They contribute through a legal lease agreement. They are in varying degrees of dementia and cannot live alone although still cognitively strong in some areas. In order to secure some inheritance for the family they are considering buying a home near my sister across the state to stay at with me in summer months and that the family could use as well. Would this be protected when the time comes for Medicaid look back qualifying process?
Are they concerned that liquid investments would be too vulnerable? Are all the siblings in agreement on care, and asset disposition after death? If not, you could end up with siblings disagreeing on whether to sell the property after death or retain it.
An unrelated factor is the advisability of staying in one area for 6 months, than moving to another. The change and disruption of moving could be too much for them.
You don't indicate in your profile where you and your sister live. If you're in a colder climate, you'd have to create the six month intervals to avoid moving 2 elderly people in cold weather and gambling with blizzards.
In addition, how would you provide for elder adaptations in the house? Would you consult a disability/mobility specialist?
This is perhaps the best post on the forum for assessing what's necessary for creating/building an apartment or home for aging elders. It may seem overwhelming when you read all the posts, but it'll be a real wake-up call for what should be considered if a home is built by your parents under the scenario you discussed.
https://www.agingcare.com/questions/moving-to-ca-our-daughter-is-planning-to-add-a-room-over-their-2-car-garage-i-would-like-to-know-whe-452102.htm
And whatever you do, think it out, see professionals as recommended, and don't make any quick decisions. And, good luck!
I'm going to leave the Medicaid look-back assessment to others, including Igloo, who's an expert on these issues.
Well, the short story is..if they buy a home, and it is considered the primary residence (there are tests for this), then when one goes into a NH...the other can continue to live there...when both are gone without expectation that they will return...the Medicaid will put a lean on the home. Usually for More than it is worth..because of the high cost of nursing homes.
but...if the money never runs out, then they will no need to rely on Medicaid ... in which case your question is moot.
I found out a lot when I got my recovery info to fill out. Things I was told in the beginning were not so when there was recovery.
Sounds like a good idea but I would use the money towards their care.
Major STICKER SHOCK time, when my Dad needed to have around the clock caregivers due to him being a major fall risk, 3-shifts each day. It was costing him $20k per month in my area, or $240k per year.
Then add $12k per month for my Mom's living in long-term-care, and if she had lived for a year it would have been $144k. YIKES !!! See how quickly a giant bite could happen to one's wallet.
I would NOT recommend your parents buying a house. Use the funds to put into the stock market buying low risk stocks. Or if your parents aren't comfortable with the DOW, then find a good interest baring CD or similar. That money is to be used for their care only.
I agree with GardenArtist, my gut feeling is telling me that we could see a recession. We are due for one. It's all part of an economical cycle to correct prices.