Mom moved out of home she owns

Discussion in 'Selling of Home' started by Helenrei, Mar 3, 2015.

  1. Helenrei

    Helenrei Newbie

    Hi,
    My mother in law just moved into a private assisted living house. We have to pay extra for memory care because she has dementia. She owns her home which we are going to rent out to help offset some of her care expenses. I read somewhere that once she moved out of her home that it may be considered an asset. It is in the San Francisco bay area and would sell for about $650K...she has an outstanding balance of about 200-250K on it.

    She served in the army as a Physical Therapist during the Korean War. I did a spreadsheet and got her monthly countable income down to about $800/month if we rent her house out and combine that with her pensions and social security minus monthly care and medical expenses.

    She has some money in the bank but by the time we pay for her care and do some work on her house, it will be about $50,000. Do you think we will have to sell her house? We need it to help support her in this area. We don't know how much longer she might live.

    Thanks for your help.

    Helen
     
  2. vetadmin

    vetadmin Administrator Staff Member

    Helen,

    If you sell the house, you will have to disclose those profits, and they will impact her eligibility financially. If you rent the house, she will have to claim the rental income, which will also impact her "countable income".

    Without knowing her complete financial situation i can't say with any certainty if she will make the threshold. Much will depend on what she is paying for care.

    If you apply, and she is denied due to being over income/assets, you can go back to the VA with updated info once she has spent down and would qualify financially.
     

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