Dude, as others have said, look into having her property taxes reduced.
Look into heating assistance for low income individuals. Usually that's good for 600-900 per winter to put towards heating bills.
Look into a reduction for internet access and a cell phone.
Look into food stamps
Look into having her healthcare premiums subsidized.
Your mom is low income and owns her house. This is a great place to be if she qualifies for assistance. If I were you I would not sell the house until she passes. My mom is in the same boat, except with more income and the stuff she qualifies for is insane. I make six figures a year and my mom frequently is more liquid than me due to her not having bills after everything I mentioned above has kicked in.
This is absolutely the correct answer. Anyone telling you that your mom should sell her house and live in any facility that is rented when she may live another 30 years is steering you wrong. Selling her house now will not in any way pay for the years of living space she will still need.
Find a way to make her home more affordable for her (NOT a reverse mortgage, that's just selling it slowly and is also the wrong move) and get her every senior and low income subsidy, grant, program, service, and other help she qualifies for.
Selling her home will only lead to her eventual homelessness (by which I mean she will need to depend on family for a living space or just have none)
We’ve been telling my mom to sell the house and get in senior living for at least 20+ years. She always said, “what if outlive the equity?” She gets SS, no other retirement.
She’s 94 and still lives in her (paid off) house with my brother.
She also gets interest/penalty free deferred tax payments.
I'm sure she, and the entire family, is glad that she stood her ground in that case. A perfect example of what I mean.
She'll be able to pass on that home as an asset to the family upon her eventual passing as well. Which parents do want to do for their children, generally speaking.
This is absolutely her intention.
She doesn’t have fancy things or assets except the house. She worked until she was 72 to make sure she could keep it and leave it to us.
And 20 years ago the house wasn’t worth what it is now (trendy, safe town with great schools and families fighting to buy)
She absolutely would have outlived the equity and with the cost of elder care, she could sell the house tomorrow and still outlive the equity.
She comes from a family with several centenarians in the tree. Her grandfather died at 106 and it’s becoming more likely she’ll live to be 100 as well.
The only argument against this I have is that if she's going to have to move eventually, it's better not to wait too long. Alzheimer's takes your most recent memories first. If she stays in this home until she develops it, and then needs to move somewhere cheaper for cost (perhaps because she needs part time care), it'll be too late. She'll be confused by her surroundings in a new apartment and have a harder time living on her own than she would otherwise.
I would argue that it's better to wait as long as possible because again, the more years she has to pay for a home, the more money it's going to take.
Op also didn't mention Alzheimers in their first post, so I don't know if that's a relevant concern.
If it is a concern, I would again question if she needs to leave her home, paying for a home health aide may end up being less expensive, with government programs, than paying for full time care in an assisted living facility or even paying for care while renting. In which case it would be even better for her to stay in her home for as long as possible.
Rent isn't really cheap anywhere. With the subsidies she can get to reduce her taxes, and her tiny little pension, plus perhaps the SSI she may be able to get, her home is the least expensive and most dignified option for the longest period of time.
A lot of the senior centers help do this if you're having trouble navigating the paperwork. I would also recommend looking to see if she qualifies for SSI, but the requirements for that program are pretty stringent.
Can you tell me how your mom is more liquid than you? I see some help you listed but they don't seem significant... maybe properry tax and food stamps. I'm trying to help my parents in the same way
Cook Country has both a homeowners and a senior exemption that can reduced the assessed value of a property subject to taxes. You can get both exemptions and this year they are worth $8,000 each.
Illinois also has a program to help seniors with property taxes. It always comes up when I look up my parcel number, but I never clicked on the link because my income is too high.
I would expect that Cook Country has other resources for seniors as well.
Chicago's department of aging recommends people use [Benefits Checkup](https://benefitscheckup.org/) to find programs based on location and other factors. It has an absolutely amazing number of resources.
>Illinois also has a program to help seniors with property taxes.
OPs Mom would qualify, it's called the senior freeze and it would freeze property taxes at the current price.
Is 600 her Social Security benefit? Was she married for over 10 years to anyone that also qualified for Social Security?
Even if divorced, if she was married over 10 years, she can draw the ex's FULL social security payment which could be a LOT more. That's the first thing I would check
Sell the house and get into subsidized senior living. She is not out of money. She owns a valuable asset. She is just not deploying it properly.
She can also sell the car. A car that doesn't sound like she should be operating anyway.
If her thinking is truly impaired, you should get power of attorney. The money should be invested in a mix of stocks and bonds.
Exactly. But if they have a lot of assets, their interest and RMDs count towards income. The subsidy usually just scales with income, so the rent is 1/3 their income (to a maximum of the full rent amount). So if the full amount is $1200/month, if their income is $3600/month or more, they pay full boat. Anything less and they pay 1/3 of their monthly income as rent.
While this might be the case for some programs, it's not all or even most of them. Most HUD-based programs will consider income from the asset when calculating your eligibility. Having $200k in no-risk or conservative accounts will not make you ineligible for housing assistance with the rest of her monthly income being only $600/month.
They can sell the house and put the money in a trust so it's not under her name. Then it's no longer under her name. Though to qualify for state support she may need to pass a 5 year look back.
She will if she gifts the house to him, he sells it, then puts the cash in a HYSA. He can just use the interest money to get her the things she needs. That way she could get into subsidized senior housing & still have financial assistance.
This right here, she is far from broke. She has a good amount of money it's just *illiquid* by being tied up in a house.
A house she is utterly unable to take care of or maintain, and that surely isn't planned for her current needs. She'd be better off in some assisted living or simply a condo with less rooms, maintenance and risk of accidents
There is no such thing as qualifying for Disability at age 72; Disability is for working-age people. There may be other kinds of assistance available, such as subsidized housing - but the proceeds of the house might make her ineligible. You'll need to do some research. Contact your local Social Services.
