What To Do With The House?: A Tax Planning Case Study for Families Looking to Fund Long-Term Care

If your aging parent owns a home and they are reaching the point in life where their physical and or mental health is rapidly declining and they need additional care, there is a clock ticking on decisions that most families don't even know they need to make. And those decisions — specifically, what to do with their house and how to fund their care— carry tax consequences that can either preserve tens of thousands of dollars for the next generation or quietly hand it to the IRS. Typically, the responsibility of figuring all this stuff out lands on your shoulders. In this episode, Cameron walks you through a real-world case study, step by step, so you can see exactly how this can play out while minimizing taxes as much as possible and funding their care. More specifically, we discuss: What are the tax ramifications of selling the home to fund long-term care? What are the tax ramifications of renting the home to help pay for care? What are the tax consequences of staying in the home and paying for care? Utilizing a Multiple Support Agreement to obtain tax deductions for the adult child caregiver The Section 121 gain exclusion on a personal residence A detailed walkthrough of tax saving strategies in all scenarios Resources: Access Episode Show Notes and Sign Up for the Retired·ish Newsletter Ask Cameron A Question!