Sell home for Mom's care....or?

What is the name of your state? Wyoming

Searching for clues. My mother is nearing the time when home health care may no longer be an option.
Her assets are below $2000, not including her car and house.
About the house:
It was purchased about 9 years ago for 49K. Payoff is 41k.
Current market value would be around 130k. The rub is that my wife and I moved into the house about 8 years ago and have made all the payments. Mom has lived in various places untill we started caring for her full time last year. Not sure if it would be best to sell or some type of equity loan to private pay as long as possible

The first funnel this runs through is whats best for Mom... but, I will admit that it would be nice to be able to realize some return if there is an ethical, legal way to do so.
Thanks in advance for any ideasWhat is the name of your state?

Questions like this cannot be answered in a vacuum. It's a calculation on how much you think you will need over time. She has some coming in and has some going out. These amounts will change depending on needs and decisions. This is not a legal question, but a budgeting one. Figure it out. Use her life expectancy from actuarial tables. Make a spreadsheet up. Once you figure out the extent of the problem, then you can start thinking about specific solutions. (Sell, reverse mortgage, medicare issues etc.)

twebroker said:

What is the name of your state? Wyoming

Searching for clues. My mother is nearing the time when home health care may no longer be an option.
Her assets are below $2000, not including her car and house.
About the house:
It was purchased about 9 years ago for 49K. Payoff is 41k.
Current market value would be around 130k. The rub is that my wife and I moved into the house about 8 years ago and have made all the payments. Mom has lived in various places untill we started caring for her full time last year. Not sure if it would be best to sell or some type of equity loan to private pay as long as possible

The first funnel this runs through is whats best for Mom... but, I will admit that it would be nice to be able to realize some return if there is an ethical, legal way to do so.
Thanks in advance for any ideasWhat is the name of your state?

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There is an ethical, legal way to do it and best of all, it's what's best for Mom.

Your mother is allowed to give away a percentage of her property without affecting Medicaid eligibility or increasing what (she) will owe after she no longer needs care.

Medicaid laws vary from state to state; check your state's laws.

I think that in North Carolina, Mom can initially gift up to 50%. Each year thereafter, she can gift a smaller percentage, something like 15% and can gift more than one person.

You and your wife could potentially be gifted the entire capital gain value of the property.

Get the mortgage in your name, all $49,000, and use the $8,000 to take care of Mom at home. Consider it earning the capital gain value.

Mom and you should meet with an attorney and make all necessary arrangements while Mom is still able to conduct her affairs. If Mom can't go to an attorney, one will come to her.

Best wishes,
EC

When you are a Bear of Very Little Brain, and you Think of Things, you find sometimes that a Thing which seemed very Thingish inside you is quite different when it gets out into the open and has other people looking at it.
--W. T. Pooh (aka A. A. Milne)

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Ain't it so!

EC