Paying for parents house without trust or contract I entered into a verbal…

Paying for parents house without trust or contract
I entered into a verbal agreement with my parents to purchase a house. My Parents put 30K down and refinanced their own home to purchase this house with cash. I make the mortgage payment in the form of rent but do not have a rental agreement. They have verbally (email) stated that I am purchasing the house and they are the bank, again no contract. The house is not held in a trust and I have two other siblings. My parents have other property that is held in a trust but have failed to record the property I’m living in to the trust. At the moment I do not qualify for a bank loan to purchase the house. What would be the best way to secure the property and not have to worry about probate or income tax consequences? contract for deed, deed gift, irrevocable trust, I’m not sure what I should persue to make sure that I will still be able to keep the house in the event of their passing. My parents live in California, I live in Washington, the house in question is located in Washington.

One thought on “Paying for parents house without trust or contract I entered into a verbal…

  1. Re: Paying for parents house without trust or contract
    Contracts regarding real property must be in writing to satisfy the Statute of Frauds. That said, you cannot use the statute of frauds to create a fraud (I am NOT casting aspersions on you or your folks, it is a technical term).

    One of the most frustrating things in estate and trust work is when people carefully set up a trust but then fail to place their property in the trust, which negates the intent of the parties.

    Your parents own this property, regardless of your payments. It is their house. They need to consult with a trust attorney who can help them figure out the best structure for their needs, which may not be exactly the same as your needs.

    They will eventially pass away. Their estate planning will need to be carefully tailored by their attorney to meet their needs. If they leave it to you in their trust planning, you could inherit it if that is their plan.

    California probate is a much more complicated matter than probate in WA. So long as they are domiciled there, they need a CA attorney to advise them.

    Hope this helps, Elizabeth Powell

    Elizabeth Powell
    ELizabeth Powell PS Inc
    535 Dock Street, Suite 108
    Tacoma, WA 98402

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