Paying for Care
Selling the home to pay for care
Selling is often necessary but rarely urgent. Before listing, look at reverse mortgages, sale-leasebacks, and Medicaid asset protection.
Updated 2026-02-27
Reasons it makes sense
- Loved one has moved permanently to memory care; spouse has also moved out.
- House is the only large asset and care needs years of funding.
- Maintenance + property taxes are draining cash flow.
- Stairs and layout make returning home unsafe.
Reasons to wait
- Spouse still lives in the home — selling collapses their stability.
- Long-term care insurance is still active and may pay for care.
- Medicaid spend-down strategy benefits from KEEPING the house (it's exempt for the well spouse).
- Capital gains taxes will eat the proceeds — check with a CPA on step-up basis after death.
Alternatives to outright sale
- Reverse mortgage (HECM) — for the spouse still in the home age 62+.
- Home equity line of credit (HELOC) — short-term liquidity.
- Sale-leaseback companies — sell and rent it back at market rate.
- Family rental — one adult child buys out siblings and rents to parent.
- Title-in-trust transfers — only if done before the 5-year Medicaid look-back.
Frequently asked questions
- Does Medicaid take the house?
- While the spouse is alive and living there, no. After both die, Medicaid Estate Recovery may claim against the estate. An elder-law attorney can structure ownership to protect heirs.
- How fast does memory care eat home equity?
- Roughly $96,000–$120,000/year for memory care. A $400,000 home equity buffer typically funds 3–4 years.
Every dementia journey is different.
Memory Lane Care helps you understand what applies to your loved one, what to expect next, and which resources fit your family's situation.
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