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What assets should I sell- a home valued at $380,000 or $300,000 in fixed rate annuities- to pay for my elderly mother's end-of-life care?

My 84-year-old mother was just diagnosed with dementia and needs to go to a care facility. I have power of attorney and am also the beneficiary of her assets, including $300,000 in annuities (fixed rate 3% annually) and a house worth $380,000. To pay for her care, is it best to sell the house, or use the annuities? Is there another option?

Annuities, Real Estate, Senior Care
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February 2018

Sell the annuities. Any gain will be taxed to your mother. Assuming her tax rate is less than yours. Check with your tax advisor on what medical expenses may be deductible to further lower her tax rate.

When inherited and sold you will pay no taxes on the house.

February 2018
February 2018
February 2018
February 2018