Our daughter is in the process of a divorce. We expect it to be finalized sometime this year. Purchasing a home with a mortgage is an excellent way for her to build credit in her name, but we do not believe she can afford to purchase a home based upon her income. Once the divorce is final, we are thinking of buying a house for her and her children but are unsure which approach is best for her and us from a tax standpoint. Should we simply co-sign a loan that is in her name, should we include ours and her name on a mortgage loan, or should we pay cash for the house and address the purchase in our estate plan/will? Our hope is someone can offer an opinion of what is everyone's best long-term interest.
