Parent’s House Sale for Assisted Living

Being a parent’s child, or even living in their home, does not by itself give you legal authority to sell it. That authority generally comes from a valid, properly executed power of attorney that covers real estate transactions, joint ownership on the title, or a court-appointed guardianship if your parent can no longer make these decisions and no power of attorney exists. A title company will require proof of this authority before it can close a sale.

If your parent can still participate in the decision, involving them and getting their own documented consent — even informally — tends to prevent disputes with other family members later. If they cannot, and no power of attorney is in place, a guardianship proceeding through the probate court may be necessary before a sale can happen at all.

Texas Medicaid for nursing-facility care generally requires an individual to have countable resources under $2,000. A primary home is typically treated differently from other assets while the applicant or their spouse continues to live in it, but selling it converts that protected home into countable cash — which can affect eligibility going forward. This is exactly the kind of decision to run by an elder-law attorney or benefits counselor before the sale, not after.

Separately, if your parent is already receiving Medicaid long-term-care benefits, Texas can seek repayment from their estate after death through the Medicaid Estate Recovery Program (MERP) for certain costs paid. Common exemptions include a surviving spouse, a minor or disabled child, and an adult child who lived continuously in the home for at least a year before the parent’s death — and a hardship-waiver process exists for other situations. None of this necessarily means you should not sell; it means the timing and paperwork matter.

With legal authority confirmed and any Medicaid questions answered, compare your actual options the same way you would for any sale: a traditional listing, an as-is cash sale, or holding the property, weighed against how quickly the facility needs payment and how much upkeep an empty home requires in the meantime. A written, no-obligation cash offer can be a useful, fast comparison point if the facility has a payment deadline.

Keep records of everything — the authority documents, the home’s valuation, and how proceeds were used — both for your own family’s clarity and in case Medicaid or another family member ever has questions about the transaction later.