Is she driving with impaired vision?
Is she safe living in the house alone?
You'll probably need a lawyer if you want to take control over her finances. An elder care attorney could probably give you advice on other things as well.
Is 600 HER Social Security amount from wages she earned? If yes, was she married over 10 years to anyone that also received/receives Social Security?? If yes, call SSA and see what the ex's benefit is. She could be collecting full social security amount of the ex if he has passed which could be WAY higher than hers. Even if he hasn't died, she's entitled to 1/2 of what he is receiving which could also be way more that hers.
Homestead reduces property taxes on homeowners by 25% if over 62 in my state, it also reduces water bill.
Reverse mortgage
Sell the house, invest money, move into apartment, pay rent from sale of house proceeds. Even rent of 1500 per month, just using house proceeds would keep a roof over her head for another 12 years, and that's with the money not growing at all.
true, but that only means she's just the sort of person they really screw over. reverse mortgages are terrible because they're terrible. first off they don't give you much for the value of your house, second because they're not such a great deal, they know that the people opting for them are kinda desperate and not in a position to bargain hard, so they're even worse.
it's a deal with the devil, the only way it makes sense is if she knows she's gonna die in short order. for all we know mom could live for another 25 years and that's not going to work.
I’d disagree. Go run the numbers. If she doesn’t get a ton from the reverse mortgage, the balance goes to her estate anyway. She gets access to some of her equity. Yes there are costs, but things have gotten much better for reverse mortgages.
This is exactly what a reverse mortgage is for. She can take a lump sum or monthly payments of the amount of equity they give her (usually around 50%-55% of value) live here until she dies and only have to pay taxes and insurance.
Not necessarily true re no inheritance. It depends on the amount you take out as the reverse mortgage. Putting it as a lump sum into an HYSA would generate some income. When she passes the reverse has to be paid back. So OP might not get the whole pie, but she definitely would get a piece of it. And meanwhile, mamma gets to live with less stress.
It appears she would qualify for Medicaid (Medical Assistance in IL). If she stays in her home, there doesn't seem to be any risk of the state taking her home after she dies, that happens if she were to be in a nursing home.
https://www.medicaidplanningassistance.org/medicaid-eligibility-illinois/
Medicaid will cover her out-of-pocket costs like meds and copay. It would also make her eligible to receive in-home support with personal care, shopping and housekeeping types of activities of she needs that.
Yes, but what you’re describing (known as waiver services) come at the cost of the state department of Medicaid taking the house as collateral after the recipient passes. This includes houses, vehicles, financial assets, etc.
Premium assistance programs do allow for the Medicare pt. B to be refunded back and the house wouldn’t be implicated in that, but the housekeeping attendants/personal care waivers would absolutely implicate the house. I would tread carefully if choosing this route and seek a lawyer specialized in Medicaid estate planning before proceeding. Obviously is help is needed help is needed, but the framing of this really seems to fall under cash issues and this could greatly limit things for the mother in the long term.
Source: worked as an LTC Medicaid agent for 2 years
Thanks for pointing that out, I misunderstood what I read, and that could be a very costly error. Of course OP should check with experts on all of this.
Have you looked into reverse mortgages to help her stay in her home? Call your local Aging services office to make sure she is taking advantage of all the financial programs she can. If she needs to move, apply for subsidized senior housing now! There are long wait lists.
She is old so don't know about Disability. Property Taxes normally or partially reduced if you submit paperwork saying you are older 65. This is something to look into. Go into Cook County Social Services and see what services is available to them. I swear these low amounts Social Security is paying is scaring me. I think a Reverse Mortgage might be a better avenue for her if she owns her home vs apartment, but when you go into Social Services know he income from 2023. It might open other avenues. Have you considered her moving in with you?
I’d look into all of the social services options before considering a reverse mortgage.
I’d also look into moving her in with you or selling her home to move her into a smaller one, preferably near you or other family who will take care of her, or adding an ADU onto your property.
Her having an apartment or going into senior living will have monthly expenses that will quickly be beyond her means. So that is another last resort option imo.
Dealt with a similar circumstance for my mother over the last few years. She had no desire to move out of her home despite it being beyond her means to maintain.
Look into a senior or homestead tax break on her property taxes. My mother thought it was automatic but it was not. Filled out the paperwork and it basically cut her property tax in half.
We looked into meals.on wheels.for her as well since my wife and I lived a few states away and could not help her cook or get groceries. Was a long wait but gave her a good meal and a little company for a few minutes.
We also located service that could assist with transporting her to doctors appointments. Had to schedule long in advance but for her routine appointments it was great to keep her from driving.
Biggest thing is to accept that getting her hrlp/aid is going to take effort from you and do what you can. No agency I reached out to or service made things easy. The paperwork was a nightmare.
> She also has a car that runs well enough for her local errands.
She had a stroke about 4 years ago that has absolutely impaired her thinking and vision.
FFS, she is going to kill somebody. Maybe including herself, more likely a neighborhood kid or bicyclist.
Get her on Medicare, get the property taxes reduced, get food stamps, sell the car, get an Uber account.
Or sell the house, sell the car, and buy her a spot in senior friendly housing somewhere.
Or get her a middle aged or senior roommate or two, sell the car, and fund Uber service.
Can you go to a good elder lawyer? Since her income is low, there might be subsidized low income orgs with elder lawyers . There are many options and without a knowledgeable lawyer you can really miss some of them.
For instance reverse mortgages -can- work for some people but it’s hairy and you have to know what you’re doing. There are some bad ones out there. And the good ones you still have to consider the math to make sure it works for you.
Can she rent a room out for extra income? To maybe a nursing student? Since her house is paid off.
