I've had my kids move back a few times and my mom came for 3 times throughout my married life to live with us.
What was important was to have some personal space. I've never had an in-law suite but I didn't mind sharing the main living quarters (kitchen, LR, etc). But having personal bathrooms and separate sitting area was needed. In one home, we had a large sitting area and bedroom in the basement with a 1/2 bath and in the other home we had a TV room in the basement and separate bathroom which wasn't as convenient b/c all the bedrooms were at the same end of the house so hearing someone opening and shutting doors, tv blaring, coughing, etc all interrupted sleep. The separate TV room was convenient but would have been better had there been a bedroom there too.
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