Using a Parent's Home to Pay for Senior Care in Illinois
By Brad Esposito, DCS, CDP · Senior Source · Last reviewed Oct 19, 2026
Can a parent's home help pay for senior care?
Yes, a parent's home can help pay for assisted living or memory care. Start with the care plan, not the house: the care level, the move date and the monthly cost. Then confirm who can legally sign. Families in St. Charles, Aurora, Elgin and across Kane County should ask a licensed real estate agent and an attorney first.
What should come first, the care plan or the house?
The house question is really a money and timing question. Answer these three first:
What care does your parent need for the next 60 to 90 days? Rehab, then home? Rehab, then assisted living? Home, then memory care?
When will you actually need money? A deposit next week, a first monthly bill in 30 days, or private pay starting now?
How much time do you have before a decision about the house has to be made?
Once you know those answers, the choices about the house get clearer. Our guide to paying for senior care in Illinois covers the other ways families pay.
Who can legally make decisions about the house?
This is the step that most often slows families down. Before anyone signs anything, find out:
Who is the agent under your parent's power of attorney for property, and whether that document covers real estate.
Whether the home is held in a trust, and who the trustee is.
If the owner has died, who the executor is and whether probate is needed.
Whether there are title problems, such as liens, unpaid taxes or missing signatures.
If you aren't sure, ask an Illinois attorney before you sign. This section is general information only and is not legal advice.
Related: our FAQ on documents families need
What choices do families weigh for a parent's home?
Families usually look at four paths: selling the home, renting it out, keeping it for now while other money covers care, or a family member buying it. Each path affects timing, taxes, benefits and family plans in different ways.
Get opinions from more than one licensed real estate agent on price and timing.
Have an attorney look over any contract or offer before anyone signs.
Ask a tax professional how a sale could affect your parent's taxes.
We focus on the care side, so we don't advise on the house itself.
Could a home sale or gift affect Medicaid later?
It can. When someone applies for Medicaid to help pay for long-term care in Illinois, the state looks at transfers made in the 60 months before. Giving the house away, or selling it for less than it's worth, can lead to a period when Medicaid won't pay for long-term care. Some transfers, such as to a spouse, are allowed.
Talk with an elder law attorney before anyone changes who owns the house. The Illinois Department of Human Services explains the 60-month look-back in its Medicaid policy manual. This section is general information only.
Related: Illinois DHS: verifying a transfer of resources (60-month look-back) · Assisted living vs. Supportive Living in Illinois
Will there be taxes when a parent's home is sold?
Maybe not. Under federal rules, a person who owned and lived in the home long enough can often exclude up to $250,000 of gain from income, or $500,000 for a married couple filing jointly (IRS Publication 523). Time spent living in a licensed care facility can count toward the residence test in some cases. Ask a tax professional before you decide.
Related: IRS Publication 523, Selling Your Home
How do families pay for care while the house is being sorted out?
Many families use a short bridge while they decide about the house:
Savings or family help for the first months.
Long-term care insurance or veterans benefits, if your parent has them.
Asking each community what's due at move-in and what can wait.
If family members chip in, writing down how they'll be paid back.
Our senior living costs page explains what monthly fees usually include.
How can you make the cleanout easier?
Clearing a parent's home is hard because every item holds a memory. A simple system helps:
Keep: the things your parent needs or truly loves.
Donate or gift: good items someone will use.
Remove: broken or unusable items.
Take the keep items first, then do a second, faster pass. Trying to decide everything on day one wears everyone out. Our 30-day transition plan helps with timing.
Related: 30-day senior transition plan
How can siblings share the work?
Give each person one job so no one burns out:
Care lead: calls with communities, the care plan and move-in readiness.
House lead: works with the real estate agent, the attorney and the cleanout.
Paperwork lead: power of attorney or trust papers, insurance, utilities and mail.
Family updates lead: keeps relatives informed so the main caregiver isn't repeating everything.
Even with just two people, splitting roles prevents missed steps.
What mistakes should families avoid?
Wiring money to hold a move-in spot without checking who you're paying.
Skipping the written details: pricing, included services and move-out rules.
Starting big renovations under time pressure.
Waiting to check who can legally sign.
Letting guilt set the timeline. Protect the caregiver too.
Answering unsolicited offers on the house before talking with your agent or attorney.
Letting the move date and the house timeline drift apart, so you pay for two places longer than needed.
Need help with the care side?
I can help you map the care timeline, compare assisted living and memory care, and plan the move. For the house itself, talk with a licensed real estate agent and your attorney. Call Brad at Senior Source: (630) 835-0355. There's no cost to families for our help.
What do families ask about using a parent's home for care?
Do families use a parent's home to help pay for senior care?
Many do, especially when private pay is needed and the home is a parent's largest asset. The care plan should come first. Once you know the care level and timing, you can decide about the house with help from a licensed real estate agent and an attorney.
How long does it take to sell a parent's house?
It depends on the home, the local market and the paperwork, including who has legal authority to sign. Ask a licensed real estate agent for a realistic timeline. Then plan the move date around your parent's care needs, not only around the closing date.
What if siblings disagree about the house?
Start with three facts: who has legal authority, what care your parent needs, and when the money is needed. If conflict stays high, a neutral professional, such as an attorney or mediator, can help keep the plan moving.
What if the house won't be sold in time to cover care?
Many families use a short bridge, such as savings or family help, while the house is sorted out. Ask each community what's due at move-in and what can wait. Write down any family loans so everyone knows how they'll be paid back.
Can we put the house in a child's name to protect it?
Be careful. Illinois looks at transfers made in the 60 months before a Medicaid application for long-term care, and giving away a home can delay Medicaid help. Some transfers are allowed. Talk with an elder law attorney before anyone changes who owns the house. This answer is general information only.
Does Senior Source help with the house?
Senior Source focuses on the care side: the care level, the timeline, comparing assisted living and memory care, and planning the move. For the house, talk with a licensed real estate agent and an attorney. Call Brad at (630) 835-0355.
