As people age, it’s important to consider what you might need to pay for in the future, especially for your health care needs. While some people can pay for assisted living themselves, others need the help of their children or other family members. If you own your home but cannot afford to keep it anymore, this question becomes even more complicated—should you sell your house to pay for assisted living? It would help if you considered some things before making that decision.
What Is Assisted Living and Will You Need It?
Many family members choose to stay in their own homes as they age, while others move into a senior living community. These communities offer a variety of services to help keep loved ones healthy and independent, and offering assistance in daily living activities where necessary. If you need more care than what a senior living community can provide, you might consider moving into a nursing home. Many people use their home equity to pay for these types of care options.
What Is the Cost of Assisted Living?
A conservative estimate for assisted living is $3,500 a month. Based on that number, it would cost $42,000 per year to live in an assisted living community — and even more, if you need additional medical care. If your retirement savings fall short of that amount, consider selling your house to pay for assisted living costs. However, you’ll have to take into account how much time you have left before needing full-time care as well as how long it will take for your house to sell. If you can still live independently or are nearing end-of-life care, an assisted living center might not be ideal.
Does Selling My Property to Pay for Assisted Living Make Sense?
Selling a house to pay for assisted living is not something that is done lightly, so you need to think it through very carefully before deciding to go down that path. Is it right for you? Why are you choosing assisted living? What are your options? Many loved ones choose assisted living communities because they have limited mobility due to illness or injury. If that is true in your case, then selling your home may be a good option if no one can take care of you at home. However, if you have other family members who can stay with you, selling your house might not be necessary.
Selling Before Moving to Assisted Living
Many people struggle with whether or not they should sell their houses before moving to assisted living. This is a common question for families because many are worried about how they will pay for assisted living after selling their primary home. Selling your house before moving to assisted living is certainly an option, but it is not something you want to rush into doing.
Selling After Moving To Assisted Living
It is a complex topic for people to talk about. Suppose you can sell your house, great. But if not, you might need to look into other options. Research how much you should budget for assisted living costs—that way, if it does not cover everything, you will not be caught off guard when it comes time to take care of your loved one. It may be better to work with an outside financial advisor on the types of decisions rather than depending on your insurance agent or social worker, who are typically only focused on short-term needs. If you are thinking about selling your house to pay for assisted living costs, make sure that your parent wants—and that it is something she will still want five years from now.