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Thread: 2nd home question

  1. #41
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    Mar 2005
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    Johnston
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    Quote Originally Posted by SaltMuck View Post
    That doesn't make me a gypsy does it? Gypsy's get taxed higher, so maybe CottonRabbit is a gypsy too?
    3 kinds of people in Edgefield....

    Natives (There are several subgroups here that all look down their noses at each other)

    Merriweather people (They tell people they live in NA as a general rule)

    Gypsies (Unless you paint barns on the side, talk real fast and call people bubby, nobody will mistake you for a gypsy)
    “The Trump Doctrine is 'We’re America, bitch.' That’s the Trump Doctrine.”

  2. #42
    Join Date
    Sep 2017
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    Merriweather. Sure wish we could get nice things on this end of the county, since we pay the most taxes. Fox Creek is thriving though.
    Have family that were in Edgefield politics. One is a lady that was on county council. She said she was paying 3K for her mother's house on their land.

    Bad Habit, I am screwed on the plans and it did get a c/o. I thought I would need it for home owner's insurance. Come to find out, I got it insured through my home owner's. I have a call in about how I would ever go about changing it in name to a shop. The law is gray. Nothing wrong with getting a shop with AC. I got "temporary" power during the building. I should have just let the permit run out.
    Think the deed thing may be the way to go. I would love to beat them with their own rules.
    Last edited by Highcotton; 07-12-2018 at 08:55 AM.

  3. #43
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    Sep 2004
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    spartanburg
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    2,526

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    Gotta pay the bill or get it out of your name. It's a residence.
    Low country redneck who moved north

  4. #44
    Join Date
    May 2015
    Posts
    494

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    Be careful with deeding it to your parents. If, for some reason, they need to go into a nursing facility and Medicaid foots the bill, they can go back and make a claim against their estate. You might end up having to buy it back.

    I'm not a lawyer or in the health care field, so take my advice with a grain of salt. I don't know all of the details.

    https://www.scdhhs.gov/organizations/estate-recovery
    Last edited by wob; 07-12-2018 at 09:23 AM.

  5. #45
    Join Date
    Nov 2008
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    Chapin
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    3,626

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    Alot of unintentional bad advice in this thread. You CAN get around this if you're willing to take the proper steps and engage the proper help. My first move would be to contact a real estate attorney in your area for their advice. Call and ask one how much they'd charge you for 30minutes to 1 hour of their time. Shooting from the hip, and its been said a couple of times already in this thread, giving your parents a life estate on the property would get it out of your name and protect it from being confiscated later on should they need govt help with medical issues down the road. BUT, and I don't know the exact specifics on this, I think the life estate must be set up a minimum number of years before they acquire the assistance. In other words, you can't see the need for that coming and put it in a life estate a month prior and expect everything to be OK. Again, you need a real estate attorney to advise you on this.
    Once your parents pass, there are certain criteria a structure must meet to be considered a residence. If it were me, when that time came, I'd go into the structure and remove the bathroom fixtures, cap the plumbing lines, patch the concrete, turn the bathrooms into storage rooms, remove closets in the bedrooms(must have window and closet to be considered a bedroom), and approach the county assessors office about having it reclassified as a storage building.
    And as far as "screwing them if you're able to".........I don't think you're screwing them at all. Screwing them would be owning 3 rental properties and fraudulently avoiding 6% taxes. What you're doing, in my opinion, falls into a gray area.
    Another thing you can do is owner finance the property to your parents through an Installment Sale Contract (sometimes referred to as a Land Contract). The deed would stay in your name and the Contract would be recorded at the courthouse giving your parents legal interest in the property therefore putting the tax bill in their name. This type of contract is used VERY frequently. I draw up several of them every year. The advantage to this vs a deed, note, and mortgage is that it can easily be nullified through a cancellation agreement between the parties. And, its super easy to set up. Sell it to them for $xx,xxx amortized over 40 years so their "payments" are low. Collect the payments and keep everything legal. Most real estate attorneys will be very familiar with this and the cost to set it up is negligible. Just make sure to keep it legal. Collect payments just like you would if it were a stranger. Otherwise, you're guilty of tax fraud.

    Again....CALL A REAL ESTATE ATTORNEY. If you don't know one, shoot me a PM and i'll get you in touch with a good one who won't clean your pockets out and is very familiar with Land Contracts/Life Estates/etc.

  6. #46
    Join Date
    Nov 2002
    Location
    FloVegas SC
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    3,458

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    Quote Originally Posted by Catdaddy View Post
    I think it would be taxed as investment rental if it was in child's name or someone else. but grandparents lived there.

    Sent from my Moto Z (2) using Tapatalk
    Not if it was deeded to them. They would be the owners. MG
    Aliqua die cognoscetis!

