Is it true that any senior entering an assisted living facility must sell all their real estate holdings, and enter flat broke?
My mom who is in her mid-eighties and on Social Security and Medicare is thinking of selling her home as well as an apartment building (combined value of $1,200,000), so I was wondering if she has to liquidate both of them before being eligible for admission?
Also, can an insurance policy be purchased by her to defray this loss of value including $6,000+ in monthly income from the apartment building?
Nathan’s Answer
You are referring to the "spend down" mechanism. Liquidation may not be enough since by liquidating, you are not so much losing in value, as you are transmuting the nature of the value. An in depth discussion with counsel is warranted.
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