Selling a Parent’s House to Pay for Care in California

What You Need to Know When Facing a Difficult, Emotional Decision

Let’s be honest—navigating elder care is hard. Watching a parent’s health decline, managing their affairs, and figuring out how to afford long-term care can be incredibly overwhelming. And in California, where the cost of care can skyrocket, many families find themselves asking the same painful question:

“Do we have to sell Mom or Dad’s house to pay for care?”

It’s a deeply personal decision, and one that comes with both financial and emotional weight. In this guide, we’ll walk you through the process of selling a parent’s house to cover care costs in California—how it works, what to expect, and the options available. Along the way, we’ll answer some common questions that families ask us and share real-world examples from people we’ve helped in similar situations.

When Selling a Parent’s House Becomes Necessary

There’s no one-size-fits-all answer to whether or not you need to sell a parent’s house—but for many families, it becomes the most practical solution.

Take the case of Marlene in Westchester. Her father had been diagnosed with Parkinson’s and needed 24/7 in-home care. The bills were adding up fast—over $6,000 a month—and there was no long-term care insurance to help. Marlene and her siblings decided to sell their childhood home, which was paid off but needed work. They used the proceeds to fund their father’s care and found peace in knowing he was getting the support he needed.

Other options that some families do in order to avoid selling include pooling resources, renting the home, or using a reverse mortgage, but oftentimes these options aren’t always practical or sustainable. With costs skyrocketing and limited options, selling the house to pay for care that’s immediately needed often becomes the only realistic solution.

Do I Have to Sell My Mom’s House to Pay for Her Care?

Of course you don’t have to sell—but often, it’s the only answer that makes the most sense.

If your parent needs care and doesn’t have enough savings or insurance, the cost is going to have to come from somewhere. Selling the home is usually the quickest way to access funds—especially in California, where a home’s equity can be substantial.

That said, here are some other common options that may be available, depending on the situation:

• Long-term care insurance (if your parent has a policy)
• Reverse mortgage (if they’re still living in the home)
• Renting the property to generate monthly income
• Medi-Cal, which can cover nursing home care for those who qualify (more on that below)

Each family’s situation is different, and what works for one may not work for another. It’s important to consider the resources your family has and make a decision not out of emotion but based on what is most practical. Another important aspect to consider is…

What Happens to a House When the Owner Goes Into a Nursing Home?

If your parent moves into a nursing facility permanently, their primary residence may still technically belong to them—but it often becomes a financial burden.

• If no one is living in the house, it may sit vacant, costing money in taxes, insurance, and maintenance. So now, not only are you paying for the cost of care in the assisted living facility, but you still have the costs of the property sitting there vacant. 
• If a parent does receive Medi-Cal, then the state could end up placing a claim against the estate (known as Medi-Cal estate recovery) to recoup the cost of care. This is not something that you need to worry about while your parent is alive, but it is still something to be aware of and prepared for after they pass if the house is still in their name.

This is where families often make a tough call: keep the house and deal with the expenses, or sell it and use the money to fund care—and avoid future estate claims.

Will the Nursing Home Take My Parent’s House?

Not exactly—but there’s a lot of confusion here. A nursing home itself typically cannot place a lien on a house—but the state can, under certain conditions.

Here’s how it works in California:

• If your parent applies for Medi-Cal to help pay for long-term care, the state (not the nursing home) may eventually seek to recover the costs after your parent passes away. This is called Medi-Cal estate recovery.
• In some cases, if your parent owns a home and is permanently in a care facility, the state can place a lien on the property while they’re still alive. This is known as a “Medi-Cal lien.”

However, there are important exceptions:

• If a spouse or dependent lives in the home, the state cannot place a lien.
• If a caregiver child or a disabled or blind child lives in the home, the state may also delay or waive recovery.

So while a private nursing home doesn’t have that authority, the state does—and it’s usually tied to Medi-Cal benefits, not unpaid nursing home bills.

Selling the house beforehand can help avoid this, as long as it’s done legally and within Medi-Cal’s lookback rules, which refers to a review period—currently 30 months (2.5 years) in California—during which the state examines any transfers of assets made before someone applies for long-term care benefits.