  7. #47
    Join Date
    Mar 2002
    Location
    Forest Acres
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    9,651

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    Quote Originally Posted by SCSwitchback View Post
    Alot of unintentional bad advice in this thread. You CAN get around this if you're willing to take the proper steps and engage the proper help. My first move would be to contact a real estate attorney in your area for their advice. Call and ask one how much they'd charge you for 30minutes to 1 hour of their time. Shooting from the hip, and its been said a couple of times already in this thread, giving your parents a life estate on the property would get it out of your name and protect it from being confiscated later on should they need govt help with medical issues down the road. BUT, and I don't know the exact specifics on this, I think the life estate must be set up a minimum number of years before they acquire the assistance. In other words, you can't see the need for that coming and put it in a life estate a month prior and expect everything to be OK. Again, you need a real estate attorney to advise you on this.
    Once your parents pass, there are certain criteria a structure must meet to be considered a residence. If it were me, when that time came, I'd go into the structure and remove the bathroom fixtures, cap the plumbing lines, patch the concrete, turn the bathrooms into storage rooms, remove closets in the bedrooms(must have window and closet to be considered a bedroom), and approach the county assessors office about having it reclassified as a storage building.
    And as far as "screwing them if you're able to".........I don't think you're screwing them at all. Screwing them would be owning 3 rental properties and fraudulently avoiding 6% taxes. What you're doing, in my opinion, falls into a gray area.
    Another thing you can do is owner finance the property to your parents through an Installment Sale Contract (sometimes referred to as a Land Contract). The deed would stay in your name and the Contract would be recorded at the courthouse giving your parents legal interest in the property therefore putting the tax bill in their name. This type of contract is used VERY frequently. I draw up several of them every year. The advantage to this vs a deed, note, and mortgage is that it can easily be nullified through a cancellation agreement between the parties. And, its super easy to set up. Sell it to them for $xx,xxx amortized over 40 years so their "payments" are low. Collect the payments and keep everything legal. Most real estate attorneys will be very familiar with this and the cost to set it up is negligible. Just make sure to keep it legal. Collect payments just like you would if it were a stranger. Otherwise, you're guilty of tax fraud.

    Again....CALL A REAL ESTATE ATTORNEY. If you don't know one, shoot me a PM and i'll get you in touch with a good one who won't clean your pockets out and is very familiar with Land Contracts/Life Estates/etc.
    Do this. If the attorney is an estate attorney also, you have a bonus.
    His mercies are new every morning. Lamentations 3:23

  8. #48
    Join Date
    Mar 2002
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    Forest Acres
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    9,651

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    And as attorneys go, Old Strom has a few family members practising that may have some advice for that neighborhood.
    His mercies are new every morning. Lamentations 3:23

  9. #49
    Join Date
    May 2015
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    95

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    Contact a real-estate attorney, and someone intimately familiar with the building code and regs for your area such as a builder or engineer. Also code ordinances for your county can be accessed here:

    https://library.municode.com/sc/edge...UBURE_ARTIINGE

    In particular Section 8 looks handy. On a quick review line 8-4 (2) says: "Residential. Detached one- and two-family dwellings and multiple single-family dwellings (townhouses) not more than three stories above grade plane in height with a separate means of egress and their accessory structures shall comply with the International Residential Code as adopted by the S.C. Building Codes Council."

    Looks like "Detached" may be a key word. at 5K a year, a covered walkway would pay for itself pretty quickly, and keep you dry while visiting your mother in the rain.

  10. #50
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    Nov 2004
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    48,164

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    Quote Originally Posted by lowbudget View Post
    Contact a real-estate attorney, and someone intimately familiar with the building code and regs for your area such as a builder or engineer. Also code ordinances for your county can be accessed here:

    https://library.municode.com/sc/edge...UBURE_ARTIINGE

    In particular Section 8 looks handy. On a quick review line 8-4 (2) says: "Residential. Detached one- and two-family dwellings and multiple single-family dwellings (townhouses) not more than three stories above grade plane in height with a separate means of egress and their accessory structures shall comply with the International Residential Code as adopted by the S.C. Building Codes Council."

    Looks like "Detached" may be a key word. at 5K a year, a covered walkway would pay for itself pretty quickly, and keep you dry while visiting your mother in the rain.
    Indeed....

    Quote Originally Posted by Tater View Post
    I don’t feel like reading all this so if this has already been stated then so be it.....

    Connect the two with a covered structure and the barndominium becomes an addition to your house. 1 residence, back to original tax rate.
    I had a client with the exact same problem....

    _ags_cfd5c989a6614fa3a27c13ce817ad629.jpg

    He built the house to the south for his parents. His resolution choices were to connect the two with a covered structure (walkway would suffice...had to be continuous roof) or survey off a separate lot. Luckily for him he had room for the second lot to meet requirements so he went that route.

    You can hire an attorney if you'd like, but a phone call to the county in question is free and they are the one's whose requirements you have to satisfy.

  11. #51
    Join Date
    May 2015
    Posts
    95

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    I'll also add that attorneys often know how to legally transfer property, write deeds, and such; but I've seen a lot of jacked up deeds because a "Real Estate Attorney" doesn't know how to read a survey, and a lot of attorneys sell pipe dreams to a client because they don't know jack about the local code. I'm not saying you shouldn't talk to an attorney, just that they cant tell you what they don't know. If you have a legal question ask an attorney and they will set you right. It sounds like you have a code question, ask someone familiar with the code. In my experience if you don't get all pissy and stay on the good side of the inspector they may give you a way out, such as a covered walkway, 1 meter exception, or a way to classify it as a garage.

    Having gone through this myself, there is no way on earth I would outright deed it to an aging parent. This is where an estate attorney would be worth their weight in gold. Some sort of lifetime right, rental agreement, or other means would be the best route. If you do end up deeding it out, do your research and spend some money to do it right, otherwise it may bite you hard in the future.

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