the down payment in the amount of $_______ and (b) the amount of appreciation from the date of purchase (insert date) to the date of my death, to be determined by an assessment from a qualified real estate appraiser.”  Something like that.  An attorney would know better what language to use.

The title reflects ownership, NOT allocation of assets after death. If this is what your mother wants, it needs to be incorporated into her will or trust. You can find an attorney to prepare the necessary documents, but you can’t make post death allocations now, on her behalf.  You can help her though.

There's another issue. You indicate that "It is based on her down payment and both of our incomes. " What is "it"? Your role as caregiver? It's not clear what is based on your caregiving role. If that's a factor, you probably should consider a caregiver contract, prepared by an attorney and not with a downloaded Internet form.

Your profile says your mom is 95 and has Alzheimer’s/dementia. Is she even competent to buy a house? What is your plan if she dies before there’s equity in the house? Can you afford to pay all the bills while it’s listed for sale?

You need to talk to a lawyer before you do anything further. Your location, country etc, and whether or not Mum may need residential care in the future are really important factors to be considered.