‘This seems absolutely insane’: Our children pay rent on our investment properties. Our lawyer says they should still buy us out.

Core Viewpoint - The article discusses a family's disagreement with their lawyer regarding the structuring of a trust for their three homes, particularly focusing on the implications of gifting properties to their children and the associated legal and tax considerations [3][6]. Group 1: Trust Structure and Gifting - The family intends to gift two homes to their adult children after the mortgages are paid off or upon their death, as the children have contributed to the mortgage payments [1][2]. - The lawyer proposes a standard clause in the trust that would require the children to "buy" the homes at market value using their inherited funds, which the family finds unreasonable [3][4]. Group 2: Legal and Tax Implications - Gifting the homes could lead to tax complications for the children if they decide to sell the properties in the future [6]. - The establishment of a trust could provide benefits for the child who has not yet received a home, ensuring equitable distribution among the siblings [6]. - The family is advised to explicitly structure their estate plan to account for the children's contributions, as standard estate laws do not recognize rent as a mortgage contribution [5][7].