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How can I get the equity in Mom's home before she sells it?

I am just getting started encouraging my mom that she needs help and will have to move. One of the many stumbling blocks is that her home is her only investment and she will need the additional money to live off of, once the home is sold. I need information on how we can get her moved out of the home and have the equity of the home work for her before it is sold. My mom is 81yr and her health is so, so. Mainly her heart is the problem so stress is a real issue. My fear is that if action is not take in the next year to move to a assisted living community, a true health event will take place and we will all be scrambling to do something fast. Does anyone know of a way to resolve the financial component regarding the home? I need to remove all the objection of the money concerns before my mom will entertain the idea of the move.
Status: Open    May 18, 2015 - 05:58 PM

Finance

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May 21, 2015 - 07:34 PM

There is not clear answer without more information. And even with that info I would still suggest you see and estate planning or elder law attorney regarding the best way to handle this. There are implications for taxes and even later on her eligibilty at some point for Medicaid (to consider how you handle the proceeds from a home sale).

The key factors are the home worth and what is the equity. Also your mother's other sources of income vs. medical expenses. Finally potential eligibility for VA benefits aid & attendance benefit (if she or her spouse served during & after certain wartime periods, not just combat). It's complicated you have a lot of homework ahead but seek out a pro. Many assisted living facilities have attorneys or can refer you to a good one to help you navigate this.

In our case I purchased my mother's home and she gifted me a portion of the equity to cover the down payment. This is a rental propety now which produces a monthly income stream to support a a good portion of her needs. We also applied and it took a while but now she gets VA benefits that covers medical and aide. Depending on your state you may be eligible for other aid.

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