We need to pay off the mortgage on our current home before we can move. (We already have our second house and 2 mortgage payments are becoming difficult). Mom will be coming with us when we move and offered to use the money from the recent sale of her home to help pay it off. Once the home sells, we plan on giving the money back to her that she contributed. Does anyone know of any legal reason why we can't do this?
She had enough money plus a long term care policy, so a Medicaid look back was not likely to ever be an issue.
I paid back the loans from my share if the estate, so my sisters weren't shorted anything.
But you plan on paying it back. If me, I would have a contract written up between you.
This form is only for record keeping of her gifts. If it is NOT filed, then the gift tax will be your responsibility to pay. Please google some basic questions on this and also see the irs.gov website for detailed info.
Disclaimer: If she is paying $30K or less, then it will not need documenting, as she is allowed to gift $15K to you and $15K to your husband without documenting.
Now if this is truly some sort of bridge loan, there must also be legal documentation to account for her giving it and you repaying it. Check with attorney after you read irs info.