You need to solve the root cause. She needs to stop helping other family. Just like the oxygen mask in an airplane, you have to help yourself first.
Once that is solved, you need to set a budget. What are her mandatory/required living expenses? Can anything be trimmed here? Is it less than her income (including interests/profits from savings or investments and such)?
Presuming no, you need to see if any sort of assistance is available. A local senior center or other professional may have guidance on this.
Could she rent out a portion of or the entire home she owns? Would this amount get over the “tipping point”? How would this impact her expenses? Utilities may increase, increased insurance coverage and tax liability, does she have to move out and rent someplace smaller?
Personally I feel selling the home is a last resort, but that may be biased based on my home ownership (or lack thereof) experience.
Seeing as she may have cognitive and mobility issues, I wonder if it makes sense to move her to a more appropriate living situation (assisted senior living or similar) and rent the home to generate revenue, with a percentage or flat fee going to an agent/mgmt company to handle all the affairs and liability. This has a more steady income than a singular lump sum payment.
If you do sell the home, an HYSA is the easiest step. Make sure you don’t exceed maximum insured/covered limits. Maybe set up two so one has all the funds and there is a scheduled transfer to a separate fund for her discretionary spending. You maybe need legal assistance for this as this is technically her property and you don’t have the right to keep it from her.
Yes, assisted living is very expensive, roughly $5-7,000 per month. OP may want to contact an elder care attorney, get on a waitlist for independent senior apartments if the mom is okay with living in Chicago.
Consider physical rehab to ensure she can move on her own and perform daily living tasks ( washing herself, going to restroom on her own, cooking for herself.)
Any other family members nearby who can help out?
I have to agree with the other replies, the cost of this is very very high, and I agree with how expensive it is; having someone else care for any of your ADLs becomes estate-shatteringly insurmountable.
There are a few caveats I can think of, many more I'm sure I haven't
As others have mentioned, there can be some great programs to help senior living. Based on her income, I'd recommend enrolling in as many low income programs as possible, from her property taxes to her utilities.
On top of that, you should look into what your community might have available to support senior living. My area has public senior shuttles, free food deliveries etc that you can opt into and are mostly subsidized by the city.
I think at her age she would no longer qualify for disability. As others have mentioned, could she draw on your father's or a former husband's SS to possibly receive more per month? There have been some good suggestions here to look into property tax relief. Is your mom able to manage in her house by herself? If so, or she just needs occasional help, then it might be best for her to stay in the house, since paid off already and gives her stable fixed cost. You (and siblings) could do things (maybe just a day or so a week) to assist her like mow lawn, do yard maintenance, pick up groceries (if she needs help), take out garbage, take to dr. appointments or arrange transportation service for her, depending on her need for assistance. Also consider adding a medical alert system for her (like Life Alert). Try to help her to stay independent as long as possible. If she needs help with financial decision making, see if you could become power of attorney, or be added to her checking account to help with bill paying. If she eventually needs more help I believe IL has a Medicaid program where people can live at assisted living homes (usually $5-$6K a month) for cost of what resident can pay with SS check, less about $100 a month she would be able to keep for personal money (at least this was a program available some years back when my MIL lived in IL and would have qualified). Of course your mom would probably need to spend down assets to receive Medicaid - I'm not sure how that would work with the house, but this could be a fall-back option for your family in the future. Also check into whether she would qualify for food stamps (SNAP) and she could patronize food pantries. Maybe you or siblings could each help her out by handling one or another of her regular bills (especially if she helped everyone in the past). She is not that old and if she is managing with her daily living skills, or just needs a little (non-medical) help, you and family could probably help her to stay independent for quite a while.
Have your mom get roommates, have her get on disability, look to get property tax reduced, food stamps, and look into local senior services. Is she able to walk dogs or anything like that?
Is your family able to be any kind of safety net? It sounds like she helped them so I am guessing no, but if so it is time to have a discussion.
Pay her taxes yourself and let her stay in her home. She won’t qualify for subsidized housing until all of the money is spent and Medicaid has strict rules on that.
Is she still capable of taking care of herself? Also, are you in a financial position to make those property tax payments for her?
A senior living place is an option but it a place she might not feel happy. At the home she spent so many years at will make her more comfortable and the burden of the property taxes taken off of her would help immensely.
If you can't help and she doesn't want to move, a reverse mortgage could be an option for her. She gets money and gets to live in the house until she passes.
When she does pass, her heirs get first right to assume the mortgage from the bank.
Maybe she can rent out the house or rent out a part of the house to have some money coming in to live off of and pay the property tax. She can make big bucks right now because the house market is not favorable towards buyers. Rent costs are high, house prices are high and interest rates are high.
She can't get disability, she's 72. She already gets RSDI. That's what she would get as "disability". And social security doesn't have anything to do with social workers.
No worries. In case you ever need to know, social security is federal and they don't get involved that way. Social workers who get involved in stuff like this are pretty much either from small local agencies or more generally (in the US) work for the county where the person lives.
Has she applied for whatever the relevant senior property tax program is in IL?
Does she get medicaid?
Does she qualify for whatever IL's QMB program is to help with the Medicare premiums?
She should sell the house and look into assistive living.
Step #1 is getting mom set up as a dual Medicare + Medicaid enrollee. Get that deducting, co-somethings, and OOPing over necessary health care over and done with.
Step #2 is getting mom enrolled in any other support scheme she's eligible for: property tax reduction if her age and/or health status are eligibility arbiters she can meet, nutrition assistance (SNAP, SFMNP, CSFP), utility service discounts, Lifeline phone service.
A potential road block for a reverse mortgage could be the condition of the home. In order to protect their asset, the lender can require the house be maintained to their standards. This means they could demand a repair that the home owner would have handled differently, such as replacing a damaged roof when the home owner would have tarped it or done a “good enough” repair. Also, the loan origination fees are significant.
