Parent paying off my mortgage

JUSTME3

My inlaw was widowed recently and moved in with us.  They sold their home and want to use the proceeds to pay off our mortgage.  Since my inlaw is living in the home they are paying off, is this allowed?  Will there be tax implications for either of us?

beanielou

Just bumping this in case anyone knows.

Cornish_mum

The living situation does complicate this, and I think your inlaw should seek some independent legal advice.

Gifts are not subject to tax, however you need to determine if this is actually a gift and not a private partial property sale. When we received a similar gift we had to provide a letter to both our bank and also our mortgage provider from the donor stating that the gift was without reservations and that the giver had no claim on the property (including living there). 

No one likes to think about it but if if you and your husband went bankrupt, got divorced, passed away or became disabled then without the proper paperwork in place your inlaw could find themselves without a home/their equity and in a very difficult situation.

CM