When asked about the sale or value of a home, my approach is to ask questions first. For example, why are you considering a sale? Where would you move? Are there any reasonable ways to stay in your home? What changes could enable you to not sell and move?
I feel strongly that each individual would do well to consider their own best interests first and family members second when it comes to major life decisions, such as one that involves a home. Too often I have seen situations where the children have made decisions that unnecessarily limited their parents’ choices and disadvantaged the parents greatly.
If financial challenges are the driving factor, there are at least a couple of alternatives to selling the home. A reverse mortgage is a way to pull out some money from the home’s equity. Although these programs may seem to be very complicated and costly, they can provide access to some funds.
Taking in a roommate or household helper may be another approach to supplying the senior’s needs cost-effectively.
Another solution could come from the children or other family members who can afford to pitch in to cover necessary in-home care and other costs that the seniors are unable to pay for. A written agreement that they will be reimbursed from the estate assets would pay them back before the balance of the estate is distributed.
If it is determined that, all things considered, a sale is necessary but that moving out soon would not be feasible, we have found a couple of creative solutions. One would be to negotiate a very long escrow, having the buyer release a substantial amount of money after all contingencies are removed.
Another way we have solved the timing issue is to close the escrow in one to two months, and have the seller able to stay there for several months longer while arranging for and accomplishing the move. This stay could be at a nominal cost as part of the negotiation.
My primary focus here is to explore ways people can stay in their home for as long as possible, if that is their choice. One obvious action is to hire people to help out!
All too often we hear of people injuring or exhausting themselves by doing some chores easily done by a handyman, such as putting up holiday lights, pruning trees or maintaining the landscaping.
Small changes in living spaces and daily strategies can keep people out of nursing facilities for years, saving families a lot of money too. For example, a handyman can easily make the place safer by hiding loose wires that are trip hazards, repairing curling linoleum or securing loose rugs, installing grip bars in the shower, adding a second stair rail and more.
More significant remodeling that might be very cost-effective over years would include putting in a curbless shower, a handheld shower wand to reach all body areas easily whether standing or sitting, installing sinks with knee space for a stool to save energy while shaving or putting on makeup.
Installation of central air conditioning could make a very uncomfortable living space much more tolerable to remain in for much longer. Having a stair-chair lift, elevator or platform lift installed might be a lifesaver and well worth the investment.
Daily living can be made much easier by simply de-cluttering and organizing the interior spaces. We came up with a practical system that many have used now for situations where the owners are almost overwhelmed by the amount of stuff all over the house.
One couple we shared our ideas with later commented that they wished they had known of this idea a decade earlier. They felt energized by the process, felt better than they had in a long while and their families were grateful that so much was already streamlined before they would have had to deal with it all.
The essence of the approach is to set up a large area, such as half of a garage, to organize things into three groups: 1) items to throw away, 2) things to give to family members or to charities if they don’t want to sell them at an estate sale and 3) things that they want to keep themselves.
A variation would be to rent a dumpster so the first grouping could simply be tossed into it.
The key I found to making it feasible for that couple – and it even became fun – is to begin with one shelf or drawer in one particular room. I assigned the couple to each do just one shelf or cupboard and then take a rest. Then they returned to the process for another shelf or another drawer and so on. Then took a lunch break and perhaps did one or two more if they felt like it later.
They called me about a month later to invite me over to see the progress they had made, and they were thrilled to share how good it felt to be doing it. That couple was doing advance preparations to move, and we felt the place would photograph and show much better with the de-cluttering done.
These same principles have been used by many people to simplify and organize their daily living spaces, making it more enjoyable to live in their home.
The vast majority of us want to continue to live in our own homes. That becomes much easier to do if there are programs nearby that can provide assistance, such as transportation services, assistance with shopping, and perhaps meal delivery, health and wellness activities, concierge resources to recommend for various needs; and more.
A movement begun about 13 years ago has proven very cost-effective in major quality-of-life improvements and potentially saves tremendous costs to the Medicaid system. The nonprofit organizations are generally referred to as “the Village Movement,” and there are now over 140 of them serving more than 23,000 seniors in different areas of the country.
It would be excellent to have a special “Palisades Village” organization created for this purpose. There already exists the WISE Connections program, which may be sufficient for most people’s purposes. Located in Santa Monica, it is membership-based, and they tell me that 40 or so Palisades members already belong to it.
They have three different levels of membership, with dues ranging from $150 per year for an individual to their premier household level, which is $960 per year. Part of the benefits of the two higher tiers is transportation assistance to appointments and events (a limited number at no cost). They also have service providers who are vetted and will provide member discounts.
Many solutions exist to help our local seniors stay in their homes longer, and there are numerous options available to enable them to access the services they need while they continue to age in their own homes.
This article is a summary of a May 2014 presentation by Michael Edlen. Edlen has been working with “seniors” for over 28 years and is available for complimentary counseling on home-retention ideas. He has also represented many family trusts and trust attorneys in helping deal with the numerous financial and emotional issues that can be involved in seniors’ real estate situations. He may be reached at (310) 230-7373 or Michael@MichaelEdlen.com
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