Elder Care finances — money running out
Hi Terry. My mom is 83 and owns her home. Her cash is running out and is all going towards caregivers. Her health is not good. Is there a loan you recommend that would keep her in her house with caregivers?
Terry Says
There is the possibility of a reverse mortgage — but that only works if she is going to stay in her home for a while. The cost of establishing a RM is significant — and they insist she has enough income to pay the property taxes and insurance and upkeep. I think it’s too late for a reverse mortgage to be the solution — especially given her health situation.
This is a tough moment — but the most efficient thing to do is sell the home, take the money and move her into assisted living, with the possibility of more nursing care if she needs it in the future. When her money runs out, Medicaid will likely take over– but the care facility may insist she move into a less desirable room because Medicaid reimbursement is so low.
Take your time searching for a good place, with a good reputation. And check to make sure they will keep her on when her money runs out. And now you know the reason I have advocated that people buy long term care insurance in their 60s. That gives you money to pay for HOME health care — allowing you to stay in your home!