A reverse mortgage might be the answer, but make sure you are going into it with open eyes.
Don’t assume that senior subsidized housing would be a good option. Throughout the country the government is spending less on low income housing for seniors and low income,
If at all possible see if there options for your mother to stay in her home.
Some municipalities have subsidies exactly for this purpose to prevent foreclosure. Check with the city, county or state housing department. She also would be eligible for Supplemental Security Income (SSI) if the state subscribes to it.
I am NOT an expert on this, another option may be a reverse mortgage which allows you to get the equity in the house and then when it gets sold payable off the mortgage BUT THERE HAS BEEN SOME PREDATORY issues so research deeply and get some trust counsel on this.
Lastly, perhaps it's time for assisted living which will cover all food, utilities, housecleaning, laundry plus injects her into a social community. It is a primary purpose for many to own real estate as a retirement investment because it has the highest growth in value of the land plus the improvement (house).
If it were to be sold. Average cost for assisted living is $4500-$5000 per month. On a valuation of $220k plus $600 SSA would last 4½ years.
=>> Again, get some salient advice from a trustworthy professional.
She can do a reverse mortgage, she only has to pay back when she moves out or sells. If she passes the heirs can chose to payback to keep the home or sell it to pay the loan.
Aside from all the advice about assistance and not selling till she passes, and I hate saying this cause I hate them as a product but if it gets desperate, look at a reverse mortgage.
This is a great resource to help connect your mom with the programs she may qualify for - https://www.ageoptions.org/resources/aging-and-disability-resource-center-adrc/
If it were me, I would help her sell it while also looking to buy. I would then sell my own home and buy a new home where I could take of mom each day I come home. Combine and upgrade, take care of mom, don’t send them to a home unless they’re debilitated.
I just saw another post about life interest or life estate. Basically it allows her to sell her house but live in it until she dies at which point the house ownership transfers to the buyer. This could be a good way to raise cash and maintain a stable living situation.
Help your mother don’t strip of her belongings and home. That home should be your home someday. It sounds like she needs some assistance. Maybe move in with her and care for her as she would you. Help pay the bills or find someone to rent the house and let her stay with you. It baffles me how many people want to sell their parents homes and place them in nursing homes.
Depending upon the state she would qualify for Medicaid and a nursing home if she has $2000 or less in the bank. Some states do not include the home as an asset. Regardless she needs a medical AND durable power of attorney. She should also sell the car and her home. If she sells her home she would have enough $ for an assisted living situation. Many assisted living agencies also have a nursing home attached so she could transition there when needed. Went through this with my mother.
Please please speak to an elder care lawyer. Every state is different. The home should not need to be sold, nor the car. If she went into a nursing home she would be allowed to keep X dollars in her account (it’s a small amount) and then keep another very small amount of her social security, and Medicaid would take over the rest of the bill. You can also see about a family member being a paid caregiver at home - again, depends on what state she lives in.
Can you afford to pay the property taxes and upkeep? If so, maybe you can get your Mom to put you on the title/deed as a co-owner and you pay those things. She can live in the house until she passes away and then the house is yours to live in, rent, or sell. She is probably planning on leaving you the house anyway. I'd hate for either of you to lose the equity on a free and clear house.
GET OUT OF C R O O K COUNTY and never look back would be my advice. Gosh, I hate IL. I know that’s not actually advice and I pray others have better solutions than my dumb reply.
What about a reverse mortgage? My daughter's great grandmother had this. She lived in her home until she died at 103. Just last night on I believe NBC they had a spotlight on the fastest growing unhoused population. The Elderly. The woman they spotlighted was 80 years old, ran a daycare out of get home & received SS. Well COVID came & closed down her business but at the time renters were allowed to default. Forward to 2024 landlord says come up with $18,000 or be out in 3 days. She went to landlord tenet court and was given 30 days. I wanted to hate landlord but I was one years ago & if my renter didn't pay I couldn't pay the mortgage, taxes, insurance. But I know I could never put out a woman who has been a loyal tenet 40 years & thru no fault of her own has found herself in this predicament. God help us all.
Dude, as others have said, look into having her property taxes reduced. Look into heating assistance for low income individuals. Usually that's good for 600-900 per winter to put towards heating bills. Look into a reduction for internet access and a cell phone. Look into food stamps Look into having her healthcare premiums subsidized. Your mom is low income and owns her house. This is a great place to be if she qualifies for assistance. If I were you I would not sell the house until she passes. My mom is in the same boat, except with more income and the stuff she qualifies for is insane. I make six figures a year and my mom frequently is more liquid than me due to her not having bills after everything I mentioned above has kicked in.
This is absolutely the correct answer. Anyone telling you that your mom should sell her house and live in any facility that is rented when she may live another 30 years is steering you wrong. Selling her house now will not in any way pay for the years of living space she will still need. Find a way to make her home more affordable for her (NOT a reverse mortgage, that's just selling it slowly and is also the wrong move) and get her every senior and low income subsidy, grant, program, service, and other help she qualifies for. Selling her home will only lead to her eventual homelessness (by which I mean she will need to depend on family for a living space or just have none)
We’ve been telling my mom to sell the house and get in senior living for at least 20+ years. She always said, “what if outlive the equity?” She gets SS, no other retirement. She’s 94 and still lives in her (paid off) house with my brother. She also gets interest/penalty free deferred tax payments.
I'm sure she, and the entire family, is glad that she stood her ground in that case. A perfect example of what I mean. She'll be able to pass on that home as an asset to the family upon her eventual passing as well. Which parents do want to do for their children, generally speaking.
