What To Do With Your Home When You Move Into Assisted Living
Amber Ramsey | LearnItForLife
February 17th, 2023
Assisted living facilities provide an alternative to nursing home care for over 810,000 Americans, according to statistics. There are many important decisions people who move into assisted living communities must make. One of the most important is deciding what to do with their current home, so here are some tips and resources from Bonita Springs Espero Realtors to help make that decision a little easier.
Assisted Living Versus a Nursing Home
Assisted living communities and nursing homes share some similarities but are not the same. Assisted living communities generally do not provide services for people who need 24/7 care for medical conditions. A skilled nursing facility is a better choice if you need this level of care. If you may need nursing home care, you can find facility reports, pricing information, payment options, and reviews for nursing homes in your area online.
Options for Your Home
There are three main options for what to do with your home when you move into assisted living. If you don't need the money, you can opt to give the home to a family member or an organization. If you give the home to a family member, they may have to pay taxes on it. Check with a tax attorney or accountant in your state. Your other options are to sell the home or rent it out. If you sell the home, you get a lump sum payment and you don't have to worry about maintaining the home or collecting rent. If you rent the home, you can generate a passive income stream while also retaining the value of the asset. This may benefit you more financially than selling the home. However, you must continue to maintain the home, pay real estate taxes, pay for insurance, collect rent and deal with the other responsibilities of a landlord. You may need to pay a property manager to handle this for you.
Selling Your Home To Pay for Assisted Living
If you need to sell your home to pay for assisted living, it is important to obtain an accurate valuation of your home for financial planning purposes. Online home value calculators can help you determine the value of your home. To get the most out of your home, there are some steps you need to take to get it ready to sell. First, make any repairs the home needs. This will help you maximize your sales price and ensure that the home can pass inspection. Pay particular attention to issues that may turn off buyers, such as leaky pipes or cracked windows. If any of the home's systems are out of date, you may want to update them to attract more buyers.
Other Ways To Finance Assisted Living
If you don't want to sell your home or the sale won't cover the entire cost of assisted living, there are other financing options to explore. Annuity contracts are investments that pay money over a period of time. If you need some assistance while you are in the process of selling your home, consider a bridge loan. You may be able to use money from a Health Savings Account to pay for care. If you qualify, Medicaid may help pay your assisted living costs. You may also be able to receive assistance from the Program of All-Inclusive Care for the Elderly.