When you have come to the point that you know you need to make the move to assisted living, you have many considerations to make. If you own your own home, one of those considerations is what you will do with your home. Around 70 percent of all adults over the age of 65 will need some type of long-term care, these are questions you need to answer at some point. Here are some considerations that you will need to make before putting your home on the market.
Can your Home Pay for Senior Living?
If you are weighing the pros and cons of selling, you will want to consider whether or not your home could help pay for some of your senior living expenses. If your home has a high value, you may be able to cover several years worth of your assisted living expenses, helping alleviate any financial burdens you might face in the days ahead. Talk to a real estate agent about what your home may be worth.
Will You Need to Pay Taxes?
If you are selling your home and not buying a new one, it may create a tax burden, but current tax law makes this burden less than you might think. For most people, tax law protections allow you to sell without paying any capital gains taxes. In fact, an individual can have up to $250,000 in profits from a home without any capital gains tax, provided that the individual lived in the home for any two of the past five years. That said, if your home is worth more than this cap, you might be hit with some capital gains taxes if you sell. Talking to a financial planner will help you determine how much those taxes maybe.
Will You Need to Sell Remotely?
If you have already made the move to assisted living, perhaps due to a medical need, and decide that it’s time to sell your home, you will need to deal with selling remotely. If your move to assisted living meant a move to another city or state, this can become complicated. It is often wise to appoint someone as your representative in the sale, and it is imperative to have a real estate agent you trust.
How Should You Prepare to Move?
Selling before you make the move to assisted living may be a better option, especially if you plan to move a long distance after you sell. This will allow you to take your time packing and preparing to move.
To make the move as stress-free as possible, try to get rid of some of your belongings before you move. If you have treasures you are not ready to part with or wish to pass on to children, consider bequeathing them before your move. The less you have to move to your assisted living facility, the easier the move will be. Don’t forget to ask what will be provided at the facility. Often furniture and basic necessities are included, so you may not need to move as much as you think. Start packing a little at a time, and enlist the help of friends and family so you aren’t forced to take on more than you can handle.
Selling your home before you make the move to assisted living can add a layer of stress to this process, but you can do it. With the right plan and preparation, you can enjoy the benefits of assisted living without the stress of your home hanging over your head.
About the Author
Kris Lindahl REALTOR® CRS CLHMS
2407 109th Ave NE Suite 110
Blaine, MN 55449