My parents no longer own a home. They live with me and my husband in an attached suite and contribute to household costs and caregiving.

Tchrlange, as mentioned earlier, your parents need to make an appointment with an "Elder Law Attorney" as this could become very complex quickly, and wind up not what your parents wanted. Medicaid could view the "summer home" as gifting to other family member if they vacation there free of charge.

Major STICKER SHOCK time, when my Dad needed to have around the clock caregivers due to him being a major fall risk, 3-shifts each day. It was costing him $20k per month in my area, or $240k per year.

Then add $12k per month for my Mom's living in long-term-care, and if she had lived for a year it would have been $144k. YIKES !!! See how quickly a giant bite could happen to one's wallet.

I would NOT recommend your parents buying a house. Use the funds to put into the stock market buying low risk stocks. Or if your parents aren't comfortable with the DOW, then find a good interest baring CD or similar. That money is to be used for their care only.

I agree with GardenArtist, my gut feeling is telling me that we could see a recession. We are due for one. It's all part of an economical cycle to correct prices.

I agree. The house needs to be their residence. Their residence is your home. If it could be considered their residence, once on Medicaid someone else has to pay the mortgage, upkeep, bills ect. When they pass, it will have to be sold unless a caregiver or family member can prove residence. If this happens, a lean is still put on the house. If the family member dies or sells the house, the lean has to be paid back.

I found out a lot when I got my recovery info to fill out. Things I was told in the beginning were not so when there was recovery.

Sounds like a good idea but I would use the money towards their care.

Basically what you want to know is how can the family (your parents too) tuck away the money that should be used for the parents care...so that they can rely on the taxpayers to pick up the tab once they have to go into a NH and the family can keep their money. Got that right?

Well, the short story is..if they buy a home, and it is considered the primary residence (there are tests for this), then when one goes into a NH...the other can continue to live there...when both are gone without expectation that they will return...the Medicaid will put a lean on the home. Usually for More than it is worth..because of the high cost of nursing homes.

but...if the money never runs out, then they will no need to rely on Medicaid ... in which case your question is moot.

This should definitely get passed past an Elder Law person. Cali knows a lot of the rules and may have an answer, but I sure would be very careful of this one.

I think there are preliminary concerns about buying a house, which are (a) whether or not the dementia would preclude the knowledge factor of buying a house and executing a mortgage, if necessary and (b) the feasibility of buying a home as an investment when it's clear that they can't live there alone, and (c) the location and assorted issues of buying when we're overdue for a recession and one is predicted for the next year or so.

Are they concerned that liquid investments would be too vulnerable?  Are all the siblings in agreement on care, and asset disposition after death?   If not, you could end up with siblings disagreeing on whether to sell the property after death or retain it.   

An unrelated factor is the advisability of staying in one area for 6 months, than moving to another.  The change and disruption of moving could be too much for them.  

You don't indicate in your profile where you and your sister live.  If you're in a colder climate, you'd have to create the six month intervals to avoid moving 2 elderly people in cold weather and gambling with blizzards.

In addition, how would you provide for elder adaptations in the house?   Would you consult a disability/mobility specialist?   

This is perhaps the best post on the forum for assessing what's necessary for creating/building an apartment or home for aging elders.     It may seem overwhelming when you read all the posts, but it'll be a real wake-up call for what should be considered if a home is built by your parents under the scenario you discussed.

https://www.agingcare.com/questions/moving-to-ca-our-daughter-is-planning-to-add-a-room-over-their-2-car-garage-i-would-like-to-know-whe-452102.htm

And whatever you do, think it out, see professionals as recommended, and don't make any quick decisions.  And, good luck!

I'm going to leave the Medicaid look-back assessment to others, including Igloo, who's an expert on these issues.