The family home

Three main paths

Keeping the home means someone is responsible for upkeep, insurance, utilities, taxes, and regular checks if it sits empty. Ask the insurance company how coverage works for a vacant home.

Renting the home can create income but turns the family into landlords, with tenant, repair, and legal responsibilities. A property manager can handle the day to day for a fee. Rental income can affect taxes and, in some cases, eligibility for benefits.

Selling the home can help pay for care and simplify life, but timing matters. A sale may interact with taxes, care funding, and an estate. IRS Publication 523 explains the rules on selling a main home.

Questions to answer as a family

Who will make decisions about the home and who has legal authority to sign? What does your loved one want? How will care be paid for? Does anyone in the family want to live in or buy the home? Writing the answers down keeps siblings on the same page.

If your loved one has passed

The home may need to be secured, insured, and maintained while the estate is settled. Who can sell or transfer it, and when, depends on how it is titled and on state law. A probate or estate attorney can explain the steps.

Easy-to-miss details about the home

General information only. Ask an elder law attorney and a CPA before changing how the home is titled.

• Adding a child to the deed or to a bank account can expose it to that person's debts or divorce, may count as a gift for Medicaid, and can mean losing the tax basis reset that inherited property generally gets at death. IRS Publication 551 explains basis.
• Some states allow a transfer on death deed, and accounts can be payable on death. These usually pass outside the will, so the will may not control them.
• A reverse mortgage usually comes due when the last borrower dies or no longer lives in the home as a main residence, including a long stay in a care facility. See the CFPB on reverse mortgages.
• Many homeowners policies limit coverage when a home is vacant. Tell the insurer before the home is empty.
• Homestead, senior, or property tax freeze exemptions can end when the owner no longer lives in the home or dies. Ask the county assessor.
• In cold weather, keep heat on and water service managed so pipes do not freeze, and arrange regular checks.
• Secure firearms and medications if the home will be empty or others will be in it.

Next step, before listing

Get matched with a trusted local real estate agent (free)

If the family decides to sell the home, or your loved one will buy a smaller or more accessible place, an experienced local agent can guide the sale once the checks are done.

A good local agent can help with:

• Experience working with older adults, families, and estates
• Pricing the home to fair market value, which matters for Medicaid, taxes, and any family sale
• Coordinating with the executor, the person with power of attorney, or the attorney
• Deciding whether to sell as-is or make repairs first

Before you list, finish the checks: the Medicaid look-back and fair market value, any reverse mortgage, power of attorney or executor authority, the deed and title, and vacant home insurance.

Request a free agent match

Free to your family, in any state. We'll review your request and follow up. See the referral disclosure at the bottom of this page.

What to do first

1. After the Medicaid, reverse mortgage, power of attorney, deed and title, and insurance checks, get matched with a trusted local real estate agent (free) before you list.
2. Find out how the home is titled and who has authority to make decisions about it.
3. Ask your loved one what they want, if they are able to share it.
4. List the monthly cost of keeping the home: taxes, insurance, utilities, upkeep.
5. Call the insurance company if the home will be empty for any length of time.
6. Talk with a CPA about taxes on a sale or rental, and read IRS Publication 523.
7. Ask a licensed real estate agent for a market analysis if selling is an option.
8. Talk with an elder law or estate attorney before any transfer to a family member.

Common questions

Should we keep the house in case our loved one comes home?

That depends on your loved one's health, the cost of keeping it, and how long the stay is likely to be. Talking with their care team and adding up monthly costs can help you decide.

Can a family member buy the home?

Often yes, but price, taxes, and possible effects on Medicaid eligibility or the estate should be reviewed with an attorney and a tax professional first.

What happens to the home after someone you care for dies?

It depends on how the home is titled, whether there is a will or trust, and state law. A probate or estate attorney can explain who can sell or transfer it.

Can Kinhaven tell us what the house is worth?

Kinhaven does not provide real estate brokerage services or appraisals. On request, and after we talk with you, we can introduce you to a licensed agent for a market analysis, and a licensed appraiser can provide a formal appraisal when one is required.

Should we add a child to the deed?

Ask an elder law attorney and a CPA first. Adding someone to a deed can expose the home to their debts, may count as a gift for Medicaid, and can change taxes when the home is later sold.

When to bring in a licensed professional

Kinhaven handles the organizing. These decisions call for someone licensed:

• A licensed real estate agent for a market analysis and sale.
• A licensed appraiser when a formal value is needed, such as for an estate.
• A CPA or enrolled agent for tax effects of selling, renting, or transferring.
• An elder law or probate attorney for titles, transfers, Medicaid planning, and estate questions.
• The homeowner's insurance company about vacant home coverage.

Sources and further reading

• IRS Publication 523, Selling Your Home
• IRS Publication 559, Survivors, Executors, and Administrators
• National Institute on Aging: Getting your affairs in order checklist

Links go to public government resources. Kinhaven is not affiliated with these agencies.