The background to these questions is that as we all age, our living arrangements often need to change. The changes can be the result of employment changes, health changes, or death of a spouse. The employment changes typically come as a person reaches the end of their full time employment. Health changes can be a result of typical aging or other issues. Death of a spouse may result in a desire for a change of scenery, often moving closer to children.
Option 1 -Recombine Households
For some, the answer is to recombine the households of parents and children again after decades of living apart. This could mean a child moving into the parent’s home as a care giver. It could mean parent moving into the child’s home, or it could mean parents and child buying a home together. Any of the above can be a solution for a particular family. We can offer names of people who help facilitate these kinds of combinations. They often involve a need to downsize the total accumulation of “stuff”.
Option 2 -Move to a Senior Community
For some, the answer is to move to a senior community. There is a wide range of communities offering various levels of service to make life easier for mom as she ages. The services range from independent living to full skilled nursing care. Moves to these kinds of communities often involve selling the family home and using the proceeds to pay for life in the new community. We can offer recommendations to people who will help you find the right community for mom. This involves not just cost issues, but also finding people with similar capabilities and interests. These professionals are often paid by the community, much like a real estate agent, so there is no cost to the person moving in. We can recommend real estate agents who will maximize the value received from the home being sold to pay for the move.
Option 3 -Mom Lives in Her Own Home
Surveys consistently find that the preferred choice is for mom to live in a home of her own. The preferred option typically is for mom to live in a home she owns without a mortgage, but sometimes there are issues that go along with this option:
- In some cases, when dad passes away, there is a reduction of income. One option to close the gap and keep mom in the home is for the child/children to write a check each month to subsidize her income. Another option is to use a Reverse Mortgage to spend the equity in the house.
- In other cases, a move to a different home is best case. In many cases, the move may be to move closer to the children/grandchildren. The move may involve moving to another city or state. If the move is from a higher cost to a lower cost market, there may be enough cash from the sale of the old home to pay cash for a new one. The children may want to buy and pay for a home for mom to live in. If mom has enough income to qualify, a traditional mortgage may close the gap between the equity available and the purchase price. If none of the above solves the funding gap, a reverse mortgage combined with the equity from the sale might be enough for mom to buy the home she wants.
Contact me at 303-469-1254 for resources to help with any of the above. We know people in many professions that can help with life’s transitions. Just tell us what you are searching for. We would be happy to connect you with people who can help. If a traditional of reverse mortgage might help, we are happy to explain the options.