My daughter and her husband paid 22% of the cost of the home we just bought. If and when the time comes when my husband or I die and the surviving spouse wishes to move to an assisted living facility, could he/she use the 78% equity of our home to pay for it?
Or the house could be sold with the equity [minus the costs involved with selling a house] going 78% of what is left to you, and 22% of what is left going to your daughter & son-in-law.
If only we had a crystal ball. There is no way of knowing if down the road you might need paid home caregivers. Or if neither you nor your hubby need to go into Assisted Living, or if both of you would need to move in sooner than later.
Or if the equity gets used up quicker than thought, then you need to apply for Medicaid, and if it was within 5 years that you need a higher level of care, how Medicaid would view the joint ownership of the house. I know, life shouldn't be so complicated as we all age.... [sigh].