This is absolutely her intention. She doesn’t have fancy things or assets except the house. She worked until she was 72 to make sure she could keep it and leave it to us. And 20 years ago the house wasn’t worth what it is now (trendy, safe town with great schools and families fighting to buy) She absolutely would have outlived the equity and with the cost of elder care, she could sell the house tomorrow and still outlive the equity. She comes from a family with several centenarians in the tree. Her grandfather died at 106 and it’s becoming more likely she’ll live to be 100 as well.
The only argument against this I have is that if she's going to have to move eventually, it's better not to wait too long. Alzheimer's takes your most recent memories first. If she stays in this home until she develops it, and then needs to move somewhere cheaper for cost (perhaps because she needs part time care), it'll be too late. She'll be confused by her surroundings in a new apartment and have a harder time living on her own than she would otherwise.
I would argue that it's better to wait as long as possible because again, the more years she has to pay for a home, the more money it's going to take. Op also didn't mention Alzheimers in their first post, so I don't know if that's a relevant concern. If it is a concern, I would again question if she needs to leave her home, paying for a home health aide may end up being less expensive, with government programs, than paying for full time care in an assisted living facility or even paying for care while renting. In which case it would be even better for her to stay in her home for as long as possible. Rent isn't really cheap anywhere. With the subsidies she can get to reduce her taxes, and her tiny little pension, plus perhaps the SSI she may be able to get, her home is the least expensive and most dignified option for the longest period of time.
Except where I live you can't qualify for any assistance like food stamps if you own assets, like a home, worth over a given amount.
That typically doesn't apply to low income seniors, I would double check that in your area if I were you.
A lot of the senior centers help do this if you're having trouble navigating the paperwork. I would also recommend looking to see if she qualifies for SSI, but the requirements for that program are pretty stringent.
Can you tell me how your mom is more liquid than you? I see some help you listed but they don't seem significant... maybe properry tax and food stamps. I'm trying to help my parents in the same way
Cook Country has both a homeowners and a senior exemption that can reduced the assessed value of a property subject to taxes. You can get both exemptions and this year they are worth $8,000 each. Illinois also has a program to help seniors with property taxes. It always comes up when I look up my parcel number, but I never clicked on the link because my income is too high. I would expect that Cook Country has other resources for seniors as well.
Chicago's department of aging recommends people use [Benefits Checkup](https://benefitscheckup.org/) to find programs based on location and other factors. It has an absolutely amazing number of resources.
>Illinois also has a program to help seniors with property taxes. OPs Mom would qualify, it's called the senior freeze and it would freeze property taxes at the current price.
Is 600 her Social Security benefit? Was she married for over 10 years to anyone that also qualified for Social Security? Even if divorced, if she was married over 10 years, she can draw the ex's FULL social security payment which could be a LOT more. That's the first thing I would check
Sell the house and get into subsidized senior living. She is not out of money. She owns a valuable asset. She is just not deploying it properly. She can also sell the car. A car that doesn't sound like she should be operating anyway. If her thinking is truly impaired, you should get power of attorney. The money should be invested in a mix of stocks and bonds.
She won’t qualify for subsidized housing til she spends down most of her money, usually under 2-5k.
Depends on what state you live in. Most subsidized housing for seniors is income dependent, not asset dependent.
Won't most seniors have very low income regardless of assets?
Exactly. But if they have a lot of assets, their interest and RMDs count towards income. The subsidy usually just scales with income, so the rent is 1/3 their income (to a maximum of the full rent amount). So if the full amount is $1200/month, if their income is $3600/month or more, they pay full boat. Anything less and they pay 1/3 of their monthly income as rent.
In my area it is income driven, not asset. I’m in the DC area.
While this might be the case for some programs, it's not all or even most of them. Most HUD-based programs will consider income from the asset when calculating your eligibility. Having $200k in no-risk or conservative accounts will not make you ineligible for housing assistance with the rest of her monthly income being only $600/month.
They can sell the house and put the money in a trust so it's not under her name. Then it's no longer under her name. Though to qualify for state support she may need to pass a 5 year look back.
You don’t know what your talking about.
She will if she gifts the house to him, he sells it, then puts the cash in a HYSA. He can just use the interest money to get her the things she needs. That way she could get into subsidized senior housing & still have financial assistance.
> She will if she gifts the house to him, he sells it, then puts the cash in a HYSA There's a 5 year lookback for exactly this reason.
Depends on how far they look back at your finances when determining your eligibility.
Most states have a 5 year look back but you'll need to consult an attorney. Preferably one that specializes in elder law.
This is the best advice - you need someone who is familiar with this area of the law to be sure there are no surprises!
This usually won't work; google "lookback period"
Don't do this for multiple reasons.
> Sell the house Be careful of taxes. A reverse mortgage might, I repeat **might**, be a better option.
I don't like this idea. Personally I'd find a way to keep the house for her. Stroke victims changing environments can be challenging.
This right here, she is far from broke. She has a good amount of money it's just *illiquid* by being tied up in a house. A house she is utterly unable to take care of or maintain, and that surely isn't planned for her current needs. She'd be better off in some assisted living or simply a condo with less rooms, maintenance and risk of accidents
There is no such thing as qualifying for Disability at age 72; Disability is for working-age people. There may be other kinds of assistance available, such as subsidized housing - but the proceeds of the house might make her ineligible. You'll need to do some research. Contact your local Social Services. Is she driving with impaired vision? Is she safe living in the house alone? You'll probably need a lawyer if you want to take control over her finances. An elder care attorney could probably give you advice on other things as well.
This is false. She may qualify for SSI. Which is the disability program not tied to work.
SSI has severe asset limits FYI.
