Accessing vacation home equity
My 96 year old mother is in generally good health and lives in her condo. She has had caregivers in her home most of the time the last several years. She’s been able to pay for the caregivers from savings and investments but her money will run out in about 6 months.
In addition to her condo, she has a vacation home that she occasionally rents. Although she could sell her vacation home, because it’s not her primary residence, she would have to pay capital gains on the sale. Is getting a HELOC on the vacation home the best way to access equity? Thanks.
Terry Says
Whew. I can understand not selling the home. At her death, her beneficiary will avoid capital gains and inherit the house with a new cost basis as of the date of death.
You can try for a HELOC. It might be tricky because of her age and no income. But if she has a lot of equity, she might be able to access at least a portion of what someone still working would get.
Start with her local bank, or yours. Or try David Hochberg at https://56david.com/
And while you’re at it, I hope you’re making sure her estate plan is up to date.
