Sell house first or place in care first and then sell? - AgingCare.com

Sell house first or place in care first and then sell?

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I have been the live-in-caregiver for my mum for a year as well as her POA etc. Mum does not need to go into a care facility yet but I have one major worry when that time comes. Do I sell her house while she is still living in it and then look for an appropriate care home OR do I place her in a care home and then put the house on the market? I live in Canada and the city I live in real estate is very high but the market is quite slow at the moment, my fear is that if she goes into a care home first and she is paying $5000 a month to live there and we can't sell the house for a year, that is $60,000 that has been spent for her in the care home while still maintaining her house until it sells. That is the bulk of her savings. If we do it the other way, how will we ever sell the house with her in it? I really could use all of your suggestions. Thank-you!

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What happens when the house was left to the children of the father in a second marriage. His wife's name was never on the deed but her son wants to sell the house to pay for her nursing care in a NH after he spent down her assets specifically given to her by Dad to pay for her living expenses. He spent her share and ours, too. How can that be allowed in Probate Court?
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This is a catch-22 situation. If you sell the house while she's around, the she'll probably build resentment toward you. Before you do anything, explore your options and consequences. It is best to seek advisement from a social worker connected to the agency who is assisting you and your mother. To protect yourself from any liability, see an attorney and an accountant. If your mother is clear lucid enough, you may want to find out what are her wishes. There are too many issues in your case, so don't jump the gun!
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balexander ... I'm Canadian and we have universal healthcare up here.The sale of her house has no connection to her healthcare. However, her savings could go fast if she were paying $5,000 to a private care facility and her house didn't sell.
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You need to meet with an Elder Law attorney to find out what you should do in terms of the sale of the house and other financial matters related to your mother and Medicaid.
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Reverseroles ~ I'm interested in your comment "You can pay yourself as her caretaker with a caregivers contract". Will you please explain what that is, how to create one, what all it covers, all pertinent information please? Thank you.
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There are millions of people who sell their homes while still living in it. Just get rid of most of the stuff, store it, and then "stage" it with the help of a realtor. No one can guarantee a seller's market and since I live in America, I have no idea what the real estate market is like in Canada. Find a realtor whom you trust.
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balex - By & large US Medicaid cannot make you sell your primary residence.

But what happens is that because Medicaid requires the NH resident to do a co-pay of all of their monthly income less whatever small amount the state has as their personal needs allowance, there is NO $ for the NH resident to pay for anything for the house. Some states allow for a portion of their monthly income to be diverted to pay for things for the house either for a short period of time or only if the house is currently under Realtor contract (and again for a limited period of time). If they want to keep the house, someone else will have to pay for everything. Taxes, yard, repairs, insurance, etc and it adds up. Can be unfeasible to essentially have a empty 2nd or 3rd home paying out on. If there is still a mortgage, HELOC, it's probably impossible. Now if family is living at the elder's home, it's different and they are kinda expected to be paying for everything for the upkeep on the home as they are benefitting from the home.

For those evaluating whether to keep or sell "the family home" it really needs to be a reality check on evaluating the data the Realtor gives you; how deep the elders and your pockets are & for just how long realistically; & really how much of a sense of humor you can (or don't) have in all this..... as you are clearing out kitchen cabinets at 3AM as the painters are there in a couple of hours to do mom's job because they got rained out of their outside job and it's the only day they can do you this 1 favor....& then get mom out of the house for a couple of days as she will be worried about paint fumes and strangers in the house OR you get a phone call from mom's neighbor that a hail storm has come through and looks like there is a lot of damage on mom's roof.

Reverse roles has it nailed in "think positive and professional help".
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This is a serious issue and you should go to a lawyer with this question. Its different everywhere. Where I am, yes the house doesnt count until the parent dies, then they come after the house, or money made from the house, back 5 years. If you have lived taking care of her in her home more than a couple of years, the house may be owned by you now. Medicaid puts a lein on homes and gets their money eventually. And, why do you think she will have to be placed some day? Many of us never place our parent and take care of them at home, with part time help. I prefer to take care of my Mom and know she gets the best of care and when I have help, I am in charge of who it is and how they treat her. My Moms in stage 7 , should be bedridden but I use a hoyer and wheelchair and keep her rolling! She is so happy she wakes up laughing yet cannot barely say a few words. We sold moms home and used that money for her supplies, and daycare until I retired. You can pay yourself as her caretaker with a caregivers contract, or get in a cna to help, there are so many options. Think positive and get professional help please.
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I'm in Canada as well. I cared for my mother for 4 years until she needed nursing care 24/7 and went into a NH in the country (I bought a small house in the next village to the NH) an hour's drive away last October. The cost here in Ontario is $2,000-$2,500 depending on whether it's a shared or private room. Although only 15 years old, in the 12 years my mother lived there she didn't spend a penny on maintenance or upgrades so it was shabby. I got it cleared of "stuff" leaving only nice pieces of furniture and had new paint and carpets Spent about $12,000 on it in all. It went to market at the end of February and the sale closed mid May though fortunately it was in a neighbourhood where houses sell quite quickly. I would definitely say NH first then deal with the house. These days, thanks to HGTV, potential buyers are uber picky and will walk away from a house that's not in showroom condition.
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I was told that in NY, the person cannot be forced to sell their primary residence, what they call the person's "homestead", in order to pay down all of their income before becoming eligible for Medicaid. However, you should check this before deciding what to do.
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