Well, your choices are pretty clear: either you evict him or you let him live there for free. If I was in your shoes, I'd bite the bullet and start the eviction process. When he gets served with a notice to appear in court, it's going to get his attention and he just might come around.
Be aware that no judge wants to evict a 78 year old renter. So there's a distinct possibility your uninvited tenant will convince the judge he's entitled to stay in the house rent-free. But if that happens, you're no worse off than you are right now with a squatter living for free in your house.
Also, I would ask for something closer to fair-market rent. If he's too cheap to reimburse you for taxes on the place, it's a fair bet he's not spending a nickle fixing anything.
By the way, you're incorrect when you say he has "zero" rights to stay in the house. By living in the house, he has "possessory" rights to the property. That's why you have to go through eviction proceedings, rather than simply call up the sheriff and have him thrown out.
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