If your parent gave away property, money, or transferred ownership of their home for less than fair market value during that 30-month period, Medi-Cal may see it as an attempt to qualify for benefits improperly. This can result in penalties or a delay in eligibility for coverage.

For example, if your mom gifted you her house a year before applying for Medi-Cal, that transfer could trigger a penalty period where she’s ineligible for benefits—even if she truly needs care.

To avoid any potential issues, it’s important to consult with a Medi-Cal planning professional or elder law attorney before making any large financial moves or transferring property.

Can I Sell My Parents’ House If They Have Dementia?

Yes—but with important limitations.

If your parent has dementia or is otherwise mentally incapacitated, they cannot legally sign documents related to selling the home. In this case, you’ll likely need to:

• Be named as Power of Attorney (POA) while they are still competent, or
• Go through the court to become their legal conservator if no POA already exists

Both of these can take time, so if your parent is in the early stages of memory loss, it’s a good idea to move to put one of those documents in place sooner rather than later.

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How to Sell a Parent’s House to Pay for Care in Los Angeles: Step-by-Step

Here is a breakdown of everything that needs to be done and everything you need to be prepared for if you do decide that selling your parents house in order to pay for care is the route that you do, indeed want to go:

Step 1: Understand Who Legally Owns the Home

Before you can sell your parent’s home, you need to be absolutely clear about who holds legal ownership. This is more than just who “lives there” or who “takes care of things”—it comes down to what the title and deed say.

Start by checking the grant deed or title report to see whose name is listed as the legal owner. In many cases, it’s still just your mom or dad—even if they’re no longer mentally competent or have already passed away.

Here are a few common scenarios we see:

• The home is solely in your parent’s name: If they’re still alive and mentally competent, they can choose to sell it. But if they have dementia or have passed away, you’ll need legal authority to act on their behalf—either through Power of Attorney, a living trust, or probate.
• The home is in a trust: This can make things much easier. If your parent created a revocable living trust and transferred the home into it, the successor trustee (often a son or daughter) may be able to sell the property without going through probate.
• Joint ownership with right of survivorship: If the home is co-owned—say, by your mom and dad—and one passes away, the surviving owner usually retains full ownership automatically. However, this depends on how the deed was structured, so it’s always smart to review it with a title professional or attorney. Or you can always ask Mrs. Property Solutions and we can help you get clarity on that, too 😊
• Multiple heirs or siblings on title: If multiple people now share ownership (after inheritance or adding names to title), everyone must agree and sign off before a sale can happen. Disagreements can slow the process—or halt it completely—so it’s important to get everyone on the same page early.

If you’re not sure how the home is titled, you can order a title report through a local title company or look up property records through the Los Angeles County Assessor’s Office.

Pro Tip: If you’re planning to sell and aren’t sure who legally owns the home—or if probate is required—consider working with a professional who can guide you through the legal side. At Mrs. Property Solutions, we’ve helped families uncover title issues they didn’t even know existed and provided resources to help fix them quickly.

Step 2: Assess the Condition of the Property

The next step is to take an honest look at the condition of the home— since that’ll have a say in what the best way to sell it and how much you can expect to get for it. Because let’s face it: most homes owned by the elderly usually aren’t the most updated. It’s common for those houses to still have shag carpet, popcorn ceilings, original plumbing, or older electrical systems. There is also usually some deferred maintenance like a leaking roof, mold, termites, or outdated HVAC systems. Even simple things like clutter, personal belongings, or dated decor can affect marketability.

Here’s why this matters:

• If you’re planning to sell the home traditionally with a realtor, be prepared for buyers to expect a move-in-ready property. A house that needs major repairs or updating will usually sit for a long time or sell below market value—unless you’re willing to put in time and money for renovations.
• On the other hand, if you’re looking to sell quickly and without hassle, you can opt to sell the home as-is. This means no repairs, no cleaning, and no showings. It’s a much simpler route, especially if you’re already overwhelmed dealing with transitioning your parent into an assisted living home.

