So my 90 year old mother with dementia (she’s still “ok” at this point but she has been diagnosed) took out a reverse mortgage four years ago. She currently owes $120,000 on it and each month they add about $600-$700 in interest charges. I am the sole heir in her will and hold her medical as well as financial power of attorney. In order to get her out of this predatory reverse mortgage, I would like to purchase her house for what she owes on it and she agrees with that 100%. I thought it was all good until I learned that there may be some serious tax implications (gift tax, capital gains tax) for purchasing the house under market value, which is somewhere in the neighborhood of $200k+. What are my options here? Refinance and add me as a co-signer maybe (my credit is excellent)? Any insight or advice is greatly appreciated.
original posted by imtnbikewv to r/personalfinance on Fri, 01 Mar 2024 18:26:47 GMT.