The hard part is over.
I'm matching you with one of our specialists who will be calling you in the next few minutes.
I cashed all Moms CDs in, they were getting hardly any interest so the penalty was nothing. I would cash in anything getting good interest as a last measure.
If think u may need Medicaid within 5 yrs, the house and car need to sell for Market Value. There are a few members that know finance. They will give u better info than me.
Best financial advice out there! You want to search decumulation.
I say sell the house and invest the proceeds. Remember, too, that if your parent held that house as joint tenants with a deceased spouse, the living spouse has a stepped-up cost basis to the value of the house on the date the spouse died. Example: My folks paid $45,000 for their house in 1969 and held it as joint tenants. My dad passed away in 2018, and the house was worth $1.7 million (It's California -- what can I say?). If my mom sells the house today, it's worth about $1.85 million, so she'd only pay capital gains taxes on the difference between $1.7M and $1.85M instead of the difference between $45K and $1.85M, because Mom's stepped-up cost basis is $1.7M. (This is why parents should never sign their houses over to their children rather than have them inherit them. The children won't get the stepped up basis if it's merely signed over.)
However, a tax advisor would be the smartest first step.
Yes, if set up properly, the home can be inherited upon death and result in very little cap gains. In this case, since it was never set up, it would be better to sell it (get the step up available and keep records of any repairs/cost, which can be deducted at sale.) Beware though, changes may be coming for cap gains and may eliminate some of all of these "perks."
The EC atty set up mom's condo as a Life Estate. This can be good if a person can remain in the home close to or within a few months of death. Not so for mom (there are waivers for living there maybe 2 of the last 5 years or something.) When we sold it, she had to sign the deed (living in MC then AND had forgotten the condo, focused on previous home!) She received a small portion of the proceeds, but it was enough to drive up her Medicare cost for the next year. It will revert back, since you can only sell the place once!
Anyway, unless I knew for a fact I had a terminal illness with a year or less left, I wouldn't use this transfer method.
Other issues could occur if the house remains unoccupied. It usually requires a special ins policy, more expensive, to cover an uninhabited place. Also, over time the house/yard can degrade and become worth less - better to clean it up now and sell it and invest the proceeds for mom's care.
I don't think there's an "order" for consolidating assets. The biggest issue with keeping a house or a car on hold is degradation, and assets that are being bled to "hold" it until later (registration, insurance and maintenance/repairs for the car, RE taxes, degradation and maintenance/repairs.) These assets can end up bleeding off too much money. It's better, if you know there's no hope of returning to a "normal" life, to sell the bigger ticket money-bleeders first!