Dad is selling house; what will they do when his money runs out?

What will happen to your dad and mom when they run out of money will depend on what they spend the money on, how their health conditions affect them and what services are available when they need them.

Encourage your dad and mom to see a certified elder care attorney well versed in Medicaid in their state. They need to explore all the options and mom needs to listen up. This is her life too.
Medicaid has only been around since 1965. With the current state of the union who knows what their options will look like going forward. Dad may not care if his memory is gone. Mom may need protecting from dad’s actions.
He may be taking perfect action but we wouldn’t know with the limited information you’ve provided. It’s good he’s trying to prepare. Support them in that.

If he is losing his memory, he may not be competent to sign papers. Do you have POA? If so, I would be present at these meetings. Or at least have Dad consult an attorney. If this is like an AL, its at least 5k a month for minimal care. Thats one person. How do they charge for two? Does Dad have other assets? Because at 5k it will be 60k a year. Then as the amount of care they need goes up, so does the cost. Medicaid does not usually pay for ALs. It depends on the State. Mine, its private pay for 2 yrs at least before Medicaid will pay. Then that depends on if the facility has hit the % of medicaid residents they allow.

I think before Dad makes any major decisions, someone needs to look things over.

I'm wondering if you feel that your dad was manipulated or pressured by the extended living facility and you're trying to assess if it's legit or not? If that's your concern, then let us know that because there are people who post here who could give you some ideas on that. You mention that your dad is losing his memory, so maybe knows he can't live alone anymore. My grandmother made that decision on her own after an incident at her house and decided she wanted to sell. It sounds like something would have had to be done eventually for your dad - had you and your dad discussed a plan? Also, a living trust is not any guarantee of an inheritance for you. Assets in the living trust are not yours - including the house. Elders often believe they can gift a house to someone, but it's more complicated than that. The attorney who drew up the trust should answer those questions for you and I think it would be good for you to know.

Your dad is using HIS assets to pay for HIS care - he is doing the right thing. Why would you try to prevent this?

Sadly, MANY parents have made these 'piecrust' promises with their kid "oh, you can have the house and we'll move into AL'---but what and who is paying for AL? I heard this from my mom for years, how she and dad were going to move into grandma's small condo and 'gift us' their house as we have the smallest house of all the kids.

Good thing I never believed her.

OB talked them into an Equity loan of $250K which, 25 years ago, was a great deal of money. Of course he lost the money and never made any attempt to make them whole, so we all ended up paying and working to add on to YB's home so mother and dad had somewhere to live. (OB died several years ago).

Not only did no one benefit from the 'sale' of the house, we all actually had to beg, borrow and almost steal to make YB whole over the addition to his home.

I NEVER expected to inherit a thing from my parents, and as it is turning out, none of us will.

Our OB totally took advantage of our folks and it's hard, even now to know hat he robbed them of thousands and thousands of $$ feeling he had every right to do so, as he was the eldest.

Nothing we could have done. At the time, both parents were considered to be competent. Nightmare, to say the least.

FL,

You have not completed your profile, so we do not know your parent's ages or any health concerns they may have. Without that information it is hard to provide any advice.

The most important thing to understand is that none of us are guaranteed an inheritance. Our parent's assets must be used to cover their expenses until they die. If there is anything left over then there maybe an inheritance.

If your Dad is competent to make decisions then unless the trust is irrevocable, he can sell HIS house.