Granny Flat Arrangements

What is a Granny Flat Arrangement?
A granny flat arrangement refers to a formal written agreement where an older person transfers money, assets, or ownership of a property to another party (usually a family member) in exchange for the right to live in a property for life. This right is called a "granny flat interest".
They are increasingly popular in Australia as families seek practical solutions for elderly care. They allow older individuals to live close to their families while maintaining some degree of independence. They also provide financial flexibility, such as downsizing or sharing living costs.
The term "granny flat" doesn't necessarily mean a self-contained flat or unit; it can also apply to a room or other accommodation in an existing home.

Example of Granny Flat Arrangements:
Mary, 75, transfers $400,000 to her son David to help build a granny flat on David's property. In return, Mary receives a formal written agreement ensuring she can live in the flat for the rest o...