Elderly in-laws lost their mobile home to hurricane. Should we take the low interest SBA loan to get them a new home?

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They received some $ from FEMA they have some savings. Should we just use their savings, or take the low interest SBA loan to get them a new home? We are trying to keep them on their property as long as possible. He has dementia, she uses a walker.

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Top Answer
Difficult question especially if either or both need nursing home care on Medicaid
If one remains in the community (community spouse) that person can keep their house as long as they live or until they also need Medicaid. They can also keep a sum of money. Don't know the amount but I believe Medicaid is controlled by the individual States so it could vary. They can also keep one car and household and personal belongings.
It sounds as though they would have the best protection if they owned their home and use their savings.
Will there be family who could help out financially for day to day expenses such as taxes if their savings are used up.
Would it be better to rent a low income apartment. Lots of things to be considered so think it out carefully. The one thing you need to avoid is having more money in savings than the Medicare allowed by medicare. medicare can take that but they can't get at the equity in the home while one parent is still living there.
They own their own property in the country and have some savings. Not sure if it would be better to save their $ and use the 1.75% interest rate loan or use their savings in case they have to go to assisted living.
Who will be responsible for the repayment of the loan?
How long do you think they will be able to manage on their own?
Now might be the time to consider Assisted Living facility where they will both be safe and if you select the right one as the dementia progresses they will be able to remain there.
This might be the time to consult an Elder Care attorney to discuss options.
Assisted Living...
Loan and rebuilding...and who would then be responsible to repay loan.
Leaving the property with no residence, this may change the tax structure as well.
Do they possibly qualify for Medicaid?
Is either of them a Veteran? If so would they qualify for help from the VA?
Tough call here. They may want to consider Medicaid.
They don't qualify for Medicaid because of savings. They will be responsible for repayment of loan. I don't think it will be long before assisted living so my concern is showing 5 years of finances if we spend all this money on a new house all these costs will penalize them for Medicaid later. Just so confusing. I had to change around their finances because they were giving their money away.
The money they spend for a home will not disqualify them from Medicaid. The money they gave away in the 5-year lookback period (before the date they apply for Medicaid) may be a problem in that regard.
If you think they'll need the cash available to pay for assisted living or just for their daily living expenses for long enough to get any large gifts they've made past the 5-year look back period, then you may want to consider the low-interest loan.
As an example: If they have $100,000 and gave away a large sum a year ago, now spend all they have on a new home, they would have a penalty period before becoming eligible for Medicaid even though they have no $.
Same circumstance, if they borrow to buy the home, they'd have the $100,000 to live on for 4 years, which could eliminate the Medicaid penalty.
An elder law attorney would be helpful to you in making these decisions. In fact, ours was able to qualify my father-in-law for Medicaid by transferring their savings (which were over the limit) into a short-term trust that paid out to his wife alone.  Don't know if your state allows that, but it's sure worth a visit to an Elder Law specialist to find out.



Thank you that is very helpful! They have just had some check fraud by a neighbor and had a guy living with them and helping out around the house that was getting money from them a little at a time like a couple hundred here and there. We just found all this out after hurricane. It's been a huge mess!! Thanks again
Jkrystal5, PRAYERS TO YOU ALL! The Lord works on mysterious ways! maybe this is a sign that your parents should not be on their own any more.Expecially if your dad has Dementia,wow that's hard for your MOM who has mobility issues ,there comes a time in all of our lives that we have to face these issues of our parents needing care ...Good Luck!
Jkrystal5,I am definitely leaning towards your parents DO NOT NEED TO BE ALONE AT all anymore expecially since it sounds as if neighbors and others have targeted them as a money source and for check fraud .They need to be protected. AWWWWW SO SAD !
We are working on getting someone to live on property full-time that has done home health for 20 plus years. We have documentation from banks and have filed on the check fraud,. I control their bills and only leave a small amount of $ that he can access. No checks or debit cards. I am on his accounts so hopefully we can keep neighbors away. We bought him a van to get around in but after yesterday we are giving him one more chance before we remove his driving. I just hate it all,,!!! I don't like being mean and he is making me someone I don't like very much

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