Has anyone had an experience with their parents purchasing a Life Estate in their home? We added an in law onto our house with funds provided by my parents. It has only raised the property value by 1/3 of what the addition cost... We are paying for the final finishing of the outside work and repair to our lawn, fencing and driveway.
If we go with this Life Estate, what happens to our estate if we pass away before my parents? Do our children lose the equity we built in our home? If my parents are sued or run up debts, is my home at risk?
My husband and I both work full time and are their caregivers. They cannot live independently for health reasons anymore.