Best way to pay for part-time care for grandfather?

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nimo956
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Best way to pay for part-time care for grandfather?

Post by nimo956 » Mon Oct 23, 2017 8:57 am

My grandfather is 99 and needs a part-time aid about 6 hrs a day, 7 days a week. At $30/hr, this comes to just over $5k per month. He has no liquid assets, but receives about $5k per month in pensions and social security. The problem is that that $5k still needs to pay for other expenses like food, taxes, maintenance on his home, etc. We could divert some of his income to pay for the aid, but there will be a shortfall of around $2k-$3k per month.

His major asset is his home, which has appreciated $1.1m since he purchased it in the 70s. The plan is for my parents and uncles to inherit the home and thus receive a stepped up basis.

What is the best way to pay for the shortfall? Should we look into a HELOC or are there other products that are more suitable?

Edit: location is a suburb of Boston.
Last edited by nimo956 on Mon Oct 30, 2017 1:05 pm, edited 1 time in total.
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Jack FFR1846
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Re: Best way to pay for part-time care for grandfather?

Post by Jack FFR1846 » Mon Oct 23, 2017 9:22 am

Check to see if the city/town where he lives has a senior services dept. My wife's aunt gets care through a provider connected with the local senior services at $15 per hour. Not sure if the dept subsidizes this. This is in a Mass city.
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NotWhoYouThink
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Re: Best way to pay for part-time care for grandfather?

Post by NotWhoYouThink » Mon Oct 23, 2017 9:38 am

Look into a HELOC. That should do until/unless he needs full time care.

If he needs full time care, a skilled nursing facility would probably be better/safer for him than full time care at home, and would definitely be less expensive. Keep in mine that may be the path he is on, no matter how determined he is to stay at home. The family effort required to keep him in the house may be overwhelming.

Does someone have POA? That would help with arranging the HELOC.

Silk McCue
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Re: Best way to pay for part-time care for grandfather?

Post by Silk McCue » Mon Oct 23, 2017 9:50 am

For daily 6 hour shifts 7 days a week $30 per hour for CNA/HHA (Certified Nursing Assistant/Home Health Aide) would be very high, UNLESS, he is in a very HCOL area. If you haven't already I would call a few Private Duty Home Health Agencies and get quotes. (BrightStar Care, Comfort Keepers, Home Instead ...). In most places in Florida that rate would be $20 or less.

Grt2bOutdoors
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Re: Best way to pay for part-time care for grandfather?

Post by Grt2bOutdoors » Mon Oct 23, 2017 9:54 am

Are your parents/uncles in a position to pay for expenses? Receiving an inheritance is nice, but not at the expense of the person who is leaving it.
Good luck with this.
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Broken Man 1999
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Re: Best way to pay for part-time care for grandfather?

Post by Broken Man 1999 » Mon Oct 23, 2017 9:57 am

If a HELOC doesn't work out, A reverse mortgage might be just the thing.

A reverse mortgage might mess up inheritances, but he would certainly have the $$$ to help with an aide for several hours a day.

Any way for your father and uncle to kick in the necessary $$$ without your grandfather taking out any type loan?

Broken Man 1999
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nimo956
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Re: Best way to pay for part-time care for grandfather?

Post by nimo956 » Mon Oct 23, 2017 10:15 am

Grt2bOutdoors wrote:
Mon Oct 23, 2017 9:54 am
Are your parents/uncles in a position to pay for expenses? Receiving an inheritance is nice, but not at the expense of the person who is leaving it.
Good luck with this.
My parents and uncles have different levels of net worth/income, so some could cover the extra expense out of pocket, but some could not. The appeal of the HELOC would be that the payments would be low, and all expenses come out of each person's equal share of the inheritance. The loan would be paid off in full after the sale of the house.
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Pajamas
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Re: Best way to pay for part-time care for grandfather?

Post by Pajamas » Mon Oct 23, 2017 10:26 am

What kind of care does he need for six hours a day? Is that all personal care or is some of it housekeeping and homemaking services?

If he needs some help bathing and dressing but is mostly self-sufficient and just needs someone to clean and do the grocery shopping and prepare meals, you have more options. If he needs six hours of personal care, he may actually need more supervision and assistance than for just six hours a day.

If he is 99 and has a house worth $1 million or more, he should be able to get as much assistance as he needs for the rest of his life and erring on the safe side would be best.

