KBB - October 2013 - (Page 48)

Industry VIewpoInt When the Parents Pay, Who’s in Charge? A client visited our showroom recently and said, “I need your help in remodeling my daughter’s bathroom.” At first I thought he was talking about a secondary bathroom in his own home, but I soon realized he was describing the home of his adult daughter, who was married. While this parent knew a lot more about his daughter’s morning routine than most spouses, he was my first encounter with a new trend: parents who pay to remodel their adult children’s homes. He wrote the design retainer check, attended all of the meetings and eventually paid the entire bill for the remodel, even though the design decisions were all made by the homeowners. The homeowner’s parents paid to remodel this master bathroom, a trend observed by many designers. Remodeled by Kitchen Places of Ventura, Calif., the bathroom features alder wood cabinets, quartz countertops and a mirror backlit with fluorescent lamps. Today’s baby boomer-age parents are doing a lot more to help their children, which is a trend noted by many kitchen and bath designers, and I have already designed three parent-funded projects this year. As the aforementioned father, a retired firefighter, said, “My kids have huge student loan bills, and they don’t make a lot of money yet. I’m just happy to be able to help.” Maria Stapperfenne, CKD CBD, of Tewksbury Kitchen & Bath in New York, shared a similar experience. 48 + K BB Quartz was used in the shower for the floating bench and pony wall cap. Porcelain tile is accented with a glass mosaic on the walls. “I worked with the client and her parents at the first meeting, but the final meeting was with just her parents,” she said. “They will be bringing everything back to their daughter, who will then sign off to me, but the parents have already agreed to the amenities and design revisions, as well as leaving me the payment. They claim that they are happy they are still around and able to do this for their kids while they can enjoy it.” Laurie Burke, an account manager with ProSource Wholesale Floorcoverings in Las Vegas, also recognized the trend. “Families often utilize the gift tax exemption as a shelter,” she added. In 2013, individuals may receive up to $14,000 per year without paying a federal gift tax. Parents may also combine their gifts so mom and dad may contribute up to $28,000 in a calendar year to one adult child. Jane Scammon of Sterritt Design in Boston worked with a couple who owned a duplex and were remodeling both units. One was for their son and his wife and kids to move into; the other for themselves. “It was very funny to see how much the parents would permit the son’s wife to make selections,” she said, “and while not stating it outright, they were adamant about spending more on their own unit than that of their children’s.” Frank Iaria of Mint Kitchens by Designwize in Melbourne, Australia, has sold two such projects. “In both my cases, it was a roundtable discussion with all involved, but ultimately the parents let the adult child and spouse make the final decisions on selections and appliances,” he said. The most important thing to consider when selling a project that is bankrolled by the non-inhabiting parents is the paperwork. Rebecca Gullion Lindquist, CMKBD, owner of Lindquist & Company in Duluth, Minn., designed a luxury remodel for a woman who took up residence in her mother’s home and accepted a down payment from the mother’s trust fund. The mother was in a full-time care facility, so the check was soon halted by the bank – the trustee – which said the daughter did not have the authority to make capital improvements. “Be sure to verify who the owner of the home is prior to starting a remodeling project,” said Gullion. Even if the parents say they are paying for the project, the property owner is responsible for all payments. Make sure you have the right signatures on your contract. n — Ronni Fryman is a designer with Kitchen Places of Ventura, Calif., and she has been in the remodeling industry for nearly 20 years. October 2013 / www.kbbonline.com / The Official Sponsor of KBIS www.kbis.com http://www.kbbonline.com http://www.kbis.com

Table of Contents for the Digital Edition of KBB - October 2013

KBB - October 2013
Contents
Online Contents
Editor’s Note
Show Director’s Note
Celebrity Design with...Nicole Curtis
Universal Design
Trends
Products
Reader’s Choice Awards
KBIS Countdown to Design & Construction Week
Dealer Dish
Design
Magical Transformation
Let there be Light
Industry Viewpoint

KBB - October 2013