Reply #18: This is really complicated enough

[SheilaT]

that you should check with a lawyer.

As someone else said, your son probably cannot take an interest deduction for a second house, but that needs to be researched. The other thing is that if you sell it to the one son, he owns it. There is no way to protect the interests of your other two sons.

Do you have a will? When was the last time it was updated?

You need to look at all aspects of your financial situation. If you sell the house for such a low amount, less than half of what it's worth, you're kissing goodbye that money forever. You'd be much better off selling it, and putting the proceeds into an annuity to provide income. Anyway, the lawyers and tax people will be able to work through all the ramifications and figure out what's best all around. And expect all of this to take several months. It's not a quick process.