What To Do With Your Parent's House When They Move Into Assisted Living

Is Mom or Dad moving into assisted living? Or maybe they're moving in with you?

That's a big change. And it can be hard to navigate all the pieces involved... health, money, family, the house. Especially the house.

We talk with a lot of sons and daughters here in the Twin Cities who are going through this exact thing. Sometimes it goes smoothly. Sometimes it doesn't. So we thought we'd share some quick advice for those of you going through it right now.

First, talk with your parents (and your siblings)

One of the most important things you can do is communicate. Ask your parents what they want. Some folks are ready to let the house go, and some are really not. It's their home, and they may have lived there 40 or 50 years. Give them time and keep them in the loop on every decision.

Get your brothers and sisters on the same page early, too. A lot of family fights over a house start because one person felt left out.

Who can actually sign to sell the house?

This one surprises people. Just because you're the one handling everything doesn't mean you can sign to sell your parent's house.

• If your parent is still able to make their own decisions, they sign. You can help with everything else.
• If they have a durable power of attorney that covers real estate, the person named in it (the "agent") can usually sign for them. Minnesota has a standard power of attorney form, and the title company will want to see it.
• If there's no power of attorney and your parent can't make decisions anymore, the family may need to go to court for a conservatorship before anyone can sell. That takes time, so if Mom or Dad can still sign a power of attorney, it's worth talking to an attorney about it now.

Be careful with Medical Assistance

Here's the big one. If your parent is on Medical Assistance (Minnesota's Medicaid) to help pay for care, or might need it down the road, selling the house can change things. While the house is their home, it's often treated differently. Once it's sold, that money can count against them.

The rules here are complicated and they change. Please talk with an elder law attorney before you sell. It could save your family a lot of money and a lot of headaches.

Should you keep the house, rent it, or sell it?

There are three basic options...

Keep it. Maybe a family member wants to move in, or your parent might come back home. Just remember the house still needs the taxes paid, the insurance paid, the heat on in the winter, and somebody checking on it.

Rent it out. This can bring in some income to help pay for care. But you'll be a landlord, with all the hassles that go along with tenants and toilets. And most older houses need some updating before they can be rented.

Sell it. For a lot of families this is the simplest choice, especially if the money is needed for care, or nobody wants to take on another house.

What about all the stuff?

If your parent lived in the house for a long time, there's a good chance every closet, the basement and the garage are full. Going through 40 years of belongings is overwhelming, and emotional.

A few tips:

• Let your parent pick out what's most important to them first, especially if they're moving somewhere smaller.
• Give family members a deadline to take what they want.
• Don't feel like you have to empty every last drawer before selling. Depending on how you sell, you might not have to.

Getting the house ready to sell (or not)

If you list the house with an agent, you'll probably need to clean it out completely, make repairs, maybe paint and update a few things, and keep it showing-ready for weeks or months. Meanwhile you're paying the utilities, taxes and insurance on a house nobody's living in.

If your parent is staying in the home for a while longer, small changes like grab bars in the bathroom, better lighting, or a ramp can make a big difference for safety. But if the plan is to sell soon, you probably don't want to sink a lot of money into big renovations.

Selling directly to Trademark Properties

If you'd like to sell your parent's house quickly for a fair cash price, that's what we do. Here's how it works:

• We buy the house as-is. No repairs, no updates.
• Take what you want and leave the rest. We'll handle the things left behind.
• No commissions or closing costs. We pay them.
• You pick the closing date. If your parent needs time to get settled first, we can work around that.
• We close at a local title company, and they'll make sure the right paperwork is in place, whether that's your parent signing or the agent under a power of attorney.

We're not attorneys and nothing here is legal advice. With Medical Assistance and powers of attorney especially, please talk to a Minnesota elder law attorney about your family's situation.

Hope this helps you get through a tricky and delicate time! If you have questions about your parent's house, give us a call at Call us or fill out the form. There's never any obligation.