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My mom (70) and dad (80) are moving 150 miles from their current house, to be closer to their kids (that can help on a daily basis). They will need to downsize, due to limited space at their new place (fully furnished). The problem is that mom attaches emotion/sentiment to nearly every possession they have, and rationalizes keeping items they (a) will never use again, due to physical limitations, or (b) will have duplicates of in the new home, that are in much better condition. My parents used to do extremely well for themselves financially, and have struggled with considerable depression (and increased alcoholism) after their economic downfall about 10 years ago. Their current situation is extremely sad for not just them, but everyone who knows/loves them. Many of the possessions they were able to keep after the bankruptcty no longer serve their daily needs, but reflect the lavish life they used to live. (For a visual, think Schitt's Creek, but not to that level of wealth). So you can imagine how they feel letting those things go.


How do I help mom make decisions that are practical and sensible, but also honor her feelings in this really difficult transition? There is simply not enough room to keep everything, and I worry that if they try to clutter their new living space, that they increase the risk of dangers like falling (Mom has limited mobility due to a stroke 5 years ago, and dad already falls frequently due to over-consumption)

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Basics to furnish the house first, then you get to talk about the knick-knacks. I never saw Schitt's Creek, so I'm not sure about the reference.

This is a stretch, but it might work since it worked on a friend of ours who couldn't bring himself to part with his Honda Accord even though it had 300,000 miles on it and he wanted a new car. The fact that it hadn't died on its own made him feel like he wasn't appreciative of it.

I finally told him that by keeping the car he was depriving some college kid of affordable transportation. Somehow that did it, and he sold it to a college kid for a couple hundred dollars, then ran out to buy himself a new car.

Maybe try to convince your mom that someone else could benefit from those items and see if her compassion for those less fortunate might inspire her to part with those things. Worded properly, it might make her feel like she's once again the wealthy lady who can afford to help others with her generosity.
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Figure their current square footage, and compare to the new space. Say 1500 Sq ft vs 750 Sq ft. You take half the stuff.
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What about dividing the cherished items among the children?   Mom can see them and be comforted in each of their homes, as well as her own new home.
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It sounds like some things have more ‘value’ to them as reminders of their past lives, than new things would have even if they are in better condition. I’m in a similar situation myself – it would be cheaper to get some things new, than to go to the trouble of removing and re-installing them in the new house that is being built. I’m still going to do it – it’s my past life, my mother’s life, my MILs life – and they matter more to me than nice new IKEA stuff. DH has almost no attachment to furniture, but he wants to take some things like skirting boards from his old house that was demolished and are now in the shed. (I hope you aren't facing that!)

Can you pick two or three things that have some use in the new small circumstances? Or rugs that could go on top of fitted carpet? It might help. Even think about whether you could substitute a couple of things in your own house, so that they can see them when they visit. It would be a loving thing to do.
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What about dividing things up as 'must have' for furnishing the new place, vs. 'will be nice once they're settled' or possibly 'under consideration to give the kids/grandkids'. Don't have a conversation where getting rid of stuff is in play--just get them (mom?) to the point that some stuff isn't going to be in the new place right away. Take the 'must haves', store the 'will be nice' things either at a rental storage or at someone's house. At some point you can parcel out the stored stuff to family, or donate it, etc. Like you said, this is about emotional attachment, not actual need.
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