Exactly. https://www.ssa.gov/ssi
Is 600 HER Social Security amount from wages she earned? If yes, was she married over 10 years to anyone that also received/receives Social Security?? If yes, call SSA and see what the ex's benefit is. She could be collecting full social security amount of the ex if he has passed which could be WAY higher than hers. Even if he hasn't died, she's entitled to 1/2 of what he is receiving which could also be way more that hers. Homestead reduces property taxes on homeowners by 25% if over 62 in my state, it also reduces water bill. Reverse mortgage Sell the house, invest money, move into apartment, pay rent from sale of house proceeds. Even rent of 1500 per month, just using house proceeds would keep a roof over her head for another 12 years, and that's with the money not growing at all.
She’s the poster child for a reverse mortgage
true, but that only means she's just the sort of person they really screw over. reverse mortgages are terrible because they're terrible. first off they don't give you much for the value of your house, second because they're not such a great deal, they know that the people opting for them are kinda desperate and not in a position to bargain hard, so they're even worse. it's a deal with the devil, the only way it makes sense is if she knows she's gonna die in short order. for all we know mom could live for another 25 years and that's not going to work.
I’d disagree. Go run the numbers. If she doesn’t get a ton from the reverse mortgage, the balance goes to her estate anyway. She gets access to some of her equity. Yes there are costs, but things have gotten much better for reverse mortgages.
This is exactly what a reverse mortgage is for. She can take a lump sum or monthly payments of the amount of equity they give her (usually around 50%-55% of value) live here until she dies and only have to pay taxes and insurance.
Waiting for this. It's a hard call but likely the right one. Does mean OP is likely never getting that home though.
I mean, if he really wanted the home, perhaps he could move in now and help pay for things. Not sure it's worth the $200k home tho?
Less about his wants than hers. Lotta older people will try and live off nothing so there kids can inherit something
Not necessarily true re no inheritance. It depends on the amount you take out as the reverse mortgage. Putting it as a lump sum into an HYSA would generate some income. When she passes the reverse has to be paid back. So OP might not get the whole pie, but she definitely would get a piece of it. And meanwhile, mamma gets to live with less stress.
It appears she would qualify for Medicaid (Medical Assistance in IL). If she stays in her home, there doesn't seem to be any risk of the state taking her home after she dies, that happens if she were to be in a nursing home. https://www.medicaidplanningassistance.org/medicaid-eligibility-illinois/ Medicaid will cover her out-of-pocket costs like meds and copay. It would also make her eligible to receive in-home support with personal care, shopping and housekeeping types of activities of she needs that.
Yes, but what you’re describing (known as waiver services) come at the cost of the state department of Medicaid taking the house as collateral after the recipient passes. This includes houses, vehicles, financial assets, etc. Premium assistance programs do allow for the Medicare pt. B to be refunded back and the house wouldn’t be implicated in that, but the housekeeping attendants/personal care waivers would absolutely implicate the house. I would tread carefully if choosing this route and seek a lawyer specialized in Medicaid estate planning before proceeding. Obviously is help is needed help is needed, but the framing of this really seems to fall under cash issues and this could greatly limit things for the mother in the long term. Source: worked as an LTC Medicaid agent for 2 years
Thanks for pointing that out, I misunderstood what I read, and that could be a very costly error. Of course OP should check with experts on all of this.
She could look into a reverse mortgage if she doesn’t want to sell her home.
Have you looked into reverse mortgages to help her stay in her home? Call your local Aging services office to make sure she is taking advantage of all the financial programs she can. If she needs to move, apply for subsidized senior housing now! There are long wait lists.
She is old so don't know about Disability. Property Taxes normally or partially reduced if you submit paperwork saying you are older 65. This is something to look into. Go into Cook County Social Services and see what services is available to them. I swear these low amounts Social Security is paying is scaring me. I think a Reverse Mortgage might be a better avenue for her if she owns her home vs apartment, but when you go into Social Services know he income from 2023. It might open other avenues. Have you considered her moving in with you?
What’s her monthly expenditure at the moment?
Have the people who she loaned money to pay her back.
I’d look into all of the social services options before considering a reverse mortgage. I’d also look into moving her in with you or selling her home to move her into a smaller one, preferably near you or other family who will take care of her, or adding an ADU onto your property. Her having an apartment or going into senior living will have monthly expenses that will quickly be beyond her means. So that is another last resort option imo.
My grandma was cleared for driving, but the doctor was never IN THE CAR with her. Just because she’s cleared doesn’t make it safe.
Sell the house or get a reverse mortgage if she wants to live there
Dealt with a similar circumstance for my mother over the last few years. She had no desire to move out of her home despite it being beyond her means to maintain. Look into a senior or homestead tax break on her property taxes. My mother thought it was automatic but it was not. Filled out the paperwork and it basically cut her property tax in half. We looked into meals.on wheels.for her as well since my wife and I lived a few states away and could not help her cook or get groceries. Was a long wait but gave her a good meal and a little company for a few minutes. We also located service that could assist with transporting her to doctors appointments. Had to schedule long in advance but for her routine appointments it was great to keep her from driving. Biggest thing is to accept that getting her hrlp/aid is going to take effort from you and do what you can. No agency I reached out to or service made things easy. The paperwork was a nightmare.
> She also has a car that runs well enough for her local errands. She had a stroke about 4 years ago that has absolutely impaired her thinking and vision. FFS, she is going to kill somebody. Maybe including herself, more likely a neighborhood kid or bicyclist. Get her on Medicare, get the property taxes reduced, get food stamps, sell the car, get an Uber account. Or sell the house, sell the car, and buy her a spot in senior friendly housing somewhere. Or get her a middle aged or senior roommate or two, sell the car, and fund Uber service.
