This is a question best asked to a local real estate attorney. You should discuss with him or her your needs and concerns.

The rest of us will just give you information based on our life experience and relationships with our family, which may differ significantly from yours. Also, the laws in our area may be completely different, and would affect what you want to do. For example, I do not live in a community property state, and it would not be helpful for me to tell you how it works where I live.

Not just a real estate attorney, but also an attorney specializing in wills and trusts. RE attorneys are used for sales transactions in some states, and that type of specialty may be of limited value to you.

Not sure if the loan to your daughter is impingent on the ADU being built. But there could be disagreement in the actual design and build of the ADU, so that might want to be addressed somehow now. Also you financing the ADU build will significantly alter (increase surely) the ROI for the property, so that should be addressed if there are other children/grandchildren for your estate.

Sounds like a disaster just waiting to happen to me. However to address your issues you need to follow the advice above about an attorney specializing in trusts who also has a real estate attorney in their office or at least a connection. Do not be surprised when the attorney will not do what you want. You can find one that will but there are so many red flags with what you are wanting to do.

Man I wish I had more time to write....

Short version, don't do it that way!!!!

Bless you for what you're trying to do. But please read what Kevin wrote again. And then buy the property yourself.

My parents did this. They moved across country to live near my brother. They purchased a property out in the country. They built a separate handicapped accessible home adjacent to the original home that could be joined by a breezeway. My brother, his wife and two boys moved into the main home.

My parents paid for the first purchase. My brother paid to build the second structure. They deeded the entire estate to my brother. Twenty years later after my parents passed, my brother sold and he got all the proceeds and I had no interest. There are arguments both ways as to whether I should have received a portion of the estate. In the end, it was my parents decision. I don't agree but I have to respect their decision.

At first, everything was okay. My father had a series of health setbacks and became wheelchair bound. My mother began to suffer from frontotemporal dementia. In order to protect my father's well being from my mother's aggression, we had to put him into assisted living. My mother remained in the accessory building. Because of the nature of her disease, my brother, my sister-in-law and my nephews lives became a daily living hell.

You can do this. In theory it sounds like a nice thing. In practice, it's another thing.

My suggestion would be to find another home nearby and purchase it. Close by, but not too close. Or, divide the two acres into two parts with your home on it's own plot. This way, there is no mixing of estates and financial interests. Should the marriage fail or a death occur, the two estates won't be co-mingled and it will be easier to deal with the consequences.

gonna give you another example (TX, community property state). Found 5 acres with two existing manufactured (mobile) homes. I liked, DH liked, grandson liked. I provided the down payment and mortgage; grandson made loan payments, I paid taxes and insurance. The agreement was that the property would be his 'early' inheritance (verbal agreement) "down the road'.

DH died 22 months later (cancer) and I retired 30 months later. Grandson got married, they not only kept on paying but also took on taxes and insurance when I retired.

They had a couple of kids, school district was terrible, kids went to private school. No families with young children nearby, talk started re selling/moving. I assured them I had no real 'emotional' love of the property. Grandson and wife went looking for a 'new' place, and specifically one that would be acceptable for me (re living quarters). Found a nice (built in the '60s) ranch home on .67 acre with a 900 sq ft garage apartment. Had me come look at it and it was either thumbs up or thumbs down strictly on me!

Two years ago we moved, they rented out the 5 acre place, sold that property two months ago and for TWICE the price we/I bought it for. Thus I no longer have any real property in my name; I have 'free' living quarters (I pay for my utilities). I do have other grandchildren who will receive other assets when I die.

So it can work, but whether or not it 'will' work always depends on the people involved.

I want to thank everyone for their suggestions. today i hired a real,estate lawyer to advise me in this situation.

I'm very happy to hear you've hired a lawyer and curious to see what he has to say going forward. Good luck.