She is fairly independent and in decent shape for 88, mentally very sharp and still has a great disposition and attitude. However, she does need someone to check in on her every other day or so, and needs money to help maintain her home and have and reserve in case she needs additional care.her home is paid for and is approximately $700,000. I am considering taking out a HELOC in my name to help fund her care and the maintenance of the home.
But not in your name, if Mom is mentally sharp why is she not making a decision re her future?
She needs at least 10 year plan and best would be selling property, especially if it is older home and it will require more maintenance.
At $700,000 she will have around $6,000 per month + extra funds and pension, if she chooses AL. Could be $8,000 including interest and pension.
Talk to financial advisor but make sure to go for conservative investment.
Nope don't do it. Unless the house is in your name. Here is the reason: if mom needs to go into a facility the house may need to be sold to pay for her care. It will create a lot of problems for you taking out a loan on the house if this happens (unless you go to an attorney that knows what they are doing and it is structured correctly so you get your money back on this loan).
It doesn't matter how great her attitude and disposition mom has, if mom cannot do the maintenance on her own home and cannot afford to do said maintenance then mom needs to start looking at alternative living arrangements and selling the house. It sucks but it is a reality. Mom needs to make living and arrangements for her future care needs which are starting and not live in the past in regards to her capabilities. It will make her transitions a lot easier that way for both her and you.
Don't do a reverse mortgage they are SCAMS.
It is good for some and for others it is bad, as it gives them income that precludes their applying for Medicaid, and if they have to leave their home then it must be sold.
For my mate, when she passed he sold the home, paid off the reverse mortgage and still had some inheritance left.
So it just depends. Like much else in life it is a gamble.
I would run this strategy past your financial planner, and if you don't have one visit bogleheads.org (a crowd-source forum like this one that focuses on financial matters) and pose your situation for input.
FYI the description of your Mom matches that of my Aunt, who just turned 105... your plan needs to not be financially risky or onerous to you. It must be sustainable. If she lives long enough to need LTC in a facility she can financially qualify for Medicaid but it will put a lien on the house that the next owner will need to satisfy.
Even if she doesn't go into a facility, the cost of 24/7 in-home care will exceed the annual cost of private-pay facility.
And forget a message board for this she needs to talk to a decent attorney who handles things like this (many suck so choose wisely).