For many adults, considering moving into an independent living retirement community (like Deupree House in Hyde Park), the idea of selling a longtime home and/or other treasured possessions, can feel like a big step.  But with the right information it can also open the door to new possibilities.  Freeing up resources, reducing responsibilities, and creating more time to focus on what truly matters.

In some cases, liquidating assets can be a smart way to support your goals and ensure long-term peace of mind.  Like any important decision, it’s important to weigh the pros and cons and explore strategies for managing your assets before moving to a retirement community.  With thoughtful planning, these choices can provide flexibility and security as you move into your next chapter.

Why You Might Need to Sell Your Home

Some people are able to fund their new home in a retirement community through savings and income from IRAs, pension funds, or other assets.  For them, a total downsize scenario may not be necessary.  Some even opt to retain their former primary homes for a variety of reasons, such as being able to use them as guest houses for traveling friends and family.

Often, however, keeping your former home and paying for a new one in an independent living community just isn’t feasible. In addition, funds from selling that primary home or other assets might be needed to move to the retirement community.

Also, there are certain conditions in which you may be eligible for Medicare or Medicaid to supplement funds for your new independent living community. 

Alternatives to Selling

If selling your primary or vacation home isn’t right for you, but finances are still a concern, you have other options.  Talk to your financial advisor, as well as people in your life who might be willing to manage some of the details.  Two ways to avoid selling your house if you prefer not to do so, include renting your home or transferring the title.

Rent Your Home

Popular rental options include long and short-term arrangements.  By generating income that can help pay for your new home in a retirement community, a rental arrangement can also help you hold onto property to which you’re emotionally attached or wish to pass down to your children. 

However, it’s important to understand that rental properties may require some type of manager.  Factor in the cost of a professional manager if you need one or talk to trusted relatives who live nearby.  When making any decisions on your home, it is important to consult professionals who can guide you on topics related to real estate, tax, legal, and property needs.

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Transfer the Title

In some situations, it may be possible to transfer ownership of a home to a family member or place it in a trust. The rules around this can be complex and often depend on both state and federal guidelines.  Because everyone’s circumstances are unique, it’s always best to consult with a qualified elder law attorney, financial advisor, and/or estate planner before making decisions about property or assets.

Considering Additional Assets   

If you are considering funding part of your retirement community expenses for health and care services, including short-term rehabilitation or long-term care with Medicare or Medicaid, you will likely be required to liquidate savings plans such as 401(k)s, pension funds, bonds, and IRAs.  The same is true of anything that is not a primary residence, including, but not limited to, cars, boats, valuable art collections, vacation homes, or investment property. 

If you’re not sure where you fall in terms of current rules and regulations, you’re not alone.  A financial advisor is crucial to help you understand which steps to take to maximize your resources.  If family members are helping you make decisions, they may want to consult an eldercare lawyer to find the most sensible way to deal with your assets. 

Use our cost calculator to compare how living at Deupree House compares to living at home.

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