My daughter and her husband paid 22% of the cost of the home we just bought. If and when the time comes when my husband or I die and the surviving spouse wishes to move to an assisted living facility, could he/she use the 78% equity of our home to pay for it?

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Thank you for your replies. They give us a little more light.
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Doglover, is the house 100% paid off?   To get cash out of the house, then your daughter and son-in-law would need to get a mortgage on the house.   Since they put 22% into the house, that tells me they didn't have enough to go 50-50.   Can they afford a mortgage?   It's good that they have 20%+ down on the house.

Or the house could be sold with the equity [minus the costs involved with selling a house] going 78% of what is left to you, and 22% of what is left going to your daughter & son-in-law.

If only we had a crystal ball.   There is no way of knowing if down the road you might need paid home caregivers.   Or if neither you nor your hubby need to go into Assisted Living, or if both of you would need to move in sooner than later.

Or if the equity gets used up quicker than thought, then you need to apply for Medicaid, and if it was within 5 years that you need a higher level of care, how Medicaid would view the joint ownership of the house.   I know, life shouldn't be so complicated as we all age.... [sigh].
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Are you talking about a reverse mortgage? To qualify the person must be living in the home. As soon as the person moves anywhere, the loan becomes due. The only way I see is if the children are able to purchase the 78% at market value. Did you see an attorney BEFORE this arrangement was made?
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