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Good morning. You could actually set this up as a private annuity where your parents basically transfer the title to you in exchange for payments to them for the rest of their life. The amount of the payments would be calculated using actuarial tables
based on the value of the property and the age of your parents and estimated
remaining lifetime. Then, at the time of their deaths, the payments automatically stop with no further obligations on your part. This also eliminates the property from being at risk for any of their creditors. The only downside here is the the basis will be the amount of your payments so if they were to die before you made payments equal to fair market value, you would not get the normal step up in basis that you would in a straight purchase or by inheriting the property.
would be to purchase the property for its fair market value with the title transferred to you now in exchange for a promissory note secured by a deed of trust. Then, upon their death, they could leave the note to you as an inheritance
in which case it would merge because you would own the property and the note. There would be no tax consequences because Texas has no estate or inheritance tax and its far under the Federal estate tax
exemption amount of $5,250,000 per person.
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