My grandmother died 10 years ago, leaving her small house in a purely verbal will to my sister. My sister is a "poor musician" and could use the property for rental.
However, the will was not written down, my parents inherited the property by default. They have not rented it out or sold, as they don't desperately need the money and don't want the hassle. It would by now require moderate redecoration, which my parents don't want to commit to financially. They indicated they would be open to some kind of deal whereby renovation costs and rental property proceeds would be shared, but without any details. I also live abroad, so I am further removed from the situation.
Aside from personal problems that could arise, what could be practical and reasonable ways to structure some help for my sister? She cannot afford any renovation outright, but could manage a rental property.
The only idea that comes to mind is to lend my sister the renovation money and receive a share of the rent, with my parents retaining ownership (and thus value increase). Eventually the property would likely be inherited by us two anyway, assuming it isn't sold before. My loan would be repaid from rent money, and I think I can break even within a year or so (the works aren't major). But this seems quite bad; very complex, I invest in a property I don't own, and I make an unsecured loan to a family member.
The general sentiment of this website seems to be, if you want to help a family member then send them cash, however here it would irk that there is a productive asset lying spare, which could provide ample support. Give a man a fishing rod and all that.
It could be that there isn't a good option for me, but I'd like to canvas opinion on the matter.