Real Example: We helped the Guerrero family in Glendale, whose elderly mother had moved into memory care. Her home hadn’t been touched since the 1970s and needed a fair amount of work. The siblings didn’t have the resources to fix it up because they were overwhelmed by the cost of care adding up. They decided to sell the house to us as-is and we were able to close in two weeks. No stress, no cleanup, and they were able to use the proceeds for her care.

Step 3: Choose How You Want to Sell

When it gets down to it, you have 3 different routes you can go:

• Traditional listing with a realtor (may involve showings, repairs, and commissions)
• For Sale By Owner (more control but also has the most legwork)
• Cash home buyer like Mrs. Property Solutions (no repairs, no clean-out, no commissions)

There are going to be pros and cons to each option; it all just gets down to what your personal timeline and priorities are. If speed and simplicity are most important (especially when you need funds ASAP for care) then a cash buyer who can close in 7 days and purchase the property as-is might be your best bet. On the other hand, if maximizing the sale price is your top goal and you have time to make repairs and wait for the right buyer, listing with a real estate agent may be a better fit. The key is weighing what matters most: speed and convenience, or getting top dollar.

Step 4: Handle the Legal and Financial Details

When you’re selling a parent’s home to help cover care costs, it’s important to have your legal and financial matters figured out, especially when Medi-Cal is involved. If your parent is still alive and mentally competent, it’s a good idea to have Power of Attorney in place to legally manage their financial affairs, unless your parent wants to deal with everything directly. If your parent has already passed and the home wasn’t placed in a trust, you’ll likely need to go through probate to sell their home, which can take several months (or even years) in California. In some cases, you can petition the court for permission to sell the home during probate. To learn more about the probate process, check out our 2025 Guide to Selling a House in Probate in California.

You’ll also want to be mindful of how the proceeds from the sale are handled, particularly if your parent is applying for Medi-Cal or is already receiving benefits. Selling the home could disqualify them from benefits if not managed carefully. This is where working with an elder law attorney or Medi-Cal planning professional becomes invaluable—they can help you structure the sale and use of funds in a way that minimizes penalties and protects eligibility. Additionally, if the home is still in your parent’s name and they’re already receiving Medi-Cal, you’ll want to understand estate recovery rules and whether your family could face a claim against the home after their passing.

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FAQ: Other Common Questions Families Ask

How long do I have to sell the house?

There’s no specific deadline unless there’s a financial urgency (like paying for a facility). However, if you’re trying to minimize costs or avoid estate recovery, sooner is usually better.

Can I rent out my parent’s house instead?

Of course! For some families, it’s a great option. Just be mindful that renting will come with its own set of challenges like tenant issues, property maintenance, and management headaches. You also want to make sure that the rent you generate will be enough to cover the full cost of care, especially if the house needs repairs.

Can my parent give the house to me instead?

Technically yes, but gifting a home can trigger Medi-Cal penalties due to the lookback rule (currently 30 months in California). Always speak with a qualified elder law attorney before transferring ownership.

What if I still live in the house?

If you’re a caregiver child who lived in the home for at least 2 years before your parent entered a care facility, you may qualify for an exemption from Medi-Cal estate recovery. This is known as the “caregiver child exemption.”

Can I sell my mom’s house before probate?

If your parent has passed and their house wasn’t placed in a trust, it must go through probate. In some cases, you can petition the court to sell the home during probate, but you cannot sell it outright without court approval. If your parent is still alive, then putting the property in a trust is a great way to avoid probate entirely.

What can you do while waiting for probate?

During the probate process, you can maintain the property, keep up with bills, and start planning for a potential sale. You can also clean out the home, hire a probate attorney, and gather all relevant documentation.

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Final Thoughts: You’re Not Alone

Selling a parent’s home to pay for care is never easy—but it’s often the most compassionate, practical path forward. You’re doing what’s best to ensure they get the help they need, even if it means letting go of a place filled with memories.

At Mrs. Property Solutions, we specialize in helping families in situations just like yours—whether you’re trying to sell fast, avoid probate, or just don’t know where to start.

We can buy the house as-is, on your timeline, and give you a fair offer—no fees, no commissions, and no stress.

Want to talk it through? We’re happy to listen, answer questions, and help you figure out what’s best for your family. To get started, fill out the form below.