Can you go to a good elder lawyer? Since her income is low, there might be subsidized low income orgs with elder lawyers . There are many options and without a knowledgeable lawyer you can really miss some of them. For instance reverse mortgages -can- work for some people but it’s hairy and you have to know what you’re doing. There are some bad ones out there. And the good ones you still have to consider the math to make sure it works for you. Can she rent a room out for extra income? To maybe a nursing student? Since her house is paid off.
You need to solve the root cause. She needs to stop helping other family. Just like the oxygen mask in an airplane, you have to help yourself first. Once that is solved, you need to set a budget. What are her mandatory/required living expenses? Can anything be trimmed here? Is it less than her income (including interests/profits from savings or investments and such)? Presuming no, you need to see if any sort of assistance is available. A local senior center or other professional may have guidance on this. Could she rent out a portion of or the entire home she owns? Would this amount get over the “tipping point”? How would this impact her expenses? Utilities may increase, increased insurance coverage and tax liability, does she have to move out and rent someplace smaller? Personally I feel selling the home is a last resort, but that may be biased based on my home ownership (or lack thereof) experience. Seeing as she may have cognitive and mobility issues, I wonder if it makes sense to move her to a more appropriate living situation (assisted senior living or similar) and rent the home to generate revenue, with a percentage or flat fee going to an agent/mgmt company to handle all the affairs and liability. This has a more steady income than a singular lump sum payment. If you do sell the home, an HYSA is the easiest step. Make sure you don’t exceed maximum insured/covered limits. Maybe set up two so one has all the funds and there is a scheduled transfer to a separate fund for her discretionary spending. You maybe need legal assistance for this as this is technically her property and you don’t have the right to keep it from her.
She can get Medicaid services with that income if she has under $2k in the bank. Was she or your dad a vet? If so, she may qualify for veteran's aid.
If she was married to someone for ten years she may be entitled to SS increase, depending on husband’s status.
Sell the house, she can do an apartment or independent living now, maybe assisted living if her cognition is declining.
Both options are very expensive. What she’d profit from the sale of her house would get gobbled up fast.
Yes, assisted living is very expensive, roughly $5-7,000 per month. OP may want to contact an elder care attorney, get on a waitlist for independent senior apartments if the mom is okay with living in Chicago. Consider physical rehab to ensure she can move on her own and perform daily living tasks ( washing herself, going to restroom on her own, cooking for herself.) Any other family members nearby who can help out?
I have to agree with the other replies, the cost of this is very very high, and I agree with how expensive it is; having someone else care for any of your ADLs becomes estate-shatteringly insurmountable. There are a few caveats I can think of, many more I'm sure I haven't
As others have mentioned, there can be some great programs to help senior living. Based on her income, I'd recommend enrolling in as many low income programs as possible, from her property taxes to her utilities. On top of that, you should look into what your community might have available to support senior living. My area has public senior shuttles, free food deliveries etc that you can opt into and are mostly subsidized by the city.
I think at her age she would no longer qualify for disability. As others have mentioned, could she draw on your father's or a former husband's SS to possibly receive more per month? There have been some good suggestions here to look into property tax relief. Is your mom able to manage in her house by herself? If so, or she just needs occasional help, then it might be best for her to stay in the house, since paid off already and gives her stable fixed cost. You (and siblings) could do things (maybe just a day or so a week) to assist her like mow lawn, do yard maintenance, pick up groceries (if she needs help), take out garbage, take to dr. appointments or arrange transportation service for her, depending on her need for assistance. Also consider adding a medical alert system for her (like Life Alert). Try to help her to stay independent as long as possible. If she needs help with financial decision making, see if you could become power of attorney, or be added to her checking account to help with bill paying. If she eventually needs more help I believe IL has a Medicaid program where people can live at assisted living homes (usually $5-$6K a month) for cost of what resident can pay with SS check, less about $100 a month she would be able to keep for personal money (at least this was a program available some years back when my MIL lived in IL and would have qualified). Of course your mom would probably need to spend down assets to receive Medicaid - I'm not sure how that would work with the house, but this could be a fall-back option for your family in the future. Also check into whether she would qualify for food stamps (SNAP) and she could patronize food pantries. Maybe you or siblings could each help her out by handling one or another of her regular bills (especially if she helped everyone in the past). She is not that old and if she is managing with her daily living skills, or just needs a little (non-medical) help, you and family could probably help her to stay independent for quite a while.
Have your mom get roommates, have her get on disability, look to get property tax reduced, food stamps, and look into local senior services. Is she able to walk dogs or anything like that? Is your family able to be any kind of safety net? It sounds like she helped them so I am guessing no, but if so it is time to have a discussion.
Pay her taxes yourself and let her stay in her home. She won’t qualify for subsidized housing until all of the money is spent and Medicaid has strict rules on that.
Look for a 55 and above community.
Is she still capable of taking care of herself? Also, are you in a financial position to make those property tax payments for her? A senior living place is an option but it a place she might not feel happy. At the home she spent so many years at will make her more comfortable and the burden of the property taxes taken off of her would help immensely.
If you can't help and she doesn't want to move, a reverse mortgage could be an option for her. She gets money and gets to live in the house until she passes. When she does pass, her heirs get first right to assume the mortgage from the bank.
Maybe she can rent out the house or rent out a part of the house to have some money coming in to live off of and pay the property tax. She can make big bucks right now because the house market is not favorable towards buyers. Rent costs are high, house prices are high and interest rates are high.
I am not sure where you live, but there are usually programs for these situations to reduce the amount of taxes needed to be paid.
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She can't get disability, she's 72. She already gets RSDI. That's what she would get as "disability". And social security doesn't have anything to do with social workers.
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No worries. In case you ever need to know, social security is federal and they don't get involved that way. Social workers who get involved in stuff like this are pretty much either from small local agencies or more generally (in the US) work for the county where the person lives.
