You must read this thread first http://www.subramoney.com/2018/12/family-deals-be-careful/ 

Let me reiterate. Many Financial mistakes done by the previous generation have been nicely hidden under the carpet by their children. Well hid from the prying eyes of the world – and the mistakes are not brought to the scrutiny.

What are the mistakes that I have noticed? Can they be hidden?

• running out of cash
• not having cash to replace assets
• not able to handle complex investments at a particular age
• not being able to live alone and well beyond a particular age

there are many more, but these 4 are crucial enough.

Even in the case mentioned the SC (the senior citizen) did the RE (real estate) deal just to increase his cash flow. Great. However, he has run out of cash AGAIN and now has no assets to monetize.

He has again gone to his elder son in law – this time with a bowl instead of asset monetization. This time he has a big royal corpus of Rs. 15L and he wants to be looked after (SC and wife) for the rest of their lives.

I have/had no solution for the same.

There was only one suggestion – give all the assets that you have to your eldest daughter and ask them to look after you for the rest of your life!

What was my solution? yes the above solution was mine. He has(had) only Rs. 30L and will have to live his future life (self and wife) within that amount. So I suggested that the son in law should take over Rs. 30L and say “I will pay for your upkeep for the rest of your life”. This is a big and huge commitment – he will surely be out of cash if this task was to be taken as a standalone activity.

I explained to him that he should make sure that the building should transfer the flat to his name. The building said that they would ask for a no objection certificate and the will could be challenged in a court of law. I suggested that he sell off the flat (Rs. 5 crores is a good amount of money) and put it in some REC bonds with the eldest daughter/son in law as the nominee. This was done.

Now the hope is that the interest on this and the corpus of Rs. 30L will be sufficient if the Mother l Inlaw does not live too long!!

The amount of rent foregone (not even doing a NPV) is about Rs. 1 crore – and has come with a rider – he took risk at a time when the others did not want to take it. He has been rewarded for his pluck.