If it can be done in a formal and legal way that doesn't cause any family strife, it seems that some of the future heirs could loan the money.

The biggest question is what does your grandfather think about all of this?

aristotelian
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Re: Best way to pay for part-time care for grandfather?

Post by aristotelian » Mon Oct 23, 2017 10:32 am

Broken Man 1999 wrote:
Mon Oct 23, 2017 9:57 am
If a HELOC doesn't work out, A reverse mortgage might be just the thing.

A reverse mortgage might mess up inheritances, but he would certainly have the $$$ to help with an aide for several hours a day.

Any way for your father and uncle to kick in the necessary $$$ without your grandfather taking out any type loan?

Broken Man 1999
I don't know too much about them, but I was also thinking reverse mortgage could be appropriate in this situation. Instead of a lump sum like HELOC, you would get an income stream on a portion of the equity.

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CAsage
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Re: Best way to pay for part-time care for grandfather?

Post by CAsage » Mon Oct 23, 2017 10:41 am

You can draw down a HELOC over time, so you only pay interest on the outstanding loan, and fees tend to be modest. Reverse mortgages are more expensive. HELOC would be my first choice (in your shoes), followed by a secured loan from family members to be paid out of the house proceeds, then a reverse mortgage.
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Rupert
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Re: Best way to pay for part-time care for grandfather?

Post by Rupert » Mon Oct 23, 2017 10:44 am

Have you considered having him cared for outside the home during the day? The senior citizens center near my home has a program called Grandfriends, which is an adult day care program subsidized by the city and the United Way. Most of the persons cared for in the program are wheelchair-bound or use walkers. All are quite elderly and need fairly intensive care. I'm not sure of the cost, but I'm certain it's less than $30/hour.

willift
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Re: Best way to pay for part-time care for grandfather?

Post by willift » Mon Oct 23, 2017 11:40 am

If your Grandfather is a Veteran who had Wartime Service, there is a VA Benefit called "Aid & Attendance". This benefit greatly helped my Dad with a tax free payment of almost $1,700 monthly. GOOGLE "Aid & Attendance" There are a lot of people trying to get paid to help you get the benefit but we were able to find help without paying anyone. The qualifications are basically having more expenses than income and the asset limitations are liberal in my opinion, something like up to 80,000 in liquid assets and he still could qualify.

I encourage any Combat Veteran in need of help look into it. My Father's experience was from 2016 so the calculation numbers may have changed but I know the benefit still exists

delamer
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Re: Best way to pay for part-time care for grandfather?

Post by delamer » Mon Oct 23, 2017 3:46 pm

A HELOC requires that you qualify based on income. If grandfather's income is $5,000/month, how much of a HELOC is he going to qualify to receive? Is it going to be enough to meet his expenses for a few years, at least? Plus he will need to make monthly payments (probably interest only).

I have no direct experience with reverse mortgages, but I understand that they are much better products and less expensive than they were just a few years ago.

nimo956
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Re: Best way to pay for part-time care for grandfather?

Post by nimo956 » Mon Oct 30, 2017 1:02 pm

I just wanted to thank everyone for their advice and provide an update. Grandfather was doing okay a few weeks ago, but his health seems to have deteriorated to the point where he needs 24/7 care. He still has his mental faculties for the most part, but just sleeps on and off for most of the day and has difficulty walking.

We were able to find a private home health aide through a friend (not through an agency) for $20/hr. Still, that's just over $175k per year! My grandfather never planned for this eventuality, nor realized how expensive care would be. We took out a $600k HELOC on the house, which we'll use to pay for monthly expenses. My grandfather is adamant about not leaving his home, but the situation isn't sustainable indefinitely. We'll try to respect his wishes as long as we can, but we may have to look into nursing homes eventually.

Also, to those who asked, yes he is a veteran. We looked into getting the $1700 subsidy, but my parent's understanding was that he needed to use VA doctors, and that the application process alone could take several months to a year.

Edit: wanted to add that the location is a suburb of Boston, in case people know of any resources or facilities in the area.
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willift
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Re: Best way to pay for part-time care for grandfather?

Post by willift » Mon Oct 30, 2017 1:50 pm

Aid & Attendance Benefit has nothing to do with what Doctors you use. It's designed to help cover the cost of help for the Veteran. If his costs exceed his expenses he should be eligible. Look into this thing deeper, your Grandfather likely has benefits due him

Google it
here's a link
http://canhr.org/factsheets/misc_fs ... ndance.htm

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