Will a House My Parents Build on Our Property Be Protected from Medicaid?
My elderly parents would like to sell their home and use some of that money to build a small house on our property to live in...Read more
More and more parents are moving in with their adult children, and the trend probably won't reverse anytime soon. As nursing home costs continue to rise, children and their parents are finding that living together is a better arrangement, both financially and emotionally. But having a parent move in is a big adjustment for everyone, and it is important to be prepared. Preparations can range from making physical adjustments to the house to figuring out finances. The following are some things to think about.
There are many considerations that can have tax or other consequences. Should the parents have a contract in which they pay the children for caring for them? If the parents contribute to remodeling the house, do they gift their portion of the house to the children, retain an interest, or put it in a trust? These and other decisions can affect the parents' eligibility for Medicaid if it becomes necessary for the parents to enter a nursing home at some point.
To avoid fostering resentment and guilt among family members, you should try to work out as many of these issues as you can before the big move. An elder law attorney can help your family create a plan that takes all the various contingencies into account, so that everyone is on the same page and knows what to expect.
In addition to these accommodations, the space should be personalized for the parents. Consider the parents' likes and dislikes and what would make them feel at home when renovating. It is important that even if the parents have only a bedroom of their own, they feel like it is their space.
The following are some books that may help caregivers understand what to expect:
How to Care for Your Parents' Money While Caring for Your Parents
The Complete Idiot's Guide to Caring for Aging Parents.