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[quote=Anonymous][quote=Anonymous][quote=Anonymous]It looks like my in-laws are finally willing to enter assisted living. I will try to get them in with their estate planner but would like to hear from BTDT people about how they got the money for the entrance fee. Does it make the most sense to sell the house first or pull from investments/reserves? I think net worth is between 1.5-2 .5 million including a vacation condo unfortunately purchased this year. I think it will be mentally difficult for them to sell one or both homes so we could potentially look at renting them out if it makes sense. [/quote]
No one can really answer this. There are just too many unknowns. Rushing into a sale is often a mistake, as the capital gains hit can be substantial. Talking to a professional is the right thing to do and no big financial decisions should be made until you do. Renting isn’t necessarily the answer, but don’t be too freaked about “being a landlord,” if the property is right you can generate significant income and easily pay a property manager. If the vacation condo can be AirBnB’d that can be very lucrative. In any case, just wait until you talk with the estate planner. If the can’t talk to you knowledgeably about income generation now, you need to speak to a fee based CFA as well.[/quote]

+1. Lawyer here but not estate lawyer. This is a complicated issue on both state (varies) and federal law -it gets especially problematic under Medicare. Please see a elder law or estate law specialist now before doing anything. That's what now deceased friend did when her husband went into care. In her case (cal law), she was advised to go through savings and hold on to the house (owned free and clear). When he went was to exceed federal and hospice care allotments fshe would be responsible gor everthing out of pocket) the instructions were she was to file for divorce to save the house for her own support. He died shortly before she was to do that. Anyhow consult an elder law expert to find out where to start. You need power of attorney of course.[/quote]

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