Thank you for the feedback. Everything being in my name was intentional. They have some other outstanding debt to another family member that has a high likelihood of resulting in a lien placed on the house if it legally becomes their asset. I understand the responsibility is mine should they ever fail to make a payment. Although it wouldn't make me happy, that scenario was considered when we budgeted for the home and is a risk that I am willing to accept should it come to that. Treating it as a second home and the income as gift might make the most sense. The mortgage amount is well below 14K.
The mortgage amount and low interest rate is very small, and its very unlikely their itemized deductions would be more than the standard deduction, so I'm not sure the mortgage interest is worth getting them on the deed and risking a lien.
I agree about the Last Will & Testament, and I have been considering even before this home was a factor. I am married, so my wife's name is on all the paperwork as well, which I should have mentioned, but don't believe it changes the options in this scenario.
Thanks again, this was very helpful.
