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In my area, the residential group homes, that I am familiar with, cost the same as most ALF, or about $4,000 to $6,000 a month (per person). I really, really doubt if they could rent out their home for $8,000 to $12,000 a month.
Of course, it may be completely different where you live.
My gma moved to Mesa, Arizona because there was a NICE ILV (with an ALF part) that was way more affordable. I don't know if moving to a lower cost of living area is doable for OP, but renting out a house in a high COL area could cover bills somewhere where it's lower?
My parents scrape by on retirement without assets except for some home equity worth about $180k if they sell. They are destined for needing assisted living. One has Alzheimer's already (very slow progression so far). They live in CA.
As most here know, $180k in dual private-pay assisted living will not last very long especially with other healthcare costs figured in, and private memory care which will also increase costs until they're out of money.
Part of me thinks I should help them cash out now and live in a nice transitional living place for as long as they can to maximize their quality of life here and now before the inevitable decline. My concern is one or both could live for years after that money runs out.
The other part of me knows they adore their house and want to keep it in the family. Maybe with juggling and using in-home services we could keep them there much longer and keep the house in the family.
Or, we try to keep them in the house for as long as possible and then sell it when things get so bad that maybe the equity will last the rest of their lives in assisted?
Seeking experienced opinions, as I'm flying blind here as the only child.
My mom was the same situation, she had about $100,000 or so in assets including home. Those assets were the thing that got her into a good ALF. Many awesome ALFs will allow someone to stay on Medicaid after they run out of funds IF they can pay privately first for a designated period. In my moms place she had to pay for 18 months. Her rent is now over $9,000 a month but her facility accepts $1600 as she is on Medicaid now (that's her income minus $40 a month she gets to keep). Her rent was about $4500 when she moved in originally, it's been about 4 or 5 years now.
If we didn't have that bone to offer, she'd have been in a nursing home cause no ALF would have taken her. They go by actuarial tables, and make sure new residents will die before their money runs out. My mom got declined even by the place I'd been working in for 8 years.
So yes sell it and get them into a great place BUT make sure they will be allowed to stay once they spend down. We hired a geriatric case manager to find us a place, she called the admissions directors in advance then gave us a list of places that agreed to allow her to stay after she spent down and we chose from that list. Regular folks will not be able to get this info over the phone.
If your parents are certain religions, look at places run by that religion. United Methodist Homes run some great ALF,s and they have something called the Fellowship Fund, which will pay the rent once a resident runs out of money BUT the resident has to be Methodist. Again a case manager will know about all these options, but it's a few hundred dollars depending how many hours she/he puts in. For it was well worth it.
Once they are out of money you will have no choices at all if they aren't in a place by then, and that includes the Methodist homes.
Update: decided to sell their home and move them near to us. We would have kept and rented the home if they had a cash asset buffer, but they did not.
Hopefully I can get my life in gear so my kids don't have to deal with this, but of course we cannot plan for everything!
I like this. Maybe the proceeds from their home sale will allow them a little more joy and fun in their retirement years, instead of just scraping by. Plus, good times near you and the grandkids.
Hope all goes fairly smoothly for you and your parents!
Update: decided to sell their home and move them near to us. We would have kept and rented the home if they had a cash asset buffer, but they did not.
Hopefully I can get my life in gear so my kids don't have to deal with this, but of course we cannot plan for everything!
Thank you for the update! That sounds like a good plan to me. It is hard to plan for everything, that's for sure.
I remember reading some of your posts when you were looking to relocate from Montana. Did you decide to stay there?
I have a relative in Montana, in Billings, and have contemplated moving out that way. But I think it gets too much snow for my liking!
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