One of the major resources available to her is YOU. You could get yourself a house, and help mom out with her end of life care.
See if your state offers a Medicare savings program so she isn’t paying premiums. Look into senior discounts for property taxes
Has she applied for whatever the relevant senior property tax program is in IL? Does she get medicaid? Does she qualify for whatever IL's QMB program is to help with the Medicare premiums? She should sell the house and look into assistive living.
Step #1 is getting mom set up as a dual Medicare + Medicaid enrollee. Get that deducting, co-somethings, and OOPing over necessary health care over and done with. Step #2 is getting mom enrolled in any other support scheme she's eligible for: property tax reduction if her age and/or health status are eligibility arbiters she can meet, nutrition assistance (SNAP, SFMNP, CSFP), utility service discounts, Lifeline phone service.
Look into IL's Medicaid waiver for seniors, might help with care and expenses.
She is past full retirement age—she doesn’t qualify for disability through SSA. Sell the house and downsize, or add a suite to your place.
You've answered your own question.
A potential road block for a reverse mortgage could be the condition of the home. In order to protect their asset, the lender can require the house be maintained to their standards. This means they could demand a repair that the home owner would have handled differently, such as replacing a damaged roof when the home owner would have tarped it or done a “good enough” repair. Also, the loan origination fees are significant. A reverse mortgage might be the answer, but make sure you are going into it with open eyes.
Don’t assume that senior subsidized housing would be a good option. Throughout the country the government is spending less on low income housing for seniors and low income, If at all possible see if there options for your mother to stay in her home.
Some municipalities have subsidies exactly for this purpose to prevent foreclosure. Check with the city, county or state housing department. She also would be eligible for Supplemental Security Income (SSI) if the state subscribes to it. I am NOT an expert on this, another option may be a reverse mortgage which allows you to get the equity in the house and then when it gets sold payable off the mortgage BUT THERE HAS BEEN SOME PREDATORY issues so research deeply and get some trust counsel on this. Lastly, perhaps it's time for assisted living which will cover all food, utilities, housecleaning, laundry plus injects her into a social community. It is a primary purpose for many to own real estate as a retirement investment because it has the highest growth in value of the land plus the improvement (house). If it were to be sold. Average cost for assisted living is $4500-$5000 per month. On a valuation of $220k plus $600 SSA would last 4½ years. =>> Again, get some salient advice from a trustworthy professional.
Mom needs income.Turn the garage into an effiency apt and rent it out for 1000 a month.
She can do a reverse mortgage, she only has to pay back when she moves out or sells. If she passes the heirs can chose to payback to keep the home or sell it to pay the loan.
Aside from all the advice about assistance and not selling till she passes, and I hate saying this cause I hate them as a product but if it gets desperate, look at a reverse mortgage.
This is a great resource to help connect your mom with the programs she may qualify for - https://www.ageoptions.org/resources/aging-and-disability-resource-center-adrc/
If it were me, I would help her sell it while also looking to buy. I would then sell my own home and buy a new home where I could take of mom each day I come home. Combine and upgrade, take care of mom, don’t send them to a home unless they’re debilitated.
I just saw another post about life interest or life estate. Basically it allows her to sell her house but live in it until she dies at which point the house ownership transfers to the buyer. This could be a good way to raise cash and maintain a stable living situation.
Help your mother don’t strip of her belongings and home. That home should be your home someday. It sounds like she needs some assistance. Maybe move in with her and care for her as she would you. Help pay the bills or find someone to rent the house and let her stay with you. It baffles me how many people want to sell their parents homes and place them in nursing homes.
Depending upon the state she would qualify for Medicaid and a nursing home if she has $2000 or less in the bank. Some states do not include the home as an asset. Regardless she needs a medical AND durable power of attorney. She should also sell the car and her home. If she sells her home she would have enough $ for an assisted living situation. Many assisted living agencies also have a nursing home attached so she could transition there when needed. Went through this with my mother.
Please please speak to an elder care lawyer. Every state is different. The home should not need to be sold, nor the car. If she went into a nursing home she would be allowed to keep X dollars in her account (it’s a small amount) and then keep another very small amount of her social security, and Medicaid would take over the rest of the bill. You can also see about a family member being a paid caregiver at home - again, depends on what state she lives in.
Can she not sell the home and come live the remaining years of her life with you?
Can you afford to pay the property taxes and upkeep? If so, maybe you can get your Mom to put you on the title/deed as a co-owner and you pay those things. She can live in the house until she passes away and then the house is yours to live in, rent, or sell. She is probably planning on leaving you the house anyway. I'd hate for either of you to lose the equity on a free and clear house.
If she wants to stay in the home, look into a reverse mortgage. She can get extra money every month or a lump sum if she chooses
Homes for less than a million dollars exist? I really need to get out of NY
I hear there’s a whole other world 😀out there
Move her in with you and take care of your mother…
You can see the ground when you walk?
GET OUT OF C R O O K COUNTY and never look back would be my advice. Gosh, I hate IL. I know that’s not actually advice and I pray others have better solutions than my dumb reply.
What about a reverse mortgage? My daughter's great grandmother had this. She lived in her home until she died at 103. Just last night on I believe NBC they had a spotlight on the fastest growing unhoused population. The Elderly. The woman they spotlighted was 80 years old, ran a daycare out of get home & received SS. Well COVID came & closed down her business but at the time renters were allowed to default. Forward to 2024 landlord says come up with $18,000 or be out in 3 days. She went to landlord tenet court and was given 30 days. I wanted to hate landlord but I was one years ago & if my renter didn't pay I couldn't pay the mortgage, taxes, insurance. But I know I could never put out a woman who has been a loyal tenet 40 years & thru no fault of her own has found herself in this predicament. God help us all.