My mother and I co-own a house (50/50) that is currently mortgaged. It's an investment property, so we collect rent income on it.
We're looking at transferring her interest in the property to me, for the purpose of cleaning up her assets so she can qualify for Medicaid.
I would like to pay my mother a fair value for her half of the property.
How do we calculate that, given that she's not only transferring me her part of the equity, but also her part of the debt, as well as her share of future earnings?