I want to help my parents with thousands of dollars in home repairs. How can I make sure I get that money back

Question

They want to pay me back. But they cant until the house is sold or given to me. Our concern is how is my investment secure if the house is given up for their Long Term Care costs or for any other calamity.

Answer 1

Unless you are 100% certain that the house is deeded to you then I would not invest any more money in a house that may eventually belong to the bank .

Answer 2

Talk to an attorney about having them sign the house over to you (so you are the owner of it) but they have a life estate -- which means that they have the right to live there the rest of their natural lives.

Of course, this means you could end up paying for everything that needs to be done to the house. But if that's going to happen any way......

Answer 3

This is not a good idea.  Parents should not be borrowing money from their kids.  The potential for disaster in the relationship is high.  You let them take care of their affairs, and you take care of yours.  When you mix family and money in this way, the next step can be a nightmare.  To answer your question, you CAN'T be sure you get your money back, and that's the problem.  Stop this now, and let what has already been done be a gift.  Have a normal relationship with your parents, not a financial one.

Answer 4

In most cases when you lend a friend or family member money, you'll never get it back. The only way to secure the debt is put a lien on the property.

Answer 5

Don't... You say you already upgraded. I am sure they are thankful. On the other hand keep doing what you are doing if the reward is only to show gratification to your parents. If this is their concern then that's another story. Have them list you as the beneficiary or will the estate to you. This too is not a 100%. A family squabble can change this too. So from the heart is the best guarentee...