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Are you considering selling parents home to pay for care? As we get older, many of us need more assistance in completing day-to-day activities. Because of this, many people look to assisted living facilities during retirement.
Selling Parents' Home to Pay for Care
Assisted living is housing in which residents receive attention and care for maintaining their health and completing daily activities. In assisted living, your parents will receive help with meals, taking medication, seeing health care providers, completing chores, and more.
These facilities may be private or shared, and depending on the location and types of services offered, can cost anywhere from two thousand dollars to five thousand dollars each month. This cost can be overwhelming, especially when your parents are retired and if you are raising a family on your own as well.
Thankfully, there are options for using your parents’ home to pay for their assisted living that you may want to consider.
Finding your parents assisted living and financial stability will bring you peace of mind that they are happy and safe with long-term care providers.
4 Tips: Using Your Parents Home to Pay for Their Assisted Living
Here are some options for selling parents home to pay for care.
Rent out your parents’ home.
If your parents’ home is already paid off, this could be a great option instead of selling parents home to pay for care. The income from renting the home would go towards the assisted living expenses. It also means your family wouldn’t have to part with the home.
This provides a challenge for everyone involved.
A property manager would be able to assist you with renting the house for a small percentage. (Or, if one parent would like to continue living in the home, they may want to consider renting a room to a friend to help offset the costs of assisted living.)
Sell your parents’ home to pay for care.
For many families, parting with your parents’ home can be difficult. However, it can also be a good choice for parents who are ready to transition into assisted living. This is especially true if they plan to cash out the home for financial security.
Families find this option favorable when parents no longer wish to manage the chores and tasks of running a household.
If your parents are still paying off their home and they are not interested in selling, a reverse mortgage may be a good option available to them. (Also, if one parent would like to continue living in the home, this allows them to do so). A reverse mortgage would allow your parents to cash out some of their equity without selling the property.
Legally, at least one parent (original owner claiming it as a homestead) has to continue to live in the house in order to qualify for it. After all original owners leave them home the reverse mortgage is due.
Are your parents are in the process of selling their home to pay for assisted living, but need cash as soon as possible? In this case, they can borrow money while waiting for the home to sell in the form of a loan. Alternatively, you can sell to an investor if you want to cash out quickly.
Remember, there are options available to you as you help your parents find the care they need. We know you’d like to give back to them as they have been there for you. Keep an open mind and consider some of the above options, as one may be a better fit for your individual family.