We are planning to retire soon and move to a CCRC. We were planning to put our home on the market, but our son and DIL have told us that they want to purchase the house. They have been living with us for 9 of their 10 years of marriage, rent-free. If we sell them our house and continue to live here for several months while awaiting our place at the CCRC, should we pay them rent? (I say no, my husband is non-committal--he was the one who refused to ask them to pay rent all this time)
Another question: If we sell them the house at below market value (just enough to pay off the mortgage), will they have to claim the difference as a "gift" from us to them on their income tax? It could be as much as $20K difference, depending on an updated assessment.
Check with a lawyer. This is something you cannot afford to be wrong about, so taking the word of any of us on a Forum wouldn't be wise.
As to whether you pay rent to them or not, how about not selling it to them until you are happily settled. The question then is settled. I believe that they are good and decent people who would never dream of asking you for rent given the circumstances. Am I wrong in that belief?
If the CCRC is your long term care plan and you will never need the help of the Medicaid program for a nursing home stay.....nevermind.
This sort of financial question will get better answers at www.bogleheads.org.