I don't have any advice to share, but I'm curious--in this situation, how would FIL go about giving partial ownership of the home to OP as payment for performing renovations?
It's the opposite. We would be purchasing a portion of his house that corresponds with the money we're putting into it. So, if we put $100k into the house, we will be purchasing a share of the house. Then when he passes, that share of the house will not be in his estate. As for the actual hows, that's something that his attorney will set up.
Just wanted to first commend you for moving in with your father in law and mitigating his loneliness--wish more families could/were in a position to do this.
Thank you. I love him and he has tried so hard not to sink into depression. He has cultivated friendships with people he meets through traveling and travels with them and arranges visits back and forth. We get along with him very well and feel it's our duty to help.
Second, i think I'd probably pay for some of the remodeling myself if I wasn't paying rent or mortgage. You could consider it the cost of living there, and then just split any profit when the house sells three ways with the siblings. I'd probably restrict that remodeling to what would make the house livable, etc. That is, I wouldn't necessarily spend time updating the house in terms of style, etc. That could be for the next homeowner.
If we were talking about a few thousand, I wouldn't care about splitting the profits but we're looking at up to $100k - 15 years of equity from our own house.
While living there, we will be doing plenty of work ourselves but we wanted to get the messy, inconvenient stuff done before we add another 5 people in the house.
The minimum time we would be in that house would be 12 years. I don't want my kids to change schools after 6th grade (BTDT as a kid and it sucks) so with the oldest entering 6th in 2018 and the youngest entering kindy, that has us there for the long haul. So I would like to actually enjoy our time there.
BUT, I think we are going to see what we can do to integrate our style with the house so we won't have to do so much drastic work. Hopefully, that will keep costs reasonable.