Should the client sell before or after moving into care?
Both are common, and the right order depends on the client's finances and health. Selling first frees up cash for an entrance fee or monthly costs, but means a second move or a short-term stay. Moving first lets the family empty and prepare the house without the client living through showings, but the family carries the mortgage, taxes, insurance and upkeep on a vacant home in the meantime. Some families bridge the gap with a short seller rent-back after closing, or a loan secured by the house. The advisor and the client's attorney usually weigh in on which fits the plan.
Who can sign for the sale if the client can no longer manage their affairs?
It depends on the documents in place. If the house is in a living trust, a successor or co-trustee can usually act. If there is a durable power of attorney that covers real estate, the agent under that power can generally sign, although title companies will want to review the document. If neither exists and the client lacks capacity, a court conservatorship may be needed before the house can be sold, which adds court approval and time. The client's attorney decides which authority applies; we work with whoever holds it.
Will the client owe capital gains tax on the sale?
Many will owe little or none. Under federal law, a single owner can generally exclude up to $250,000 of gain, and a married couple filing jointly up to $500,000, on the sale of a main home owned and lived in for two of the last five years (Internal Revenue Code section 121). There is a special rule for clients who move into a licensed care facility: if they lived in the home for at least one year of the five years before the sale, time spent in the facility counts as living in the home (IRS Publication 523). Long-held Bay Area homes can still have gain above the exclusion, so the timing of the sale is worth reviewing with the client's certified public accountant.
Can the client keep their low property tax base if they buy a smaller home?
Often, yes. Under Proposition 19, a homeowner who is at least 55, or severely disabled, can transfer the taxable value of their primary residence to a replacement home anywhere in California, up to three times. The replacement must be bought or built within two years of selling the original home, and the claim (form BOE-19-B) is filed with the county assessor where the new home is. If the new home costs more than the old one sold for, part of the difference is added to the transferred value (California State Board of Equalization).
How does a home sale affect Medi-Cal eligibility?
The home itself is generally an exempt asset for Medi-Cal while it is the client's home, but once it is sold, the proceeds are cash. California reinstated a Medi-Cal asset limit on January 1, 2026, of $130,000 for an individual and $195,000 for a couple, and lawmakers have since approved a lower limit starting in July 2027. Medi-Cal estate recovery in California generally reaches only assets that pass through probate. Because the timing and structure of a sale can affect eligibility, clients who may need long-term care Medi-Cal should speak with an elder law attorney before listing.
What happens to a reverse mortgage when the client moves out?
A federally insured reverse mortgage (a Home Equity Conversion Mortgage) generally becomes due when the last borrower no longer lives in the home as a principal residence, including after 12 months in a care facility. The home can be sold to repay it. If the home sells for less than the loan balance, the borrower or heirs generally do not owe the difference, because the loan is non-recourse. We order a payoff early so the client and family know what the sale will net.
How do our members handle the house and its contents?
Clearing a home lived in for decades is often the hardest part for the family. Our members can coordinate the steps around the sale: estate sale companies, donation and haul-away, cleaning, small repairs and staging, and secure storage for anything the family is keeping. The client or family chooses and pays the vendors; we schedule them around the listing.
Should the house be fixed up or sold as-is?
Both work. Many older homes sell well as-is to buyers who plan to renovate. Others benefit from inexpensive updates such as paint, flooring, landscaping and repairs that come up in a pre-listing inspection. We prepare a side-by-side estimate of the likely net proceeds both ways, so the client, family and advisor can decide.
How are adult children and other family members kept involved?
With the client's permission, we keep the family informed through the person the client chooses, often an adult child or the fiduciary. Showings, offers and documents can be handled remotely for family members who live out of state, and documents can be signed electronically. We are careful to take direction only from the client or the person with legal authority to act for them.
What protections are there against pressure or elder financial abuse?
California law treats financial abuse of elders seriously (Welfare and Institutions Code section 15610.30). Our members confirm who has authority to act, communicate directly with the client where possible, and involve the client's attorney or fiduciary if anything about a sale or a buyer seems off. We would rather slow a sale down than move forward on a decision the client does not understand.
What does the listing agent handle, and what stays with the attorney or advisor?
The agent handles the real estate side: pricing, preparing and marketing the home, coordinating vendors, managing offers and seeing the sale through escrow. Legal documents, benefits planning, tax decisions and the client's overall financial plan stay with their attorney, accountant and advisor. Our members do not give legal or tax advice.
Is there a referral fee for attorneys, fiduciaries or advisors?
No. In California, a real estate broker generally may not pay a referral fee to someone who is not licensed as a real estate broker or salesperson (Business and Professions Code section 10137), so we do not pay referral fees to attorneys, accountants, advisors or care managers.
How do I refer a client to the collective?
Send us the property location and what your client needs, and we match the client with a member who works in that county and has experience with senior moves. With the client's permission, we keep you updated at listing, accepted offer and closing. Refer a client.
This page explains how these sales generally work in California. It is not legal or tax advice. Every estate and trust is different, so please confirm the details with the estate's attorney or certified public accountant.